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Airbnb Care Goal:-Emergency re-booking assistance to the guest when cancellation is initiated by the host
By :- Nidhi Kaushik
AGENDA
• BUSINESS MODEL CANVAS
• INDUSTRY ANALYSIS
• Airbnb COMPETITORS
• COMPETITORS : FEATURE COMPARISON
• ISSUES AFFECTING AIRBNB TODAY
• WHY DO WE CARE
• PROBLEM STATEMENT
• HYPOTHESIS
• WHY WILL Airbnb WIN?
• TARGET PERSONAS
• PROPOSED SOLUTION
• PRODUCT ROADMAP
• MVP
• WIREFRAME
• OBJECTIVES & KEY RESULTS
• RELEASE PLANNING
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Business Model Canvas
Key Partners
-Hosts
-Business travel managers
Investors/venture capitalists
Other partners:
-Photographers (street, event, property)
-Maps, payment, cloud storage, identification
-Insurance
Key Activities
-Remove friction from transactions
-scale beyond critical mass
-Engage the participants
-Refine value proposal
-Analyze data & improve
Value Proposition
For the hosts: -
-Income generation
-Ease of transaction
-meeting new people
-Ease of getting verified guests
-Calendar, booking management
For the guests: -
-lower cost
-Easy transactions
-Authentic local experience
-More variety
-Transparent ratings
Customer Relationships
-Own the relationships
-Manage interactions
Especially for hosts:
-Issue resolution
-Guide joining steps
Public: Company Image
Customer Segments
Guests
-Travel type (business, leisure)
-Demographic
-Geographic
-Behavioral
Hosts
-Accommodation type
-demographic
-Geographic
-Rental preferences
Key Resources
-the network effects
-Listings
-User generated Content
-Platform Architecture
-Algorithm, data analytics capabilities/people
- App
Channels
-Digital Ads
-Content marketing
-Word of mouth
-Social, messaging
-Referral Program
-Transaction: App, pages
Engage: mails, offers
Cost Structure
-Customer acquisition cost
-Development &expansion
-Payroll, contractors
-Infrastructure, transaction costs
-Legal, insurance
-Customer support
Revenue Streams
-charging a transaction fee
3-5% service fee from guests (higher the total, lower the percentage)
- 10-15% fee from host for every booking
-Event hosts: 20%
-Event guests: 0%
https://strategyzer.com/canvas/business-model-canvas
You can download this file as excel file at:
Devised by Alexander Osterwalder
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Industry Analysis
• The B&B Industry has an estimated worth of $3.4 billion.
• The average occupancy rate for American B&Bs is 43.7%.
• The average daily rate (ADR) for American B&Bs is $150.
• The average revenue per available room for American B&Bs is $58
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Local Presence
Luxury Rentals
Affordable listings
International PresenceAirbnb Competitors
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VRBO Booking.com Airbnb
Listings worldwide 2 million active listings around the world with more pet friendly listings that Airbnb
5.4 million properties in 228 countries 4 million listings in 191 countries
Host fees and payments
Three fee options to potential hosts: annual subscription, pay-per-booking and outside management service. VRBO has third party management partners that hosts can browse and employ on the VRBO website
Rental owners pay a 3 percent credit card fee and a 15 percent booking fee, but there’s no subscription fee.
10-15% per transaction, not charged anything to list but charged 10% and above once booking is confirmed.
Payment to host "Advanced Payment Service" where their funds arrive in their bank account 3 to 7 business days after booking OR through the "Check-in Payment Service" where funds arrive 3 to 7 business days after the first day of guest check in.
After check –in Hosts receive payment only 24 hrs. post check in
Guest /traveler fees Nothing other than booking amount Nothing other than booking amount 3% -5 % from the traveler.(fee percentage shrinks as the reservation amount increases)
Cancellation by the guest
Provides cancellation protection to guest to cover for any damages, trip cancellation etc. sorted into Essential, elite and enhanced protection
Cancellation by the guest is subject to terms and conditions and depending on the booking , certain amount is forfeited.
