Airbnb Marketing Strategy- Complete Case Study

Air Bed And Breakfast

Airbnb marketing strategy starts with the name of the company. Air Bed and Breakfast(Airbnb ) is based in San Francisco, California. It operates in an online marketplace and provides services like homestays, vacation rentals for holidays and vacation activities etc. Bookings for these stays and activities can be booked on the viva website and app.

Service providers of homestays, rentals etc register themselves on Airbnb to be visible to customers. Afterwards, customers can browse different options, thor prices and locations and can book the best-suited places for them.  

Airbnb Marketing Mix

The marketing mix (elements of the marketing process) defines the organization’s strategies. As the marketing mix is divided into four different segments. So, it helps in defining the work of every department to implement the grand strategy.

Now let’s understand the Airbnb marketing strategy by understanding every aspect of the Airbnb marketing mix.  

Airbnb Marketing Mix
Airbnb Marketing Mix


Airbnb has a very clear and customer-oriented product strategy. The website and app Airbnb are user responsive and widely used across the globe for hotels, rentals, hostels or any type of accommodation bookings. Additionally, Airbnb product strategy has focused to provide service according to customer needs.

Like, a customer can place the filter according to their needs and requirements, like- as type of accommodation, and price range. Plus, Airbnb provides customers to book activities locally like scuba diving, cooking classes, art classes, etc.   

Moreover, while listing the property for rental or accommodation facility, a host is given two options. Which are:

  1. Host alone by either listing their property for rental or any experience which they wish to offer to the guests or 
  2. Co-host with others by sharing their responsibilities with them.


Airbnb has cleared its pricing policy very clearly on its website. As the price of a product or service matters the most to customers. So, it’s very important to disclose the distribution of price and to charge a fair price. In context to price disclosure, Airbnb marketing strategy distributes the prices into two different service fee structures:


In split-fee, both host and guests pay a service fee. So, a service fee is deducted from the hosts’ payout and charged to guests as well. In this scenario, the host pays a 3% service fee. And most guests pay a service fee that is under 14.2% of the booking subtotal (the nightly rate plus cleaning fee and additional guest fee, if applicable, but excluding Airbnb fees and taxes). 

Host-only fee

Now in the case of the host-only fee structure in Airbnb marketing strategy. The entire service fee is deducted from the host payout, and no Airbnb service fee is paid by guests. 

As it typically ranges from 14% to 16% and is mandatory for hotels and some other hosts. It’s also mandatory for software-connected hosts unless those hosts have a majority of their listings in the United States, Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay. Airbnb Plus hosts and hosts who use Super Strict cancellation policies may pay more. 


The distribution marketing strategy of Airbnb started in the year 2007 in San Fransico when the owners thought of changing their living room into a bed and breakfast. Because of the higher prices of hotels, and difficulties in booking rooms owners thought of Airbnb. 

As the idea grew they created a website offering short-term living quarters to people. And by 2009 the idea expanded to several other properties including entire homes, apartments, private rooms, castles, boats, and other properties and has also started offering various ‘experiences’ as well.

Now, Airbnb provides access to accommodations and experiences in more than 191 countries.


The promotion strategy of the marketing mix Airbnb marketing strategy is a mix of traditional and digital platforms. Like, Airbnb uses TV advertisements and billboards on traditional platforms. Similarly, Airbnb uses display advertisements, content marketing and social media analytics to target relevant audiences for the various properties listed on its portal.

In the case of content marketing, Airbnb tries to focus on communicating the value of “living like a local”.

Also, it undertakes various public relations activities such as extending support and donating to various causes.

For example, In 2012 people who are misplaced in hurricane Sandy in New York, Airbnb offered free accommodation. 

Plus, Airbnb also provides sponsorship to various events and has partnered with other agencies for more brand visibility.


Over 200 million guests have used the services of Airbnb. And to manage these services they have over 3100 employees across the globe. However, there is no direct customer service from Airbnb to hosts or guests. So, in case of any problem host or guest can read various FAQs. Apart from these, they can also email in any case of emergency.


Process in Airbnb marketing strategy is tangible and mostly relies on the customer’s experience. Firstly, guests need to verify their identities. Afterwards, hosts can invite the guest for bookings. In the case of any query, the traveller is allowed to contact the hosts before finalizing their bookings. Later, the booking is confirmed once the guest made the payment to Airbnb. In the last Airbnb transfers the payment to the host in 24 hours after deducting their service fees.

Physical Evidence

Airbnb marketing strategy is not to create a physical location. As the entire working or service booking is done digitally. The app of Airbnb has a 4.6/5 rating on the google play store and  4.7 on Apple App Store. Only, the hosts and guests provide a review for each other at the end of their stay on various parameters which helps the hosts and guests to improve their credibility on the platform. 

Hence this completes the Airbnb marketing mix of the Airbnb marketing strategy.

