Airbnb Competitive Advantages – know more

Airbnb has been part of our lives for over 14 years now. It was founded in 2008 by  three business graduates known as Gebbia, Blecharczyk, and Chelsea.  It was initially known as Airbed and breakfast. The idea was to help out travelers have Cheaper alternatives for expensive hotels. The website was created to help people rent out their apartments to travelers at affordable prices. Let’s know about Airbnb Competitive Advantages.

Airbnb Competitive Advantages

Airbnb may not have been the only website offering the services but its tremendous growth over the years makes it stand out.  For instance, by 2016, the valuation of Airbnb was at $30 billion whereas its competitor known as HomeAway was at $4 billion. 

So this brings us to our question today which is,

What are Airbnb’s competitive advantages?

They include: 

  1. The power of group travels
  2.  Long-term stay
  3. Remote location stay
  4. Airbnb’s  Niche
  5. Airbnb building Trust & Safety
  6. Customer Service

The Power of Group Travel

Airbnb makes it easier for travelers in groups to find accommodation, unlike hotels where you have to reserve several rooms to accommodate your group. This means that every time friends or family travel together they can always rely on Airbnb to provide them one home that can accommodate everybody in the group. With Airbnb, the experience of the group will be way better. For instance, if the house comes with a swimming pool your group does not have to share it with everybody else unlike a hotel. Also, people in groups will ideally need more space and that is possible with an Airbnb. 

Additionally, Airbnb makes more money because people who travel in groups spend more than when an individual travels alone. Airbnb, therefore, makes more profit and the customers get to cost-share. 

Long-term stay

People who want to stay at a place for a long period will probably go with Airbnb. Many prefer Airbnb to hotels because of access to things like laundry Rooms, kitchens, and many other Accommodations which are only available when you stay in a home rather than a hotel room.

Airbnb is also a go-to for professionals who are working remotely. This has been possible due to the pandemic where many people had to work remotely. The trend has increased significantly since 2020. It means that most employers are comfortable with employees working remotely.

Remote Location Stay

When it comes to rural or non-urban locations, Airbnb will certainly accommodate you. This puts Airbnb at a competitive advantage for any travelers who are thinking of a remote location or upcountry. 

Most hotels are rarely available in such locations. These hotels are located in areas where there is a large demand for visitors to make a profit.  With a large market, a hotel can justify why it’s building an expensive hotel. 

This being the case Airbnb ends up making more money because they have rooms and homes in rural areas. Airbnb has seen a 30% increase in listings from homeowners in rural or remote areas between 2019 and 2021. Also, as of August 2021, the number of non-urban house listings at Airbnb was 4 million in over 100,000 cities globally.

Airbnb’s  Niche   

Chesky and Gebbia are millennials they, decided to target millennials Because they understood what millennials need and desire. Understanding customers’ needs has helped Airbnb become successful. 

One of the things that Chesky and Gebbia understood is that millennials wanted to explore the world because they have a great sense of adventure. However, it had to be at an affordable price. They also realized that most Millennials would not mind living in a home with someone they’d connected with online.   

This has to do with millennials Being Digital natives and having interacted with the virtual world from an early age. With this in mind, millennials were the ideal target market for Airbnb to be successful.

Airbnb building Trust & Safety

Airbnb has ensured the safety of guests, hosts, and their premises. Airbnb created the safety division to handle safety and security matters as emergencies. The safety division is divided into three operational centers to ensure that any suspicious activity is identified in advance.

They also have a trust advisory board whose main job is to ensure that accidents don’t happen.  The safety division also uses machine learning to identify accident scenarios and possible solutions or prevention methods. They also have cyber experts who help to detect fraud and many other insurance experts who work in the crisis management department.

Customer service

Let’s know about Airbnb Competitive Advantages. Customer service plays a significant role in ensuring a business grows. Airbnb, therefore, developed a customer experience unit. This unit was created to curb unfortunate experiences that had happened to some of the Airbnb customers. 

The customer experience team ensures that both hosts and guests have 24-hour customer support using various communication channels. Additionally, it’s the largest team at Airbnb. By ensuring that the customer feels safe and has the questions or concerns resolved as soon as possible. When this happens, customers can be brand advocates for Airbnb through word of mouth. 


As we have discussed extensively about Airbnb Competitive Advantages that Airbnb has many factors that give it a competitive advantage. This article is to help you understand why Airbnb is a great company and why it has tremendously grown year after year.

Frequently asked questions
  1. Is Airbnb a great company to work for?

Yes, it is.  The majority of employees who have worked for Airbnb say it’s a friendly and welcoming place.

  1. How does Airbnb make a profit?

Airbnb charges a service fee from both the hosts and the guests.

  1. Do people go for Airbnb or hotels? 

60% of leisure travelers prefer using an Airbnb compared to a hotel but 68% of business travelers prefer to use a hotel compared to an Airbnb. These statistics are according to the survey. 

Airbnb Competitive Advantages – know more

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