Airbnb CRM Case Study: The Hidden Strategy

airbnb crm case study

Airbnb was born in 2007 when two roommates in San Francisco, Brian and Joe, were trying to figure out how to pay their rent. They later learnt that a design conference was coming to San Francisco and hotels were sold out, so they inflated three airbeds and turned their apartment into an Airbed & Breakfast. They hosted three guests — Michael, Kat, and Amol — and in doing so, they became the first hosts on Airbnb. The connections Joe and Brian made that weekend led them to realize, “Maybe there’s a bigger idea here!” Soon after, Nate later joined them.

Since its founding, Airbnb has grown to become one of the largest hospitality companies in the world. Airbnb has hosted over 1 billion guests worldwide. The company has a market capitalization of around $100 billion and employs over 25,000 people worldwide.

The company’s success is from its marketing process; it focused mainly on educating the world about hosted travel.

They created a series of films using actual photographs of their customers on authentic trips staying in the homes of Airbnb Hosts worldwide. The purpose of these films is to let the world understand the magical experience that Airbnb hosts offer to their guests.

Airbnb CRM case study and Other CRM strategies they used were well detailed in this article. Let’s move to the achievements of Airbnb.

“Airbnb was never meant to be the big idea. It was meant to be the thing that paid the rent so we could think of the big idea.” – Brian Chesky

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Tesla Timeline

2007

Brian and Joe host Airbed & Breakfast's first guests

2008

Airbed & Breakfast officially launches during SXSW. Two bookings!

2008

The Airbed & Breakfast website launches in time for the Democratic National Convention and gets 80 bookings.

2008

Airbnb launched Payments, a bespoke payments platform which in 2019 processed about $70 billion in guest and Host transactions in over 40 currencies

2008

Tesla raises $40 million in debt financing

2009

They officially changed their name from Airbed & Breakfast to Airbnb and expanded beyond rooms to offer apartments, whole homes, and vacation rentals.

2010

Airbnb launched their app and Instant Book feature

2011

They begin their international expansion with the opening of our German office.

2012

They introduce their $1M Host Guarantee

2012

In response to Hurricane Sandy, they partnered with New York City to house displaced residents and launch their Disaster Relief Tool.

2013

Airbnb opened their 888 Brannan Street HQ, a few blocks from our first listing on Rausch Street.

2014

They introduce their new logo, the Belo

2015

Airbnb became the official alternative accommodations provider for the 2016 Rio Games.

2015

Airbnb launches in Cuba

2019

Announcement of their nine-year partnership with the International Olympic Committee

2020

They became a publicly traded company and rang the bell with Hosts worldwide who make Airbnb.

2020

Airbnb announced the launch of Airbnb.org, a non-profit that connects people to places to stay in times of crisis.

2021

Airbnb announced the Airbnb 2021 Release: 100+ upgrades to their service and product to make travelling and hosting easier.

2022

Airbnb announced the 2022 Summer Release: the most significant change to Airbnb in a decade, featuring Airbnb Categories, Split Stays and AirCover for guests.

2022

Airbnb introduced Airbnb Setup, a new, easy way for millions of people to host on Airbnb. They also announced they provide even more AirCover for Hosts and added six new Airbnb Categories.

airbnb crm case study

Airbnb CRM case study: Top six CRM strategies fueling their growth

1. Airbnb Marketing Campaigns

  • “Airbnb It” campaign: Airbnb company initiated this “Airbnb It” campaign to make people aware that they can be paid by becoming hosts of places they own but don’t occupy all the time. They used animation, a light tone, and playful visuals to show people that hosting on Airbnb is more approachable than they think. With this campaign, they became more interested in becoming hosts.

If you have a home you’re not always in, an empty bedroom, a camper you never use, or a guest house that you only sometimes use, then you can Airbnb it.

