Airbnb: Revolutionizing a Market and Record-Breaking Business Model

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Created by young students from California who needed money to rent their apartment, Airbnb is known as one of the largest accommodation rental apps in the world.

The app, which started out renting out three mattresses, changed its business model and now offers much more than just accommodation. The platform has undergone several changes since 2008 and has managed to continue growing in a market where the tourism sector has been one of the most affected.

How did they manage to revolutionize the market and make this record-breaking change in the business model? That's what you'll understand by reading the post until the end.

Airbnb
For those who don't know, Airbnb is nothing more than a digital business where travelers can find a house, a room or any type of accommodation to stay in for the agreed period of time.

The difference between this and hotels is that it allows people iran phone number lead who own a property to make it available for rent, or even a room or part of the property. Over time, they have expanded the business model and included features and divisions in order to explore the customer experience and expand their horizons.

Since the company’s inception in 2008, an estimated 54 million users have booked at least one reservation, totaling around 852 million bookings on the platform. This highlights the company’s potential to build customer loyalty.

From mattress rental to billionaire experience seller
After successfully renting out mattresses, the two friends, Brian Chesky and Joe Gebbia, sought to develop the idea further and began offering rentals of any room in the house.

Even after this strategy, Airbnb's founders found it difficult to progress and the company underwent a makeover that resulted in rivalry with several hotels, winning over travelers from all over the world, from leisure to work.

The more affordable price, the ease of finding an ideal place, the availability of furnished accommodation in various places and the convenience of closing the rental directly with the owner are some of the features that have made Airbnb so popular.

But these strategies needed to be adapted during the pandemic , as the unfavorable travel scenario made bookings unfeasible. As a result, Airbnb needed to further expand its business model and adapt to these changes.

To adapt to the new reality, Airbnb took other actions that helped build customer loyalty, even when they were staying at home. These actions included renting accommodations to frontline professionals fighting the coronavirus.

In addition, video conferences have been made available that simulate the cultural experience of visiting a new place. Thus, on the blog you can find content from local cuisine to theater performances, covering all the experiences of a trip .

After a period of isolation, consumers returned to searching for destinations on the platform, this time opting for more isolated locations in inland regions, reaching 100 thousand new guests between March and August 2020.

With these guests in mind, a manual was also created and new rules for cleaning the premises were established, in addition to the creation of a support fund for hosts who lost guest flow during the pandemic.

airbnb and the change in business model
Long-term vision and business model adaptation
All of these changes ensured that customers stayed safe at home and continued to support the platform. Despite being a startup and having a modern business model that meets new needs, Airbnb knew how to have a macro view of the market and ensure the inflow of money to survive the pandemic.

This is the market dynamic of those who are looking outside and can foresee changes. With the intensification of remote work, for example, Airbnb predicts that many workers will look for accommodation on the platform to travel and discover new places while taking their work with them.

This allows them to adapt the services they offer to ensure that these consumers continue to use the platform. In the same way, they have started selling experiences, whether online or offline, taking advantage of the platform to offer experiences to those who cannot travel.

It is not enough to undertake, you need to have a macro vision of the market and be able to predict the changes that will be necessary in your company to keep up with the needs and changes in the market.