Successfully reported this slideshow.
Your SlideShare is downloading. ×

How did Airbnb achieve its Network Effects

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Loading in …3
×

Check these out next

36 of 85 Ad

How did Airbnb achieve its Network Effects

How did Airbnb achieve its network effects?
Critical mass on
both sides
Network effects
Airbnb capitalized on an
existing problem/need—
very limited or expensive
hotel space
Turning homes to lodging
provided immediate value
to users: 30%-80%
cheaper than hotels and
highly differentiated type of
inventory (less sterile and
more personal/social than
hotel rooms)
As more guests stayed in
more places (demand), more
hosts got more business and
more hosts offered their
places which in turn created
more supply for guests
As measured by number
of room nights
Mode/product value
Airbnb targeted cities with
sold-out events and
constrained hotel supply (such
as during the Democratic Party
national campaign or World’s
Cup) with traditional
marketing and other methods
to advertise its alternative
Growth tactics
Launched photography
services to make offerings
more appealing to guests
Also added ability for mutual
social connections to see who
else had stayed to help build
trust in the marketplace
Critical mass Network effects
C O R R E S P O N D I N G Q U E S T I O N S : H O W T O B U I L D L I Q U I D I T Y / S O LV E T H E C H I C K E N - E G G P R O B L E M ?

How did Airbnb achieve its network effects?
Critical mass on
both sides
Network effects
Airbnb capitalized on an
existing problem/need—
very limited or expensive
hotel space
Turning homes to lodging
provided immediate value
to users: 30%-80%
cheaper than hotels and
highly differentiated type of
inventory (less sterile and
more personal/social than
hotel rooms)
As more guests stayed in
more places (demand), more
hosts got more business and
more hosts offered their
places which in turn created
more supply for guests
As measured by number
of room nights
Mode/product value
Airbnb targeted cities with
sold-out events and
constrained hotel supply (such
as during the Democratic Party
national campaign or World’s
Cup) with traditional
marketing and other methods
to advertise its alternative
Growth tactics
Launched photography
services to make offerings
more appealing to guests
Also added ability for mutual
social connections to see who
else had stayed to help build
trust in the marketplace
Critical mass Network effects
C O R R E S P O N D I N G Q U E S T I O N S : H O W T O B U I L D L I Q U I D I T Y / S O LV E T H E C H I C K E N - E G G P R O B L E M ?

Advertisement
Advertisement

More Related Content

Slideshows for you (20)

Viewers also liked (20)

Advertisement

Similar to Network Effects (20)

Recently uploaded (20)

Advertisement

×