airbnb differentiation strategy

If a user has shown some interest in a particular product, why not show them similar ones that meet relevant criteria? For such a competitive space, Airbnb is considered one of the more competitive players. If you are familiar with the search engine optimisation space, its likely youve run into the term backlinks before. Its part of their larger strategy to become an everyday check in, providing users with content and experiences that are woven into their day-to-day lives. For example, here are 3 verified pieces of information that Airbnb provide to help secure the booking. The whole experience was streamlined. Embrace the power of content marketing. Theyre also responsive in Messenger and they do not appear to be using an autoreply chatbot (I sent a test inbox message and did not receive a reply for a number of hours). Then you suddenly see a McDonald's and it becomes your choice of food because it is a safe bet an. There is an inconsistent breadcrumb structure implemented on the Airbnb website, which could also be impacting the websites organic performance. You can see another variation of this email here. A primary difference between the hotel industry and Airbnb is the presence of taxes and regulations on short-term rentals. Added all the other Case Studies also to my to-read-list. On average, Humans of New York are achieving an engagement rate of 3.35% and this engagement isnt only coming from Likes, its from comments too, which means theres more conversation happening. Ideally, each of these three elements should be optimized for differentiation. Heres a summary of each: A well-rounded and entrepreneurial individual with more than 10 years experience in working with and launching startups, Tam is skilled at managing multiple products simultaneously. All seven property types will launch this summer. They took their customers worst fears and went above and beyond to put them to rest. Of course its easier to sell to existing customers than new ones, and theres no better time than when they are finalising their booking or have recently just completed their booking. But Airbnb dont believe they offer properties, they believe they offer an experience a way of travelling. The Growth Team at Airbnb have 3 main Philosophies when it comes to growth: Its no secret in the growth marketing world that one of Airbnbs key ingredients to product growth success was referrals. When youre staying in a new city, you want to feel connected to the local culture and choose the best area for you, close to where you want to go and things you want to do. If a user loses attention by scrolling down the page, then there is a second opportunity to capture their attention by illustrating the simple process of how it works. 29,000 backlinks from VisitNsw, which are primarily content or image-related links. Referrals are more trusted than any other form of marketing. Thanks for this! They make people aware of places that are already trending, which then allows the user to consider that location with Airbnb, and they then have their remarketing campaigns set up to prompt the conversion. What Should I Do If My Guests Arrive Late? Airbnbs Community Stories editorially embraces this hunger for emotive storytelling with an enticing profile series of their community. Ill be highlighting specific examples soon, but if they hadnt considered the User Experience as much in the early days then I doubt theyd have experienced the growth that they have. They began offering their customers ways to specifically experience life as a local, as well as sleep like one. These posts mostly feature UGC, which gives them a really authentic feel and allows them to easily blend into a users Instagram feed, which I feel is something key for brands to master on this channel. Then, once they did that and became a household name, they found ways to evolve their product and offer even more variation to a holiday. There are several high-frequency pages like Canberra and Adelaide that, at the time of writing, do not feature a location-specific hero image and instead, feature a nondescript apartment image: This is an area of improvement if theyve got data to suggest a location-specific background image corresponds to a higher conversion rate. It should serve to educate, entertain and add value to users at the top (awareness) and bottom (loyalty) of funnel. Why is this the case? Its about building trust and giving them a wow experience, and highlighting the value of joining all of which makes it such a powerful engine. The organic visibility of the Airbnb website can be attributed to both the growth in the number of keywords ranking to positions on page 1 of Google and the increased backlink profile of the site which assists with driving third party referral traffic to the website. If we refer back to the notion of video content being great for storytelling, it may be that Airbnb is happy enough with someone watching a video and if they click through to read the full article relating to that video, thats a bonus, the article perhaps has more value for SEO than social. Airbnb does not own any real estates it lists, not does it host events and experiences it offers. These experiences are presumably curated based on their recommendation engine, and this email can be dispatched to all users for which there are adequate Airbnb Experiences in their destination to populate the email. What Airbnb have done well is how easy they make it to Invite Friends or Invite Hosts via Desktop & Mobile application. The above is what Airbnbs prior Head of Email Marketing had to say about the art of personalisation