Lea Solimine Airbnb Personal Project (June 2015)

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ASIA PACIFIC Challenges & Opportunities

Transcript of Lea Solimine Airbnb Personal Project (June 2015)

Page 1: Lea Solimine Airbnb Personal Project (June 2015)

ASIA PACIFIC Challenges & Opportunities

Page 2: Lea Solimine Airbnb Personal Project (June 2015)

Lea Solimine San Francisco, CA Member since 2013

Since 2008, I've managed top tier global brands like Dove,

Febreze and Persil at Unilever and Procter & Gamble.

I've launched large-scale marketing campaigns and product innovations across international markets, produced award-winning content,

and brought tremendous growth to the brands I managed.

My multicultural background and international work experience also makes me a versatile and empathetic marketer.

Hello! My name is Lea. I specialize in building brands and businesses across international markets. I also have great expertise in Asia Pacific -­‐ a key region for Airbnb's future growth.

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Kuala Lumpur New York Miami

Bangkok SingaporeVancouver

Where I was born & grew up. Where I grew up. Where I grew up.

Where I went for High School. Where I went for University. Where I built my career. Where I'm currently based.

San Francisco

A little about myself ... I was born in Malaysia. Grew up in the U.S. & Thailand. Educated in Canada. Worked in Singapore. Now, based in beautiful San Francisco.

Where I was when in my mother's womb.

Busan

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Why I want to work at

What I bring to the team

To contribute my skills & experience to an organization I genuinely believe in.

To create real value, and to positively impact

cultures & communities around the world.

To work for an influential brand that's persistently challenging the norms.

To have a hand in building the world's first

Community-powered Super Brand

8 years of experience in brand and product marketing, advertising & market research

Strategic & Analytical thinking skills

Creative, out-of-the-box thinking

An entrepreneurial mindset

High attention to detail & executional discipline

Cross-functional team player & leadership

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All eyes are on Asia Pacific Asia Pacific drives international tourism growth, with China leading the way

2013 International Arrivals # Arrivals (Mil) Growth (vs. 2012)

Global 1,009 +5.0 %

Europe 563 +5.4 %

Asia Pacific 248 +6.2 %

Americas 168 +3.2 %

Africa 56 +5.4 %

Middle East 52 -0.2 %

APAC is the 2nd most visited region in the world, representing 25% of international inbound travel, and is the fastest growing region attracting global tourism.

China, Thailand & Malaysia are among top 10 most populardestinations in the world.

China is the world’s largest outbound travel market & the No. 1 top spenders on global tourism, spending $128 Billion in 2013

By 2030, UNWTO estimates ~60% of outbound international travel will be to emerging nations, driven by trips to Asia Pacific.

Source: UNWTO / Wikipedia

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Getting Asian Travelers to try Airbnb for the 1st time

Getting Airbnb to alleviate Hajj's international accommodation issue

Getting more 2+ bedroom homes in Asia Pacific listed on Airbnb

While global companies make concerted efforts to grow their presence in Asia, below are 3 Asia Pacific topics I recently explored for Airbnb:

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Challenge: Getting Asian Travelers to try Airbnb for the 1st time Though it's impossible to describe the 'typical' Asian Traveler - for the purpose of this section we will focus on the largest Asian traveler segment:

THE CHINESE LEISURE TRAVELER

Challenge: Getting Asian Travelers to try Airbnb for the 1st time

Though it's impossible to describe the 'typical' Asian Traveler – I've focused my report on the largest Asian traveler segment:

THE CHINESE LEISURE TRAVELER

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China = No. 1 outbound travel market in the world; with 63 million trips made in 2012.

Leisure Travel = 70% of China's outbound trips.

NOVICE TRAVELERS

EXPERIENCED TRAVELERS

EVOLVED/ SOPHISTICATED

TRAVELERS

Winning in Asia means winning over Chinese Leisure Travelers. In Airbnb's case: getting the more experienced and evolved travelers to try Airbnb for the 1st time, and building trust among novice travelers.

"Novice" (or less to moderately experienced) travelers represent the largest segment of China's outbound market.

Source: UNWTO & Singapore Tourism Board

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Let's take a closer look at the attitudes, needs & habits of Chinese Leisure Travelers as segmented by travel experience:

THE NOVICE Traveler

-  Traditional package tours covering multi-destinations + attractions.

