Course Code: MKTM503 Course Title: Marketing Management – I

Course Instructor: Dr. Pavitar Parkash Singh

Academic Task No: CA 1 Academic Task Title: ASSIGNMENT

Date of Allotment: 20-09-2021 Date of submission: 04-10-2021

Student’s Roll no: RQ2141A27 Student’s Reg. no: 12103946

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 Airbnb

INTRODUCTION

Two roommates Brain Chesky and Jeo Gebbia got an idea of renting a matrices in
their room and turning it into bed and breakfast. Later on in 2008 Nathan
Blecharczyk joined as a chief technology officer and co founder of new venture,
named as Air bed and breakfast. Airbnb is an American company that operates
an online residential market, especially residential short term rental
accommodation (home stays) and tourism activities. Based in California, San
Francisco it’s accessible only from website and mobile app. Airbnb does not own
any of the property which are available for rental purpose, it profit on commission
on booking property.

Airbnb offers a hospitality platform for guests with temporary accommodation and
tourism related activities. Guest can filter loading type, date, location price,
specified homes beds and breakfast areas, separate homes, and holiday homes.
Guest can talk directly to a host through secure messaging system. In addition to
accommodation, Airbnb includes the listing of certain services on its platform,
such as Experiences; members can book activities with guide, including cooking
classes, tours, and meetups.

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 MARKETING ORIENTATION

Orientation followed by the company is Market Orientation.

Market Orientation is a business concept where focus is on customer need, wants

and meeting them. The market orientation is it depends on the four pillars: target
market, customer needs, integrated marketing and profitability.

Airbnb itself doesn’t own any properties which are listed for lodging. It profit by
commission from booking. It provides online booking for short term lodging and
live activities. The guest can filter location, price, date and specific types of home.
For good understating between host and guest it provides secure messaging
system. The host provide price and detail like rules, host number, amenities.
Airbnb Plus appoints host who provide a conditions, including a clean refrigerator,
complete cooking equipment, full toiletries, fast Wi-Fi, and good water supply.
Airbnb collections include Family Airbnb, Work Airbnb, and home venues for
weddings and other circles.

As Airbnb model is based on need of the people which is effective, simple, and
innovative and help to provide ease of selecting the loge according to them. This
can show us that Airbnb has used Market Orientation concept for their business.

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 ENVIRONMENTAL ANALYSIS

The environmental impact of Airbnb accommodation was compared to hotel

accommodation (based on 8,000 survey responses from visitors and visitors around
the world). To top it off, the accommodations were compared to other more stable
and energy-efficient hotels. By helping residents to share their homes, Airbnb
promotes the effective way to use existing energy as well as more environmental
sustainable way of travelling. Home sharing results in remarkable reduction in
energy usage and water usage, waste generation is less and encourage awareness
among the tourists and visitors. Properties in Airbnb consume less energy and
water as compare to hotels. Airbnb properties emit less green house gas, 10-15 %
guests are using public transport, walk or a bicycle, by “Living Like a Local” the
guest can reduce their environmental impact on the place they visit. Most of the
Airbnb use organic products to reduce harsh chemical usage.

Another environmental impact can be on local purchasing. Few of the host in

Airbnb promote local items in their properties. They give gifts to guest while check
in like welcome with local sweets, or some special item of that area. Airbnb also
help small vendor or market as guest can visit their shop. As most of the hosts are
local so they can also promote their culture by organising function with locals and
giving locals chance to earn. By providing local food at their properties they can
promote food culture of that area. It make family like relation between host local
and guests.

All these factors are environmental impact affecting the Airbnb. These factors help
to make a bond with customer so that they can visit again though Airbnb.

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BIGGEST COMPETITOR

Booking .com established in 1996 in Amsterdam and grown as the one of the
largest ecommerce travelling company. Mobile app of Booking.com are available
in more than 40 languages with an estimated 28,539,679 locations listed - home
BnBs, luxury resorts, apartments, home and many more - with more than 150,000
locations in 229 countries. Booking.com has always been like a website for hotels,
resorts, and accommodations, not for private vacation rentals or individual rooms.
Although it has changed in recent years, and the platform attracts more vacation
rental, guests may seem to be in high demand. Booking.com only offers private
rental accommodation instead of shared accommodation options (with private
rooms or shared rooms) preferred by Airbnb . Booking.com offers many
opportunities and promotions to choose from to help property managers use their
listings with conversions. Booker.com commission fee is between 12-18%,
depending on the type of location. Whereas it’s slightly higher than 16% of
Airbnb. One of the great things about booking a hotel with Booking.com is that
once the booking is over, there is little you need to do before you arrive. This is not
the same as Airbnb, where you need to contact your host, make sure they will be
home when you arrive and maybe get some instructions on how to get to their
destination.

So in my opinion booking.com is biggest competitor of Airbnb. But the future of

Airbnb is more because now people want open space and no one else should hinder
in their private time. Therefore people will more like to book airbnb.

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VALUE ADDITION ACTIVIES

AIRBNB INBOUND LOGISTIC

In traditional businesses the inbound logistic includes the acquisition and storage
of raw materials that will be used to make products. Internal administration differs
from the overall service industry and online service mainly due to differences
between products and services.

Airbnb inbound is divided into two parts

➢ Inbound logistic related to core services: The company's main services

include peer-to-peer listing, accommodation and adventure. Airbnb's logistic
for its core services takes a few minutes thank to the nature of the online
business only. Specifically, host can list their properties or experience
services on the input column website in a matter of minutes. Therefore, the
inbound logistic for each new addition to its website does not incur
additional costs for Airbnb.

➢ Inbound logistic of resources and commodity that are used to make easy for
core services: Company also use a physical resources such as stationary for
office. The products like mug, pillow is given as a gift so that guest can
revisit. Scale economies can be cited as a key source of additional Airbnb
purchases that help simplify core services.

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AIRBNB OPERATIONS

Generally operation mean process of raw material to finished product in

manufacturing company. In service industry operation is process of
providing services. Specifically for Airbnb, the functions include a range of
functions such as key management, cleaning and providing in-house
services. Thanks to the Airbnb platform business model, these functions are
performed by the hosts, not the company and the business model of the
platform that allows the company to measure business worldwide. Similarly,
today Airbnb operates in more than 191 countries and regions around the
world and there are approximately 100000 cities with Airbnb lists and
500million Airbnb visitors regularly.
In summary, the online platform business model is a major source of value
building for Airbnb operations in such a way that most of the tasks are
performed by the hosts. A global retailer company must maintain the appeal
of the system to both types of its customers - visitors and visitors through a
combination of technology and alternatives.

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AIRBNB OUTBOUND LOGISTIC

Outbound logistic are associated with the storage and distribution of final
goods. Popular sources of value creation in enterprise outbound logistic
operations include direct delivery to customers without intermediaries,
partnerships with other businesses to share distribution costs and technical
integration into the distribution process. Outbound logistic is much lesser in
service company then manufacturing industry because in jobs production
and consumption occur simultaneously. In addition, the outbound logistic is
related to Airbnb's very limited performance because accommodation,
experience and adventure services are provided to guests by hosts, not by the
company.

AIRBNB MARKETING AND SALES

Airbnb marketing strategy comply of content marketing as service based

company do not focus on selling products their main foucs is on selling and
showcasing the unique experience that customer using Airbnb, in the form
of video content and blogs. Airbnb also use influencer marketing by brand
collaboration with celebrities to showcase, advertise services to the new
audience. Referral program is also one of the strategy of marketing as the
existing member are given reward or offers for inviting new users to the
platform. All these strategies are digital marketing strategies. Airbnb has
only used digital marketing for their marketing.

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 AIRBNB SERVICES

The main function of the service within the framework of the value chain
analysis is related to the level and extent of customer support after the sale.
The high level of customer service is one of Airbnb's strongest sources of
competitive advantage. The Airbnb customer service team has hundreds of
agents available by telephone, chat and email, 24/7, at all times and in 30
different languages. Both guest and host rate each other after the stay and
this encourage host to improve their services.

REFRENCES

1. https://en.wikipedia.org/wiki/Airbnb
2. https://blog.atairbnb.com/environmental-impacts-of-home-sharing/
3. https://www.startingbusiness.com/blog/marketing-strategy-airbnb
4. https://www2.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-
Con.html
5. https://www.mbaskool.com/pestle-analysis/companies/17960-airbnb.html
6. https://research-methodology.net/airbnb-value-chain-analysis/
7. https://phcdata.mui.ac.ir/wp-content/uploads/09l7u/d99852-airbnb-
marketing-plan-pdf
8. https://jungleworks.com/airbnb-business-model-revenue-insights/