How Airbnb went from 0 --> $93B

Where would we be without Airbnb? Well, we'd be in a lot more crappy hotels, that's for sure.

Airbnb has absolutely changed the travel game since its conception in 2008. Before this, travellers were limited to staying hotels and motels, which were generally high in price and low in vacancy.

Today, thanks to Airbnb, we have 7 million rental options, in over 220 countries worldwide.

The company has to be one of the greatest examples of innovation and disruption of our time. The brand created a completely new business model and offered a never-seen-before service.

Eventually, Airbnb pulled off a successful IPO worth over $100 billion. And that was during the worst year for the travel industry--the 2020 pandemic.

So, how did they do it?

In 2009, founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk were struggling to pay rent in NYC. So they decided to rent out space in their apartment to people attending a local design conference.

They soon realized there was a shortage of places to stay in the city. So they decided to create a platform to help people find short-term living quarters. And on August 11, 2008, they launched their official website.

But how did they convince people to allow complete strangers into their homes?

The peer-to-peer structure of the business lent itself to a strong focus on community. Airbnb is a two-sided marketplace that connects people who have spare space in their homes (hosts) with travellers looking for a cheap place to stay.

To make hosts feel comfortable, the company created a dedicated support team that was available 24/7. Airbnb then introduced the SuperHost program to recognise and reward the top-performing hosts.

This program gave them incentives like increased visibility on the platform. This motivated hosts to maintain high standards. And it helped potential guests feel confident booking with them.

Airbnb also instated a robust peer-to-peer review system. And this is a huge reason they have built such a strong sense of trust on the platform. They've created a global community that fosters positive interactions and maintains credibility.

Their massive success is also due in part to Airbnb’s marketing campaigns.

The company has effectively utilised experiential marketing to create memorable experiences for their patrons. Experiences they wouldn't be able to get anywhere else.

The brand has offered giveaways like a chance to stay at the Louvre Museum or on a private Island to generate buzz around the brand.

But Airbnb is about more than accommodation.

Because why not excel in all areas? So the company also offers ‘Airbnb experiences.’ These allow travellers to book unique local activities hosted by residents. This offering doesn't just add another revenue stream to the business. It also enhances customer experience and positions Airbnb as a part of communities worldwide.

Airbnb has opened the world to a different way of travelling. One that champions community and accessibility. It’s a shining example of how technology can bring a good idea to the world and change the way it works.

So what can we learn from Airbnb?

• Community and trust building. From host support to its peer-to-peer structure, Airbnb's success shows how creating a strong sense of community with your customers is crucial.

• Experiential marketing. Airbnb focused on ways to enhance travellers' overall experience. By helping customers interact with the culture of a place, the brand uplifted and connected communities.

• Innovation and disruption. The founders spotted a gap in the market and capitalised on it in a completely new way. Creating this peer-to-peer marketplace has enabled ordinary people to become hosts. And that has vastly increased the number and variety of available accommodation all over the world.

-Sophie, Copywriter