How did this story come to your screens? Well, it all started with a Google Meets conversation on a busy July afternoon, with the word hosting repeated numerous times. Unsurprisingly at a meeting, one of our colleagues proclaimed that the kind of hosting he cares about during this blisteringly hot summer in Lithuania is found on Airbnb.
As the laughter and giggles died down, we all paused, realizing that there is much more to this joke than just laughter. Two companies, two different industries, but the same keyword behind it and homogeneous working principles are the ingredients of great success stories.
Even if at first glance it may seem like vacation rentals and web hosting providers have nothing in common, we at take Airbnb as an inspiring example. It sets high standards for the industry and is ahead of the curve. So, here we are, sharing the main takeaways from this comparison that drives both companies to continued growth, and explaining the key actions needed to succeed that we’re constantly learning from Airbnb.
Reimagining the hosting industry
Founded in 2008, Airbnb began its quest to reinvent the meaning and essence of the word hosting. Its context came in more literal physical terms, as Airbnb’s trip had to do with the vacation rental and hospitality industry.
Airbnb had to go against ideas and notions embedded in the fabric of our society. Hotels and apartments were not just a monopoly, but an institution, the only reasonable way to vacation or visit other places. Hosting in that context was an idea that seemed to be locked, sealed and secured for decades.
What did Airbnb decide to do? Change the paradigm and introduce a completely new way of doing things. According to Airbnb, hosting should be easy, fast, affordable and accessible to everyone. In particular, the majority of guests choose Airbnb for its ease and security of payment.
Four years earlier, in 2004, began a journey that to this day has one simple goal: to make website hosting accessible and easy to use for everyone. The company set out to change the narrative around building a website, and no, you don’t need to be a coding expert or have previous web design and development experience. By providing the right tools for online success, Hostingerians act as heroes behind the scenes supporting a customer on their journey 24/7.
had to go against an existing and established industry standard and, most importantly, convince people that building their website was easy, fast, and affordable. The word hosting makes up 7/9 of for a reason: reinventing what hosting is was and will always remain the central purpose and principle of this company
So what similar actions do we recognize both companies take to succeed as they grow?
Appeal to the right audience
Does everyone who comes to for a web hosting plan have the Airbnb app on their phone? Maybe. Do the people who host their apartments and offer them to travelers through Airbnb need a website? Maybe. What is the audience of each company?
It has over 150 million users worldwide and 4 million hosts that have listings for over 100,000 cities. With an average of 6 guests checking into an Airbnb listing every second, you can get a sense of the power and momentum the company has gained over the years. People between the ages of 25 and 44 make up 59% of all Airbnb users, yet the fastest growing age group among Airbnb hosts is seniors.
Our clients could be grouped into a large number of different people ranging from solo entrepreneurs to SMBs, developers, web and design agencies. However, all of these could be grouped into two main categories: web professionals and web beginners.
In business terms, the overlap between and Airbnb audiences has no obvious connection, but don’t let first impressions fool you. If we were to dig a little deeper and examine the psychology, personality, and consumer buying behavior of the two audiences, we could also quickly identify similarities. People who want to open their house or apartment and welcome people from all over the world are the ones who embrace the magnitude and diversity of this spinning blue ball we all call home. Similarly, people who want to expand their ideas, thoughts and businesses in the digital ether share the same characteristics: they want to interact with other people no matter where they are on the planet.
We tend to think that people who want to visit different places and experience them in a more homey and personal way share similar behaviors as people who would aim to create their online success and give it a touch of personality. There is something about hotels and standard websites that reeks of standardization and monotony.
What do the numbers say?
The increasing inclination of customers towards online shopping tends to accelerate the two markets mentioned above. Still not the only bold similarity between physical and digital hosting. The table below summarizes the critical numbers for each industry and gives you a quick overview.
Market size value in 2020$87.61 billion $62.6 billion Revenue forecast in 2027$113.9 billion $171.4 billionGrowth rateCAGR of 3.4% from 2020 to 2027CAGR of 15.5% from 2020 to 2027main customersMillennialsOrganizations, SMEs, individualsReasons for market growthIncreased spending on travel, vacations and accommodation among this generation Growing number of new businesses, increased Internet penetration and web traffic worldwide.
Airbnb represents the one that is expected to grow 3.4% annually by 2027. It identifies millennials and younger generations, counting 75% of all consumers and travelers. Attractive value for money, decent comfort, low cost, extra privacy, child- and pet-friendly accommodations are the key elements that sum up the growing interest in vacation rental properties over hotels. Additionally, Airbnb users tend to save up to 6-17% for booking thus, as far as the hospitality industry goes, approximately $450 million in direct revenue per year is to Airbnb.
In addition, it is estimated that the online booking mode will increase by 4.3% per year before 2027. This boost is explained by convenience, detailed access to accommodation and value for money, which is also beneficial for Airbnb. .
Europe remained the dominant destination for vacation rental market travelers in 2019, with a 35.9% share. However, there is a growing trend for the Asia Pacific region to overtake Europe by 2027. Chinese travelers (approximately 40% in 2019) are seen as major contributors to such regional market growth, however, researchers highlight the increase of spending by travelers from other developing countries. such as India, the Philippines and Vietnam.
On the other hand, is part of the one that will increase 15.5% per year by 2027. In general, web hosting providers allow companies and individuals to increase their online presence by publishing personalized and company-related content. In Internet. The rapid increase in the total number of companies worldwide leads to the anticipated growth of this market.
Unlike travel-related activities, the outbreak of the COVID-19 pandemic has led to increased use of the Internet by both businesses and individuals. Companies experienced the need to start their business operations online, while people were encouraged to spend more time blogging, making videos, creating their personal brand presence and showcasing it on the internet. Shared hosting (37.64% revenue share) remained the dominant segment of the web hosting market in 2019, attributing shared hosting as the preferred option among SMEs accounting for over 90% of total business .
North American domains (35.28% revenue share) prevailed in the web hosting market in 2019. However, Europe is expected to overtake it with an annual growth rate of 16% by 2027. Growing government investments in the development of IT infrastructure, expanding digitization and the demand for online delivery websites are the key elements for the continued growth of this region.
Set the inspirational goal
Customer obsession is what drives both companies. Their entire raison d’etre is focused on the customer, their pain points, and how they can create seamless and memorable experiences.
For , it’s about helping people live their dream online and encouraging them to understand that nothing is stopping them from starting an online business or blog. Every day employees are working to perfect their offerings. Whether it’s affordable plans, faster responses on customer chats, or more security features to protect your website, the customer is always the reason and the beneficiary of everything they do.
Similarly, Airbnb seeks to “create a world where anyone can belong anywhere.” So, whether it’s adding more filters to customize and simplify your search, or working to expand the cities listed and create extraordinary products, the Airbnb team is with the customer in mind every step of the way.
Their mission statement says it all: “Airbnb is built on the idea that everyone should be able to take the perfect trip, including where they stay, what they do, and who they meet.” To that end, we empower millions of people around the world to use their spaces, passions, and talents to become entrepreneurs.
Build a successful team
“I think bringing in your first engineer is like bringing a DNA chip into the business,” Brian Checky, CEO of Airbnb at Stanford in 2014. Since prioritizing the right people over wanting to scale businesses endures the attribute of success Airbnb from the start, it took the three founders four grueling months to hire the first employee. The company culture stands as one of exceptional long-term commitment to underlying principles rather than short-term growth.
Airbnb the benefits of a diverse team that…
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