Table of Contents

1. Airbnb marketing mix........................................................................................................................... 2

1.1 Product.................................................................................................................................................... 2
1.1.1 Quality................................................................................................................................................. 3
1.1.2 Flexibility........................................................................................................................................... 3
1.1.3 Unique Selling Point...................................................................................................................... 3
1.2 Price......................................................................................................................................................... 4
1.2.1 Psychological.................................................................................................................................... 4
1.2.2 Geographical..................................................................................................................................... 4
1.2.3 Bulk...................................................................................................................................................... 5
1.3 Place (Location)................................................................................................................................... 5
1.4 Promotion.............................................................................................................................................. 5
1.4.1 Digital marketing............................................................................................................................ 6
1.4.2 Reward Programs.......................................................................................................................... 6
1.4.3 Community Influencers............................................................................................................... 6
1.4.4 Conventional marketing.............................................................................................................. 6
2. References.................................................................................................................................................. 7

List of Tables:
Table 1: partners and suppliers of Airbnb Source: based on Spiderbook.com.......................5

List of Figures

Figure 1: Airbnb 4p Strategy....................................................................................................................... 2

Figure 2: Business models connect strategy and operations. Source: modified from
Bieger.................................................................................................................................................................... 2
Figure 3: Pricing Strategy & Cashflow..................................................................................................... 4
 1. Airbnb marketing mix
The Airbnb used 4ps marketing strategy to achieve not only the marketing goals but
also the broader organizational level objectives towards company’s vision & mission.
The marketing mix is 4Ps marketing mix: Product, Price, Promotion, and Place. But
here Airbnb used 4p along with digital marketing to compete the latest competitive
environment.

Product Price
Quality Psychological
Flexbiility Regional
Unique selling point Bulk

Airbnb 4P Strategy
Place Promotion
Parteners Digital marketing
suppliers E-Commerce
Superstores

Figure 1: Airbnb 4p Strategy

1.1 Product
Particularly successful business model configurations are known by a shorthand
descriptor. For example, in many contexts industry challengers operate a low-cost
business model trimmed for cost-efficiency: easyCruises, no-frills Southwest Airlines,
Aldi budget retailers, ibis budget hotels, or McFit gyms. Other frequent configurations
are Ebay’s auction model or the bait-and-hook model operated by Nespresso that sell
coffeemakers at a huge discount (the bait) but charge a premium for exclusive coffee
capsules (the hook). [ CITATION Dol18 \l 1033 ]

Figure 2: Business models connect strategy and operations. Source: modified from Bieger
Airbnb and other peer-to-peer accommodation network facilitators operate a business
model configuration referred to as a multi-sided platform model. Facilitators running
multi-sided platform business models connect two or more parties (buyers, seller, and
supplementary service providers). The term multi-sided originates from the economics
literature and refers to parties connecting as different sides of a market Hosts (first
side) are offering unused or underutilized space. Guests (second side) are looking for a
place to stay for a short period of time. Supplementary service providers (third side)
may provide photography services to hosts, thus enabling them to present their space in
a more attractive way on the trading platform; or concierge services that augment guest
experiences and open up opportunities for entrepreneurship[ CITATION Dol18 \l
1033 ]

1.1.1 Quality
• Airbnb provides quality services and maintain enough hygiene environment in
their stays.
• The vendor and product suppliers are verified and tested for their quality and
predefined for various level of service to maintain the equal quality at each place.
• All the materials are handled very carefully and the temperature and
environment is maintained to keep its consistent quality of the products
• Airbnb offers such high quality service with competitive advantage

1.1.2 Flexibility
• Easy to use and flexible to policy for users.
• The provide a user manual, which make is very easy for individual to understand
and comes with simple instructions to use the product.
• They have also 24/7 customer care helpline to guide and educate the customer
• Their retail sale-representatives are also well train to educate the customer with
detailed explanations for the use of the product while purchasing.

1.1.3 Unique Selling Point

• Airbnb offers advantages to consumers for product usage.
• These functional advantages are well defined, assured and provided.
• consumers get confident, pride and safety from Airbnb product.
• Airbnb also suffice the psychological & emotional requirement on product
consumption
• such emotional psychological requirements include, for example, the need for
empathy, belongings & love
 1.2 Price
While price is clearly an important factor as Airbnb guests assess their options, several
researchers have instead examined the more general concept of value. surveyed both
Airbnb users and non-users and found star rating had a positive influence on perceived
value, which in turn had a positive influence on purchase intentions, whereas rating
volume had a direct positive influence on purchase intentions. Also, surveyed Airbnb
users and found they were willing to pay a premium (versus ahotel) based on perceived
functional and social value early on in the buying process.[ CITATION Gut19 \l 1033 ]

