No business concept is perfect, there are always some problems, but it is how you solve them that makes the business successful. The Airbnb business model is no different. They have also faced some issues, but they solved them quite smartly. We will look at two of the biggest problems that Airbnb business plan faced:
- Trust issues: Trust was the biggest issue that the hosts and the traveller faced while using Airbnb. For the hosts, it was a skeptical step to give their house to any stranger to live in and travelers felt the same about sharing a place with complete strangers. However, Airbnb has a verification process that verifies both the hosts as well as travelers. Airbnb has also added the feature for travelers and hosts to connect their social media profile to this platform for better transparency.
- Traveler retention: For any business, retention strategies are quite important since the existing customers highly contribute to the growth of business. Time to time offers, discounts, credits, etc., for travelers were added to the Airbnb business plan to give effect to traveler retention.
- Competition: Ever since Airbnb launched, it has only seen good growth. But good growth brings competition of its own. Many websites have completely copied the Airbnb business plan and their cost structure. Even though Airbnb has become a renowned brand now, they are constantly working on Airbnb market strategy to differentiate themselves from the others.
The Future of Airbnb
Airbnb was never a billion dollar company, it has come a long way since AirBed and Breakfast. In the past years, Airbnb has continuously changed and modified its business model and website. The website was the only way to make the bookings but now they have expanded to apps.
With the rise in use of apps, business intelligence solutions provider have started getting more and more projects from businesses. And businesses are moving towards mobile apps since the mobile app development cost is not that high anymore.
Here are some of the future business plans for Airbnb:
- After flexible dates, Airbnb is adding two new search options – flexible destinations and listings.
- With flexible destinations, Airbnb’s app or website might recommend certain unique types of homes such as adobe houses or castles
- Airbnb is also launching a faster checkout process, updated review systems, and clearer cancellation policies.
- They are also planning to double the number of customer support representatives.
Originally Published On - https://appinventiv.com/blog/airbnbs-business-model-and-revenue-source/