Table of Contents
To build businesses, purpose and passion are the important pillars. So a Startup can be built in any situation. So here we are going to talk about the success of Airbnb founders.
The success of Airbnb founders is completely dedicated to its founders Brian Chesky, Joe Gebbia, and Nathan Blecharczyk.
It is a story of unemployed guys who went on to build multi-billion-dollar around renting a part of a house. It just completely changed the business model of the hospitality industry.
Beginning of Airbnb
There was Times very good idea will come at an unpleasant time. So Brian Chesky and Joe Gebbia work jobless. They were busy finding ways to make money.
In the initial stages, I could not find any idea. Button Idea suddenly jumped into my mind. The people were so bored to stay in a hotel for or stay.
However they were jobless, so they could not afford to pay the rent. So they came out with the most fascinating idea in the world. Where they thought to rent their space in their apartment.
So they planned to bring an air mattress for the guest. Eventually, a guest can bring the hair matters. Also, find a place to stay. Here the guest can pay way cheaper than to the hotel.
On the other side, the rent of the room can be accomplished upon the guest’s arrival. So here the first version of Airbnb got launched.
AirBed and Breakfast
Initially, Airbnb was called AirBed and Breakfast. Because the guest rent for Air mattress. Then they can stay in the desirable house.
There was a design conference held in the next week. This news got the attention of Brian Chesky and Joe Gebbia.
They took this opportunity to make money. E so that website called “Airbed and breakfast” using WordPress.
The initial Idea was to rent an air mattress for the guest. So here the guest is not staying in the traditional hotel. Instead, they are staying in normal houses. But they have to pay for their air mattress.
Even the food will be provided for the guests. It is most likely a hotel experience but in a cheaper mode.
However, there was a design conference in the states. So there was a prediction some people will come from far places. Then they would be looking for hotels to stay in.
Finally Brian and Joe e to this opportunity to try the new business model. Initially, they got a good response from the users. Where the users just love the idea and started booking uh their space in the specified houses of Airbed and breakfast.
It came out as a successful business. During the business conference period, both Brian Chesky and Joe Gebbia made $100 for 4 days.
The Real Airbnb founder’s story takes off
Buy now brain Chesky and Joe came to know about making money e in their spaces. So again there was a democratic national program. Where the program will be organized by the president of America, Obama.
There will be a huge crowd in the states during the conference. So I took this as an opportunity to leverage the business model. Initially, they told about the business for the generalist. So that it will be a kind of publicity.
Here the generalist telecasted the news. Even the people were so impressed with the idea. So people started working there stays in the local houses listed on the Airbed and Breakfast website.
There was huge traffic on the website. Even multiple times, the website got crashed.
Again during this event, Brian Chesky and Joe Gebbia made a lot of money. So they thought it would be a successful business. Then they approach a lot of investors to scale the business. But none of the investors were ready to invest in the business.
Some investors started a business that was not profitable for a long time. Because there is a cash flow only when there is a special event in the locality. Then there will be no business. Gradually the revenue streams will be dried up.
Airbnb founders struggle
After the continuous rejection from the investors, the Airbnb founders change the business model.
So the Airbnb founders approached one office friend who was working in the packaging industry. They got the idea if they bring them trash they would convert it into packages. Finally, those packages would help them to pack their products.
So they selected the product as cereals. Now Airbnb the founders were selling cereals to get some money to sustain the business. Ultimately the collective all the trash, and gives it to his friend working in the packaging industry.
Finally, they came out with an attractive package design. Where the design consists of the president of the US Obama. In the package, they portray them humorously. Even they gave an attractive name for the Cereals called “Obama’s cereals”.
Later it was a massive hit. Everyone loved the packaging and also the cereals. Within a shorter duration, Brian Chesky and Joe Gebbia made $20k to $30k.
So once again there were good sales of cereals and also people recognise that another startup Airbed and Breakfast. However, Airbnb founders were running the business with their credit cards. So it was very difficult to run the business at their own expense.
Ycombinator invested in Airbnb
Brian Chesky and Joe Gebbia about the Ycombinator. It is a startup incubator, if there is a good idea then investors would invest in the form. So Airbnb the to this opportunity to explain their startup to investors.
