Theoretical implementation of Airbnb Plus in Marrakech. Fall 2018 - Marketing and strategy - UCLA Extension

1. MARKETING PLAN

2. What is Airbnb Plus?
Airbnb plus was launched by Airbnb in February 2018. All the Airbnb Plus homes have been verified by the company
for their quality and comfort. It promises an incredible experience at “home” away from home. Moreover, it allows
to discover new way of life while being host by locals. For now, the vast majority of Airbnb locations do not make it
into Airbnb Plus status. The service is today available in Austin, Barcelona, Le Cap, Chicago, Los Angeles, London,
Melbourne, Milano, Montréal, Rome, San Francisco, Shanghai, Sydney, Toronto. There is now around 2,000 Airbnb
Plus homes. In total, Airbnb has 4.5 million homes across 81,000 cities. The users are thus people travelling for vacation
or business and come from all around the world.
Airbnb has been disrupting the hospitality industry. New technologies are today changing the market more than
ever. The company has been innovating during the past years and is constantly proposing new services such as
the Airbnb experiences and collections.
M A R K E T I N G P L A N

3. Entry markets selection and facts
The Airbnb Plus concept is now available in 15 places. The strategy is now to focus on different regions: Northern
Europe and North Africa.
Stockholm
There are today more than 300 homes available on Airbnb in the city. Moreover, Stockholm is one of the European’s
most visited city. Sweden has a GDP of $511 billion. Stockholm is the capital but is also the most populous city in the
country. In 2013, the city was named the 8th most competitive city in the world by the Economist Intelligence Unit.
There is a lot of potential for the Airbnb Plus concept to grow. Tourists are often looking to stay at “cozy” places while
they visit Sweden and try to experience the local lifestyle. Thus, it would be interesting to analyze and understand
what travelers are looking to experience in Sweden and more precisely in Stockholm.
Sweden’s economy performs really well, and the city attract millions of tourists every year. As the company is already
delivering its main service there, the Airbnb Plus concept is just considered as an upgraded version of it. Stockholm
is today at the center of the Swedish tourism industry with close to 13,5 million overnight stays in commercial
establishments in 2016.
There is been a lot of discussion about Airbnb and its effect on the market. In 2015, following a tribunal decision, the
first Sweden’s Airbnb banned occurred in Stockholm. Following this case, it has been then illegal to rent out a flat
through Airbnb.com in Stockholm without getting a permission from the other neighbors and board in the house
where you live.
Marrakech
There are around 90,000 guest reviews for Marrakech’s homes in the Airbnb website, with an average of 4.6 out of 5
stars. Marrakech is one of Morocco’s top tourism destination and is the fourth larger city in the country. The King
Mohammed VI has vowed to attract 20 million tourist a year to Morocco by 2020: The city attracts for now over 2
million tourists annually. This place is particularly close to my heart and I believe there is a lot of potential for Airbnb
Plus out there.
The city attracts for now over 2 million tourists annually. The cultural environment in Marrakech is rich and diverse,
with its historical influences that are reflected in its beautiful architecture, delicious cuisine. People are extraordinary
welcoming. The cultural aspect of the "red city" is unique and has been strongly influenced by the Arab and Islamic
civilizations. Marrakech cultural environment is reflected in language, religion, music, craftsmanship and tradition.
Mid-March to May but also September to October are considered as the best travelling season to Marrakech. It is
important to remember the religious holidays, such as Ramadan and Christmas, as well as national holidays that
follow the lunar calendar, which can affect the market.

