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How Airbnb manages to stay innovative?

Airbnb has created a strong culture of community and collaboration. They have setup an organizational structure to maximize networking within the organization. The managers exist not to lead but to facilitate information and act to remove obstacles for the team.



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The concepts of disruptive innovation are used to consider Airbnb's novel business model, which is built around modern internet technologies, and Airbnb's distinct appeal, which centres on cost-savings, household amenities, and the potential for more authentic local experiences.

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Airbnb's strategy focuses on disrupting the hospitality industry by offering unique, personalized, and affordable travel experiences to customers. By adopting Airbnb's approach, organizations can create similar value for their customers and differentiate themselves from competitors.

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Airbnb is tapping into its extensive customer base to grow its supply. Currently, 36% of newly available hosts started as guests on the platform. This strategy shows that Airbnb can effectively use its customers to drive growth. For vacation rental managers, competing with this global platform can be a challenge.

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The Stranger-Danger Bias Airbnb prides itself on embracing a user-centred approach to design and innovation. As the co-founders put it, the company “bleeds design”. According to them, the number one secret for its success has been their ability to tackle the stranger = danger bias.

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The Key to Airbnb's success One of the keys to Airbnb's success was its ability to create a sense of community among its users. By allowing people to rent out their homes to travelers, they were able to create a more authentic travel experience.

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If Airbnb were able to capture stories from both their hosts and travelers about their experience using Airbnb, it would lead to higher brand awareness, stronger relationships with their community, more positive media attention, increased results in the SERPs, wider adoption, and more profit.

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What makes an Airbnb truly special is its amenities: things that make guests feel like they're staying somewhere special and aren't just paying for somewhere to sleep at night. Check out our list of 7 unique Airbnb amenities that are sure to secure bookings – and 5-star reviews.

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Airbnb also works to make sure that their actions have a positive impact on the communities in which they operate. In order to meet these goals, Airbnb has set SMART goals that are specific, measurable, aggressive, realistic, and time-bound. For example, Airbnb's goal is to double their revenues to $4 billion by 2021.

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The San Francisco based company began its business as an unassuming start-up with three air mattresses. This innovative lodging concept was developed by two roommates, Brian Chesky and Joe Gebbia (Airbnb, 2016).

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Airbnb Strengths
  • Airbnb Enjoys First-Mover Advantage. ...
  • It Takes Advantage of the Network Effect. ...
  • Innovative Business Model. ...
  • Strong Branding and Effective Marketing. ...
  • They Offer a Unique Traveling Experience. ...
  • The Company Is Publicly Traded. ...
  • Global Expansion. ...
  • Dual Rating System.


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One advantage for Airbnb is the almost limitless availability of places to stay on its platform (currently totaling around 7 million). This can help the company capture more demand and outperform other travel stocks over the long term.

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Airbnb Product Strategy: Since Airbnb operates in a business to business market, the platform is the service that they offer to the hosts with value proposition of 'earning money to fund their own passions'. Airbnb has a wide variety of service offerings in its marketing mix.

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Now, the Airbnb team tackles all of its big problems by developing a hypothesis, piloting an idea, gathering feedback on how that idea is working, and iterating and repeating as necessary. In other words, they leverage design thinking to inspire innovation and solve problems in ways that are meaningful to customers.

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You may not realize, but every reservation made on Airbnb interacts with machine learning or AI technology we've developed. We use AI across Airbnb to reduce the friction that is inherent to our platform – for everything from improving search, to preventing fraud, to helping hosts optimize pricing.

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Weaknesses: Relying on strangers to host leads to legal violations. Airbnb faces problems stemming from housing laws and regulation violations. Hosts are paid for offering their rooms for a set time. It seems like easy money, and who doesn't want quick cash?

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Airbnb is economically sustainable. We commissioned an economic study in San Francisco and are working on one in New York. There are surprising findings – first is our impact on our community and our hosts, who have real economic incentives to use Airbnb.

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