Airbnb Strategy Teardown

Abstract

Ahead of Potential IPO, Airbnb Looks Beyond The Hotel Industry I Airbnb reimagined hotel accommodation, creating a niche in the travel industry. Now it's expanding its inventory, targeting luxury and business travelers, and going up against Priceline, Expedia, and others. Its success will hinge on whether it can compete with these giants while retaining the identity that set it apart. Since its founding in 2008, Airbnb has grown from a small startup that let users rent out their air mattresses, to a global player in international travel and hospitality. • Now, as it sets its sights on an IPO, it is evolving from a home-sharing platform to an expanded travel services company, challenging incumbents like Expedia and Priceline. • It's getting into real estate, targeting larger property manag-ers, and building an Airbnb-branded property in Orlando. • And it is expanding internationally, with certain markets in Asia emerging as a key area of growth and hiring, as we'll show. As it looks to become a full-service travel platform, it faces a new host of competitors. Online travel agencies like Priceline and Expedia, which own a slew of online travel booking platforms, have already added features that make them more competitive with Airbnb. They have tremendous online marketing resources for capturing comparison-shopping travelers. Just as Airbnb distinguished itself as an alternative to the hotel experience, it will need to do the same against the major online travel players. In addition, the company faces regulatory challenges fanned by the hotel industry. The hotel lobby in some cases has successfully pressed local governments to regulate short-term subletting. It has also had to improve the trust and safety associated with its home-shares, as it seeks to make home-sharing more mainstream. Thus far, the company has successfully navigated many of the hurdles it's encountered. Unlike Uber, the only private company in the US valued higher than Airbnb, the company has had relatively stable leadership, with most of its senior executives in their positions for at least 2 years. It has made effective legal hires that have helped it navigate the regulatory challenges it's faced. In this analysis, we examine Airbnb's strategy and future prospects using CB Insights data on funding, investments, acquisitions, partnerships, and patents. II Background & Leadership