Question

It is important for entrepreneurial fumes to generate press as effectively and inexpensively as possible. One
start-up, Airbnb, generated substantial press during its start-up phase at very little cost. lts fomiula was new,
but is useful for any start-up tryling to generate high and positive revenue. Airbnb is a marketplace for people
to list, discover, and book unique spaces (typically in people's homes or apartments) while traveling. It's also
useful for people who have space to rent to generate extra income. Founded in late 2007, the firm initially
targeted people traveling to confierenc:es and events in the United States. However, Airbnb now overs its
services worldwide and has grown to allow people to rent space while traveling for any purpose (instead of
business only, which was the initial focus). The feature focuses on how Airbnb, which is a marketplace for
people to list, discover, and book unique spaces (typically in people's homes or apartments) used blogs as a
stepping-stone to generate substantial buzz about its service.
The founders ofAirbnb were designers, and the site was fast used to help people attending conferences to fmd
rooms in local designers' homes for the duration ofthe conferenc:e. It was stared with blogs (a personal website
or web page on which an individual records opinions, links to other sites, etc. on a regular basis) and the
founders staked sharing their ideas and opinions.
In order to market their business idea, the founders reached out to many newspapers and magazines, in United
States like Tune magazine, the New York Tunes, the Washington Post, CNN, and a variety of other places
which was a successful effort.
The founders started talking to friends and family about their idea. They knew if they wanted to formulate a
business they'd need programming help, so they approached a good friend and expert programmer, Nate
Blecharczyk, who agreed to sign on.

Their initial business idea was started by organizing a c:onference in 2008. So they worked night and day to
build the site and get it up. The business model at this point was simple. Air Bed & Breakfast, as it was now
c:filled, was a way to help people find housing, at a private residence rather than a hotel, when attending a
c:onference. Air Bed & Breakfast didn't accept money. People would simply exchange money when they met
each other during the stay. Their own revenue model wasn't worked out in that they weren't quite sure at this
point how to charge for the service.

There was one interesting evict to their Web site at this point that differentiated themselves from hvo sites,
Couc:h Sur£mg and Craigslist, which were providing a similar service. On Couch Surfing you saw a photo of
the person you'd be staying xdth. On Craigslist you saw a photo ofthe place. On Air Bed & Breakfast you saw
the person, the place, and it foc:used strictly on conferences and events. So the social element was stronger. At
least you'd be staying with someone who was attending the same conferenc:e or event you were attending. On
February 24, 2011, Airbnb announc:ed a milestone: Since its launch, one million nights had been booked
through its service. It now has bookings available in 170 countries.

1 . Describe what type of business is Airbnb? How is it diHerent nom normal hotels booking?

2. Based on the above case study, list three reasons why Airbnb was successful?

Answer 1

1). Airbnb is a service that allows property owners to rent out their spaces to travellers. People can rent private rooms, shared spaces or the entire property. Airbnb is popular because not everyone can afford to stay in hotel and sometimes it is very difficult to find hotel rooms in busy areas. Since the company was started in 2008, over 100 million people have booked property rentals through airbnb.

It is free to create an account in airbnb. Airbnb has listings of some over 190 countries and 34,000 cities. Both hosts and guests can create profile in airbnb.

Being a guest, We can find places to rent based on where you want to go, when you want to check in, when you want to check out and how many guests will be staying. We can also seaech based on more information like price, nearby location, type of property and more. We don't have to pay until a host accepts our reservation request.

Being a host, its free to post a property for rent on airbnb. Accurately describing out property can help match our space with the right guests. Professional photography services can help guests know exactly what we are renting. Prices and availability can be set according to a host's schedule. The host has the final say on whether or not they want to book to someone.

In this manner, airbnb is highly different from normal hotel booking.

2). Some of the reasons for its success are :

• Due to its affordability : it provides a number of choices and options for the customers. Thus customers can chooth their most appropriate property from it at thier affordable price.
• It is a free market.
• It is an open platform : any one can easily enter into airbnb and can turn into a host or a guest according to thier needs.

Thanks!..