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Airbnb Care Goal:-Emergency re-booking assistance to the guest when cancellation is initiated by the host

By :- Nidhi Kaushik

AGENDA

• BUSINESS MODEL CANVAS

• INDUSTRY ANALYSIS

• Airbnb COMPETITORS

• COMPETITORS : FEATURE COMPARISON

• ISSUES AFFECTING AIRBNB TODAY

• WHY DO WE CARE

• PROBLEM STATEMENT

• HYPOTHESIS

• WHY WILL Airbnb WIN?

• TARGET PERSONAS

• PROPOSED SOLUTION

• PRODUCT ROADMAP

• MVP

• WIREFRAME

• OBJECTIVES & KEY RESULTS

• RELEASE PLANNING

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Business Model Canvas

Key Partners

-Hosts

-Business travel managers

Investors/venture capitalists

Other partners:

-Photographers (street, event, property)

-Maps, payment, cloud storage, identification

-Insurance

Key Activities

-Remove friction from transactions

-scale beyond critical mass

-Engage the participants

-Refine value proposal

-Analyze data & improve

Value Proposition

For the hosts: -

-Income generation

-Ease of transaction

-meeting new people

-Ease of getting verified guests

-Calendar, booking management

For the guests: -

-lower cost

-Easy transactions

-Authentic local experience

-More variety

-Transparent ratings

Customer Relationships

-Own the relationships

-Manage interactions

Especially for hosts:

-Issue resolution

-Guide joining steps

Public: Company Image

Customer Segments

Guests

-Travel type (business, leisure)

-Demographic

-Geographic

-Behavioral

Hosts

-Accommodation type

-demographic

-Geographic

-Rental preferences

Key Resources

-the network effects

-Listings

-User generated Content

-Platform Architecture

-Algorithm, data analytics capabilities/people

- App

Channels

-Digital Ads

-Content marketing

-Word of mouth

-Social, messaging

-Referral Program

-Transaction: App, pages

Engage: mails, offers

Cost Structure

-Customer acquisition cost

-Development &expansion

-Payroll, contractors

-Infrastructure, transaction costs

-Legal, insurance

-Customer support

Revenue Streams

-charging a transaction fee

3-5% service fee from guests (higher the total, lower the percentage)

- 10-15% fee from host for every booking

-Event hosts: 20%

-Event guests: 0%

https://strategyzer.com/canvas/business-model-canvas

You can download this file as excel file at:

Devised by Alexander Osterwalder

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Industry Analysis

• The B&B Industry has an estimated worth of $3.4 billion.

• The average occupancy rate for American B&Bs is 43.7%.

• The average daily rate (ADR) for American B&Bs is $150.

• The average revenue per available room for American B&Bs is $58

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Local Presence

Luxury Rentals

Affordable listings

International PresenceAirbnb Competitors

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VRBO Booking.com Airbnb

Listings worldwide 2 million active listings around the world with more pet friendly listings that Airbnb

5.4 million properties in 228 countries 4 million listings in 191 countries

Host fees and payments

Three fee options to potential hosts: annual subscription, pay-per-booking and outside management service. VRBO has third party management partners that hosts can browse and employ on the VRBO website

Rental owners pay a 3 percent credit card fee and a 15 percent booking fee, but there’s no subscription fee.

10-15% per transaction, not charged anything to list but charged 10% and above once booking is confirmed.

Payment to host "Advanced Payment Service" where their funds arrive in their bank account 3 to 7 business days after booking OR through the "Check-in Payment Service" where funds arrive 3 to 7 business days after the first day of guest check in.

After check –in Hosts receive payment only 24 hrs. post check in

Guest /traveler fees Nothing other than booking amount Nothing other than booking amount 3% -5 % from the traveler.(fee percentage shrinks as the reservation amount increases)

Cancellation by the guest

Provides cancellation protection to guest to cover for any damages, trip cancellation etc. sorted into Essential, elite and enhanced protection

Cancellation by the guest is subject to terms and conditions and depending on the booking , certain amount is forfeited.