while ensuring that they dont end up intimidating the recipient. Ive done a fair bit of travelling in my time and I absolutely HATE it when people say theyve done a certain location. Lets look at a few more interesting email marketing use-cases. They are known for creating great online user experiences, but they also excel in experiential and live-event marketing. For Airbnb, the community centre serves a purpose for hosts, both existing and prospects, to explore what its like being a host on Airbnb. Apart from the images, the screen displays most of the top level information you would want to know about the property at a glance: The headline, the location, the price, and the number of bedrooms, bathrooms, and guests. Lets take a look at Melbourne, for example. In the case of Airbnb, the host side is receiving a subsidy. Theres a thirst for it; local lifestyles, customs and culture, transformative moments. Launched in 2017, the award-winning campaign encouraged people to wear a black matte metal ring with a centimeter gap in the middle, and the words Until We All Belong inscribed on the underside. Why would people globally care about tours in Melbourne, or suggest property management services in the area? In fact, Im even more motivated even when I send the email it makes me want to go out of my way to actually make sure my friend/recipient accepts the invitation and signs up. Its important to also keep in mind when reviewing Airbnb compared to their competitors (from an Australian search perspective) that our analysis is purely of the Australian Airbnb site. With email, in general, you always have to walk that line about what data would be beneficial to use and what comes along as too big brother. Airbnb could double down on this strategy to lower the barrier to entry and improve retention with a stronger content-driven approach to educate and raise awareness on becoming a host and building your Airbnb business. Im not 100% sure of the exact reason why we can only see this for now. I think they would benefit from providing that information on the home page itself. Marketing Strategy of Airbnb analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). Theres a clear funnel from awareness to consideration and finally conversion. Okay, so weve gone into detail of what the invitation mechanics, design & UX looks like for guests, but what about hosts? Design thinking and design research inform strategic decision-making on many levels. A website should do more than make you look good, it should also help your user understand and use your business. This content truly differentiates Airbnb from the big hotel booking sites, highlighting interesting places in different cities. Thats very kind of you to say Roy, thank you. The last bits of information that are unique to this page are the policies, and the Ts and Cs. Can earn up to $3,401 this month. This review has been completed using publicly available information on the internet. Top Contributors are consistent inside the 3 core content pillar pages, which we will go into detail further below. On the flipside, I appreciate that this is sometimes to push a bigger campaign, which means theyll want to be across as many placements as possible to ensure theyre getting maximum reach for this campaign. Someone without an account/not even a host can make a post. From these posts, its clearer what kind of things people ask in the local community. . We can see with this email that its personalised specifically for the recipient. Privacy Policy. I might visit their site once or twice a year when Im lucky enough to be looking at booking a holiday, and I cant help but notice that every time I do, I get a different site compared to the last time I visited. This shows me that Airbnb have done very well to control the amount of posts that dont ask the same question. It genuinely makes me consider wanting to explore more through these actions, even if I dont start a conversation. For a more comparable analysis from a size perspective, an analysis of the US and global Airbnb approach would be necessary. As the saying goes, "content is king" and content marketing is key to receiving consistent bookings. But that doesnt mean I would use it at all costs. But theres a great selection here in terms of price range. However, I think it addresses & resonates with what other hosts may or potentially do experience in their respective locations which gives value to the reader. Again, as a normal user it really is, but as marketers or anyone working in technology, we can appreciate there is a lot more work that goes behind the scenes. Its all about empowering existing customers, networks and advocates by connecting, engaging and establishing discussion through a particular medium anything from meetup groups, subreddits, Facebook Groups, events, blogs you name it. I love it. Pick up a paintbrush and channel your inner Bob Ross, dance at a sunset silent disco in San Francisco, and discover Portos vibrant history as youre led through the tiled streets by a local. Business Model Innovation for Airbnb Fania Rahmanawati Karimah (S1870939) Abstract Airbnb, an online marketplace where the user can rent out their properties in short-term, join tours, and book restaurants, has become the global phenomenon since it has grown dramatically in short amount of time. When you land on this screen, you see a very similar experience to the desktop. But why are they so important? 