The business model is a plan made that enlists the complete operations of the business, what would be the sources of income, product offering, target audience and most importantly the finances of the business.
Talking about the business model of Airbnb, it is an online platform that helps the guest/visitor to connect with the family of hosts for providing space in their home and provide the same services as hotels provide but at very economical rates.
The idea was conceived by the founders but the implementation of an idea is the most crucial point. There are many many examples in the world whose idea was very brilliant as well unique but they could not succeed due to a lack of better business plan models. Thus ideas backed by the best business model can give a guaranteed success of the business. Here is the detailed Business Model of Airbnb.
- Key Partners: The first and foremost planning for Airbnb business was to bring out the investment. The founder of Airbnb, Chesky, and Joe do not have enough money for such startup, thus with the help of another co-founder, Nathan Blecharczyk, the company was able to collaborate with a computer programmer, Paul Graham, who brought $ 20,000 investment into the startup. Later on, the company raised $600,000 by going on in a business venture with Sequoia Capital.
Another key element for a partner was registering the startup under the country’s laws and regulations and abide by the rules.
- Major activities: After generating the finances, the next major activity was to do marketing, fruitful marketing, which can produce better and desired results. The key element of marketing of Airbnb was ‘We Accept’, irrespective of any gender, caste, religion, and race. This approach helps every person to use such a facility for his consideration.
Similarly, the maintenance and updating of the web system are also crucial so that all the users can easily access the website without any delay. Because browsing, always leads to bad business experience and people are reluctant to come back for the next time.
- Resources: Apart from business own resources, Assets and Human Resources, the main source of earning for the business are the guests and hosts to whom the Airbnb works to collaborate. Thus the communication between these two requires to be made as simple as possible. Also, there needs to be no middleman who tries to connect them but they needed to be connected directly without the involvement of any other person. This helps them is removing any difficulty and misunderstanding as this may bring major dissatisfaction for the guest or host and ultimately the business suffers.
Branding. Airbnb started with the concept of Bed and Breakfast, thus this made their brand name. People easily come to know when they require such a facility, they quickly approach Airbnb for availing the service without involving any middlemen or agents. Thus Airbnb also understands the importance of direct communication between the guest with Airbnb and then by the guest with the host to get the facilities.