Cracking Down Business Models : AirBnB

This article explores how Airbnb went from being a crash bed company to a company valued at over 35 billion dollars by virtually revolutionising the way travellers and tourist around the world choose and book accommodations.

BY RATTANDEEP SINGH | 5 minutes read

Key partners

Airbnb has always worked as a reliable companion for its various partners ensuring high levels of transparency and trust

1. Investors

2. Regulators

Key activities

1. Rules and regulations

2. Marketing

3. Platform maintenance

Key resources

1. Brand

2. Host community

3. People

Value propositions

1. Enjoy life like a local

2. Generate a stable stream of income through your apartment

3. Earn via events

Customer relationships

1. Exclusively Tailored according to your needs

2. Airbnb community

Customer segments

1. Travellers

2. Hosts

3. Experience providers

Cost structure

1. Marketing

2. Maintenance

3. People

4. Lawyers

Revenue streams

1. Booking fees

2. Commissions from Hosts

The surprising thing about Airbnb is that it owns none of the 4 million listings on its network. Additionally it is among a few silicon valley start-ups which are materially profitable. With a network all around the globe Airbnb has now challenged global behemoths like Expedia and Starwood and is on its way to take on Marriott. This is all the more starling given that Airbnb has only focused on employing a simple marketplace model just connecting the hosts with travellers with a true exponential touch in each and every aspect.

Truly Airbnb has completely revolutionised the way how travellers and tourists think about accommodation. It has given rise to a whole new alternative to the existing hotels industry Given its future plans about expanding into experience tours and recent acquisitions, Airbnb is poised to emerge as the Google of the tourism industry.