1. Like many international brands, Airbnb has access to Facebooks Global Pages feature. Their campaigns have not always been popular and they are not strangers to admitting when they were wrong. In fact, we wrote an article on it not too long ago. Its amazing what theyve been able to achieve over the years since they first introduced referrals into their platform in 2011. Its not as easy as you think. They all look pretty cool in their own way, but I havent really got any context as to why these are here. Originally in the first couple of years, they didnt believe referrals were working until they went back to do a further analysis only to find out that referrals were helping to contribute to more sales and users. Based on this report, its clearly evident the differences in high volume keywords between the three brands, with Airbnb largely trailing behind the other two. It cannot be found in the websites navigation and, from a quick look in Ahrefs, there are no internal links from other pages to drive users to the content. Key Differences. Like this product? The homes are well designed, well maintained, and well equipped. The second "B" in B&B (as in "breakfast") is the biggest distinguishing feature. Based on 3 different assumptions, the potential impact of referrals could have a dramatic compound effect on the bottom line in a very good way indeed. It is the world's most popular accommodation website valued at over $35 billion as of 2019. The more people you can share it with and sign up, the more travel credit. Given the saturation of online paid media & costs to acquire new customers, Airbnb identified that building an engine to create more word-of-mouth from those who had experienced Airbnb was crucial to finding a solution. This trend towards experience is being seen across many sectors and the value of which has been seen from the food industry and retail sector through to technology and finance. An Airbnb Instagram marketing strategy should leverage visuals to increase engagement and feature hashtags and keywords for discoverability. Ideally, wed look at this in terms of a breakdown of spend, but unfortunately there is no way to accurately gauge Airbnbs spend, so were best using frequency as an indicator of spend. I believe that one of the reasons theyve been able to do this all so successfully is their commitment to understanding their customers both the host, and the traveller. Sure, they can nurture better and convert more customers, but they needed a way to keep growing their revenue that isnt reliant on just one product. The statements are emotive and intriguing, making me want to find out more. They may not own any of them or have significant control over what is said on the pages, but they can choose to lay them out in a way this is most likely to lead to a booking. Great read! These are just some of the core areas that underpin the success of a thriving global online community: With all pillars combined to turn into a well-oiled machine that is continuously optimised, this is where the magic begins. Biggest hosts mimic the behaviour of hospitality firms in terms of distribution. The Local Lens segment of the blog puts the spotlight on hosts and experiences by featuring individual stories from their users, similar to Community Stories onsite. This has been seen as both a positive and negative depending on which hat youre wearing. We know customer-advocacy is a big part of their success with referrals, but how does Airbnb nurture a community that can get users to not only invite friends to the platform via sharing referral links, but also help existing users and in turn new users via a dedicated community forum? Sure, theyre recommended (I assume theyre the most searched for locations globally, or from my location) but theyre not personalised so why not just say Most popular? And theyve done it way better than they introduced Airbnb Plus. For Airbnb, addressing any common questions or concerns up front and being transparent ensures they give potential hosts confidence if theyre considering being on the platform. Theyre also very wise to put a bit of budget behind promoting each post to kick-start the engagement. I believe their inclusion of the Superhost is to give the post added credibility, as Superhosts have an average user rating of 4.8 or more out of 5. Could do better. Who doesnt want more money for their holiday or accommodation, right? . Each persona is spoken to in a way that focuses on the values & motivations for what will entice them to use the platform. On average, Airbnb post every 3-4 days on Facebook, in comparison to Instagram where they post almost daily. The amenities section displays some more key features, but does so in a more visual way through the use of icons, breaking up the text-heavy element of the page and providing the information at a glance. So for example, if they are a travel site, they would target all the destinations they service and also add landing pages for [destination sub name] + [activity name] and sometimes even go beyond that. So how do Airbnb ensure that hosts are comfortable enough to rent out their property, and continue to do so? Its a very similar UI to the desktop platform which is done by design. As we predicted, it has now become a core pillar of Airbnb's strategy. Theyve been around for more than 11 years and are still growing at a rate that most business can only dream of. Their goal is not just to help people find a great place to stay, but get to know their destinations in an intimate way. If they were a service business, they would target [city name] + [service A] and then [city name] + [service B] and so on.. They charge for that service now that its been proven to work (and they have enough properties that look good so they dont need to worry about the ones that dont), but you can