airbnb Harnesses the power of its market network with more than 4 million residences and tens of millions of guests. Each new guest brings more business to residence owners and increases the incentive to post rentals from new owners. And as they join the market, they enhance the value of the system by giving potential guests more options to choose from and places to visit.
Both groups encourage each other to continue in airbnb. Positive guest experiences keep them on the platform for future travel, while accumulated positive reviews help owners attract more customers. These network effects helped Airbnb capture about 20% of all US consumer spending on lodging in 2019, according to a report by Bloomberg.
And with millions of users interacting on its platform, the company can collect valuable information. airbnb learn from users' travel plans, budgets and other data. These Insights help the company refine its products and deepen its relationship with customers.
What makes the entry barrier for competitors from airbnb even broader is its global reach. “airbnb it is the only hotel brand that has the global awareness to generate unmatched demand,” writes Scott Galloway, professor of marketing at New York University's Stern School of Business. “While competitors may have shares in a specific market, no brand sits on the iron throne in every market like it does. airbnb«.
The depth and breadth of the network airbnb they also make the company very resilient and sustainable. In May 2020, for example, Airbnb laid off a quarter of its staff in a bid to cut costs amid the Covid-19 pandemic. The CEO Brian Chesky it even considered pushing its IPO (Initial Public Offering) until 2021.
But the reservations airbnb they began to pick up in June 2020 as people looked for rentals close to where they lived, places customers could get to while remaining socially distant and avoiding high-density hubs like airports. Y airbnb was perfectly positioned to benefit from this demand. Guests were able to choose from a wide range of options and booked for several weeks and even months at a time. This boom in business allowed airbnb recover enough to even go public in December 2020.
Chesky is interested in further increasing the barrier of protection for its customers from airbnb. He said the company plans to "educate the world about hosting, recruit more hosts, simplify the traveler experience, and provide world-class service." airbnb it will need millions more owners to maintain current momentum and handle the post-pandemic travel boom.
