Business Model Canvas for airbnb
1. Key Partners
Hosts
Renting out their space(s): apt, condo, guest room, entire house
Guests
Ones staying at those rental space(s) for various usage types
Local/regional Real Estate Agencies
A new source of revenue for agencies: renting out their properties like hotels for extra revenue
Info. Tech Experts
Website designer, web master, hosting company, data base MGT
Outsourced Cust. Service Reps
Local/regional Interior Designers
In charge of creating unique looks of each and every room/space
Local/regional Photographers
In charge of delivering unique looks of each and every room/space via airbnb homepage
Local/regional Government
Collabo with a government of major tourism attractions and buy their outdoor ad spaces, then post airbnb ads
Payment Processing Channels/mediums
Major bank/credit card, Venmo/Paypal
Lifestyle Media Sources
Tv, radio, internet, printed material channels covering or featuring lifestyle/travel editorials
Local/regional Cleaning Company
2. Key Activities
Recruiting More Potential Hosts
The more the registered hosts and their spaces, the more the freedom of choice for guests
Online-based Advertising
A great way to boost their awareness and customer consideration level
Offline-based Advertising
Examples would be bus/metro station, airport, outdoor billboard
Marketing via Traditional Printed Sources
Leveraging Web Search Engine
Search history data from Google, Yahoo, Bing can be used to spot potential new users
Product Segmentation
A variety of staying options can be offered by budget, region, season, activity, occasion, features and many more
Collabo with Celeb Agencies
Endorse big-name celebs: a great way to hype up and deliver credibility
Platform Update and Maintenance
Homepage gotta stay fresh to attract more customers
Customer Service
Since it is C to C platform, it can easily get into hassles of agent theory: settling disputes down between parties is crucial
Visual Intuitiveness
Sexy photos and videos of rental spaces can boost sales
Local/regional Event Sponsorship
3. Value Proposition
Convenience
So easy and fast finding your place to stay even in the peak season and it is so easy to use: all you need is few clicks from the app
On-demand Business Nature
Both sides get what they want ASAP: great at matching two parties
More Tailored and Customized
You are no longer staying at the same old average Joe room: mix and match with your personal preference
Extra Income for Hosts
More money in their pockets, what more can I say?
More Affordable
Who doesn't wanna spend less? Cutting middlemen gives airbnb price advantage
More Bang for the Buck
Guests usually get more space, amenities, customization for sure
Home Insurance
Airbnb providers home insurance to hosts
One-of-a-kind Stay Experience
You browse and choose your best possible stay experience
4. Customer Relationships
On-time Customer Support
It is a global platform used by customers in different time zones: provides 24/7 customer support
Promotion & Loyalty Program
Promotions and loyalty program which attract first time users and encourage repeat uses of original users
Efficient Dispute Settlement
Since it is C to C platform, it can easily get into hassles of agent theory. Airbnb tries its best to satisfy both ends of business transactions
Social Media
Great at generating awareness and hyping up the brand via social media channels
Customized Recommendations
Based on users' lifestyle and previous stays, it does a great job recommending a one-of-a-kind place for users
More Power to Customers
Guests can find their best-fitting space by mixing and matching features/amenities just like choosing toppings at frozen yogurt places
Target Up-and-Coming Attractions
Fast and flexible finding new tourism attractions
5. Customer Segments
A Simple Place to Stay
Good for cost-sensitive travelers and whom simply needs a place to stay for their road trip
Business Travelers
1. Wants to save his or her expense 2. More space than typical hotel rooms 3. Can cook one's food of preference OR 4. More home feeling and comfortable stay
Globetrotters
Great chance to stay local: get to know more about its unique cultures
Family Travelers
1. So hard to find a place which can accommodate every family member in a room 2. The more the guests, the bigger the room they need 3. In overall, it saves them a lot of money
Bespoke, Customized Users
It's my way or the highway. Customers in this group is very conscious, selective about their choice and preference
Hosts
Considering its C to C nature, host is another important customer segment. Hosts are also segmented according to customer segments like budget, bespoke, business, globetrotter and family traveler
6. Key Resources
Airbnb
The brand itself carries a huge value and future potential
Guest Information
Profile info and usage patterns enables Airbnb to recommend better customized stay options to customers
Network of Hosts
The more the hosts, the more choices to choose from for customers
Tech-savvy Professionals
Tech, online experts who are able to maintain and deliver an user-friendly website
Creative Human Capital
Creative, innovative professionals who can deliver hip, sexy and intuitive images of airbnb via design, homepage, ad/commercial, public relations
Online Payment Channels/mediums
100% online-based transactions: it has a fast and smooth online system which facilitates overall transactions
7. Channels
airbnb.com
The most important channel of all: 1. All searches and transactions are executed here 2. No affiliations and partnerships with other travel booking sites
Mobile Apps
All the features and transactions from homepage can be executed on its mobile app
Word of Mouth
Constantly tracks and maintains feedbacks of both hosts and guests
Online Search Engine
Based on user's search history on sites like Google, Yahoo, Bing
Social Media
Strong emphasis on social media by running its own fan pages and placing banner ads
Via Various Events
Local, regional, cultural event sponsorships
8. Cost Structure
Online Payment Processing Firms
Since it is 100% online transactions, transactions fees to online payment processors like Visa, MasterCard, Paypal would take the biggest chunk of cost
Online Platform Creation & Maintenance
Its platform aka homepage is where the magic happens. Airbnb needs to keep it current and trendy, but also intuitive and efficient to streamline the overall transaction process.
Insurance
Insurance for rental space of hosts and travelers
Human Capital
The business is heavily dependent on human resources: needs to keep those highly creative talents to sustain its success.
Ad & Sponsorship
Heavy online ad campaigns, moderate level of offline-based ad campaigns and event sponsorships
9. Revenue Streams
Fees from Both Hosts and Guests
It has pretty simple revenue streams: hosts and guests. Hosts pay about 3% of booking fee, and guests are responsible for about 6 to 12% fee