Figure 3: Pricing Strategy & Cashflow

1.2.1 Psychological
Since Airbnb has a number of different product ranges and product groups, the use of
psychological pricing has been beneficial
With the use of psychological pricing, Airbnb also successfully adds more value to its
products from the point of view of customers
Airbnb also gains higher sales with psychological pricing
Consumer purchase a higher amount of Airbnb products because of its use of
psychological pricing
Airbnb is able to increase its target audience and broaden its target purchaser groups

1.2.2 Geographical
• Airbnb is able to penetrate different regional markets optimally with the use of
geographical pricing
• For offshore locations, geographical pricing also allows Airbnb to cover shipping
and customs expenses
• Geographical pricing also allows Airbnb to maintain consistent revenue growth
by altering pricing in different markets based on local currency value

1.2.3 Bulk
 For some product ranges, Airbnb is also known to use bundle pricing strategy
popularly
 Airbnb also uses bundle pricing during sales
 Bundle pricing increases the trial rate for consumers
 Airbnb experiences higher return on the cost of gaining a new customer
 With bundle pricing, Airbnb is also able to control costs and prices by lowering
marketing and distribution expenses
 The use of bundle pricing also adds value to the umbrella brand name of Airbnb.

1.3 Place (Location)

The Airbnb investment in research conducted by renowned consultancies can be
interpreted as part of a marketing strategy aimed at destinations. The message this
apparently has to get across is: cities benefit by increasing the number of visitors, by
spreading them over the cities and by financially empowering non-traditionally
employed residents, such as new business starters. This explains that while in some
cities – New York, Barcelona – authorities stress the commercial and socially
undesirable aspects of short-term rentals[CITATION Jer16 \l 1033 ]
Information on partners and suppliers that contribute to the value creation of Airbnb is
very limited. Table 4.5 summarizes selected partners listed by Spiderbook and Travel
Market Report . Amazon Web Services hosts all of Airbnb’s web services, eliminating the
need for Airbnb to run its own marketplace hardware infrastructure, and allowing quick
scaling of processing capacity. In addition, Airbnb cooperates with a number of business
travel companies for its integration with corporate travel programs.[ CITATION
Dol18 \l 1033 ]

Table 1: partners and suppliers of Airbnb Source: based on Spiderbook.com

1.4 Promotion
Airbnb using various promotion strategy at regional level as per customers preference
as mentioned below.
1.4.1 Digital marketing
 Airbnb has corporate profiles on all social media websites and portals
 Airbnb uses its social media presence to directly, engage with consumers
 This direct engagement and interaction allows Airbnb to understand the
customers, their needs and demands
 Airbnb uses this feedback and incorporates it in its broader marketing and
organizational strategy
 Airbnb also maintains a corporate website – which highlights company
information, product information as well as information regarding any ongoing
campaigns and sales

1.4.2 Reward Programs

 Airbnb has a loyalty card program for its customers
 The loyalty card allows customers to redeem points in exchange for products or
other exciting gifts, as directed by the company
 Each purchase is entered into the loyalty card by Airbnb and is valued for points
against the products’ monetary value
 The loyalty card can be purchased or is given complementary by Airbnb on high
valued purchases
 Frequent usage and purchase of products by Airbnb also has rewards against the
loyalty card

1.4.3 Community Influencers

 Airbnb makes use of community influencers as its on-ground promotional efforts
 Airbnb identifies strong and confident individuals to be brand ambassadors in
their communities
 Airbnb provides these brand ambassadors and community influencers with its
product range and invites them to use it themselves to see benefits

1.4.4 Conventional marketing

 The company places advertisements in consumer-related magazines. This largely
includes home decor, and home management magazines
 Magazine ads are not very frequent, but appear twice every quarter of the fiscal
year
 In high-density locations, Airbnb also makes use of out of house hoardings
 Hoardings increase visibility for Airbnb and also work towards building stronger
brand recall
 Airbnb also produces TV advertisements
 All TV advertisements have an emotional appeal to them
 TV advertisements by Airbnb have progressed to include a slice of life elements
and characteristics
 TV advertisements by Airbnb also highlight the functional benefits of the product
2. References

1. Dolnicar, S., 2018. PEER-TO-PEER ACCOMMODATION NETWORK, Oxford:

Goodfellow Publishers Limited.
2. Guttentag, D., 2019. Progress on Airbnb: a literature review. Journal of
Hospitality and Tourism Technology, pp. 1-32.
3. Jeroen Oskam, A. B., 2016. Airbnb: the future of networked hospitality
businesses. Journal of Tourism Futures, pp. 22-42.