Airbnb is seeking a new global creative advertising agency as it reviews its current partnership, aiming to enhance its marketing effectiveness during a critical growth phase. The company, which has achieved profitability and projects substantial revenue growth, emphasizes the need for creativity that links product and content. Key insights about Airbnb's market position indicate they are increasingly substituting hotel stays, particularly for business travel, and are targeting a younger demographic of travelers.

1. NEW BUSINESS PITCH
May 2017

2. NAME BRAND PITCH TYPE
Creativity
MARKET DATE
The Data You Need to Win This Pitch
DESCRIPTION
Airbnb, the online marketplace for short-term renters and hosts around the world, has placed its global creative advertising business in review.
Incumbent TBWAChiatDay will not participate.
“As a global hospitality company at a pivotal moment in our trajectory, we are seeking a partner agency that takes us closer to unlocking the creativity of
our community, in which content and product are inextricably linked. We are engaged in a global pitch, inviting the participation of a handful of diverse
agencies to identify this new partner that will help us achieve our next phase of phenomenal growth.”
Airbnb is looking for
a new agency
Global May 8, 2017

3. Client Profile / Market
Founded in August of 2008 and based in San Francisco, California,
Airbnb is a trusted community marketplace for people to list,
discover, and book unique accommodations around the world -
online or from a mobile phone. Whether an apartment for a night, a
castle for a week, or a villa for a month, Airbnb connects people to
unique travel experiences, at any price point, in more than 34,000
cities and more than 190 countries.
And with world-class customer service and a growing community of
users, Airbnb is the easiest way for people to monetize their extra
space and showcase it to an audience of millions.
COMPANY BACKGROUND
MAIN COMPETITORS
2016 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
-
-
-
-
-
-
FINANCIAL OVERVIEW
- Source: AccessConfidential.com -
Mr. Jonathan Mildenhall
jonathan.mildenhall@airbnb.com
Ms. Jennifer Yuen
Head of America
Marketing
DECISION MAKERS by
Chief Marketing Officer

4. U.S. Lodging Market
LODGING MARKET
REVENUES (2016)
$199 b
STR
+4.7%
Compared to 2015
65.3%
IN 2016
1,931
STR
1,650 1,526
CHAINS BY NUMBER OF HOTELS
OCCUPATION RATE
CHANGE RATE
-0.1%
• • • • • •
• • • • • •

5. U.S. Lodging Market
NEW YORK
$270
AVG DAILY RATE
TOP MARKETS BY OCCUPANCY
RevPAR
(Revenue per available room)
$83 b
Cushman & Wakefield Cushman & Wakefield
HIGHEST DAILY RATE
$124
(2016)
CHANGE RATE
+3.3%
• • • • • •
• • • • • •
NEW YORK
86%
OAHU ISLAND
84%
SAN FRANCISCO
84%
LOS ANGELES
81%

6. Fast Food industry in numbersVacation and Room Types
52%
Beach Vacations
33%
All-Inclusive Packages
30%
Cruises
most popular types of vacations according to U.S. adults in 2017
Statista.com
Upper Upscale 591,054 12%
Upscale 706,653 14%
Upper Midscale 922,503 18%
Midscale 475,256 10%
Economy 782,220 16%
Unaffiliated 1,523,362 30%
U.S. HOTEL ROOMS by STR CHAIN SCALES VACATION TYPES 2017
STR

7. Fast Food industry in numbersBusiness Travel
70%
of room nights in the U.S.
lodging industry are generated
by business travel.
457.2 Million
Business trips in 2016
$309.66
Average daily cost
of business travel in the U.S.
SAN FRANCISCOHAMPTON INN
Is the most expensive
U.S. city for Business Travel
With an avg daily cost of
$547
Was the most expensed
Hotel by business travelers in Q4 2016
Expense percentage
8.8

8. Fast Food industry in numbersAIRBNB
AIRBNB 2017 FINANCIAL FORECAST
$450 Million
EBITDA
$2.8 Billion
Revenue
•••
•••
•••
$25.5 billion
Airbnb Value
IN 2016
The company reached
profitability for the first time
United States account
only for
16%
of total AIRBNB listings
Private accommodation
market could be as big as
$106 billion
By 2018

9. 20%
60%
40%
0%
50%
10%
30%
80%
70%
Fast Food industry in numbersImpacts on the Hotel Industry
Traditiona
l hotel
Bed &
breakfast
Friends /
Family
Extended
stay hotel
Vacation
rental site
Other
vacation
rentals
Corporate
Apartmen
Other
AlphaWise, Morgan Stanley Research
+888 bp +212 bp +176 bp -265 bp +322 bp -6 bp -11 bp +117 bp
HVS estimated a loss of about $450 Million In direct revenues per year to Airbnb
What accommodations are Airbnb users substituting away from?
A variety, but mostly (and increasingly) hotels.
20162015
HVS
Sep. 2014 - Aug. 2015
• • •
480,000
Hotel room nights reserved
2,800,000
Airbnb room nights booked
• • •

10. Awareness and Usage
AIRBNB BRAND AWARENESS
62%
France and Germany
76%
United States
AIRBNB USERS FREQUENCY AIRBNB USAGE
3.2x
Average AIRBNB usage in 2016
• • •
25%
travelers who know of Airbnb have
used the service at least once
• • •
Morgan Stanley Skift.com

