13 Jan 2023


How Airbnb Works: A Guide to Booking Unique Travel Accommodations

Format: APA

Academic level: College

Paper type: Research Paper

Words: 686

Pages: 2

Downloads: 0


AirBNB is San Francisco internet-based company conceptualized in 2007 to connect vacation tourist to affordable home-based accommodation. Over the years, the companies have tremendously grown in to a global enterprise currently operational in 191 countries. The increased internet access in the world has been to key its growth. However, the principal driver of its growth is its marketing strategy. More so, the uniqueness of the concept was a market disruptive concept that took many of the traditional accommodation company unawares (Guttentag, 2015). The concept offers its customer homely accommodation during their vacation at very affordable prices. Subsequent sections explore its 4 P strategy to identity the various ways it was able to penetrate various markets. In addition, conduct a SWOT analysis to show its current market position. 

4 P market Strategy Analysis 


Since its inception the company uses a mixed promotional strategy that incorporates both traditional and digitized forms of marketing. On the traditional marketing approach, the company develops TV, Print Media and Radio advertisement content that inform potential customers or hosts on the benefits of its platform. The messaging strategy ensures that its target audience understands the specific benefits and value that it offers them. The emphasis its traditional marketing strategy is affordability and comfort for the users. Similarly, its digitized strategies adopt a similar approach with most of its web-based advert focusing on the homely services offered by hosts and lower cost compared to traditional hotel accommodation (Guttentag, 2015). Also, the company sponsors frequent social media campaigns targeting specific market groups using platform such as Face book, Twitter and Insta-gram. The mixed promotional approach is effective because it is cost-effective reaches a broader audience hence accounting for the rapid growth of the company. 

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay


The AirBnB platform uses a commission-based pricing model that allows the company to deduct a 3 % service charge for all the transactions between a user and the host provider. The travelers access the service from the company free of charge and the deductions are only made after a successful reservation is made to initiate a transaction between them (So et al., 2018). Following this approach the users enjoy free access to potential rental vacation homes. The model of the company allows for the external backlink invitation from other advertisement agencies with no extra charge to the user. The pricing model is very fair and has been one of the fundamental strategies that has played a crucial role in the successful penetration of the company to many regions (So et al., 2018). However, in case of cancelation of the reservations, the company allows for a refund to both parties for a limited duration of time. 


AirBnB employs over 3100 employees worldwide to help in the resolution of issues between users and hosts. However, it only uses email correspondence in case of emergencies. It has well established network of human resource at strategic location across the world to assist in the management of its over 200 million users globally. 


AirBnB is web-based portal that offer a wide variety of options for potential clients. The product development strategy of the company includes allowing hosts to offer different types of host services without interference. Thus, the company encourages innovative thinking for hosts. As such it only role is act as a broker between the users and host. It leaves the host to be creative and an innovative as possible. This has led to increased innovation among the users. 

SWOT Analysis 


Uniqueness of the concept – The business concept is very unique and thus the users are increasingly becoming more popular. 

Brand Loyalty – Brand user are loyal to AirBnB due to the kind of service that they receive. 

Quality accommodation option at very affordable prices 


Easy to copy business model 

Security Concerns 

Post Accommodation Customer relations 


Expanded Demand for Cheap Vacation accommodation 

Increasing Profit Margins – The profit margins of rental is increasing thereby offers a unique opportunity for growth of the company as the market grows. 

Little competition- Currently, the company has dominance in the market that offers them a unique opportunity for growth through expansion strategies. 


Legal Issues – The elements of liability for issues arising from the accommodation arrangement threatens the company’s existence. 

Poor market interpretation capacity – The market signal for online based market is highly unreliable thus affect the ability of company to forecast and anticipate changes. 

Competition – The company faces possible competition from emerging online-based regional markets 


Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), 1192-1217. 

So, K. K., Oh, H., & Min, S. (2018). Motivations and constraints of Airbnb consumers: Findings from a mixed-methods approach. Tourism Management, 67, 224-236. https://doi.org/10.1016/j.tourman.2018.01.009 

Cite this page

Select style:


StudyBounty. (2023, September 16). How Airbnb Works: A Guide to Booking Unique Travel Accommodations.


Related essays

We post free essay examples for college on a regular basis. Stay in the know!

17 Oct 2023
Marketing and PR

Business Buyer Behavior

Business Buyer Behavior Business buyer behavior is the intent and action of companies and their employees to purchase and acquire products and services for the organization. It is a concept that helps in...

Words: 1264

Pages: 5

Views: 131

17 Oct 2023
Marketing and PR

Saie Competitive Exams - The Best Way to Prepare for Your Exam

Women compared to men are more concerned about their appearance and they have contributed to the growth of the cosmetic industry. The industry generates billions of dollars in revenue per year. Saie is a novel...

Words: 440

Pages: 1

Views: 207

17 Sep 2023
Marketing and PR

Marketing Plan of the Visiting Nurse Association of Omaha/Council Bluffs

Executive Summary _ Visiting Nursing Association (VNA) has become a crucial resource when it comes to the provision of health services and home care to the community members it developed to serve. The firm has a...

Words: 5092

Pages: 12

Views: 81

17 Sep 2023
Marketing and PR

10 Nonverbal Status Indicators That You're in Charge

Nonverbal Status Indicators are an important part of communication because they help convey that interpreted differently may not be expressed verbally. However, these indicators are interpreted in different ways...

Words: 306

Pages: 2

Views: 73

17 Sep 2023
Marketing and PR

Using Information to Drive Marketing Decisions

Q1. Discuss your use of marketing research to be used to gather information on present or potential customers. Which forms of marketing research would be best in gathering consumer information relating to the...

Words: 979

Pages: 2

Views: 415

17 Sep 2023
Marketing and PR

Cross Cultural Marketing

Cross Cultural Marketing Introduction In the present globalized world, targeting global consumers entails various tasks rather than focusing in website translation. Numerous international organizations portray the...

Words: 1812

Pages: 6

Views: 374


Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.