MARKETING STRATEGY

Identification of a perfect marketing strategy can be done by three steps: 1. Segmentation,

Positioning, and Targeting

SEGMENTATION
The Market covered by Airbnb particularly covers customers who are looking for
accommodation in short term rented homes. The customers mainly look for a substitute for
hotels and other accommodations. The Market can be segmented using the data in the
table found below: -
Type of Segmentatio Airbnb target customer segment
segmentation n criteria Accommodation Experiences & Adventures
  Region More than 191 countries and More than 30000 experiences
Geographic regions and about 100000 cities worldwide
Density Urban/rural Urban
  Age 18-45 18-60
Demographic Gender 54% Females & 46% Males[1] Males & Females
Life-cycle Bachelor Stage Bachelor Stage
stage
Newly Married Couples Newly Married Couples

Couple with one child under 6 Couple with one child under 6

Couple with children 6 or above Couple with children 6 or above

Couple with dependent children Couple with no children living with

them but household head is in the
Couple with no children living with labour force 
them but household head is in the
labour force

Couple with no children living with

them and both are retired
Occupation Students, employees, Students, employees,
professionals, professionals, senior manager,
executives
Behavioural Degree of Dedicated frequent customers, Dedicated frequent customers
loyalty Dedicated customers Dedicated customers

‘Switchers’ Switchers’
Benefits Cost advantage, variety Exclusive, variety
sought
Personality Carefree, determined, Carefree, ambitious
consumer Non-customers, potential Non-customers, potential
status customers, first-time customers, customers, first-time customers,
frequent customers frequent customers
Psychographi Social class All Earning Classes Working class and above
c Lifestyle[2] Resigned, Struggler, Aspirer, Mainstreamer, Aspirer,
Explorer, Reformer Succeeded, Explorer, Reformer
(Dudovskiy, J.2019)
 POSTIONING
When it comes to the convergence of holiday rentals and the social economy, Airbnb is
first.' This brings some benefits to Airbnb. Airbnb is not only the first search for customers
searching for short-term holiday rentals, but also the first search for those looking to rent an
extra room or house. Airbnb is a short-term rental for holidays. This association, with
unlimited hosts and towns, gives Airbnb unparalleled reach. Airbnb is the first and only
company on this market to provide "experiences" in combination with its rentals. Bringing
lodging and activities together captures all the ideals of this section while traveling.
Incorporating this latest feature places Airbnb beyond just being a holiday rental company.
Airbnb doesn't simply offer rentals, it offers this portion a whole travel involvement in
incorporated applications to offer persistently improving usability. While Airbnb presently
has an online network for its hosts to share tips and organization, suggesting to building up
a comparative online stage for leaseholders. Permitting leaseholders to share pictures and
accounts of their rentals, yet additionally their exercises, will help further position. Airbnb as
the supplier of a full travel insight. Individual stories and drawing in photographs will
likewise draw out the craving for area and social encounters that this section partners with
movement. Situating Airbnb as a passage to this territory and remarkable encounters will
further distance it from its rivals that are more suggestive of inns. (Newsdesk 2017)

TARGETING
Low-budget culture seekers are the segment Airbnb should target. The explanation for this
is that it is the largest segment and has needs that will also support other segments if
fulfilled. Because of this if the Low-Budget Culture Category of Seekers is concentrated on, it
has the highest positive effect. In addition, this category is experiencing the most growth as
the number of millennials traveling has increased and is expected to continue to grow.
Airbnb has the opportunity to continue providing lower accommodation, and each year the
availability of its leases in other countries has continued to expand. Millennials are entering
their years of high spending then saving and how they want to promote will become crucial
to the company's success. (Newsdesk 2017)

References:
1. Newsdesk (2017) Stats: Millennials To Travel 35 Percent More In 2017, According To
MMGY Available at: https://www.travelagentcentral.com/running-your-
business/stats-millennials-to-travel-35-percent-more-2017-according-to-mmgy
(09/12/2020)
2. Dudovskiy, J.(2019) Airbnb Segmentation, Targeting & Positioning Available at:
https://research-methodology.net/airbnb-segmentation-targeting-positioning/
(09/12/2020)