4. Target entry market: Marrakech
The PEST and Market/Category attractiveness analysis have shown the great potential of the two-entry market. Both
are great places to launch the service, with their advantages and inconveniences. Stockholm is in one hand the
place reflecting the most the Airbnb spirit. In another hand, both entry markets share the same values: hospitality
plays an important in Sweden and in Morocco.
However, according to the leisure and tourism industry, and also the economy, Marrakech would be an amazing
place to launch the Airbnb Plus service. The infrastructures available are the one Airbnb is looking for. Moreover, the
prices are really attractive there, and if Airbnb wishes to grow in the luxury tourism sector, Marrakech is the perfect
hub to do so.
Analysis of Competition
We concluded from the means-end-chain that consumer would be looking for thoughtful designs, comfortable, well
maintained and well equipped, poolside and big backyard places. Airbnb Plus is the upgraded version of the Airbnb
rental concept. It is more luxurious in a sense: It aims to deliver homes which meets high standard and respond to
specific criteria. Today, the authenticity of the experience matters to the consumer.
Competitor 1: VRBO “Vacation Rental by Owner”
Direct competitor. Same product form. However, the Airbnb improvement allows the brand to distinguish itself from
VRBO. Indeed, Airbnb Plus is verified for its luxurious aspect, and a car is delivered with the booking.
Competitor 2: La Mamounia
La Mamounia is one of the most luxurious hotels in Marrakech. It is not considered as a direct competitor of Airbnb
but is however a common place of vacation for some of the segments.

5. PEST and Marketing Attractiveness
Marrakech
Morocco is among the world’s most attractive tourism destinations. There are around 90,000 guest reviews for
Marrakech’s homes in the Airbnb website, with an average of 4.6 out of 5 stars. Marrakech is one of Morocco’s top
tourism destination and is the fourth larger city in the country. It was also ranked first among the world’s top 25
destinations by Trip Advisor in April 2014. The King Mohammed VI has vowed to attract 20 million tourist a year to
Morocco by 2020.
Even if the political situation can be seen by westerners as unstable, it can have its advantages for businesses to
grow. However, corruption for example is still today a real problem for businesses. It is considered as one of the
biggest socio-political challenge the country is facing. The king Mohamed VI is using public institution in order to
reduce corruption.
The economic situation could be seen as a threat however in the case of the service offer by Airbnb it can be seen
as an advantage. Indeed, the price of the real estate is way lower than other region and big touristic hubs. Many
people invest in Marrakech in order to rent their house all year long. Moreover, the opportunity for Airbnb is to offer
cheaper places to its users.
Despite Morocco’s economic progress, the country suffers from high unemployment and poverty. Illiteracy also
remains high, according to the World Bank. Today, the country is considered as a collectivistic society: people have
a close long-term commitment to a group. With a score of 70 on Hofstede’s Power of Distance, Morocco is
considered as a hierarchical society. A certain hierarchical order is accepted, and this organization reflects
inequalities. Culture in Marrakech, like any culture in the world, plays an important role in the life of the city and its
inhabitants: In Morocco, traditions matter.
Morocco, as a developing economy, has still a lot to do in terms of technological development. However, it still
opens its doors to American companies such as Airbnb. The new Airbnb Plus project can be seen as a big opportunity
for Moroccans since they could easily benefit from the Airbnb App. Moreover, Marrakesh Menara Airport is a real
opportunity. It is one of the largest airports in the country and hundreds of international as well as domestic flight land
every day. The Airport has recently been renovated and reopened since 2016.

6. Key Success Factors
Marrakech is today considered as one of the major north African hubs for tourism. Tourists are often t-looking to
experience the local lifestyle of Marrakech. The Airbnb Plus service is the perfect way to do so while still expecting
the quality of hotels.
• Allows to live the “Moroccan art of living” experience. Airbnb’s main goal is to create a relationship and exchanges
between culture. While staying in a hotel, you may not be able to experience the same things as if you were host by
“locals”. With the Airbnb Plus project, homes are as comfortable and luxurious as hotels.
For the customer it provides: A unique experience, flexibility on the length of stay and period, the choice between a
variety of “product” and prices, facilities. For the hosts: Sharing economy circle: It brings extra money, the protection
insurance of the home from Airbnb.
• Airbnb is the world’s largest accommodation provider: it owns no real estate. It connects people between each
other, but do not own any propriety which is considered as a critical success factor to implement Airbnb Plus in
Marrakech. There is nothing to build, except relationship with the host.
• The attractive style of the Airbnb website is in itself a success factor of the brand. The company is today a real leader
in online rental and its marketing strategies are considered as the top ones in its set of competition. Indeed, Airbnb
Plus is about the image and first impression it delivers. The customer rent a place depending on the pictures he/her
sees online. Every Airbnb Plus home is “one of a kind, thoughtfully designed, and equipped with a standard set of
amenities”. It selects only the highest quality home and hosts.
• Strong network: Today, more than 300 homes in Marrakech are listed on Airbnb. Moreover, the city is considered as
a real hub in North Africa, and tourism is increasing every year. Concerning the beautiful architecture and villas,
there is out there a real potential for the Airbnb Plus concept to grow.
• Customer guarantees and warranties: A 24/7 customer service is available for Airbnb Plus.

