Belong anywhere

Team 3: Alexia Gak Deluen, Paul Hayat, Keeravij Kitiyadisai, Lucas Letellier, Jakob Luttropp, Nelson le Masson

Contents

• Introduction

• Objectives/Strategies

• Internet – Value Proposition

• Marketing Strategies

• Partnerships

• Metrics

• Challenges

• Opportunities

• Recommendations

• Discussion Questions

Introduction

• Initial concept created in October 2007

• Launched in August 2008

• Founders: Brian Chesky, Joe Gebbia and Nathan Blecharczyk

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

Introduction

• Funding and Valuation– Over 2 million listings

– More than 60 million users

– $119.8 million in venture funding in 2011

– $450 million in 2014

– $1.5 billion in 2015

– Latest valuation: $25.5 billion

• Guests and Revenue Growth– 47,000 guests in Summer 2010

– 17 Million guests in Summer 2015

– Last years revenue ~$900Mn

– Projected to grow to $10Bn in 2020

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Objective:

Increase the number of Airbnb users

• Strategy:

Bring more traffic to the platform through SEO tools and partnerships

Objectives & Strategies

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

– Distribution Channel

• Gather customers in the same place

– Easy to Sign up

• No useless information

• Facebook / Google API

• Required to use the service

Internet

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

- Sponsorships

Internet

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

– Design Layout

• Flat Design

• Appealing Pictures

Internet

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

Internet

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Black-Hat Strategy – Growth hacking (Craigslist case)

• Targeting tools (Google Display)

• VIDEO http://youtu.be/D9SGDACeQnE

Marketing/SEO Strategies

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Google adwords

• Pay Per Click (PPC)

• Remarketing

• Website content (Localisation challenges: adapting its content to the market)

• Main traffic sources (referral site and search traffic)

Marketing/SEO Strategies

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Online Partnerships to bring traffic

– Virgin, KLM, American Express, China Broadband

Capital (CBC), Sequoia China

Partnerships

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Partnerships to improve public image

– Green image: Tesla, Nest

– NGOs: Red Cross Foundation, The United Nations High Commissioner for Refugees

Partnerships

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Demographics– US accounts for HALF of Airbnb users, second

country is India with 5.6% of total users– First European country – Spain with 1.4%– 88% of reservations were for 2-4 people– 60% are for the entire home/apartment– Only 11% of 500,000 unique listings were

reserved on a typical night for the 2015 Q1– 54% of hosts are female, 46% male– Visitors - 33.7% from Google, 8.2% from

Facebook, 1.7% from Yahoo

• Visitor engagement: over 25 million unique users per month, 5.7m page views per day

Metrics

Male,

46.00%

Female,

54.00%

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Conversion rate: From November 2012 to

October 2013: 6.01 million unique visitors;

4.14 million view a listing (68.79%); 359k

book a listing (5.97%).Although Airbnb has a

very high engagement, it has a low conversion

rate compared to its competitors

(Booking.com, Hotels.com)

MetricsBacklinks: 10,310 pages link to Airbnb, total do

follow backlinks are 413,063 and total no

follow backlinks are 101,816

Hierarchical browsing: Google page rank

number 7, one of the top websites out there,

website value is almost $6bn)

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Legal challenges – some listings are illegal– NYC, ~70% of listings are illegal

• Competition on Google search results– E.g. Homeaways

• Corporate Image– Failed partnership with online ticket seller voyages-sncf.com

• Trust Issues

• Travelers Retention rate

Challenges

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Business travel - Make Airbnb a common option for business travelers

• Shorter/longer stay - only 11% of booking are for 1 night only, 31% for 2-3 nights.

• Single travelers only account for 7% of all stays

Opportunities

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• Forum - users can exchange and publicly ask questions if they have any issues

• Increase rankings on search engines• Diminishes bounce rate• Increase their presence on search engines• Referrals (with sites source of huge traffic) and backlinks• Adwords (if you type for instance “Barcelona accommodation on

Google, Airbnb does not appear)• Improving their corporate image to partner with more state-owned

companies and organisations• Customer loyalty

Recommendations

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion

• How can Airbnb increase their conversion rate, both for host and travelers?

• Should Airbnb improve its corporate image in order to create partnerships with public tourism organisations?

• How could Airbnb increase the amount of single travelers using its service?

Discussion Questions

Introduction Objectives Internet Strategies Partnerships Metrics Challenges Opportunities Recommendations Discussion