ACKNOWLEDGMENT

Life of Human Being is full of interactions. No One self- sufficient by himself whenever anyone is doing
some work. I cannot forget acknowledging them in few words as without the guidance and Coordination
of them in our assignment would not have been possible.

A large no. of individual contributed to this assignment. We are thankful to all of them for their help and
encouragement. Our writing in this Assignment has also been Influenced by a no. of websites and
standard text books. As far as possible they have been fully acknowledged at appropriate places. We
place our gratitude to all of them.

First of all, we owe our heartfelt thanks to Mr. Asrar Ahmed Teli Associate professor, Chandigarh
University for assisting us on our project.

We wish to express our sincere gratitude to our team for their support rendered in solving problems
and difficulties that we faced in completing this task on such a varied and vast subject.

Moreover, the knowledge, care and support of all the people who have made this experience a
memorable one, whose essence will keep lingering all through my life.

INTRODUCTION

The way that Airbnb approaches housing is different. Airbnb lets you stay in someone’s home rather
than a hotel as a part of the “sharing economy.” On Airbnb, you can locate accommodations for your
stopovers while backpacking through Europe or a room to rent for a month while you complete an
internship in Los Angeles. It’s also a wonderful way to get a feel for a place you might move to or, if
you’re just visiting for the weekend in 2022, choose a lodging option other than a conventional hotel.
You can host on Airbnb and get paid for letting a visitor spend the night if you wish to rent out additional
space in your house.

All of this seems very straightforward, but Airbnb is considerably more complex than you might think.
What exactly is Airbnb? Before you make a reservation or sign up as a host on the well-known home-
sharing website, read the following information.

The company was created in 2008 by Joe Gebbia, Brian Chesky, and Nathan Blecharczyk. Gebbia and
Chesky initially began running a bed-and-breakfast out of their home in order to earn some additional
cash for their rent. They recognised a market for the concept and created a website called
airbedandbreakfast.com since a significant design conference was scheduled to take place in the San
Francisco area at the time, and the city was full with hotels that were sold out.

The startup went through at least three different launches and went through many ups and downs.
Finally, with more finance, Air Bed & Breakfast changed its name to Airbnb in 2009, which marked the
company’s pivotal moment. In 2020, Airbnb went public as ABNB.

Product:-

Unlike a product, a service is intangible and cannot be measured in terms of look, feel and other
qualities present in a commodity. However, it can be customized to suit the user requirements and give
a personal touch. However, the service product is heterogeneous and perishable in nature just like a
normal product and needs to be designed with the utmost care to increase customer satisfaction.

‘Product/service’ in context of Airbnb:

Airbnb is a platform that humans can use to discover short-time period accommodation. Its listings are
categorised as ‘Entire location’, ‘Private room’, and ‘Shared room’. An Entire location commonly consists
of a bedroom, a bathroom, and a kitchen. On the other hand, a Private room gives visitors a non-public
room and a Shared room/not unusual place region is in all likelihood to be shared via means of visitors
(Airbnb, 2020). It is really well worth bringing up that lodges with concierge offerings have a simpler
check-in provider than many Airbnb locations.On the premise of great and goal market, Airbnb locations
may be categorised as Airbnb Plus (maximum great homes) and Airbnb Luxe (Luxury locations). It
additionally gives Open Homes that offer humans with unfastened locations to live in instances of needs.
It needs to be stated that Airbnb does now no longer own any locations.

Place:-

Airbnb has one-of-a-kind rate structures. For instance, in its Split-rate structure, it deducts a rate from
the payout of hosts, and it additionally fees visitors a rate. On the alternative hand, its Host-most
effective rate structure, the complete provider rate is accumulated from the hosts. Although many
analysts argue that charges of Airbnb offerings are distinctly cheap, McCamy (2019) reviews that this will
now no longer be the case while the visitor provider rate, taxes and cleansing expenses are positioned
together. These should effortlessly erase the price gain of Airbnb over its competitors.

Price:-

Airbnb has distinct price structures. For instance, in its Split-price structure, it deducts a price from the
payout of hosts, and it additionally costs visitors a price. On the opposite hand, its Host-simplest price
structure, the complete carrier price is accumulated from the hosts. Although many analysts argue that
expenses of Airbnb offerings are fantastically cheap, McCamy (2019) reviews that this can now no longer
be the case while the visitor carrier price, taxes and cleansing prices are positioned together. These
should effortlessly erase the fee benefit of Airbnb over its competitors.

Promotion :-

Airbnb advertises on different platforms. It reaches out to both hosts and guests via TV adverts and
social media marketing. It has 4.7 million followers on Instagram; however just around 226 thousands
subscribers on its YouTube channel. It should be mentioned that Airbnb announced halting its marketing
spend in March 2020 to save $800 million to counterbalance losses caused by global economic crisis
(Franklin and Vengattil, 2020).

Airbnb marketing strategy is to drive growth via digital marketing, online promotion, community
connection, referral marketing & local partnerships. Airbnb is promoted through a mix of marketing
channels. It advertises to the hosts and travelers through traditional as well as modern methods such as
TV advertisements, Outdoor Advertising and Digital media marketing. Airbnb is trying to communicate
the value proposition of ‘living like a local’ through its advertisements and uses a geo-localized strategy
for these promotion by creating content relevant to a given location. It also uses social media analytics
to target the relevant audience for the various properties listed on its portal. The company also
undertakes various public relation activities such as extending support and donating to various causes
such as offering free accommodation for people displaced by hurricane Sandy in New York in November
2012, thus undertaking cause-related marketing. The logo and website were also redesigned based on
the inputs of consumer survey. Airbnb also provides sponsorship to various events and has partnered
with other agencies for more brand visibility.

