Airbnb.com Find a Place to Stay Rent from people in 25,693 cities and 192 countries. Team- 4: Sanjay Jasuja | Sarika Prasad | Sridhar Sarnobat | Bhavani Yella

What is airbnb.com + = Fancy a castle tonight? Or an igloo?

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Airbnb Facts Founded in 2008 Based in SF Market place for unique properties Hosts list their property for free Travelers book the property matching their requirement The Most Amazing and Absurd Places For Rent - Forbes

What is interesting about the company?  Marketplace for unique properties as oppose to traditional hotels, motels, B&B  Airbnb works as a mediator between two parties, handles communication, payment between host and guest as compared to craiglist  Diverse listings such as airbeds, tree house, castle, a room or entire house, or traditional places such as hotel room

Listing Categories on Airbnb Surfing Turfs Frank Lloyd Wright houses Designers Retreats - By Yves Private islands Royal Treatment Secret Gardens Snow Domes Fashion Forward

Website

Website Effectiveness Home Page Clarity – Attractive pictures display Clear Call to Action – Find a place to stay, List your space Search Results (SEO) – comes on the first page of Google search Engagement – celebrity wishlist, photographs of the property, photography tutorials, airnbnb TV, Blog, 16 different languages Web 2.0 – reviews for properties, contact property owners Active Spaces – signup through Facebook account or

Target Market Anyone who has place to rent, and anyone looking for a place to stay. But mostly for vacationers Average age 35 Early adopters, free spirited, ready to experiment By geography: Multiple continents Listings span 192 countries

Target markets resposible for the revenues Vacationers Property owners Property managers

How do they reach their target customers? Offline advertising - Press Coverage Online advertising - Google display Ads – Target a specific audience like geography Youtube videos targeted ads travel websites Travel magazines Own users Facebook signups by friends

Business Model

Free to list fee-per-transaction model Charge host 3% of booking/rent amount Charge 6-12% to guest depending upon the reservation amount; higher the reservation amount lower the booking fee Bhavani – can you create a stacked bar chart visualizing the percentages if you have time?

Key Numbers Number of users, 2008 – February 2011: 1 million bookings in total July 2011: 2 million bookings in total 10 million nights booked since founding As of July 2012 revenue growth Metrics over 200,000 listings worldwide over 26,000 cities, 192 countries, over 168 million Social Connections potential global market for vacation rental bookings is at least $100 billion out of people's second homes, and many times more out of people's primary homes.

Key Financials Funding 2010: investment round last year, in which it raised just $7 million 2011: raised a $112 million round of financing investment values the company at $1.3 billion (July 2011) ebay is worth $44 billion

Airbnb Listings in SF

Interesting Figures

Their use of web 2.0 elements. Travelers post reviews after staying Property owners are responsible for marketing their listings Travelers create their profile including photo and get reference from friends Owners choose who get to stay Linked to Twitter, Facebook for both host/guest – 94,000 + followers 152,000 + Fans Youtube – video views

Mobile Presence Airbnb app available on App store and Anroid market web enabled mobile device at m.airbnb.com Easy search & Find place at last minute Booking using credit card directly through mobile Easy access to itinerary and host details – gives direction - 26% airbnb traffic from mobile as of 27 th sept 2012 as compared to 12% year – 1 million iOS downloads

Competitive Advantages & threats Strength Unbiased peer reviews Free to list Low booking fee Reach (192 countries, 30,607 cities Safety support) Weakness Trust issue (it is not easy to open up your home to strangers) Opportunity $100B potential global market for vacation rental Threat Business model easy to replicate Low barrier to entry

Competitors Wimdu Arrangeyourvacation.com Homeaway.com Flipkey.com

Questions