7. Unique Selling Proposition
Airbnb is an online community marketplace for people to list, discover, and book accommodations around the
world. The concept is based among the sharing economy idea: The prices are indeed really competitive and
attractive.
With Airbnb, you are able to experience another lifestyle, another culture and a new place/environment thanks to
amazing hosts and homes. The places are so incredible that you feel at home away from home.
Everyone has a story to tell, so let’s discover the world together. Airbnb is for everyone.
Lucrative segment
Statistic shows that 36 percent of Airbnb users were 25 to 34 years old in the United States and Europe in 2017 Airbnb
explains that “As the travel and hospitality market continues to expand, Millennials and Generation Z have been quicker
to embrace home sharing.” And that “millennials already account for roughly 60 percent of all guests who have ever
booked on Airbnb, and the number of Millennials who have booked on Airbnb has grown more than 120 percent in the
past year.” Millennials are the users born between 1981 and 1996, which are today the users between 22 and 37 years
old. Airbnb Plus however is considered as an upgraded version of the service and indeed dedicated to new/other
segments: With higher expectations from the guests and higher prices, the Airbnb community is now targeting more
users. It is not only about the sharing economy circle and extra revenue for the host: It is about the overall experience
which is much MORE than just renting a place.
Millions of tourists are travelling to Marrakech each year and thus, the city is an incredible target. The users are not
locals. The users come from all around the world and want to discover more about the local lifestyle and the country.
In 2017, the increase in the arrival from foreign destinations is impressive: Germany (+ 56%), France (+ 19%), Spain (+
28%), Scandinavia (+ 90%), according to the Medias24.

8. This concept is designed for segments which are willing to spend a certain amount of money in their vacation but also
who adhere to a specific process (Renting the house of someone else etc.)
The following persona are the typical kind of person who could use the Airbnb Plus service.
Segment #1: The peaceful adventurer
The first segment includes people who are adventurous, curious, open minded, sociable, respectful, down to earth,
tolerant, active. Indeed, it includes people ready to take part of new adventures, and that are looking for travelling
plus more: to experience the local lifestyle is a must for them. It is not only about going on vacation, it is about
exploring the world through high quality homes and hosts.
Eliot, 26 - The peaceful adventurer type
In a relationship. He is sociable, curious, open minded, self-conscious and loves taking part of new adventures.
Lives in Berlin but is planning on moving to Paris or London within the next 6 months. He has been an Airbnb host
whenever he was in college. It helped him pay his rent.
Work as developer in a Startup, he is also currently launching a new project linked to Fintech.
Loves nature, music and soccer. Enjoy travelling with his best friends when he has the money and time. Their goal is
to travel at least once a year all together to unusual places. But he also enjoys discovering new cities for the
weekend, thus always uses Airbnb even if he is alone: It allows him to meet new people and discover the life of a
local. Loves new technologies and vintage cars.
Average spending for one week of vacation: $1,000
Eliot does not spend a lot of money on food but still try to eat as healthy as possible. He goes quite often to the
restaurant with his friends. Indeed, he has a quite active social life and do not spend much time in his apartment. He
lives at a full speed paced and is really involved in his work. Although, Eliot play soccer two or three time a week in
a club. It allows him to breath and stretch. Whenever he finds the time, he tries to go on hikes to be in contact with
the nature.

