What is the value proposition of Airbnb?
The value proposition to hosts are income generation, simplicity and safety (the latter addressing the biggest concern). Experience hosts can offer online and real-world experience to guests.
- Focus on User Experience. When Airbnb first launched, its website's appearance wasn't nearly as sleek as the current design. ...
- Keep It Intimate. Image via Flickr by Open Grid Scheduler/Grid Engine. ...
- Make It Fun. ...
- Encourage Large-Scale Adoption.
Airbnb's growth strategy: Promise & deliver on value for everyone. Airbnb relies on user-generated listings, content from its hosts, and most importantly, upon reviews from both guests and hosts in order to build trust.
Airbnb's profit formula is based on transaction fees charged to users, cost structure associated with developing and updating software and technology, marketing and wages for engineers, and professional management and staff.
What is a value proposition? A value proposition is a simple statement that summarizes why a customer would choose your product or service. It communicates the clearest benefit that customers receive by giving you their business.
Key Points. Airbnb is more family and group travel-friendly compared to hotels. In addition, the platform offers better non-urban location listings versus hotels. Airbnb also gains favor from travelers looking for extended stays.
Airbnb's Unique Selling Point, the factor upon which its notional $1.3bn value rests, is the claim that it is a marketplace for real people to rent out their own homes - that is to say, the properties in which they themselves live - while they are away or individual rooms in their house while they are present.
Capital markets seem to value Airbnb based on the volume of travelers and clicks whereas Accor is valued on its earnings and income. Consequently, Airbnb's market cap is superior to Accor's even though Airbnb doesn't own any real estate.
Uber's Value Propositions
For customers, the greatest value proposition is the convenience of not having to look for a taxi — the car comes to you. Cars are available 24/7 and their route can be tracked.
Since online streaming took off, Netflix's value proposition is slightly different. They still offer customers convenience, range of selection and competitive pricing, but they achieve this differently now. They offer convenience by having one of the most established and reliable web streaming platforms out there.
