The document analyzes Airbnb's business model using several frameworks. A SWOT analysis finds strengths in Airbnb's lower prices and unique experiences, but weaknesses in reliance on hosts and safety issues. Porter's five forces sees low threat of new entry but high threat of substitution. The business model canvas outlines Airbnb's customers, value propositions, and revenue streams from hosts and guests. A blue ocean strategy canvas explores creating value in new market spaces through the ERRC grid of eliminating, reducing, raising, and creating elements.
4. Strengths
Lower prices compared with hotels
High-quality and unique hospitality service
Good brand recognition, image, and equity
Global marketing strategy
Unique experience programs associated with local
culture
Clear and manageable business model
5. Weaknesses
Rely heavily on hosts and lacks flexibility
Need to resolve conflicts between hosts and
guests
Increasingly high customer services costs
Safety problems
7. Threats
Intense competitions around the
world (Xiaozhu, Tujia, Ctrip in China)
Legal issues in some countries or
districts (Public Housing Policy Hong
Kong)
9. ThreatsofNewEntry-Low
High cost of entry
Airbnb’s worldwide homestay networks
Airbnb’s strong brand recognition
Strict legal and local policy of house renting
ThreatofSubstitution-High
A wide range of alternatives in the
market (Traditional hotels, hostels,
and Bed & Breakfast)
10. Buyerpower-Low
Buyers segmented into niches
No group buying
Supplierpower-Moderate
Multiple suppliers
control connection between hosts and
guests
Hosts’ regulations and legal issues make
the expension of homestays unstable
13. Customer
Segments
Pastel
Color
Hosts
▻ who own a house (houses) and desire to
make extra income by sharing their space
▻ who want to make friends from all over the
world
Guests
▻ who like traveling and tasting new
experiences
▻ who have travel need and want to find
accommodations at lower prices
14. Value Propositions
Hosts
▻ earn extra income by sharing their
accommodations
▻ meet and make new friends from all over the
world
Guests
▻ find various unique accommodations
(homestays) at lower prices
▻ build relationship with local hosts
▻ build connection between with local cultures
15. Channels
Airbnb Official website
Airbnb mobile app
Social media sites (Facebook, YouTube,
WeChat)
Digital advertising (Pre-roll video ads, Email
ads)
Word of mouth
Customer Relationship
Home insurance (only for hosts)
Self-service
Personal assistance: 7/24 service
Social media interaction
16. Revenue Streams
6 - 12% of the amount guests pay
3% of the amount hosts receive
Key Resources
Technology
▻ (Platform architecture, algorithms, and database)
Human resources
▻ (Customer services, UI designers, and
photographers)
Customer networks
▻ (among Airbnb, hosts, and guests)
17. Key Activities
Platform development and maintenance (Website and app)
Marketing
Community management (Host and guest network)
Travel services (Experience programs, restaurant
recommendation)
Key Partnerships
Investors
Insurance companies
Social media platforms for logging in
Map providers
Online payment platforms
Photographers
18. Cost Structure
Platform development and maintenance cos
General and administrative cost
▻ (Employees’ wages & physical properties)
Insurance cost
Marketing cost
22. References
Juggernaut. (2015, July 07). How Airbnb works: Insights into business & revenue model. Retrieved from
http://nextjuggernaut.com/blog/airbnb-business-model-canvas-how-airbnb-works-revenue-insights/
Truong, K. (Producer). (2016, September 25). Business model canvas for Airbnb. Retrieved from
https://www.youtube.com/watch?v=-YEQrKtSf8w
Lumos. (2012, November 08). Business model breakdown: Collaborative consumption. Retrieved from
http://www.lumosforbusiness.com/blog/821/08-11-
2012/Business+Model+Breakdown++Collaborative+Consumption
Elisa Lafuente. (2015，October 05). Airbnb blue ocean strategy. Retrieved from
https://prezi.com/e-_pugyywzgl/airbnb-blue-ocean-strategy/