9. Segment #2: The quiet traveler
Calm, enjoy silence, idealistic, sensible, shy, self-conscious, family oriented, looking for privacy, artistic. Product
information is really important to this segment. The Airbnb Plus homes are verified by the company for their quality
and comfort. These homes come with many of the things you would expect from a hotel room and premium
customer service is available day and night. It promises an incredible experience at “home” away from home. To
people who enjoy calm, silence, it is a way to travel to unusual places and keep a personal space. Moreover, it
allows to discover new way of life while being host by locals.
Alma, 47 – The quiet traveler type
Married, 2 kids. Originally from Sweden but has been living almost her all life in San Jose, California.
Senior manager in a Bank.
She is sensible, family oriented, calm and committed. She has always lived in a city but enjoy spending her
weekend in the country side where she rides her horses. Yoga and running addict. Buys her food from the town
market or Trader Joes. Healthy lifestyle.
Loves fashion and traveling with her family (Does at least 2 entire weeks of vacation per year.)
Average spending for one week of vacation: $3,000
Alma is a confident, entrepreneur and really active woman. She is working on a new project with her best friend:
They plan on opening a new coffee shop in their city, where they will sale organic juice and food. She used to move
a lot from places to places when she was young. She still travels for her work, but she tries to stay home as often as
she can to be with her children. She loves to take her family on vacation and discover new places.

10. Service innovation
To include a rental car in every Airbnb Plus booking in Marrakech. Airbnb offers for now homes/apartments and
sometimes experiences. But what do the guest could need to explore even more?
Indeed, to include a rental car in every Airbnb Plus booking in Marrakech could satisfy more of the consumers’ needs.
It is the perfect way for users to be able to fully experience their journey and give them even more freedom.
Depending on the number of guests, the model of the car will be different. It will also be possible to add different
option for an extra amount of money (convertible, sport cars or event hiring a private driver…)
No need to rent a car and deal with all the paper work anymore, the vehicle will directly be delivered either at the
airport or at the home. It is also a huge saving of money and time. Moreover, this will bring more freedom, accessibility
and opportunity to the Airbnb Plus users.

11. Strategic Marketing Goals
• Airbnb shouldn’t be an alternative but a first choice.
• To build a strong customer base.
• To satisfy any needs.
• To increase brand awareness.
Positioning
Airbnb Plus has everything to satisfy all needs, plus more. With the innovation, even the transportation needs are
fullfeed.
Marketing Mix Strategy
• Product: Airbnb Plus service with a car included in the booking
• Price: The user would not pay any additional fees for the additional service. However, as the Airbnb prices are
pretty cheap in this particular region, Airbnb could simply “include” the price of the rental car in the Airbnb
Plus rental prices. Thus, indirectly, the Airbnb Plus prices would include in the service the cost of the rental car.
Moreover, if Airbnb partner with local companies, the cost of the car could be more than reduced.
• Place: Airbnb started in San Francisco. The service is now offered all around the world through a digital
platform since 2007. Airbnb is a global service, offered worldwide. Airbnb is completely digital: the service is
available online, thus is impacted by the global markets. Airbnb provides today accommodations in more
than 191 countries and can be used by anyone who has access to internet.
• Promotion : 100% digital promotion.
Unless the additional service given, the distribution strategies do not differ a lot from the original Airbnb
concept. The major difference between the two are the Airbnb ambassador who are employed to certify the
Airbnb Plus homes and the improvement of the customer service. Airbnb Plus in Marrakech will be as the other
service, available ONLINE: on the website or the app, and this, everywhere in the world where internet is
accessible.

12. Key Messages and Metaphors
Airbnb Plus aims to browse beautiful homes with the comfort of homes, plus more. They offer more to explore, more
to discover, more to experience through high quality homes and hosts.
Airbnb is for everyone.