Airbnb Marketing Strategy Case Study

Airbnb marketing strategy case study is studied to understand how multiple marketing strategies are implemented by a company to achieve goals and targets. When the company analysis the competitors and their growth and work. And, to improve performance organising creates different strategies. Here are the different Airbnb marketing strategies opted by the company.

Marketing Airbnb
Marketing Airbnb

Brand Establishment

To create resemblance in customer’s minds about the services which the company provides. It helps in the long run to create a big customer base and loyalty. Moreover, it differentiates the Airbnb business from its competition in a crowded marketplace.

And to create a good brand organization starts with a good and catch brand name, logo and tagline.

Now in the case of Airbnb;

Brand name: Air Bed and Breakfast, which clearly defines the service proving for staying and providing meals.

Tagline: Belong anywhere, which gives the vision of providing comfort and the idea of belongingness anywhere.

Whereas the logo is a combination of four simple symbols: a head to represent people, a location icon to represent a place, a heart for love and then an A for Airbnb. A video (embedded below) explains the geometry of Airbnb’s logo.

Business Growth From Social Media

Airbnb marketing strategies for social media help the organization to expand its customer base by showcasing its different rental places, and their views with prices. 

Plus, Airbnb also gives have given many customer services over Twitter.

Additionally, Airbnb also uses social media channels to post customer experiences at different locations. Which helps in pursuing more customers. 

Local Partnerships Are the Best-kept Secret

Local partnerships provide unique values to Airbnb. Airbnb collaborates with local places like restaurants, museums, rental types of equipment, amusements etc. Mostly, Airbnb prefers to create partnership advantages with local vendors in which their competitors are not interested. Also, they believe in spreading the word about local businesses in the local community.

Referral Marketing

It is another marketing strategy of Airbnb is referral marketing, it creates itself. Airbnb has a comprehensive referral programme that gives community members rewards for inviting new users to the platform. This marketing tactic helps the brand expand its pool of customers through existing users, reducing the high cost of customer acquisition.

Community Connection

In the case of community connection, people give appreciation to restaurants or movies or plays etc. So, the Airbnb marketing strategy planned to put interesting things or places that people can visit in different cities. As a result, Airbnb helps people to plan their vacations. Plus it helps to build community connections with residents.

Airbnb Digital Marketing Strategy

Airbnb marketing strategy has almost relied on its digital presence. So, its marketing strategy is mostly towards the Airbnb digital marketing strategy. Now, let’s understand different Airbnb digital marketing strategies which made the growth of Airbnb in 191 countries. 

Airbnb Digital Marketing Strategy
Airbnb Digital Marketing Strategy

Responsive Website

Airbnb reserved its booking from its website and apps. So, it’s important to create a website that is user-friendly. To maximize its sales Airbnb has created a website that is easy to use and navigate. In addition to that website showcase the best quality images, every single feature and every other feature which are required to make the final decision. The accommodation booking also helps in locating activities nearby.

Business Growth With Facebook

Around 60% of people finalize the location for vacation from social media. And the recommendations helped in gaining 15% of new customers. So, Airbnb marketing strategy has focused widely on Facebook to increase their sales. In addition to posting recommendations for vacation spots, they have also been posting images of their different properties. Which builds the desire to stay in beautiful places in the mind of viewers.


Instagram is widely popular among the younger audience and used by more than 500 million users every single day. Plus, Instagram is more visual and photos and videos sharing social media. So, Airbnb posts images of their different properties to target travellers from millennials or Gen Z.

Youtube channel

Youtube is the largest video platform in the world, which has more viewer engagement than any website. So, engaging and targeting the audience from there has proven to be a real conversion for the company. As travellers like to know in advance about places where they can visit on their vacations. So, the Airbnb marketing strategy has focused on showcasing the different spots of different countries on youtube channels to give an idea of what can be the interesting actives they can opt for. 

Video titles like Top 10 beaches in the world, top 5 things to do (city name).

Influencer Marketing

Collaborating with influencers is one of the successful marketing strategies for many companies. As many people follow influencers on youtube and Instagram and get widely influenced with their lifestyles. So, Airbnb digital marketing strategy is to collaborate with influencers across the globe to showcase their experience in Airbnb properties to increase and create more sales.

Google Ratings

Google ratings are considered to be one of the first choices to check ratings or any palace, product, service etc. And the Airbnb marketing strategy has focused to create good Google ratings. Not only they have focused on getting ranking for Airbnb they have equally focused on getting good reviews for their properties.

Sending customer feedback forms after their vacations and providing them with good services have created ⅘ ratings for them on Google.

With this, we finish the different digital marketing strategies of Airbnb.

Airbnb Marketing Strategy Issues

Although working on every tinny little detail and creating an almost perfect Airbnb marketing strategy, the company faced a setback in March 2020. When the company decided to save money and cut off marketing expenses. As a result, the company saw a 40% decrease in bookings and their hosts were very upset with the company. After the backlash, Airbnb secured a $10 million relief fund for “super hosts” and is offering grants of up to $5,000 for the hosts most impacted by the recent change in policy. It will also cover 25% of cancellation fees for hosts. 

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