Airbnb has a four-tier system for full refunds: flexible, moderate, strict and super strict
Competitors : Feature Comparison
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Cancellation by host22%
Scams15%
Unsafe or unpleasant conditions
20%
Fake listings or Fake reviews1%
Poor Customer Service16%
Problem in Refund Claim26%
ISSUES AFFECTING AIRBNB PLATFORM TODAY
Cancellation by host
Scams
Unsafe or unpleasant conditions
Fake listings or Fake reviews
Poor Customer Service
Problem in Refund Claim
Why do we care?
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4 million Airbnb listings worldwide.
Airbnb offers listings in over 191 countries.
65,000 cities list homes with Airbnb.
Airbnb averages about 500,000 stays per night.
On any given night, 2 million people are
staying in Airbnb rentals across the world.
Only 11% of the nearly 500,000 US listings are reserved on a typical
night.
In the rare event of accidental damage, the
property of every Airbnb host is covered up to a million dollars.
Problem Statement
Feature Emergency Rebooking assistance with Airbnb Care
Customer(s) Airbnb guests experiencing cancellations
Business Goals of the Product/Feature
Achieve :
• 10% increase in Conversion Rate YoY
• 5% increase in Revenues YoY
Problem How might we enhance the guest experience in case of cancellation by the host so as to achieve the business goals and also increase brand loyalty?
Impact of Not Meeting Goals
Loss of customers to competitors ~ 10% Customer Attrition
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Hypothesis
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Hypothesis Providing customers with new booking, in terms of similar listing or similar hotel accommodation, in the event of cancellation by the host at no extra charge would ensure positive experience ,thereby enabling greater guest confidence while booking and increasing Airbnb’s brand loyalty.
Risks/Assumptions • Assumption: Same period of stay as previously booked
• Risk: Unwillingness of the User to try out the new rebooking feature
Market Fit • We can limit the customer churn and drive brand loyalty by introducing the new rebooking feature thereby driving business goals
• Most of these features already exist in leading competitor sites such as VRBO, so from Competitive analysis perspective also the feature is must
Why will Airbnb Care win?
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Unlike VRBO , no condition on checkout
If similar listing is at a higher price the cost is borne by
Airbnb
The guest has the choice to choose from Upgraded listing
when re-booking
If similar listing isn’t available , similar hotel accommodations
are shown
VRBO provides emergency rebooking assistance only for
last minute cancellation , Airbnb will provide re-booking assistance for all cancellation
initiated by the host.
TARGET PERSONAS
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Sheryl Anthony
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PROPOSED SOLUTION
Implement a solution that will provide assisted
care to the guest who experience cancellations.
Airbnb Care
• Similar Listings
• Upgraded Listings
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MVPSIMILAR LISTING WITH AIRBNB CARE
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Wireframes for MVP
• Similar Listing • Similar Hotel Accommodation
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Similar Listings with Airbnb Care
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What if Similar listings aren’t available?
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Similar Hotel Accomodation
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User’s Decision
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• Rebooking Percentage
• Decrease in online (CS) contact rate
• Revenue growth
• Loss of Revenue for Airbnb (cost adjustment)
MVP METRICS
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Objectives & Key Results
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Objectives Key Results
Drive more sign ups on Airbnb platform due to increase in confidence and loyalty
•Increase in traffic by 10% monthly•Increase Number of new user sign up by 20% monthly
Increase engagement and conversion •Increase the re-booking conversion rate by 10% quarterly
Increase customer loyalty and confidence by providing them with re-booking assistance
•Increase in returning users (persona type:- active traveler)by 15% monthly
Increase in revenue due to upgraded listings •Increase in booking of upgraded listing by 10% for cancellations monthly
RELEASE PLAN (MVP)
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Q3 2018 Q4 2018 Q1 2019
Product MVP results monitoring
Similar listings with Instant Book
Non instant book & super host listings
Resource Alignment
Similar Hotel listings
A/B test Analysis
A/B test Analysis
References
• Business Model Canvas:- https://strategyzer.com/canvas/business-model-canvas
• Airbnb Statistics:- https://ipropertymanagement.com/airbnb-statistics/
• Issues affecting Airbnb today:-https://ipropertymanagement.com/airbnb-statistics/
• https://blog.pillow.com/airbnb-competitors-who-are-they-and-whats-the-difference/
• https://www.littlehotelier.com/r/property-management/american-bed-breakfast-inn-statistics/
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