11. Longer Stays
The average stay is
2.5x longer
than the average hotel stay
In the U.S. Airbnb
Is 6 to 17 percent cheaper
than hotels in the same
markets
20%
of all Airbnb stays
are longer than
30 days
20%
10%
0%
15%
5%
30%
25%
Leisure Travelers
AlphaWise, Morgan Stanley Research
AIRBNB USE
(among travelers)
Our AlphaWise survey shows 19% of leisure and 18% of business travelers have used
Airbnb in the last 12 months… with both expected to rise over the next 12 months
2016E2015 2017E2016A
Business Travelers
• • •
• • •

12. Fast Food industry in numbersReason to use (or not) AIRBNB
Skift.com
TOP REASON FOR NOT USING AIRBNB
30%
Privacy Concerns
9%
Safety
Skift.com
TOP REASON FOR USING AIRBNB
53%
Price
35%
Location
33%
Authentic Experience
28%
Easy to use site/app

13. Fast Food industry in numbersTargeting Business Travelers
Airbnb launched a business travel mini site
“As a global hospitality company at a pivotal moment in our trajectory, we
are seeking a partner agency that takes us closer to unlocking the
creativity of our community, in which content and product are inextricably
linked. We are engaged in a global pitch, inviting the participation of a
handful of diverse agencies to identify this new partner that will help us
achieve our next phase of phenomenal growth.”
- Airbnb spokesperson
Loyalty programs are among the most requested features
and used mainly by business travelers
10%
Trips on Airbnb are for work
56%
Home-sharing services like AirBnB and HomeAway
growth in use between Q1 2015 and Q1 2016

14. Fast Food industry in numbersMarketing Insights
LIVE THERE PLATFORM & CAMPAIGN
Latest Initiative
“Business travellers come to Airbnb already knowing where they want to
stay, and with less lead time. They want speed, convenience and reliability.
With our new features on desktop and mobile, business travellers can filter
search results to show only business travel ready listings. This makes it
easier and faster to find and book the perfect Airbnb for a work trip.”
Jonathan Mildenhall, CMO @ Airbnb
- In partnership with Hearst
- Guaranteed circulation
of 350,000
$29.452 million
2016 Media Spend

15. Fast Food industry in numbersAIRBNB’s Audience
SEE THE FULL PROFILE
FEMALES
57 %
55-69 YEARS OLD
33 %
COLLEGE EDUCATION
47.8 %
TOP PSYCHOGRAPHICS
TRAVEL
LOVERS
ART
APPRECIATORS
BEAUTY AND
WELLNESS AWARE

16. QUICK DEFINITION:
Millennial Business People
18-34 Entrepreneurs, business owners, or just
professionals, Cubeyou's business people put their work
and career at the top of their priorities. They are fully
invested in their jobs for both economical reasons and
personal satisfaction, and tend to follow business news
online.
30%
60%
0
90%
15-17 18-24 25-34 35-44 45-54 55-64
55%
MALE
22%
In a relationship
53%
WITHOUT
CHILDREN
PARTY GOERS
1.6 x
FOOD
LOVERS
1.4 x
GAMERS
1.2 x
TECHIES
1.6x
MILLENNIAL
BUSINESS
PEOPLE
• • •
•••

17. MILLENNIAL BUSINESS PEOPLE:
TRAVEL
GET THE FULL PROFILE
FAVORITE HOTELS TRAVEL HOT SPOT
THEME PARKS
2.4 X
TRAVEL COMPANIES
DESPEGAR
TOP DESTINATIONS
COLOMBIA PORTUGAL

18. MILLENNIAL BUSINESS PEOPLE:
MEDIA INSIGHTS
WEBSITES GENRES
BUSINESS
GET THE FULL PROFILE
Millennial Business People are over
indexing on Finance Apps (x).
CINEMA
GOERS
CINEMA
TOP APPS
COMEDY
MOVIES
1.3x
NEWSPAPERS
1.3x
TOP NEWSPAPERS
TECH ART

19. MILLENNIAL BUSINESS PEOPLE:
FOOD AND DRINK
FOOD HABITS
MALES
GET THE FULL PROFILE
FOOD GENRES
MALES
SNACK FOODS: 1.05 X
ORGANIC FOODS: 1.4 X
FOOD-TO-GO 1.2x
FAST FOOD
FANS
FOOD HABITS
FEMALES
THOUGHTFUL
EATERS 1.4x
1.7x
CANDY & SWEETS: 1.1 X
FOOD GENRES
FEMALES
DAIRY & EGGS: 1.4 X

20. INTERESTS PROXIMITY MAP:
HOTEL BUSINESS PEOPLE vs AIRBNB BUSINESS PEOPLE
GET THE FREE TEMPLATE
NEED TO SURFACE
YOUR TARGET’S
DEFINING INTERESTS?
NEED TO SURFACE
YOUR TARGET’S
DEFINING INTERESTS?
CROSS CATEGORY TRAVEL INTERESTS
TRAVEL
AGENCIES
FOREIGN
DESTINATIONS
DOMESTIC
DESTINATIONS
TRAVEL
APPS
THEME
PARKS
Commonalities Airbnb Business People closest interestsHotel Business People closest interests
POPULAR
ATTRACTIONS
TRAVEL
MAGS
PARKS

21. CONSUMER
INSIGHTS SUITE
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