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Airbnb Design Strategy

Airbnb has been heavily impacted by COVID-19 because of the restrictions with lockdown and social distancing which is stopping people from moving around, visiting places, hosting and booking. This is a strategic exploration and new concepts around covid response can alleviate the business pains.

Target Market and Value Proposition

I started my exploration by trying to understand Airbnbs target market and value proposition.
“Airbnb exists to create a world where anyone can belong anywhere, providing healthy travel that is local, authentic, diverse, inclusive and sustainable.”

Guests

Cost-conscious guests: Customers who enjoy travelling and don’t want to spend too much money on a hotel room.
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Premium guests: Relax and spend time in premium apartments and luxury homes. Value quality and are willing to pay.

Hosts

‍Traditional Hosts: Hosting homes extra room, entire home.
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Online Hosts: Hosting experiences and activities online.

4P's, SWOT Analysis and Business Model Canvas

4P Exploration

I used the 4P framework to learn how the products of Airbnb is aligned with the right price, place, and promotion.

Product:

Rooms, Homes, Experiences, Activities

Price:

Any price point for guests, Service fee from host of generally 3% paid by the hosts

Promotion:

Online platform, advertisements- geo-localized strategy, cause-related marketing, donations, sponsorships and partnerships

Place:

191 countries, 33000 cities, 5 million listings

SWOT Analysis

This framework helped me evaluate the internal (strengths and weaknesses) and external factors (opportunities and threats) that impacted Airbnb and their design decisions.

Business Model Canvas

Covid-19 Impact and Current Strategy

1

People who were travelling for business and tourism purposes are no longer proceeding with the plans because of strict rules with social distancing and lockdown.
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Guests are concerned about the sanitary issues in the house. 

2

Hosts and the Airbnb platform is suffering from the lack of bookings, cancellations and thereby loss of earnings.
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Hosts are skeptical of welcoming guests because of the transmission and hygiene issues.

The current strategy adopted by Airbnb mainly consist of Online Experiences and Frontline Stays. What more can be done to help the business and the economy?

Proposed Design Strategy

1.Target local audiences

Home ExperiencesTravel short distance to a nearby Airbnb to enjoy a unique Home stay that is not your Home.
Home Experiences are categorized as -
Work from Bnb,
Fun Family Activities,
Health and Wellness Retreat,
Private Hiking Experiences.
Karaoke Night

2.Support people recovering  from COVID-19

Studios and private spaces for self-isolation for a period of 2 weeks or more.