When awards were given for the company that best crafted its marketing strategy ‘by the book’ and revolutionized the segment in which it operates, Airbnb would surely be the winner.
The Wall Street Journal estimates that this travel company providing alternative accommodation services (for example, in other people’s homes) could achieve revenues of up to $900 million by the end of 2015, which is three times more than in 2013.
New man at the helm By 2020, they could generate an incredible $10 billion (!). The reasons for such growth in an otherwise highly competitive market lie in their business model, as well as a marketing strategy tailored to millennials, a potent group of consumers aged 18 to 35. Given their skill in adapting to new paradigms of digital business, their ability to co-create with users (which is also one of the core values of their brand), and their continuous exploration of new marketing opportunities (they recently launched the magazine Pineapple), some media even refer to them as the Apple of the tourism sector. Just like Jobs’ creation that changed the music and telecommunications industries with iTunes or the iPhone, Airbnb could completely change the niche in which it operates.
For this, Fast Company believes, we should congratulate Jonathan Mildenhall who, at the peak of his career at Coca-Cola, transitioned to the role of Chief Marketing Officer (CMO) at Airbnb at the beginning of last year. As he explained to the aforementioned magazine, the call from CEO Brian Chesky to join their company was not initially accepted with open arms. According to Mary Meeker’s report, in the last twenty years, 14 out of the 15 most valuable tech brands have failed (only Apple survived from the list). Mildenhall got the impression that this sector is actually a graveyard of brands and, quite justifiably, feared that the same fate could befall Airbnb, which is why it would be quite risky to leave a stable position in a company with a 120-year tradition. However, Chesky’s vision managed to convince him in just seven minutes.
Turning points in business Indeed, Chesky does not play the networking and digitality card, but rather the fundamental human need for belonging, for a sense of home.
Or, as Mildenhall put it, even cavemen sitting around the fire shared with their community a sense of belonging to something, and it is precisely the communication of that human need, rather than the usual ‘triggers’ like simplicity, connectivity, service availability, or similar, that is the fundamental element by which Airbnb differentiates itself from other players in the market. After Mildenhall caught the enthusiasm and vision of the company’s top executives, it was necessary to devise a smart marketing strategy that would also convince users that this is a completely different brand. The first step the company took was in June of last year when a new logo was unveiled, which they even named – Bélo (associating with ‘belonging’). The management believes that from that moment on, Airbnb transformed from a rental service into a cultural brand; a brand that reflects trends in travel, lifestyle, digitalization, networking, etc. Six months after the redesign, Airbnb experienced another turning point in its then seven-year business.
Namely, Mildenhall, with his team and the blessing of management, launched the first global campaign ‘Never a Stranger’. In the television spot, a beautiful solo traveler enthusiastically talks about her accommodation during her travels; in other people’s homes where she did not feel like a stranger, but part of their family. As Fast Company writes, this was a huge undertaking for a company that had never before had such a serious global campaign nor spent so much money ($35 million) on advertising. However, its marketing director is extremely satisfied with the results and claims that the campaign significantly impacted ‘brand awareness’, website traffic, and, of course, business results. Although the figures (ROI) related to the specific campaign have not been published, traffic data indicates that Mildenhall hit the mark. This summer, Airbnb reported a total of 50 million guests, with 30 million achieved just this year, and 20 million since 2008.
Breathe with the audience And the third, so far last turning point (or, as Fast Company calls it, milestone) for Airbnb occurred exactly one year after Bélo. At that time, the brand launched another campaign that premiered during the broadcast of the ESPY awards, immediately following the media-followed speech by Caitlyn Jenner. The purpose of this spot was to further connect the brand with trends in popular culture. Or, as Mildenhall says, they did not want to sell the experience of using Airbnb services, but to promote the values of their users, ‘individuals who curiously observe the whole world, all of humanity; who want to experience the places they visit differently and embrace different cultures’.
When asked how they see the future of the brand, the chief marketing officer responds that the brand’s goal is to participate with users in creating emotional and motivating stories. Thus, consumers will not feel that the brand is selling them something, but that the brand enables them to have an unforgettable experience, while also encouraging them to change their previous travel habits (staying in hotels or apartments) and see what it is really like to live like a local in the country they are visiting. In this, of course, the digital world helps them; users who provide useful information and comment on existing properties in the brand’s offering. Given that Airbnb truly breathes with its users, it is increasingly convincing in presenting itself as the ‘good spirit’ of their travels (rather than a rigid brand that profits from them), it is expected to have a bright future ahead, but also that the competition (at least will try) to follow their example and practically create a completely new niche in the world of travel (millions of users manage to soften travelers for whom the idea of staying in someone else’s house has never seemed appealing).
As Mildenhall concludes, Airbnb harnesses the strength of its community (users, as well as service providers), and then based on serious analyses of collected data and the creativity of its team, creates a brand that has not yet existed in the market.
