Case Study of Airbnb|| Challenging the hotel Industry || Best to Startup||

How 3 guys went from renting Air Matresses To a 10 Billion $ Company. They make a simple website a blog with maps. The most recent statics shows that Airbnb now has over 2 million listings in over 190 countries and 34,000 cities. Airbnb hosts have hosted over 40 million guests. The company is worth an estimated 25.5 billion,
Airbnb started in 2007 when Joe Gebbia and Brian Chesky, then both 27, were struggling to pay their rent. There was a design conference coming to San Francisco and the city’s hotels were fully booked, so they came up with the idea of renting out three airbeds on their living-room floor and cooking their guests breakfast. The next day they created a website, airbedandbreakfast.com; six days later they had a 30-year-old Indian man, a 35-year-old woman from Boston and a 45-year-old father of four from Utah sleeping on their floor. They charged $80 each a night.
Airbnb Inc. is the holding company for the popular website, Airbnb, which is used for people to list, find, and rent out vacant spaces. This company was founded in August 2008 in San Francisco, California. The full form of Airbnb is ‘Air, bed, and breakfast’ and it is a haven for all travelers who are searching for a bed and breakfast spaces when they travel away from their home country or city.
Airbnb started off offering just a room—somebody who had a vacant room with an air mattress who would provide some hospitality, maybe a hot meal in the morning. That was it.
Over time, Airbnb started looking at the customer value chain and what else people might want while staying in somebody else's house, like activities to do or places to eat.
Strategy :to list their homes before finding people interesting in staying in them
If you don’t have a supply of houses and apartments, people are not going to come,” The problem was, where to find people willing to let strangers stay in their places. It’s not like they could go around San Francisco knocking on doors.Instead, founders Brian Chesky and Joe Gebbia thought like customers themselves, trying to figure out where they would go if Airbnb didn’t exist. To do that, Chesky and Gebbia created software to hack Craigslist to extract the contact info of property owners, then sent them a pitch to list on Airbnb as well.
The strategy worked. With nothing to lose, property owners doubled their chances of finding a potential renter, and Airbnb had a ready supply of homes with which it could attract customers.
Strategy : Building trust between Host and Guest
“When you have a two-sided platform, you have to acquire both the customers and the services,”
Cross culture environment – Trust bring together what is desirable from human point of view, They have a dedicated team to building trust and cultivating a transparent community, it breakdown social reputation, and finding connecting point between them.
Strangers = Danger?
“A well design reputation system is the key to building trust”
There was trust factor between the guests and the host
People willing to trust someone based on how similar they are, in age, locaton and geography,
The research shows that we prefer to trust people who are like us the more different someone is, the less we trust them.Then they research what people prefer reputation or similarity,
Reputation beats high similarity.Monitor your communities attentively,
A big reason for this is active policing to ensure both sides are following the rules.
Airbnb has a list of community standards and expectations that all members should read. It emphasizes its motto: "A community built on trust."
Chip Conley, Airbnb's head of global hospitality and strategy, says tens of thousands of hosts are booted off Airbnb each month for not meeting these standards and expectations.
Airbnb devotes a large chunk of its time and budget to monitoring and making sure everyone is playing nice.
Airbnb knows how personal a living space can be, even if it's temporary. To achieve that goal and retain users as a result, they enforce their community standards and expectations very seriously. That, combined with all funds remaining in escrow, provides a feeling of security that many modern businesses cannot compete with.
Strategy: Make sure customers know exactly what they're getting
The age of commercial TV and internet has made many realize expectations aren't reality. Many of us have purchased a product or service before, only to be left disappointed.
Airbnb and many successful startups try to evade consumer disappointment in any way possible. One of the most surefire ways to prevent disappointment is to show buyers precisely what they're getting.Rather than stick with blurry phone pictures, the company decided to invest in traveling to these listings themselves and professionally photographing them. This doubled the company's weekly revenue. showing buyers precisely what they're getting. Sometimes this means improving the photo quality, so buyers see an attractive property, not one that's poorly lit.

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