Highlights
Task:
Like many services industries, hotel companies have done a tremendous job of ensuring the quality of the customer experience through standardization. People booking rooms through any of the major hotel chains can be pretty much assured of certain basics. They’ll enter the 13-by-25-foot room into a short hallway with a bathroom and closet on one side or the other. In the bathroom, they’ll find the basics along with a sterile display of soaps, hair care products, and other toiletries. The room features a bed or two flanked on both sides by nightstands with a reading light by each. An upholstered chair and ottoman sit at an angle in the far corner with a desk opposite. A dresser topped with a flat screen TV sits across from the foot of the bed. Visitors might also discover a mini-fridge and a microwave oven. The artwork and décor are fairly contemporary although impersonal and nondescript. Other details throughout the hotel property are equally predictable. And although luxury level across these features varies from chain to chain, the vibe is the same. Many travelers count on this standard experience—it assures that their experience will be within a set of narrow, expected boundaries. Minimizing the risk of negative outcomes typically results in a satisfactory lodging experience for most guests most of the time. But one lodging provider is targeting travelers who have a different set of needs and expectations. Airbnb is turning lodging services upside down by promising a hospitality experience that is the complete opposite of the one provided by major hotel chains. A major player in the new sharing economy, Airbnb is an online community marketplace that connects people who want to rent out space in their homes with those who are looking for accommodations.
Two Million Rooms—No Two Alike
It all started when the founders had a hair-brained thought on how to generate some extra income to help pay the rent on their modest San Francisco loft apartment. During a major convention that had every hotel room in the citybooked, they rented out three air mattresses on the floor of their apartment for $40 a night each. In the process, they discovered that the people who booked that real estate got more than just a place to stay at a time when they needed it most—they got a unique networking opportunity. From that moment, Chesky and Gebbia moved quickly to develop and formalize the business concept. Today, using Airbnb to either list a property or rent one to stay in is relatively simple. For hosts—Airbnb’s official term for property owners who want to rent out space—it’s a simple matter of registering and being vetted to ensure legitimacy. Listings can be pretty much anything from a couch, a single room, a suite of rooms, or an apartment to a moored yacht, a houseboat, an entire house, or even a castle (Airbnb currently claims more than 1,400 castle listings). Some hosts even rent out space in their yards for guests to pitch a tent. With more than 2 million listed properties for rent, each is as unique as its owner. Because listings are in private homes and apartments, they are typically located in residential neighborhoods rather than commerce centers where national and global hotel brands abound. Bookings can be offered by the day, the week, or the month, and hosts decide on price and the other details of their service and listings.
Questions for Discussion
What type brand is Airbnd? Defend your answer.
How do the Branding affect the services apply to Airbnb?
How does Airbnb deal with Branding?
How does Airbnb differentiate its offer, delivery, and image for BRAND?
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