Airbnb Company

Topics: Money, Renting, Price Pages: 2 (382 words) Published: November 4, 2012

AirBnb is successful online company, that provides a tool to connect people who need a sleeping space and people who have spare space. This company does not require credit checks and paperwork; the website of AirBnb is very simple with an easy interface; the prices are not high. All these benefits make the company attractive to customers. According to the Business Model Canvas AirBnb has its customer segments. In my opinion, a company serves different customer segments. AirBnb’s service depends on the needs and characteristics of the customers. A visitor can find a very cheap sleeping space or a very expensive, like “a $5000 per night vacation house in Colorado”. Talking about the value proposition of the company, AirBnb provides value through prices, accessibility and convenience. They have a website with an easy interface to search, pay and communicate with potential host. Also, AirBnb has a favorable monetary policy. A renter’s fee depends on booking value and varies of 6% to 12%, which means that the remaining percent of the money for any booked nights goes into renters’ hands. Thus, it is very beneficial for majority. AirBnb delivers its value proposition to customers through website and mobile application. “AirBnb is a very simple application built on top of multiple platforms”. From my point of view, this company provides self-service relationship. In other words, customers use tools, which are provided by the company, in order to serve themselves. Using AirBnB service a customer can easily and effectively rent or lodge a place. AirBnb generates revenue through usage fee. The company is taking a charge of 6% to 12% of the rental price from the traveller and also an additional fee of 3% from the landlord. Talking about partner network AirBnb has an alliance with Facebook. It brings the company “a layer of transparency”. Also, the company works with payment process Pay Pal; they work with Google, which provides map and calendar functions; the...
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