Airbnb has a four-tier system for full refunds: flexible, moderate, strict and super strict

Competitors : Feature Comparison

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Cancellation by host22%

Scams15%

Unsafe or unpleasant conditions

20%

Fake listings or Fake reviews1%

Poor Customer Service16%

Problem in Refund Claim26%

ISSUES AFFECTING AIRBNB PLATFORM TODAY

Cancellation by host

Scams

Unsafe or unpleasant conditions

Fake listings or Fake reviews

Poor Customer Service

Problem in Refund Claim

Why do we care?

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4 million Airbnb listings worldwide.

Airbnb offers listings in over 191 countries.

65,000 cities list homes with Airbnb.

Airbnb averages about 500,000 stays per night.

On any given night, 2 million people are

staying in Airbnb rentals across the world.

Only 11% of the nearly 500,000 US listings are reserved on a typical

night.

In the rare event of accidental damage, the

property of every Airbnb host is covered up to a million dollars.

Problem Statement

Feature Emergency Rebooking assistance with Airbnb Care

Customer(s) Airbnb guests experiencing cancellations

Business Goals of the Product/Feature

Achieve :

• 10% increase in Conversion Rate YoY

• 5% increase in Revenues YoY

Problem How might we enhance the guest experience in case of cancellation by the host so as to achieve the business goals and also increase brand loyalty?

Impact of Not Meeting Goals

Loss of customers to competitors ~ 10% Customer Attrition

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Hypothesis

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Hypothesis Providing customers with new booking, in terms of similar listing or similar hotel accommodation, in the event of cancellation by the host at no extra charge would ensure positive experience ,thereby enabling greater guest confidence while booking and increasing Airbnb’s brand loyalty.

Risks/Assumptions • Assumption: Same period of stay as previously booked

• Risk: Unwillingness of the User to try out the new rebooking feature

Market Fit • We can limit the customer churn and drive brand loyalty by introducing the new rebooking feature thereby driving business goals

• Most of these features already exist in leading competitor sites such as VRBO, so from Competitive analysis perspective also the feature is must

Why will Airbnb Care win?

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Unlike VRBO , no condition on checkout

If similar listing is at a higher price the cost is borne by

Airbnb

The guest has the choice to choose from Upgraded listing

when re-booking

If similar listing isn’t available , similar hotel accommodations

are shown

VRBO provides emergency rebooking assistance only for

last minute cancellation , Airbnb will provide re-booking assistance for all cancellation

initiated by the host.

TARGET PERSONAS

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Sheryl Anthony

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PROPOSED SOLUTION

Implement a solution that will provide assisted

care to the guest who experience cancellations.

Airbnb Care

• Similar Listings

• Upgraded Listings

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MVPSIMILAR LISTING WITH AIRBNB CARE

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Wireframes for MVP

• Similar Listing • Similar Hotel Accommodation

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Similar Listings with Airbnb Care

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What if Similar listings aren’t available?

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Similar Hotel Accomodation

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User’s Decision

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• Rebooking Percentage

• Decrease in online (CS) contact rate

• Revenue growth

• Loss of Revenue for Airbnb (cost adjustment)

MVP METRICS

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Objectives & Key Results

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Objectives Key Results

Drive more sign ups on Airbnb platform due to increase in confidence and loyalty

•Increase in traffic by 10% monthly•Increase Number of new user sign up by 20% monthly

Increase engagement and conversion •Increase the re-booking conversion rate by 10% quarterly

Increase customer loyalty and confidence by providing them with re-booking assistance

•Increase in returning users (persona type:- active traveler)by 15% monthly

Increase in revenue due to upgraded listings •Increase in booking of upgraded listing by 10% for cancellations monthly

RELEASE PLAN (MVP)

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Q3 2018 Q4 2018 Q1 2019

Product MVP results monitoring

Similar listings with Instant Book

Non instant book & super host listings

Resource Alignment

Similar Hotel listings

A/B test Analysis

A/B test Analysis

References

• Business Model Canvas:- https://strategyzer.com/canvas/business-model-canvas

• Airbnb Statistics:- https://ipropertymanagement.com/airbnb-statistics/

• Issues affecting Airbnb today:-https://ipropertymanagement.com/airbnb-statistics/

• https://blog.pillow.com/airbnb-competitors-who-are-they-and-whats-the-difference/

• https://www.littlehotelier.com/r/property-management/american-bed-breakfast-inn-statistics/

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