  • “Made it possible by the host” Campaign: Instead of driving traffic to their site, they focused on educating the world about hosted travel and what makes Airbnb unique. With this campaign, they let people understand the magical experiences that Hosts offer their guests. They created a series of films using actual photographs of customers on authentic trips staying in the homes of Airbnb Hosts worldwide.

2. Airbnb Marketing Mix

Airbnb’s marketing mix aims to release a product with the right price and at the right place by using the right promotion tools. The fundamental values are well-detailed below;

  • Airbnb Product strategy: They created a simple website called “Airbed and Breakfast to connect renters with the host(who have spare space in their homes). It allows travellers to conveniently rent a room or an apartment through its mobile app or website.

This strategy is two-sided as they earn from the Airbnb host and the traveller. Also, they do

Airbnb’s website is designed to make registering very easy for travellers.

They worked perfectly on their UI to enable hosts to add important info such as acceptance of dogs, smoking, etc.

  • Airbnb price strategy: they are widely known for providing relatively low-cost services compared to hotel companies. They set prices below the market average to undercut hotels to make their product stand out.
  • Airbnb place strategy: Where a property is located plays a vital role in marketing. Airbnb understands that “no traveller would want to book a place out of the city.” No traveller would like to book a place far away from the Airport and not book a place where the conditions are not good. So, they were able to provide access to accommodations in more than 200 countries where travellers can find quality accommodations. This can be accessed through all digital platforms and thus has a substantial global reach.
  • Airbnb Promotion strategy: Unlike other brands focusing on global marketing, Airbnb focuses on local marketing to promote its product. Airbnb effectively promotes its service to travellers through proper marketing segmentation, word of mouth, social media accounts, referral programs, etc.

3. Airbnb content marketing

Airbnb made the most of user-generated content by enticing visitors to document their travels through images and stories. During their visits, guests were encouraged to post photos and write notes highlighting their favourite parts.

On sites like Instagram, Twitter, and Facebook, They urged users to include the hashtag #Airbnb in any travel-related postings they made. This increases user engagement and produces a tonne of user-generated material.

Airbnb selected this information and posted it on its website and social media channels, evoking a sense of authenticity and a desire to travel.

airbnb crm case study

4. Airbnb Influencer marketing

Airbnb collaborates with various influencers, including travel bloggers, celebrities, and social media personalities, tapping into their audience to promote the platform’s offerings and inspire travel enthusiasts around the globe.

Here, Influencers showcase their stays in Airbnb accommodations, highlighting the distinctive features and personalized experiences they encounter. They also curate captivating content, including travel guides and recommendations, that showcase each location’s unique attractions and experiences. This approach combines visual storytelling with practical advice to ignite curiosity and inspire travellers to consider Airbnb for their next adventure.

4. Airbnb referral program

This programme provides the community members with rewards for inviting new users to the platform. If you onboard a friend on Airbnb, you and your friend will receive a discount on your next booking.

This marketing tactic helps Airbnb expand its pool of consumers through existing users, reducing the high cost of customer acquisition.

What CRM software does Airbnb use?

Airbnb understands that as businesses grow, so does the need for efficient and effective customer communication. So, they depend heavily on Twilio CRM for its growth. Twilio CRM is a cloud communication platform that provides tools for building communication applications such as voice, video, SMS, and more.

With Twilio CRM, Airbnb can communicate with their customers from anywhere without needing a physical phone. Its automatic voicemail has enabled Airbnb’s customers to drop a message, ensuring that Airbnb stays up-to-date with all their needs and concerns.

Thanks to Twilio CRM, it has helped Airbnb to manage their customers’ communication straightforwardly.

It’s a Wrap

Conclusion:

To build a scalable business, it’s best to emulate the strategies used by top companies. Customer relationship management is the primary factor considered by significant companies. Airbnb is not excluded. They use Twilio CRM software to streamline their business processes.

Twilio CRM enables Airbnb to tap into customers’ behaviours and renting habits. From the customer’s side, they get a superior, more tailored service – and will be more likely to rent in Airbnb again.

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