Airbnb SWOT Analysis 2022: A Detailed Report!

airbnb swot analysis

Airbnb is a service that is catered towards an online booking service of lodging, vacation residence service, and tourism activities. The service was preliminarily operated from San Francisco, California. It mainly operates through websites and mobile app. It is mainly an Uber of real estate. Airbnb doesn’t own any of the residential property that is available via their service, rather they receive a commission per booking which is their main cash generator.

Airbnb is the acronym for Air bed and breakfast which was founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia.

Airbnb – At A Glance

Company Name Airbnb, Inc.
Industry Lodging
Founded August, 2008
Founders Brian Chesky, Joe Gebbia, Nathan Blecharczyk
CEO Brian Chesky
Headquarter San Francisco, California
Annual Revenue $3.378 Billion (FY 2020)

Airbnb SWOT Analysis

An Airbnb SWOT analysis will assist in determining the company’s current position as well as assessing its business prospects and future growth.

Strengths of Airbnb in SWOT Analysis


First off, in the swot analysis chart, we should analyze the strength of Airbnb.

Affordability: Affordability is one of Airbnb’s unique selling points. Airbnb is considered as a moderate expenditure option in comparison to other residential options there is available. In Airbnb, you have the privilege to search around and pick the most preferable plan for your stay. You can go through reviews to get a fourth-wall-breaking idea of the place. This particular structure of business helps Airbnb to gain the trust of emerging consumers every passing moment.

Pleasant experience: Even if you’re not someone who needs to work within a budget, still Airbnb can be a preferable idea for you because of the pleasant experience it provides you with. It has different, less corporate smelling walls and sheets that would not constantly remind you of not being able to enjoy the comfort of your home. It almost feels like you are ever desired spare resting house.

Uniqueness: The uniqueness of the idea of Airbnb will mesmerize you the most. The thrill of living in different interiors as your own home will give you the adrenaline rush to wash away your monotony. You live in the comfort of your own personal boundaries and you don’t even have to own it. Basically, it’s an affordable version of feeling like a real estate prince.

Accessible to all: Anybody from anywhere around the world can select their preferable room and book according to the vacancy state. This selection can happen can track down an excellent room, considering Airbnb is operating in more than 190 nations. That is in excess of 30,000 urban communities. On the off chance that you have extra time, peruse more than 1 million postings. That is the number are accessible, at this moment. The organization has effectively extended around the world. They give no indications of halting.

Weakness of Airbnb in SWOT Analysis


The weaknesses or areas to be improved are discussed next in the Airbnb SWOT analysis.

Lawsuit: Airbnb lets people rent their house with an amount of commission. Their payment is pretty hassle free too. This lures in a lot of unnecessary people than you might want to think. A lot of people post about renting their house illegally means they do not have permission, but they opened it up for lease anyway. For this reason, a lot of lawsuits and guideline infringement issues come in the way of Airbnb.

Customer dissatisfaction:  some people rent space while it’s clearly mentioned not to be rented for personal benefits. The customers taking their offer might not know it before getting in. This causes the customers to have a bitter experience during their stay. In this dreadful situation, Airbnb has to suffer and pay the price of some other people’s lack of morality.

Helpless hosts can likewise be harmful to the organization’s standing. On the off chance that a host doesn’t follow Airbnb’s rules, there are ramifications. Helpless evaluations and reaction via web-based media is everything necessary to tank an organization’s benefits nowadays. Considering their plans of action depend intensely on has around the world, Airbnb is very helpless against the outsiders they work with.

Review dependency: On the off chance that a host doesn’t follow Airbnb’s rules, there are ramifications. The host’s poor sense of judgment results in Airbnb’s reputation damage. Airbnb is mostly an online service and it depends a lot on virtual word of mouth. A negative review causes bad business reputation for Airbnb.

Opportunities for Airbnb in SWOT Analysis


Airbnb swot analysis offers the brightest part of the opportunities offered by Airbnb. Let’s look at them.

Growing Urbanization: In recent times Airbnb is trying to support the urban area establishments with their lodging guidelines and laws. Many an establishments were refraining themselves from enlisting with Airbnb were having hard times for the legal issues. Now that Airbnb is coming forward to take the responsibility this opens up more doors to emerge with their company and grow bigger and shine brighter.

Easy correspondence: The hotel correspondence is minimized to the maximum in Airbnb. The mobile application is the checkout and check-in point for both the parties. This mitigates the needed amount of paperwork and human contact which is easier for everyone, environmentally friendly and another easter egg is, this is pandemic safe.

Competitive advantage: The competitive advantage of Airbnb serves them well enough and leads to more opportunity than anything. In case you go for hotels, motels or inns, they are too overpriced for their services. But Airbnb offers you luxury within affordability. The lodging facilities far better than that of their competitors.

Celebrity affiliation:  celebrity affiliation can take a company sky high. Airbnb has made the next level fantasy true. Famous people like one of the Jonas brothers, Elizabeth Taylor, Bill Crosby is leasing their room in Airbnb. People get to experience first hand about their favorite celebrities comfort and residential choice. The mass population trust the celebs. Any business thrives and build on the basis of trust. The celebrities opening up their entry doors are becoming a luxurious opportunity for Airbnb to just enlarge their paycheck.

Additional tour guide: Airbnb is expanding their business in the surroundings of lodging facilities too. They’re starting to cater to other facilities the people might need. They’re having a tour guide service taking which people can take a person to show them around in the city at a specific cost. This is soon expected to be expanded into  a vehicle rental and other needs that a tourist might have.

Threats for Airbnb in SWOT Analysis


Every good Swot analysis comes with a great perspective for threat concern. Airbnb SWOT analysis has a few, like;

Contagious Virus: During this worldwide COVID-19 pandemic outbreak, Airbnb can face some health-hazardous threat, since it works as a temporary stay for many people, it means this could be an avid media to spread the deadly pandemic virus.

Pandemic outrage: With the raging pandemic all over the world going on, traveling business is facing one of the most brutal economic depressions, this could be a very prominent threat for Airbnb.

Higher competitiveness: Though Airbnb has always tried to stand out in its own business persona. But the thriving market is regularly enriched with more and more new businesses every day. These new businesses could be a constant threat to the Airbnb franchise.

Airbnb SWOT Analysis Overview Template


Conclusion and Recommendations for Airbnb

In summary, Airbnb’s strategy for market success is based on a combination of customer understanding, operational excellence, and customer satisfaction. In order to provide more convenience, and at less cost than its competitors, Airbnb relies on its excellent operating system.

Airbnb focuses on its rentals, adverts, and IT systems to enable its lodging system to be automated extensively.

  • Continued growth through solving legal problems and legal precautions
  • pursue growth through celebrity alliances and partnerships
  • Growing revenue with better reputation through the new establishment enlisting

With this Airbnb SWOT analysis, their company highlighted each of the strengths, weaknesses, opportunities, and threats of Airbnb on the market. To increase its market share and financial stability, Airbnb must take vigorous action. However, in spite of the negative factors, it is without a doubt a symbol of progress and innovation.

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Written by: Admin

I'm Angela, founder & content creator of SWOT Hub. As an entrepreneur, I love to explore various brands/companies & write about them.

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