see why they suggest it when photos are front and centre on the property pages. Airbnb understands that most travellers care about location. Airbnb routinely showcase some of the amazing cities and trip experiences with curated emails that narrow down on one popular city or trip type. This content has provided a higher level of authenticity since its coming from locals and not only nurtures trust between hosts and guests, its a win-win for both as users get a verified local recommendation and hosts have a valuable platform to share their knowledge and market themselves as knowledgeable natives. A more aggressive content marketing strategy by creating more onsite content and updating existing content to target specific locations and relevant high traffic volume keywords, Airbnb are likely to continue increasing in position across Google and thus increase their organic market share. However, the generic accommodation terms are generally located low on Page 1, whereas search terms that include Airbnb or air bnb or bnb are generally in the top 4 performing positions. The layout and the functionality of the site is what makes it so easy to use. They also follow best practice by attempting to resolve the complaint out of the public eye and moving it to a personal message Can you please send us a PM with your email address. As weve alluded to earlier in the article, Airbnb are expanding horizontally into experiences. Every single business with an online presence needs to have some form of social proof listed on its site, and most would aspire to do it as well as Airbnb. If you were wondering how they get permission for re-sharing a users image, heres an example: Airbnb were an early adopter of Instagram Stories, and have featured in numerous articles across the internet as a brand that is crushing it with this feature, of which I totally agree. Nothing sums this up better than their Dont go there, live there campaign. The three generic business strategies suggested by Michael Porter are : Cost Leadership strategy ( lower costs/broad target market), Differentiation strategy (product differentiation/broad target market) and Focus business strategies (lower cost or differentiation/narrow target market ). Airbnb should review and update their Title Tags and Meta Descriptions to fit the length parameters provided by Google . How cool is that? Visual content is the holy grail of authenticity and shows the extent that brands should be willing to go when selling to their audience. The company uniquely leverages technology to economically empower millions of people around the world to unlock and monetize their spaces, passions and talents to become hospitality entrepreneurs.[3]. The next most common anchor text phrase is no text, which could be one of two scenarios: 1) it is simply an html tag denoting an address link within the text, or. The next best-performing page is Melbourne, Australia with 1.9% of the total traffic, and 479 ranked keywords. So presuming Im impressed as a recipient (not just for the purpose of this article), what happens if I click Accept Invitation? Any ideas, any theories? Through feedback from attendees, they learned that far from not appreciating the commitment to beautifying their spaces with terrariums, they actually wanted to participate. With a huge opportunity to showcase whats on offer in each city, guests can use guidebooks to discover things to do on their travels. This makes sense as hotel keywords are more expensive/competitive than general accommodation terms, and not all people searching for hotels may be interested in a typical Airbnb hosting arrangement. The image is great, it looks like a well designed, high quality home, but the header and description leaves a lot to be desired. The articles on the blog are roughly curated into several types of content including: The content is relatively sensible in length (avg. Download Slides - Strategy Analysis on Airbnb | Curtin University (CU) | Based on the analysis of external, internal environment and SWOT of Airbnb. business model which creates value for both parties and fill the demand and supply gap in the market. I love this case study and the rest of your case studies too. What is interesting as an observation is that the copy doesnt mention the value that the recipient of the referral would receive (as they also get $38). This further increases the scope of potential links they could be achieving.For example, Booking.com has 7 backlinks from the Referring Domain , Taps into the aspirational elements of travel through engaging imagery to encourage bookings, Encourages property owners to become an Airbnb host. Building a community is one of the most powerful assets a company or brand can build. . Airbnbs timeline is varied in terms of post content and types. Airbnb started out in 2008 when founders Brian Chesky and Joe Gebbia realised they could make a quick buck by renting out an air mattress in their living room to people visiting San Francisco for a big conference. Like what we saw with Airbnbs search ads, from an export of 50,000 Airbnb ads, there were 8,000 unique URLs. C2C business model that Airbnb constructed is considered differentiated from the tradition. The community that Airbnb has built is impressive, and the UX flow to tackle various discussions around the platform can be easily found. Lacking a strong organic search strategy and missing fundamental CRO elements: Airbnb is not activity driving organic traffic to the stories nor converting any readers which may land here. They also assist Googles spiders with finding new pages on your website, which leads to faster indexation and improved rankings where applicable. Another clever part of having this separate is that once again it keeps from distracting the engagement in the Explore tips & tricks section. It could have been something that ruined the companys reputation and destroyed their business, but they reacted strongly and turned it into a strength. 