-  Travels primarily within Asia/ short-haul. Sticks to popular, more common destinations

HABITS & travel arrangements

-  Free & easy travel; -  Mix of multi & mono-destinations -  Short & long-haul destinations -  Open to more foreign but still popular

destinations

-  Packed itineraries with must-see sites & iconic attractions

-  Safe, supportive environment -  Shopping opportunities -  Chinese catered experiences -

language & food (very important)

NEEDS & PREFERENCES

-  Focused on sight-seeing and relaxation

-  Shopping opportunities -  Chinese catered experiences -

language & food (highly valued)

-  Excited over newly attained status as global traveler

-  Eager to fulfill list of must-do/ must-see destinations

ATTITUDES & MOTIVATIONS

-  Overseas travel as an opportunity to gain new experiences and knowledge

-  Keep up w peers; fear of missing out.

-  Free & independent travel; -  Largely mono-destinations -  Short & long-haul destinations -  Prefers more foreign/ exotic

destinations

-  Prefers relaxed itineraries and deeper experiences

-  Demands higher quality of service.

-  Travels to relax and seek new, unique experiences

-  Would revisit destinations if they enjoyed them

THE EXPERIENCED Traveler

THE EVOLVED Traveler

Source: Singapore Tourism Board

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Novice Chinese Leisure Travelers

AS A RESULT THEY PREFER: (1) International hotel chains due to safety & security and familiarity of hotel service and amenities

(2) Chinese language, food and customs integrated into their travel experience.

(3) Booking accommodation through trusted local travel agents –since they handle all travel services in one shot: visa applications, flights, tour bookings etc.

CHINESE NOVICE TRAVELERS ARE: 1.  RISK AVERSE AND HAVE HIGH PROPENSITY FOR

THE FAMILIAR AND PREDICTABLE

2.  HIGHLY DEPENDENT ON CHINESE-CATERED SERVICES & TRAVEL-SERVICE PERSONNEL

CH travelers value the 'human element' behind conventional travel services. Less experienced travelers especially depend on hotel concierge and travel agents for travel support.

Over 70% of all outbound trips from China were made in the last 6 years, which means a significant proportion of Chinese are traveling for the first time or in recent years.

Source: Singapore Tourism Board

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MOTIVATORS

Given their traits & tendencies, below are potential factors motivating or hindering Novice Chinese Travelers from trying Airbnb.

Novice Chinese Leisure Travelers

STRONG BRAND AWARENESS.

Chinese are very brand savvy; with Airbnb gaining reputation as a trustworthy international brand is a huge motivator STRONG VALUE PROPOSITION.

Airbnb being a valuable, cost-efficient alternative for accommodation, especially for families and groups is another big motivator.

CHINESE TOUR GROUPS PROPAGATING TRAVEL

MYTHS:

“Conversing with strangers is strongly discouraged”- as

strangers are likely to commit theft

“Steer clear of local food”- as they can cause an upset stomach

--

An insightful read about an American who traveled

with a Chinese tour group

THE NEW YORKER http://www.newyorker.com/magazine/

2011/04/18/the-grand-tour

BARRIERS AIRBNB IS AN UNFAMILIAR EXPERIENCE LANGUAGE BARRIER & INABILITY TO COMMUNICATE WITH HOSTS IS A SIGNIFICANT DETERRENT LACK OF CONFIDENCE WHEN LEFT TO THEIR OWN DEVICES

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Experienced Chinese travelers progress to traveling independently which allows them to have greater autonomy in planning their itinerary. While they prefer mono-destination trips which allow them to explore the destination in greater depths, majority of CH travelers still prefer visiting popular destinations as driven by the need to keep up with their peers.

Evolved Chinese travelers are much more open to exploring new places and activities beyond the well-trodden path. They actively seek more in-depth experiences which allow them to interact, immerse and learn more about local cultures and people.

Experienced & Evolved Chinese Leisure Travelers

Source: Singapore Tourism Board

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As Chinese travelers become more experienced, they travel to farther, more exotic destinations and expect less "Chinese-catered services".

Experienced & Evolved Chinese Leisure Travelers

Top Chinese outbound destinations: Primarily Asia, second Europe, then top U.S. cities

When it comes to accommodation, experienced travelers place greater importance on overall environment & style and brand, and less on Chinese-catered services.

Source: BCG Perspectives

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In summary: Given Chinese Leisure Travelers' different attitudes

towards new experiences and confidence in traveling independently, brands like Airbnb must be prepared to make special adaptations to appeal to the right segment.

