Driving Success through Smarketing:

A Case Study of Airbnb

Introduction
The objective of the report is to propose a real case study on "Smarketing" for Airbnb, which
involves the alignment of sales and marketing strategies to achieve common goals. This study
explores various aspects of Airbnb's business, including its target market, marketing and sales
funnel, customer relationship management, B2B marketing and sales process, and ROI. The
report analyzes Airbnb's target market and how it has evolved over time to cater to different
types of travelers. The user experience of Airbnb is examined, with a focus on how the
platform provides unique experiences for guests. The report also delves into Airbnb's
marketing and sales funnel, including how the company acquires and retains users. In
addition, the report examines Airbnb's CRM system and how it helps the company better
understand and serve its customers. The B2B marketing and sales process of Airbnb is also
analyzed, including how the company targets and sells to businesses in the travel industry.
Finally, the report assesses the ROI of Airbnb and how the company measures the success of
its business model. Hence, this study provides valuable insights into the alignment of sales
and marketing that have contributed to Airbnb's success, which can serve as a model for other
companies looking to improve their sales and marketing alignment.

Airbnb Inc. Profile

Airbnb, Inc. is an online global marketplace and hospitality service brokerage firm that
facilitates connections between travelers and individuals seeking to rent out their homes or
apartments. Established in 2008 in San Francisco, USA, Airbnb has rapidly expanded into a
global brand with a presence in over 220 countries and regions. With more than 6 million
listings, Airbnb has become a significant force in the lodging industry and a disruptor of
traditional travel services. The platform has listings in approximately 100,000 cities, and it
has facilitated over 500 million guest arrivals so far. Airbnb's mission is to enable people
from all walks of life to feel like they belong anywhere in the world, promoting healthy travel
that is both adventurous and sustainable. The company's founders did not market their service
as a budget-friendly alternative to hotels, but rather as an opportunity for guests to experience
unique accommodations with character. Guests who opt to stay in an Airbnb property can
enjoy the charm and personality of a personalized space, contrasting with the monotonous
nature of standard hotel rooms.
Target Market for Airbnb
Airbnb has positioned itself as a brand that deals with both hosts and guests, each with their
own set of needs and concerns.
Airbnb Host
Airbnb hosts are those people who have some extra space available for rent. They list their
property on Airbnb for two main reasons: To earn some extra income and to meet new people
from all around the globe and show them the local areas. On average, hosts can earn around
$10,000 per year from their Airbnb listings, which can be a significant source of additional
income (Start.io.2022).
Airbnb Guest
Airbnb guests fall into two main categories: those which are seeking accommodation and
those seeking unique experiences and adventures. In 2021 alone, Airbnb recorded around
$300M bookings for both accommodations and experiences. One of the biggest reasons for
Airbnb's popularity is its promise to offer local and affordable travel experiences, which
makes Airbnb different in comparison to traditional hotels.

Airbnb Marketing Strategies

Airbnb has effectively mastered the art of marketing itself by creating and implementing a
system that not only attracts new users but also retains existing ones. The main objective of
their marketing strategy is to reach out to people worldwide and encourage them to become
hosts or travelers. To achieve this, Airbnb employed a smart customer acquisition strategy,
which includes inbound marketing, social media marketing, blogging, and referral programs.
In the following sections, we will delve into some of Airbnb's noteworthy marketing
strategies (Shastri. A, 2023).

Inbound Marketing
Craigslist Integration
To expand its user base, Airbnb found a way to make its platform compatible with Craigslist,
which was already popular for short-term housing rentals. By reverse engineering the
Craigslist form, Airbnb allowed its users to automatically create postings on both platforms
simultaneously. This strategy not only generated more inbound links for users, but also
resulted in increased traffic to Airbnb (Negi. S, 2017).
Teamed up with Google
To attract more customers visually, Airbnb collaborated with Google and allocated resources
to Google Search Ads. This move enabled them to execute a banner ad campaign that
featured real apartments and rooms. Consequently, Airbnb witnessed a substantial surge in
listings, expanding from 10,000 to an impressive 80,000. This successful endeavor also
allowed them to engage with a global audience that would have been challenging to reach
using other methods (Negi. S, 2017).