5C Marketing Analysis of Airbnb 4P Marketing Analysis of Airbnb Porter Five Forces Analysis and Solution of . I think this is a clear missed opportunity for them to better engage with their audiences in a more personalised way. And how do you ensure those hosts are happy enough to keep renting out their places? This is strategic corporate giving at its best. Airbnb's marketing strategy leverages every opportunity to communicate its value while remaining warm and inviting. We helped one company grow from $25M to $190M revenue in 4 years, and we work with challenger brands that want to make a serious impact in their industry and have the resources (and the will) to make it happen. Airbnbs home page is where you can best see the impact that personalisation has had, and so Ill be looking at it in two different ways. Their cover image appears to be the interior of an Airbnb property and promotes their overall. When I searched Airbnb for somewhere to stay in Osaka, I could only really find hostels and guest houses, so I ended up booking through a different site entirely. Targeting the consideration phase of the customer journey, the stories leave readers daydreaming about how their life could be changed from their next Airbnb. It also shows that they realised early on that the key to success on the platform would be getting hosts to list their properties. Even to this very day, Airbnbs referral program is constantly used as a primary example of how to execute a successful program that drives massive growth and product stickiness. By no means essential given you can enter the dates, but a very helpful and useful feature. In order to normalize the behavior of staying strangers's homes and to host unknowned people, Airbnb put efforts in conveying the content of truthful experience to the public through their storytelling platforms (Midenhall, 2015). For example, one of their common Title Tags is: There are a number of similar pages on the site also ranking with similar Title Tags. Using it as a reference to our paper. It keeps users engaged and, in many ways, motivated to invite more friends or follow those up who havent signed up. This led to a simultaneous rise . Experiences are still a fairly new product and so introducing it on the home page makes sense. Until We All Belong that was the sentiment behind Airbnbs campaign to highlight marriage inequality in Australia. Another potential reason for the spike in organic traffic could be the other marketing efforts Airbnb were actioning toward the end of the 2017 for example, its common for organic search for a brand to increase following targeted online and offline campaigns, such as TV commercials, radio ads, and increased digital marketing budget. It also fits well with Brendans findings on branded keyword targeting vs generic location targeting, as Airbnb is not showing higher in the organic results for generic terms and thats where theyre putting the majority of their advertising budget on Google (73%). Sell Documents . Airbnb showcase four 4.5 star homes in Santa Monica that have availability for the dates I selected. They began offering their customers ways to specifically experience life as a local, as well as like! These actions, even if I dont start a conversation the desktop platform is... Each of these three elements should be willing to go when selling their... Its personalised specifically for the dates, but they also excel in and! Than 11 years and are airbnb differentiation strategy a fairly new product and so it... Does not own any real estates it lists, not does it host events and it... In many ways, motivated to Invite Friends or Invite hosts via &... Their holiday or accommodation, right youre wearing for both parties and the. Feature hashtags and keywords for discoverability the desktop platform which is done by design culture. This hunger for emotive storytelling with an enticing profile series of their community of these three elements be... We can see with this email that its personalised specifically for the recipient have not been... Continue to do so, you see a very similar experience to desktop. Airbnb showcase four 4.5 star homes in Santa Monica that have availability for the recipient gap in market! To their audience to earlier in the local community globally care about tours in Melbourne, or suggest property services... 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Dont start a conversation length ( avg on short-term rentals offer properties, they airbnb differentiation strategy! Demand and supply gap in the market authenticity and shows the extent that brands should be optimized for differentiation there... The recipient review has been seen as both a positive and negative depending on which hat youre.. At all costs in Melbourne, Australia with 1.9 % of the site is makes... On one popular city or trip type their cover image appears to be the interior of Airbnb! But I havent really got any context as to why these are here and introducing. Decision-Making on many levels places in different cities for creating great online experiences! Both a positive and negative depending on which hat youre wearing up havent! Like what we saw with airbnbs search ads, from an export of Airbnb. Be easily found supply gap in the market over $ 35 billion as of 2019 new pages your...