SWOT Analysis of Airbnb

Airbnb is online community-based marketplace connection travellers with local hosts. The company allows people to rent out, explore and book accommodations for a short-term basis. This platform enables people to share their extra space and generate extra income.

The Company main office is situated in San Francisco, United States. It is operational in more than 192 countries. 

Many people believe that Airbnb has revolutionized the travel and tourism industry. It also utilized and take advantages of "Shared Economy Business Model". Nobody denies the fact after looking Airbnb facts and figures.

According to statista.com a number of Airbnb users in the United States were 36.8 million in 2017 and number will reach to 60.8 million till 2021. The company total valuation is $31 Billion and total funding received till December 2017 is $4.4 Billion. The company having 1.2 million listing.

If you are interested in my other tutorial PESTLE Analysis of Airbnb, Find out Political, Economic, Social, Technological and Legal and Environmental facots affecting buisenss strategy.

In this swot analysis tutorial, we will find strengths and weaknesses of Airbnb Inc. and opportunities and threats of Airbnb Inc.

Here I will discuss detailed swot analysis of Airbnb Inc. “provides local places to stay”.

Strengths of Airbnb

One of the Airbnb strength is Well established brand and public image where it is operating.

The business model enables the company to compete with low prices as compare with hotels and guest houses.

Competent and well-trained staff for example Chip Conley Airbnb Manager is a hospitality guru.

Both guests and travellers focus on rating and review system, which provide trust and safety the Airbnb online community.

Huge global presence in 192 countries and 34000 cities with over 1 million listings. With high valuation and brand reputation, investors are easily available globally.

Airbnb business model has a great growth potential worldwide. The Company can expand easily.

Weaknesses of Airbnb

The Company violating the Housing Laws and Regulations in many countries. As per many Housing Laws, hoteling and guest houses are prohibited in residential areas.

The hoteling industry as competitors is damaging its concept.

The Airbnb is dependent on quality provided by the hosts. It the hosts do not follow standard guidelines it can damage the company reputation.

The business model can easily be copied.

Opportunities of Airbnb

Portland and San Francisco changed its housing laws and regulation. Both have legalized the Airbnb listings, but hosts must be registered with authorities and will pay the taxes on the review earned.

Over the past few years usage of mobile devices has increased. Since Airbnb is providing mobile App which facilitates both guests and hosts to get connected and take advantage of shared economy.

Mostly guest don’t like hotels due to high prices and worst conditions whereas Airbnb provides with low prices and personal touch of the hosts.

Many world top class players and celebrities listed their properties for rent. For example, Kevin Jonas listed his home situated in Denville for 15,000 Pounds per night.  Other celebrities include Aaron Paul, Elizabeth Taylor and many more. This shows a sign of trust and interest.

Airbnb can still exploit those markets where hotels ratio is very low, and hotels are very expensive for example the United Arab Emirates.

After successfully implemented their business model, Airbnb has many options to expand their business other than their core business model. For example, travel guides, car rentals.

It is fully automated and facilitates both hosts and guests to get connected in a secure way. To provide security it verifies the profiles of guest and hosts by messaging services.

Threats to Airbnb

Airbnb services are functional in more than 192 counties. Every State and country has its own laws and regulations to comply with. The company has no option but to rely on guests and hosts to meet the local laws.

The company is already facing lawsuits and fines throughout the world, for example, New York, Florida and many more. Barcelona authorities fined Airbnb 30,000 euros for violating tourism laws. For running illegal hotel many hosts were fined by the New York authorities.

Competitors are growing out there, for example, tripping.com, FlipKey, VRBO, Wimdu and many more. In future, these competitors can give Air BNB a tough time.