Social Media Marketing

Airbnb has a strong social media presence on all major platforms.
Facebook
Its Facebook page is on the verge of reaching 3 million likes, and the marketing team
frequently posts captivating photos and videos of new listings to attract travelers. The
company also shares interesting content, such as an inspiring video on World Earth Day,
encouraging its audience to preserve natural resources and Mother Earth.
Figure 1: Airbnb digital marketing

Instagram
Airbnb's Instagram presents a captivating visual experience, displaying the remarkable
properties available on their platform, thereby burning the desire to explore in potential
travelers. Airbnb allows its guests to share their experiences through the hashtag #airbnb and
even facilitating direct bookings from the Instagram feed. Furthermore, Airbnb curates user-
generated photos on Instagram from both hosts and guests, enhancing the overall engagement
on the platform.
Figure 2: Airbnb Instagram Account
YouTube
YouTube channel of Airbnb's features captivating videos that cover parts of cities that are
often unnoticed by tourists, encouraging a unique "Living like a Local" experience aligning
with their slogan, "Don't go there. Live there." Notably, their video titled as "How to be an
awesome Airbnb host," have garnered over 40,000 views. Airbnb places a strong emphasis
on storytelling and regularly showcase captivating narrative of travelers and hosts,
accompanied by photos and videos, to provide an immersive experience.
Figure 3: Airbnb YouTube channel

Twitter
Airbnb employs Twitter as a platform to showcase their remarkable listings and share their
blog posts. Their hashtag #belonganywhere has gained significant traction among users. With
over 485,900 followers on Twitter, Airbnb ensures timely updates on their feed, featuring
helpful content like "Where to Stay for the TCS New York City Marathon" for the benefit of
travellers.
Figure 4: Airbnb digital marketing
Influencer Marketing
Airbnb's influencer marketing strategy is a carefully planned and executed approach to
reaching new audiences. The company collaborates with high-profile celebrities to promote
its brand extensively through social media, particularly Instagram. These collaborations
involve the celebrities sharing pictures of their luxurious stays at Airbnb properties, which
helps to drive increased website traffic and generate leads (Menghani. T, n.d.).

Figure 5: Airbnb Instagram Account

Blog
The official blog of Airbnb, 'blog.airbnb.com', serves as a valuable resource for travelers in
search of informative content. Within the blog, the Local Lens section showcases individual
narratives, including posts about travel photographers and their captivating work, cities with
distinctive cultures, must-visit places, and various activities specific to each location.
Additionally, the blog offers informative posts such as '30 best things to do in each city' and
'Wanderlust', providing helpful tips on feeling at ease and experiencing a local-like journey in
different cities (Menghani. T, n.d.).
Figure 6: Airbnb Blog

Referral Program of Airbnb

Airbnb offers discounts to both the referrer and referred person when a user refers a friend to
the platform. This approach facilitates brand expansion among existing customers, thereby
reducing the significant expenses associated with customer acquisition. The referral program
is executed through Airbnb's mobile app and official website, and users receive travel credit
for every referral that they can use for Airbnb stays. This program is considered as company's
most effective method for promoting word-of-mouth referrals and expanding its community.

Marketing and Sales Funnel of Airbnb Figure 7:

The marketing and sales funnel of Airbnb
comprises of several stages that guide customers
from the initial awareness of the brand to
becoming a loyal customer.

1. Awareness:
The first stage of the funnel is awareness, where potential customers become aware of
Airbnb. Airbnb's marketing team do not Airbnb's marketing team do not market their service
as a budget-friendly alternative to hotels. Instead, marketing team positioned it as a way to
experience a destination like a local place and enrich travel by staying in unique and
characterful accommodations. They portray that by staying in an Airbnb rental, guests can
enjoy a space with personality and charm, rather than a standardized hotel room. The whole
marketing strategy revolves around the idea that guests can have a wonderful experience by
living like locals in a new but friendly environment. The "Don't Go There, Live There"
campaign encapsulates this unique aspect of Airbnb's offerings by highlighting how guests
can interact with their surroundings and immerse themselves in a new community
(MOLOCO, 2021).
2. Consideration:
Once the marketing team positioned Airbnb’s image in customer mind hence, customers
become aware of Airbnb, then they move to the consideration stage. In this stage, customers
start considering whether Airbnb is the right fit according to their travel needs. To help
customers make their decision, Airbnb provides information about the properties,
experiences, and hosts. On Airbnb website, customer can enter their desired destination,
dates, and number of guests then the platform will show a list of available rental properties
that meet their criteria. Further, customer can browse the listings, read the property
descriptions, view photos, and location on a map. They can also read reviews from past
guests to get an idea of the host's hospitality and the property's condition.
3. Conversion:
After considering Airbnb, if the customer has found a suitable property and decided to book
it. Airbnb makes it easy for customers to convert by offering a user-friendly booking process,
the platform will ask the customer to confirm their dates, the number of guests, and any
additional details. After that customer can securely pay for their booking through Airbnb's
platform. Airbnb give diverse payment options to its users, including, PayPal, debit and credit
card and other online payment methods. After completion of booking the guest will receive a
confirmation email with booking details.
4. Loyalty:
Airbnb understands the importance of customer loyalty and always try to turn first time
customers into loyal customers. To do this, Airbnb provides a wonder experience to its
guests, and ask them to give review on Airbnb’s website and share their experience on social
media platforms. Further, it also offers loyalty programs such as referral program through
which customer can get discount if they refer Airbnb to their friends and family (MOLOCO,
2021).
5. Advocacy:
The final stage of the funnel is advocacy, where satisfied customers become advocates for the
brand. These customers start marketing Airbnb through word of mouth, they may refer
friends and family to Airbnb, give positive reviews, or may share their experiences on social
media. This helps Airbnb to attract new customers and grow their business globally
(Medium, n.d.).