13. Marketing Communications
and media selection
One of the most relevant Airbnb strategy is to be 100% digital. Thus, the segments are aware that the service is only
available on the website or through the app. The customers are “connected” and indeed actively use the different
tools where Airbnb is available.
The marketing communication plan is axed on social media and emailing campaign. The target is all customers
which have an Airbnb account but also used Airbnb Plus in another city than Marrakech. It is important to remember
that Airbnb Plus was launched in February 2018 and aim to give MORE than the actual service. Thus, Airbnb Plus users
are really important in the process and all their needs have to be satisfied. With the launch of the service in Marrakech
and the addition of the extra service (the car included), Airbnb has to introduce it to its segments through regular
social media means but also special targeted campaign.
The social media engagement would take place on Facebook, Snapchat, Pinterest, YouTube and Instagram. It would
be either through the Airbnb official accounts or through paid ad. The emailing campaign would start right after.
A second communication experience would be to partner with “Le Marrakech du rire”. This event is taking place
every year at the Royal Theater of Marrakech. It is a French speaking humoristic event, which gather many French
and Moroccan artists. The next edition will take place in June 2019 which indeed would be the perfect time to
introduce Airbnb Plus in Marrakech. The VIP guests and artists could be hosted by Airbnb Plus. All the transportation
would also be made by Airbnb and its partners, which would emphasize the partibility of the new additional service
offer by the brand.

14. • JR around Morocco film project
To organize a two-week trip around Morocco with JR prior the launching event. He would meet with the local
population all around the country, exchange with them, to film and photograph them. Every night, he would arrive
in another home to live the Airbnb Plus experience and we would follow him in the process. Moreover, he would in
the same time create visual work for Airbnb Plus. The movie made will be projected at the opening ceremony of the
Marrakech du rire 2019 and will be used to advertise the Airbnb Plus service.
• Marrakech du rire 2019
Opening ceremony host by JR: “We are all one” and “Welcome where you belong” will be the motto. The ceremony
will be a great reunion of different cultures and people coming from different background.
• Interview of hosts and guests by JR
Thus, JR would film itself meeting the current Airbnb host and guests in Marrakech. Those short “interviews” would be
used to show the person behinds the scene. Unity will be the driving word of this campaign. The final goal will be to
talk about human being in general through the Airbnb experience.
• JR X Airbnb Plus
Special exhibitions will be organized all around the world and sponsored by Airbnb.

15. Spokesperson
Airbnb Plus service is offered all around the world, as long as internet is available. Thus, marketing and
communications strategies may differ depending on the geographical area it is promoted. In the case the promotion
would be global and not specific to one market, Airbnb’s targets are any travelers willing to live new experiences in
Marrakech but to feel at home away from home.
The innovated service shows how Airbnb is doing more and how it cares about accessibility, time and local
experiences. Knowing the primary values of the brand, the spokesperson has to show unity through its actions.
JR would be the spokesperson and the one connecting with the locals and create content for the brand.
JR is a worldwide known French photographer and
artist. He combines art with action. He has been
launching many projects all around the world and
believe art can make an impact. He has won a TED
price in 2011 in recognition of what he has done. Its
movie “Faces Places” (2017) is more than inspiring and
sharing Airbnb’s value. In the film, he is travelling
around France with Agnes Varda. They reach out with
people, exchange with them, listen to them,
photograph them. It is all about going on an
adventure to discover the hidden parts of a country
and its people.
It would be the way to connect a public figure, an artist, with “unknown”. Those “unknown” (Guests, locals, hosts)
are the actual strength of Airbnb. JR could be the one filming its travelling adventure around Morocco and meeting
the Airbnb community out there. More than being the spokesperson, JR’s art creation made during the trip (such as
photography) could be used to advertise Airbnb Plus.

16. Marketing Communication Samples
Example of Instagram and Pinterest post

17. Social media post example,
which is also the right
format to create Instagram,
Snapchat and Facebook
stories.

18. Facebook covers format, Instagram posts and emailing campaign templates: