STUDY CASE

Airbnb is the shortened version of its original name, AirBedandBreakfast.com. It is an

American company that operates an online marketplace for lodging, primarily homestays
for vacation rentals, and tourism activities. Airbnb is based in San Francisco California
and the platform can be accessed via website and mobile app. Airbnb help connect people
who want to rent out their homes with people who are looking for accommodations in
specific places or locales. Airbnb claim too offer people an easy, relatively stress-free way
to earn some income from their property.

Guests often find Airbnb cheaper, has more character, and is homier than hotels. Airbnb is
popular for travelers who are in a budget for its cheaper price than a hotel and also gives
them an opportunity to know local culture in the place they are staying in. More and more
people use Airbnb to take advantage of its unique features to earn extra income by renting
out their properties.

I. Relevant Facts and Information of the case

 Founder name: Brian Chesky, Joe Gebbia.

 Founder Date: August, 2008
 Working Method: Via either the Airbnb websites or mobile applications for iOS, Apple
Watch, and Android
 In October 2007, an International design conference occurred.
 Brian Chesky and Joe Gebbia had an idea of making extra money by renting out space in
their apartment after noticing that all hotels that were listed on the conference’s website
were sold out.
 Users are categorized as “hosts” and “guests”
 Second Conference happened in February 2008
 Chesky and Gebbia tried a third conference in April 2008 where they hooked up 30 – 40
people
 The founders realized that Airbnb is bigger than conference
 In early 2009, Chesky and Gebbia together with their programmer joined Y combinator- a
start up incubator located in Silicon Valley
 Bookings in New York City Started to go up
 Customers had to use their own service
 Airbnb team thinks that connecting with their users in 2009 was the fundamental thing that
changed their company for the better
 In summer of 2009, Airbnb business model was set
 In July 2010, Chesky moved out of three-bedroom apartment where the company started
and announces he’d be living in Airbnb throughout the year
 In November 2010, the company raised $7.2 Million
 On February 24, 2011, The company announced that one million nights had been booked
though its service
 Airnb now has bookings in 170 countries.
 As of February 2011, The longest single reservation: 200 nights, Most expensive listing :
$10,000/night , Most reservation by a single guest: 28, Number of Marriage proposals
between guests and host: 1