Airbnb Swot Analysis: Internal And External Factors

Airbnb helps millions of people stay with Airbnb members all over the world. Airbnb has been a successful enterprise for quite some time, but this has not come without occasional struggles. They have constantly been evolving, adapting, and changing the way they operate. They want to be able to grow and keep the Airbnb community fueled. This article will discuss Airbnb SWOT analysis and marketing strategy.

Airbnb is a global community marketplace that enables people to list and book short-term lodging in other people’s homes. The Airbnb community is made up of over 3 million hosts in 36,000 cities in 191 countries. Since Airbnb’s inception in 2009, Airbnb has made it its mission to create a more global, connected, and open community. Recently, Airbnb has experienced massive growth. Then, in November 2016, Airbnb was valued at $31.5 billion by its stock market IPO.


Airbnb Swot Analysis And Marketing Strategy

Airbnb is one of the most popular websites for travelers who need a place to stay. It is because Airbnb is reliable, convenient, and affordable. Airbnb has changed the way that people look for a place to stay. It means that Airbnb has many competitors in the space of short-term rentals. So, as a business, you need to do your homework and be knowledgeable about what your competition is doing. Airbnb SWOT stands for its Strengths, Weaknesses, Opportunities, and Threats. It is a strategic analysis tool that can help you analyze business or projects from a critical perspective. Let’s Discuss them!

Airbnb Strength Strategic Factors

Recognition Around the World

The company has grown rapidly in recent years. Airbnb has become a household name in the hospitality industry. Among other travel brands, its popularity is unrivaled. Airbnb brings customers to its site directly; in 2020, more than 90% of traffic to the Airbnb site was direct, underpaid, or organic.

Wide Selection of Accommodations

Airbnb offers a wide selection of accommodations, including homes, apartments, villas, and private rooms. There are more than 500,000 listings in 192 countries. In addition, there are more than 1 million properties listed on Airbnb. Different hosts within a given locality use the Airbnb platform to list their properties online, allowing travelers and guests to choose from various options. In comparison to hotels, this model gives travelers more options.

Interactive Guest Community

Airbnb is the first and largest community marketplace for accommodation. Hosts list their homes and apartments on the website. Guests can browse through the listings, read reviews, and contact the hosts. Guests can also leave reviews for the hosts. It creates an interactive guest community where travelers can connect with hosts and other guests. According to statistics, repeat customers accounted for 69 percent of the company’s revenue in 2019.

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Customized Platform

Airbnb allows users to customize their experience. A few of the industry’s leading features are:

  • Pricing recommendations
  • integrated payments
  • scheduling
  • host protection mechanisms
  • feedback
  • reviews and community support

This feature allows users to find the best accommodations for their needs.

Flexible Pricing

Airbnb allows hosts to set flexible pricing. Hosts can offer discounts and incentives to guests, and they can set prices based on demand. It is an advantage for hosts because they can maximize their income while providing a comfortable experience for guests.

Airbnb Weakness Strategic Factors

Legal Battles

When Airbnb first started, it grew quickly due to a lack of clear regulations regarding home stays. However, legal requirements for renting out homes and privately owned property for a profit have created some problems for both hosts and travelers. Many local and state laws can be similar to those that apply to hotels and motels, making it difficult for more casual hosts to open their doors to anyone simply. Some of these requirements can be quite stringent, discouraging some potential hosts from submitting an application.

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Revenues are increasing slowly.

Some Airbnb regions have lower fees. Furthermore, as the company grows, it may decide to lower its fees in order to compete in the industry. It would have a negative impact on the company’s efforts to improve its profitability.

Dissatisfaction among customers

According to the company’s annual report, customer satisfaction is one of the top three factors that affect the company’s growth. In 2019, only 57% of customers were satisfied with their experience on Airbnb. The company has improved its user interface and the quality of its customer service, but it still has a long way to go.

Airbnb Opportunities Strategic Factors

Expansion into New Markets

In addition to expanding its presence in existing markets, Airbnb is also planning to expand into new markets. Emerging markets, in particular, could provide opportunities for the company to expand. Even in markets where the company has already established a presence, there may be sub-niches that require further investigation.

Expanding into New Services

The company is also looking to expand its services. Airbnb’s current business model is primarily focused on housing. The company may want to consider expanding its service offering to include car rental and tickets to tourist places, among other things.

Airbnb Threat Strategic Factors

Increased Competition

As the number of home-sharing platforms increases, the competition will become more intense. Airbnb has faced competition from several competitors, including HomeAway, VRBO, and FlipKey. These companies offer similar services to Airbnb, but they have a different focus. HomeAway focuses on vacation rentals, while VRBO focuses on short-term rentals. FlipKey is an online marketplace for vacation rentals.

Outrageous Pandemic

As the COVID-19 pandemic continues, many countries have implemented travel restrictions and enforced quarantines. As a result, many people have been forced to stay at home and have cut back on their travel plans. As such, the demand for home-sharing services has decreased.

Uncertainty regarding Legal Framework

The requirements for private property owners to rent out their space continue to be shifted by local and state governments. Because legal requirements are constantly changing, it can be difficult to list a space for rent on Airbnb, and potential hosts should do their research before hosting.

Final Verdict

We hope you enjoyed our article about Airbnb SWOT analysis. Airbnb is a popular service that has made renting out your property to travelers easy! With the influx of travelers, there’s now an abundance of Airbnbs popping up all over. We have broken down the strengths, weaknesses, opportunities, and threats that Airbnb faces to help you better understand the company and decide whether it is the right company for you to work for. It is an excellent place to start if you are interested in working for Airbnb. Thank you for reading. We are always excited when one of our posts is able to provide useful information on a topic like this!

Christian Thomas is a die-hard business enthusiast who loves to share his ideas and experiences with other people. He writes for many websites including, Entrepreneur Business Blog, and How To Start A Small Business.