Airbnb and the canvas business model

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Airbnb promo video

          Value Proposition: Considering we are in the era of smartphones and tablets taking over airbnb offer value where people can stay in bigger rooms at more affordable prices and all at the click of a button. Yet the Value proposition appeals to all levels of income. This increases their customer base.

2.       Customer Segments:  Airbnb offer a place to stay for all types of users. Holiday goers can stay in an affordable place in major cities. Yet it also appeals to the business traveller who is looking to save on company expenses.

3.       Channels: All Airbnb’s distribution channels are done through online services. Their web page browser and their smartphone and tablet application offer the same services. They have a strong presence on social media where the majority of their marketing and advertising is done. However word of mouth also contributes as both hosts and guest discuss their experience with friends and family as well as on social media.

4.       Customer Relationships: Airbnb is a global platform and is used all over the world. As a result their customer service is almost available 24/7. Airbnb offer promotional and loyalty programmes which cater and look after both new and existing customers.

5.       Revenue Streams: They have a simple but effective revenue stream where both the hosts and guest pay a fee. All transactions are also carried out online.

6.       Key Resources: Airbnb need to continuously gain new hosts in both new and existing countries and cities so they can offer a greater choice to the customer.

A) Continue to grow their customers profiles so they can make tailored offers of accommodation based on their needs.

B) As they are an online based business they need to keep up to date with the latest advancements in technology and need to have the best tech savvy professionals working for them.

C) Considering all payments are made online they need to make sure they have the most up to date systems in place to ensure a smooth and seamless process for its customers.

7.       Key Partners:  They need to have a portfolio of hosts and guests.

A)   Market and advertise the company on all sources including social media and print based advertisements. Liaise with tourism boards and newspapers.

B)   Photographers who can take the ideal picture of each accommodation they offer.

C)   Tech experts to keep their social media platforms up to date.

D)   Payment processing channels from banks to paypal.

8.       Key activities:  Recruiting more hosts to expand their portfolio of accommodation.

A)     Continue to advertise on line as this is where the majority of business is generated.

B)      Off-line based advertising such as posters bill boards newspapers etc.

C)      Retrieve search engine data from google and yahoo to spot potential new customers.

D)     If possible target some famous faces to endorse the brand as this will increase footfall to the website and possibly increase sales.

E)      Become a partner with the tourism board to have them advertise your company on official promotional videos and advertisements.

9) Cost Structure: Capital needed for promotional campaigns both online and off line. Considering all payments are 100% online the biggest chunk of money will be paid to the likes of MasterCard, Visa and pay pal for transaction fees.