Air bed and breakfast Hala al shurafa Raneem Azzam Salma saif Ali • is an American company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities. Based in San Francisco • represents "the universal symbol of belonging". Brian Chesky and Joe Gebbia • Joseph Gebbia Jr. is an American billionaire designer and Internet entrepreneur. He is a co-founder of Airbnb • Brian Joseph Chesky is an American businessman and industrial designer. How they came up with the startup idea • The startup story of Airbnb or the Airbnb origin is quite interesting. The Airbnb company history started in 2007 in San Francisco, when Brian Chesky and Joe Gebbia were roommates. They were worried about their rent, which was due because they didn’t have money at that time. • In 2007, he moved to San Francisco where he shared an apartment with Gebbia. • He convinced his friend and future cofounder, Brian Chesky, to join him in San Francisco to start a company together in 2007. Opportunities acquired • Design conference Outcome: They charged their first 3 guests $80 per night, which was roughly $100 per night cheaper than most mid-range hotels in the city. • Election-themed cereal boxes Outcome: They sold roughly 500 boxes of each cereal and sales of their souvenir cereals netted them around $30k. • Third cofounder Nathaniel “Nate” Blecharczyk Outcome: Implemented a payment system that allowed the company to collect fees from guests, deduct Airbnb’s commission, then remit the remainder to hosts. • In 2009, Graham invested $20k in the growing company and accepted Airbedandbreakfast.com into Y Combinator (“YC”). Outcome: Shortly after joining YC, the founders created a group of loyal customers who helped grow the company’s good customer base. • The two founders booked stays at 24 hosts across the city Outcome: They captured better photographs of Airbnb listings. • In 2010, when the site leveraged some technical ingenuity to dramatically broaden its reach—by “hacking” Craigslist. Outcome: Airbnb was effectively doubling the visibility of each individual listing, which made it an attractive proposition to hosts. Airbnb Host Requirements: 1.Respond to inquiries; 2.Accept reservation requests and avoid cancelling on guests; 3.Maintain overall high rating; 4.Cleanliness and Essential amenities; 5.Accurate listing details; and 6.Supporting guests during their stay. Ensuring the satisfaction of guests: • Airbnb will check the accuracy of photographs of the property, addresses (Location) and other information posted with each property, as well as verify that the listings meet safety standards and that the hosts are who they say they are. • There is a guarantee for new Airbnb placement or a full refund to guests. • Airbnb charge the hosts service fee. • The success of each property owner “host” depend upon the market, the country where the property is located and the area around this property, also it depends upon how strong the competitors are in this area. • At first, the host must determine the audience that are interested in his property. This is extremely affected by the presence of a famous landmark, a tourist attraction, or even an event taking place nearby the property. • Generally, Airbnb’s audience are both male and female, predominantly between the ages of 25 and 44. • “We didn’t want to post on Craigslist because we felt it was too impersonal. Our entrepreneur instinct said ‘build your own site.’ So we did.” • There was a design conference coming to town and hotel space was limited, so they set up a simple website with pictures of their their loft-turned-lodging space—complete with three air mattresses on the floor and the promise of a home-cooked breakfast in the morning. This site got them their first three renters, each one paying $80, and after that first weekend they began receiving emails from people around the world asking when the site would be available for destinations like Buenos Aires, London, and Japan. • The following spring, they enlisted former roommate and engineer Nathan Blecharczyk to help them get Airbed & Breakfast off the ground. They planned the launch around the Democratic National Convention in order to capitalize on the resulting lack of hotel space. Fast forward seven years, and Airbed and Breakfast is now Airbnb—a household name that has surpassed industry legacy Hilton Hotels in nights booked. As of spring 2014, the platform had 10 million guests and 550,000 properties listed worldwide How are Airbnb maintaining their success? • Continuous developments and improvements *dealing with Covid-19 • Focusing on user experience * wearing The customer’s shoes Current situation of Airbnb • COVID-19 had a massive negative effect on the company • At the peak of the pandemic ,bookings went down 85%. • Quarter of its workforce had to be let go. • Company’s 2020 profit return less than half of in 2019. • Airbnb’s leaders decided to do what they do best: adapt and innovate • Website revamp in a matter of days • Focus on long term stays • Focus on local stays Current situation of Airbnb [cont.] *Fast forward to 2022, after many struggles and profits taking a hit due to the reality of travelling even post-pandemic, Airbnb came back even stronger. *Airbnb recently announced a company record-breaking record of over 103 million stays in Q2 of 2022. *Profit of US$379 million compared to a loss of US$68 million last year. *5.6 million active listings worldwide at more than 100 thousand cities. *Estimated 200 million active users. *All credit due to CEO Brian Chesky who has a very hands-on approach. How are Airbnb superior to other competitors? *Since Airbnb started, it has been one of the biggest competitors to hotels. Using an application is not the common way for people to rent a place, but it has many advantages over hotels and other booking websites and applications such as; *Airbnb is more family and group travel-friendly compared to hotels. *In addition, the platform offers better non-urban location listings versus hotels. *Airbnb also gains favor from travelers looking for extended stays. Thank you all!