Airbnb B2B Marketing and Sales Process

Airbnb has been breaking into the B2B space by offering temporary housing solutions to
corporate clients and their employees. Here are some of the ways Airbnb is expanding its
presence in the B2B market:
Content Marketing Strategy for Corporate Clients
Airbnb has been leveraging content marketing to increase its presence in the B2B market by
creating content that is targeted towards businesses and corporate clients. The company has
created a B2B blog called "Airbnb for Work" which features content related to business
travel, team building, and remote work. The blog includes articles, case studies, and
infographics that provide insights and solutions for businesses looking to leverage Airbnb's
platform for their travel and housing needs. In addition to the blog, Airbnb has also created a
dedicated B2B landing page that highlights the benefits of using Airbnb for business travel.
The page features case studies, testimonials, and a video showcasing how businesses have
successfully used Airbnb to meet their travel and housing needs (Negi. S, 2017).
Collaboration with Other Businesses to provide Comprehensive Business Travel
Solutions
Airbnb's B2B team has also formed partnerships with other businesses to offer joint services
and solutions. For instance, the enterprise project between WeWork and Airbnb involves a
strategic partnership aimed at providing business travelers with a more comprehensive
experience. Airbnb identifies guests who are traveling for business purposes and offers them
the option to book workspace in a WeWork location near their Airbnb accommodation. Once
the customer has provisionally booked their accommodation on Airbnb, they are redirected to
WeWork to complete the registration and manage their booking for workspace. This
partnership enables Airbnb to offer its clients access to workspace facilities in addition to
accommodation, while also providing WeWork with an opportunity to expand its reach in the
corporate housing market (Mest. E, 2017).
Competitive Pricing
Airbnb's B2B team provides accommodation at competitive pricing, often offering lower cost
compared to traditional hotels. This makes it an attractive option for businesses looking to
reduce their travel expenses. It also offers a referral program to incentivize clients to refer
other businesses to the platform and get some discount. This has facilitated the company’s
expansion in the B2B market and foster a community of loyal clients.
Overall, Airbnb's expansion into the B2B market has been driven by its ability to provide
customized and cost-effective solutions to businesses looking for temporary housing
solutions. By leveraging its platform and user experience, Airbnb has been successful in
breaking into the corporate housing market and expanding its presence in the B2B space.

Airbnb Customer Relationship

Airbnb is a rapidly growing property rental platform that offers over two million properties
worldwide. It has achieved impressive success by utilizing modern technology to facilitate a
shared economy. One of the ways they manage their business is through customer
relationship management (CRM) systems. As Airbnb connects travelers with hosts for
vacation rentals, a relationship between the two parties is established. However, unlike
traditional rental processes, Airbnb manages this relationship entirely through their platform
without requiring any paperwork. Therefore, Airbnb can be considered a complete CRM
system, allowing both travelers and hosts to manage all aspects of their rental relationship
(Binns. R, 2016).
Figure 8: Analytic steps

CRM Program of Airbnb

It has a comprehensive CRM system that includes its website, mobile app, and social media
channels which enables the company to interact with its customers at any time, from
providing information to making bookings and handling customer service. Airbnb's CRM
system enables them to have a complete 360-degree interaction with their customers,
including both travelers and hosts. When someone creates an account on Airbnb, the system
automatically sends an email to confirm their login details. Upon confirmation, the system
automatically sends a welcome email with rental offers.
Airbnb use Twilio to stream line the booking process and to facilitates communication with
hosts. When a traveler submit a booking request requests, the host is given 32 hours to
respond. If a host fails to respond within a time, an auto-generated message from the system
is sent to them, containing information about the traveler and the request. The host can easily
reply to the message indicating their decision to accept or reject the booking (Dave. A, 2014).

Hootsuite's Social Media Management System

Airbnb employs Hootsuite's social media management system to handle the large number of
conversations they have across the world. Hootsuite's analytical tools track Airbnb's follower
growth and monitor social CRM. By tracking specific keywords over time, Airbnb can create
effective social campaigns. They use these tools to inform people about their services,
highlight their strengths and differentiate themselves from competitors. Additionally, the
system also helps to establish relationships, strengthen the community, and facilitates
communication with global networks. With Hootsuite, Airbnb is able to participate in
conversations whenever users interact with them on social media platforms like Twitter or
Facebook (Dave. A, 2014).

Airbnb Return on Investment

Within just a few years of its formation, Airbnb experience rapid growth and emerged as one
of the leading sharing economy platforms. According to Roelofsen and Minca (2018), by
2017, the platform boasted $100 million hosts and guests worldwide, generating $100 million
in revenue that year. The company’s success stems from its business model that offers
economic advantages for both travelers and residents in tourist destinations. This has enabled
the platform to expand and maximize the benefits of its assets through network utilization
Hati, S. (2021).
Figure 8: Macrotrends
Based on the provided information, Airbnb experienced a net income loss during the fourth
quarter of 2020, due to the impact of Covid-19 pandemic, when travel and social interaction
were limited, but after that when Airbnb started its campaign of "Online Experiences"
category, which offers a digital experience that people can enjoy from their own homes. The
Airbnb net income became positive. Initially, in the beginning of 2022 the profit was quite
low but gradually it increases in subsequent quarters Macrotrends. (n.d.).
Furthermore, the Return on Investment of Airbnb has generally been increasing over the
years, with some fluctuations. The ROI reached its peak in the fourth quarter of 2022 at
around 24%, indicating a strong return on investment. However, in the following years, the
ROI experienced a decline, reaching a negative of around -304% in the fourth quarter of
2020. This was likely due to the impact of Covid-19 pandemic, which severely impacted the
travel industry, leading to a decline in Airbnb bookings and revenue. However, starting from
the fourth quarter of 2021, Airbnb's ROI began to recover and has been steadily increasing
since then. As of the fourth quarter of 2022, the ROI of Airbnb was around 24%, indicating a
positive return on investment.
Notably, the ROI of Airbnb can be affected by several factors such as changes in the travel
industry, competition, worldwide pandemic, and economic conditions. The major change in
these three years was due to the emergence of Covid-19. Hence, it's crucial to consider these
factors when analyzing Airbnb's ROI data.
Discussion and Recommendation
The analysis suggest that Airbnb has achieved significant success by disrupting the traditional
hospitality industry with its unique platform business model. However, there are several areas
where Airbnb could focus on to further enhance its competitive position and ensure sustained
growth in the future. One of the critical factors for Airbnb's success is its understanding of its
target market. The company should continue to invest in market research to identify emerging
trends and shifting customer preferences to tailor its offerings accordingly. This could
involve expanding its services beyond traditional accommodation rentals, such as developing
experiences and travel packages that cater to the needs of specific target groups. Another
critical aspect of Airbnb's success is its user experience. The company should focus on
continuously improving its website and mobile app to enhance the booking process and
ensure that customers have a seamless and memorable experience. This could involve
leveraging emerging technologies like AI and machine learning to personalize the user
experience further and offer customized recommendations to users.
In terms of Airbnb's marketing strategy, Airbnb’s referral program is one of the company's
most successful method for promoting word-of-mouth referrals and expanding its
community. Further, the company should invest in digital marketing campaigns to reach new
customers and retain existing ones. The company should focus on building long-term
relationships with its customers by offering personalized communication, customer support,
and loyalty programs. By doing so, Airbnb can differentiate itself from its competitors and
ensure that customers continue to use the platform for their travel needs.
To further enhance its success in the travel industry, Airbnb should consider leveraging
automation. By implementing automation tools and solutions, Airbnb can streamline its
operations, improve efficiency, and enhance the overall user experience. Automation can
simplify various processes, such as booking management, guest communication, and property
maintenance, allowing hosts to focus on providing exceptional hospitality. Additionally,
automation can optimize pricing strategies, ensuring competitive rates based on demand and
market trends. This not only attracts more hosts to the platform but also offers travelers a
wider selection of accommodations. By implementing these recommendations, Airbnb can
effectively scale its operations, drive customer satisfaction, and solidify its position as a
leader in the ever-evolving travel industry.
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