NOVICE TRAVELERS

VERY RISK AVERSE / AVOIDS THE UNKNOWN

HIGHLY DEPENDENT on hotel concierge & travel

service staff for support

EXPERIENCED TRAVELERS

PREPARED TO TRY NEW EXPERIENCES

MORE INDEPENDENT

EVOLVED TRAVELERS

ACTIVELY SEEKS OUT NEW, UNIQUE EXPERIENCES

MUCH MORE INDEPENDENT

RISK PROFILE (Openness to New Experiences)

INDEPENDENCE LEVEL (Reliance on service staff for support)

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Airbnb's current model serves the evolved and more experienced travelers well. However, it should strongly consider adapting its product/ service and communications to suit the needs of newly & moderately experienced travelers who depend heavily on Chinese-customized services when traveling.

This also means more $, resources & effort need to be put in place to educate & build trust among Novice travelers.

What this really means for :

Moderate changes Significant changes

NOVICE TRAVELERS

EXPERIENCED TRAVELERS

EVOLVED TRAVELERS

INVESTMENT ($ Cost to Convert)

Chinese-customized services & features

recommended

Not required

Not required

Special education programs required

Complementary messaging

recommended

Not required ( Easiest to convert )

( Easier to convert )

( Toughest to convert )

CHANGES TO PRODUCT/ SERVICE

CHANGES TO COMMS/ MESSAGING

IMPLICATIONS TO AIRBNB MODEL

$

$$

$$$

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What Airbnb needs to do to win over Chinese Leisure Travelers:

Educating & building trust among Chinese travelers.

Alleviate the language barrier between guests & hosts

Meet the specific needs of Chinese travellers *human-element of communication, safety & security, food

KEY INFLUENCER ENDORSEMENT. Get Chinese celebs & bloggers to genuinely endorse Airbnb via 'testimonial-style'' communication.

PARTNERSHIPS with reputable Chinese Online Travel Agents, travel search sites & blogs to drive awareness & traffic to Airbnb.

EVANGELIST PROGRAM. Incentivize experienced Chinese Airbnb users to share their positive experiences via social media & word-of-mouth.

ADAPTATION OF AIRBNB'S GLOBAL AD/ MESSAGING to address cultural barriers/ needs. (i.e. simpler, straightforward messaging)

FACILITATE COMMUNICATION BETWEEN GUESTS & HOSTS* (e.g. Chinese guest and French host) by imbedding a language-translation feature within the Airbnb messaging tool.

LAUNCH 24/7 CONCIERGE SERVICE* to minimize the gap between Airbnb and the expected hotel experience. LAUNCH OTHER SPECIAL CHINESE FEATURES ON AIRBNB* e.g. Chinese restaurant & grocery store locator, digital / mobile‘arrival information package’fully equipped with important information in Mandarin. *Consider piloting these special services/ features in key Chinese outbound destinations: e.g. top Asian, European and US cities.

How?

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Ideas for consideration: Comms/ Messaging Airbnb's latest campaign "Never A Stranger" should theoretically work well in China. However, the brand should consider making cultural-specific adaptations in China's ad execution, and complement its global message of "Belong Anywhere" with target-specific messaging.

FOR NOVICE TRAVELERS

Address their inertia for unknown/ unfamiliar experiences by reassuring and instilling trust in how

Airbnb is an established brand trusted by many.

Use SUPERLATIVE / QUANTIFIABLE style of communication. i.e. Loved and trusted by millions;

the world's No. 1, an iconic global experience.

FOR EXPERIENCED TRAVELERS:

Reflect their motivations for traveling: - gaining knowledge + self-enhancement. e.g. how Airbnb enhances their travel experience by giving them

in-depth cultural experiences.

Relevant words/ phrases being: Enriching, gaining richer, deepening, enhancing.

(Enrich your cultural experience) (Loved by millions from all over the world)

+

Airbnb's "Never A Stranger” campaign directly addresses concerns about staying with strangers and shows the delightful experience of making friends and embracing

local culture throughout one's travels. However, the brand should also consider the following for CHINA:

1.   Ellie addresses her letter to someone she has a close relationship with: “DEAR MOM/ SISTER OR FRIEND”, instead of “stranger”.

2.   Continue to place great emphasis on how the world is full of genuine people looking to help (less emphasis on concept of "strangers being good").

深受全世界数以百  万计的人们喜爱  

增长你的文化阅历    /  丰富你的文化体验  

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Ideas for consideration: Marketing Programs Invest in special programs (endorsements, partnerships, educational programs etc.) to build trust & confidence among Chinese travelers

(6) PARTNER WITH ONE OF CHINA'S TOP TRAVEL AGENCIES TO PILOT AIRBNB

CHINESE CONCIERGE PROGRAM **

Top 5 Social Media Sites:

Baidu (百度) , QQ (腾讯网), Taobao (淘宝网), Sina (新浪网),

Youku (优酷网)

Top Micro-blogging Sites:

Sina Weibo (新浪微博),

Tencent Weibo (腾讯微博)

(3) INSPIRING USER STORIES ON TOP SOCIAL MEDIA &

MICRO-BLOGS

Top Online Travel Agencies:

CTrip (携程), E-Long (艺龙)

Top Travel Review Sites:

Ma Feng Wo (蚂蜂窝)

Dao Dao (到到网) Ivmama (驴妈妈旅游网)

Top Travel Search Engines:

Ctrip (携程旅游网) Qunar (去哪儿网)

(2) PARTNERSHIPS WITH TOP CHINESE TRAVEL SITES

Airbnb to debunk all overseas travel myths propagated by traditional tour companies.

(4) SPONSOR EDUCATIONAL PROGRAMS FOR NOVICE CHINESE TRAVELERS

Ideal celebrity partners: Fan Bing Bing, Jay Chou, Nicholas Tse,

Huang Xiao Ming, Zhang Ziyi

(1)“TESTIMONIAL-STYLE” INFLUENCER ENDORSEMENT*

(5) EVANGELIST + REFERRAL PROGRAMS: INCENTIVISE USERS TO SHARE THEIR EXPERIENCES,

SPREAD THE WORD & CONVERT FRIENDS

Get travel agents to assist Novice

travelers in creating Airbnb account + booking their 1st accommodation in

person. Agents to also provide concierge support during travel.

Potential Partners:

China International Travel Service, China Travel Service, Shanghai

Spring International Travel

Considerations: *Celebs need to be thoroughly vetted to ensure suitability to Airbnb's brand. Must also consider cost effectiveness celeb endorsement vs. other influencers like bloggers. | **More research to be done to understand the challenges and implications of partnering with local travel agents.

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Opportunity: Get more 2+ bedroom homes in key APAC

destinations listed on Airbnb

For this section, we will focus on :

Millennial Leisure Travelers

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Millennial travelers will soon be the core customers of airlines, hotels, and travel companies in the next 5–10 years. In keeping with their social nature, Millennial Leisure Travelers are also more likely to travel in organized groups, with extended family or adult friends.

Source: BCG Perspectives & Press Release

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Data taken on 05/16/2015

No Filter: All Room Types

Filter: Entire Place 2 Bedroom Change

HONG KONG 1000+ 1000+ 0% SINGAPORE 1000+ 450 -55% BANGKOK 1000+ 598 -40% MACAU 46 32 -30% SHENZEN 1000+ 1000+ 0% KUALA LUMPUR 1000+ 831 -17% DUBAI 1000+ 557 -44% SEOUL 1000+ 810 -19% PHUKET 1000+ 1000+ 0% GUANGZHOU 678 194 -71%

SHANGHAI 1000+ 525 -48% BEIJING 667 243 -64% TOKYO 1000+ 748 -25% KYOTO 1000+ 388 -61% OSAKA 1000+ 460 -54% TAIPEI 1000+ 595 -41% JAKARTA 890 299 -66% BALI 1000+ 1000+ 0% HO CHI MINH 945 177 -81% HANOI 604 44 -93% MANILA 1000+ 644 -36%

Number of Airbnb listings in key APAC destinations: Smaller homes (0-1 bedrooms) vs. Larger homes (2+ bedrooms)

Given that Asia Pacific is the 2nd most visited region in the world, Airbnb Asia is currently underserving those traveling in groups or with families.

On average, the number of Airbnb listings in APAC cities drops by -40% when searching for 2+ bedroom homes. Only 4 of 20 leading Asian city destinations (Hong Kong, Shenzhen, Phuket, Bali) are serving groups fully.

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What this means for :

Airbnb must look into reasons why homeowners of larger homes/ 2+ BRs in Asia Pacific are not listing them on Airbnb?

Identify the issue: whether it is lack of awareness / or relevance?

Identify homeowners' motivators & barriers for listing (or not listing) larger homes for short-term lease.

After gaining insight on the above, develop a special program/ campaign to address homeowners' inertia of renting to strangers + incentivize them for becoming a first-time host.

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With significantly less options for groups and families on Airbnb, travelers will opt for hotels and other short-term rental services - leading to a significant missed opportunity for Airbnb.

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Opportunity: Airbnb to alleviate Hajj's international accommodation

issue.

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The world's largest Muslim population live in Asia Pacific. Every year, nearly 2 million Muslims from around the world journey to Mecca, Saudi Arabia to perform the holy pilgrimage of Hajj.

62% of the world's Muslim population live in Asia.

Majority of whom live in Indonesia, Pakistan, India & Bangladesh.

550,000+ Muslims from Asian countries took part in the Hajj

pilgrimage last year (2014).

Source: International Business Times & Pakistan Defense

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However, the cost of performing the Hajj has become significantly more expensive over the years, costing anywhere between $4,000-$15,000 USD per person per journey. And with the rise of luxury hotels in Mecca in recent years, prices continue to inflate farther.

As a result: what is meant to be an enlightening, spiritual journey has become an overwhelming financial burden affecting hundreds of thousands of people, especially those from developing countries.

Source: International Business Times

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The 2 most common types of accommodation during Hajj are (i) government sponsored tents serving the majority of Hajj pilgrims, and (ii) 4-5 star hotels serving upper-market consumers. There is significant opportunity to develop the short-term rental market in Mecca to serve travelers seeking more comfortable accommodation without the hefty price tag.

GOVERNMENT SPONSORED ACCOMMODATION

LUXURY HOTELS Fairmont, Hilton, Intercontinental etc.

$ Low comfort

$$$ High comfort

Tent city: very basic amenities, crammed quarters, compromised hygiene

SHORT-TERM RENTALS

Affordable + Comfortable accommodation

A SEVERELY

UNDERDEVELOPED SEGMENT

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the GOOD

Hajj season is the most popular time for travel among Saudis, leaving many Saudi homes unoccupied during the busy week.

the BAD

Hajj tours, visas & accommodation are heavily controlled and tightly managed by the Saudi government, which makes independent travel to Hajj a big challenge.

Source: Statista.com

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Why this is significant for :

Airbnb can bring immense value to the international Hajj community. There is great demand for comfortable & affordable accommodation during Hajj season in Mecca which can easily be offered by many local Saudi homes.

And as a community-driven consumer brand, Airbnb is steadfast about serving its global communities, and has never been easily deterred by bureaucracy or tough governments.

MARKET PEOPLE

Makkah province, Saudi Arabia (Mecca, Mina and Medina)

during Hajj season

International Hajj pilgrims +

Saudi hosts

Building up Airbnb's presence in Makkah, Saudi Arabia, especially during Hajj season fits perfectly with the brand's mission of: building a world where everyone can belong anywhere.

For consideration: Airbnb to partner closely with relevant Saudi officials + Hajj tour companies to pilot a program where pilgrims stay in Airbnb homes instead of tents & hotels.

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Thank You Lea Solimine | [email protected]

+1 (415) 769-9669

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Winning the Next Billion Asian Travelers–Starting with China (BCG Perspectives) https://www.bcgperspectives.com/content/articles/transportation_travel_tourism_globalization_winning_billion_asian_travelers_starting_china/ China Market Insight (Singapore Tourism Board) https://www.stb.gov.sg/statistics-and-market-insights/pages/market-insights.aspx The Grand Tour (The New Yorker) http://www.newyorker.com/magazine/2011/04/18/the-grand-tour

Millennial Spending to Boom in Coming Years (BCG Press Release) http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-130054 Traveling With Millennials (BCG Perspectives) https://www.bcgperspectives.com/content/articles/transportation_travel_tourism_consumer_insight_traveling_with_millennials/ Leading City Destinations by Number of Arrivals Asia (Statista) http://www.statista.com/statistics/381848/leading-city-destinations-by-number-of-arrivals-asia/ Data of Asia Pacific listings taken directly from Airbnb website; Filters used: "Entire home, 2 bedroom”.

World Tourism Rankings (UNWTO) http://en.wikipedia.org/wiki/World_Tourism_rankings

Hajj 2014 Numbers (International Business Times) http://www.ibtimes.co.uk/hajj-2014-numbers-over-2-million-muslims-expected-holy-pilgrimage-mecca-1467881 Hajj 2014: For Saudi Arabia, The Muslim Pilgrimage is Big Business (International Business Times) http://www.ibtimes.com/hajj-2014-saudi-arabia-muslim-pilgrimage-big-business-1700108 Minna, The City of Tents (Amazing Planet) http://www.amusingplanet.com/2014/08/mina-city-of-tents.html Islam by Country (Wikipedia) http://en.wikipedia.org/wiki/Islam_by_country Quota of Major Muslim Countries for Hajj 2014 (Pakistan Deffence) http://defence.pk/threads/hajj-2014-quota-of-major-muslim-countries-pakistan-indonesia-iraq-turkey-iran-morocco-tunisia-etc.298326/ Seasonal Patterns of Travelers from GCC Countries (Statista) http://www.statista.com/statistics/304129/seasonal-patterns-of-travelers-from-gcc-countries/

INTRO

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