People :

In the marketing mix, “people” refers to any individual who is directly or indirectly connected to the
company’s operations. All those involved in marketing, team management, customer representation,
product design, sales, and training fall under this category.

“People” in the context of the AirBnB :

The AirBnB logo contains a specific “People” component, highlighting the significance of people to the
business. People are basically the hosts on Airbnb who provide lodging for visitors and make an average
of $7,900 a year (Airbnb, 2020). There are some hosts who go by the moniker “Superhosts,” and they
are well-known professionals who serve as role models for others.

Every year, millions of guests use Airbnb’s accommodation and services. The firm concentrates on giving
hosts direction and information about customers’ needs in order to maintain its global expansion. As a
result, hosts have a supply of essential utilities for Airbnb visitors, which promotes both new client
acquisition and client retention. Ultimately, AirBnB hosts are crucial for stimulating customer
satisfaction.

Advertisement Referred : Diwali in India

People Element in Advertisement : The AirBnB Diwali in India advertisement perfectly captures how a
host’s friendly disposition and pleasant gestures may result in a guest having a wonderful, once-in-a-
lifetime experience. Hosts and superhosts are the representatives of the AirBnB company as a
consequence of the people element.

PHYSICAL EVIDENCE: Physical evidence is one of the additional 3 Ps of the service marketing mix.
Physical evidence comprises the elements which are incorporated into a service to make it tangible and
somewhat measurable. At the same time, it also helps in the positioning of the brand and for targeting
the right kind of customers.

The physical evidence In the case of Airbnb is:

Airbnb Plus homes that are very thoughtfully designed and have all standard amenities. Airbnb Plus is a
specially curated list that guarantees homes with verified levels of comfort and quality. Hosts often have
a wealth of experience hosting on the platform and deftly anticipate guests wants and needs. The Plus
listings we have stayed at have often included special touches like toiletries, very detailed guidebooks,
electronic check in, and luxurious bedding to name a few.

On the other hand, Airbnb Luxe homes are expertly designed and contain top-end facilities. Airbnb Luxe
is truly a next level vacation experience. Airbnb Luxe homes have to meet a certain standard to make
the cut. Over 300 design criteria must be checked off in order to qualify. The home must have superior
form, function, and feel. Airbnb will verify the house has enough amenities to meet the amount of
allowed guests. For example, there must be at least one bathroom for every two bedrooms. The house
must also function well – the dining room table should accommodate as many guests as can book. The
outdoor areas should also include furniture. The kitchen should have chef quality appliances. The house
must superiorly feel. It must have unique features or special design touches that ooze luxury.

TOOLS WHICH ARE USED:

Ambiance – The look and feel of a stay can be described as the ambiance

Layout – The layout of the stay contributes to the role of physical evidence in marketing.

Branding– Although part of promotions, the packaging, branding and use of corporate communications
also plays an important role in physical evidence in the marketing mix.

Thus, physical evidence in marketing is dynamic in nature, and a change in physical evidence factors will
bring a change to all other P’s in the marketing mix.

CONCLUSION
Airbnb describes itself as “a trusted community marketplace for people to list, discover, and book
unique accommodations around the world”

Airbnb prominently argues to promote more inclusive forms of tourism through enabling ordinary
households to occasionally share their home with tourists. This ad of AirBnb uses provision practices and
the dichotomy of ‘home-sharing’. It exhibits to what extent Airbnb promotes more inclusive tourism
development. It shows Airbnb’s possible role as a substitute for traditional accommodations, and
satisfaction and loyalty. Airbnb is represented as a part of the broader “sharing economy,” in this ad.

Airbnd has used 7P’s of service marketing very efficiently like-

Product- The aim of its product strategy is to connect travellers with hosts who provide accommodation
through its online platform.

Price- Airbnb started with one simple price strategy — price your offerings below the market average to
undercut hotels and make your place stand out.

Place- Today, Airbnb has a presence in more than 1,00,000 cities along with 5 million+ active listings on
its websites helping travellers engage with their new travel experiences.

Promotion- Airbnb has several marketing channels as it uses both, online and offline forms of approach
to showcase its offerings.

People- Right now, It has over 4 million hosts on its platform sharing property spaces worldwide.

Process- Airbnb has always worked on giving users the most seamless experience possible.

Physical evidence- The only physical interaction customers have with Airbnb is when they book their
stay.
Airbnb has been a part of countless people’s travel experience. Founded in 2008, Airbnb has
revolutionized the way we travel, as well as how trust and authentication are created between two
parties.

Its explosive growth has made a booming business with a $35 billion valuation. Despite the steep price
tag that it offers to its customers, Airbnb has well-positioned its marketing strategies in place to attract
future expansions in the years to come.

TO SUM UP,

“Air bed and breakfast”, this term is not quite popular but it is the original name of today’s popular
home rental company, Airbnb. It is the world’s most popular accommodation website valued at over $35
billion as of 2019.