Business Proposition and Critical Analysis of Airbnb: A PESTEL Analysis

MANAGEMEN
T

INTRODUCTION
• The main aim and purpose of the presentation is to analyse the business model
proposition of Airbnb along with critical analysis through PESTEL analysis
• With the help of the business proposition, the different transformational and
improvement aspects are required to be analysed which will improve the
overall growth of the company positively
• Airbnb Inc is privately held global organization which is headquartered in San
Francisco and it operates in online marketplace along with hospitality service
which can be accessible through websites and mobile applications
• The operating income of the company is $450 million till the year 2017 and
the number of employees working in the company is 3100 till the year 2017

BUSINESS
PROPOSITION
• Airbnb is one of the community-based along with
two-sided platform which helps in facilitating the
overall process of booking the private living spaces
for the different travellers in the market
• It enables the different owners of the business
Airbnb to list the different spaces along with earning
rental money appropriately (Fang, Ye and Law 2016)

BUSINESS CANVAS
MODEL OF AIRBNB
Key Partners
Hosts
Travel Managers and Business Travel
Partners
Venture capitalists or Investors
Others
Maps, method of payment and
Insurance (Kavadias, Ladas and Loch
2016)
Travel Managers
Key Activities
Engagement of the different
participants
Analyzing the data and improve
the same
Removing of the friction from
the different transactions
Value Proposition
For the Hosts
Generation of Income
Ease of the different
transactions
Meeting of the new
individuals
Booking and Calendar
Management
For the Guests
Lower cost
More of Variety
Ratings are
transparent
Customer
Relationships
Owning the
relationship
along with
managing the
interactions
Resolution of
Issue of the
guests
Public image of
the company
Customer
Segments
Demographic
Geographic
Behavioral
Hosts
Type of
accommodation
Preferences from
rentals