This time every investor work upset about the business. They just worried about the business model. Investors believed that no one will be willing to go to the stranger’s house. It is a matter of safety and security in person. So there is a lot of risk behind this business.
During the pitch, investor expressed their opinion about the startup. So once again there was a disappointment for Airbnb founders. Finally, Brian and Joe left the pitch desk.
One of the investors was very interested in the Cereal package presented in the hall. Then they came to know that they were selling cereals to run their business. So it was very impressive about the spirit of this entrepreneur.
Later there were called back to talk with the investors. Now the investors are taking a bet, not with the business but instead with the founders.
It is the first success of Airbnb founders towards investment. Then there was a lot of degradation in the firm. Finally, the name was changed from Airbed and Breakfast to Airbnb.
Subsequently, there were a lot of listings of apartments, local houses, and many other mansions that happened at Airbnb. To improve the User experience, now that owner of the property should I upload the photos of the house? So that customers can notice the condition of the houses to stay in.
This will increase customer experience and satisfaction.
The success of Airbnb founders in 2008
The success of Airbnb founders in 2008
Along with Brian Chesky and Joe Gebbia, Nathan Blecharczyk joined Airbnb as CTO. He was the former roommate of the founders of Airbnb. The whole ideation started in 2007.
Now in 2008, Airbnb got investment and also recognition from the public. Even the timing of the form is also good. Because in 2008 there was an economic crisis struck the US. So there were pretty common in areas bike
- Market Crash
- Job Losses
So the situation in the US was worse. Now people are not ready to spend extra money. Now people are looking forward to saving money. However, the cheaper version of Hotel is now Airbnb.
Then everyone opted to choose to stay at Airbnb-listed properties. So it was a big success for Airbnb founders.
Airbnb Business Model
The success of Airbnb is true relied on its business model. Because the founders were e focused on the customer experience.
Because if the customers are once they satisfied, they were so that the customer will never return. So to enhance the customer experience they made the website user-friendly.
Now where users can see the condition of the houses. And can also conclude uh to stay or not. Also, there is a healthy relationship between the owner and the customers. There is an option to chat with the owners and also negotiate on the prices.
And another concern about Airbnb’s business model is safety and security. To build trust between owner and customer there were feedback sections. Here the customers can give feedback about their stay. Also, Express their hospitality at the Airbnb-listed property.
In this way, Airbnb company made sure to keep the business customer-centric. Even with the use of Technology, like machine learning and artificial intelligence, the website gives the best recommendation for the customers.
The main stream of revenue for Airbnb was from commissions. Whenever there is a listing on the website they will charge a separate fee.
Then when our customer pays, some percentage of the amount will be streamlined to the Airbnb company.
Airbnb Business problems
In San Francisco, there was hype for the Airbnb business model. So every landlord of the house was eager to get listed on the Airbnb website.
On contrary, the landlords of the house force tenants to leave their rented space. Because they were getting less rent from the tenants. So now they want to make money from Airbnb customers.
So there were protests from the tenants to sue away the Airbnb Business from the States. Because it made their life miserable. Now tenants are finding difficulties to find cheaper space for rent.
In the middle of the success of Airbnb founders, there were a lot of problems arising within the business model. The main concern about the business model is safety and security. There were a lot of scenarios where Airbnb iI II customers for not maintain the equipment in the rented space. Eventually, it should be paid for by the owner of the house.
So lot complaints about the attitude of Airbnb customers. Even there was a lot of priority about the guest safety. Because a lot of cases were registered like harassment and amusement of women. So it was a big concern for the Airbnb founders.
Then there was a certain measure taken by the company. If there is any crime then the innocent would be given compensation from the company. Even there was our insurance plan was also launched by the Airbnb company.
Airbnb Business losses 2020
In 2020 lot of businesses were under losses due to the pandemic. The coroner pandemic especially thrashed away the business of the hospitality industry.
Everyone is worried about their health. Every stranger was suspected as a carrier of the covid-19 virus. During that time everyone was isolated at their home. The travel and tourism work is completely nil.
Even Airbnb suffered losses. In 2020, there were a lot of cancellations made by customers. According to the report, due to cancellation, the company had to bare $ 1 billion.
During that period, 80% of the bookings work drastically down. So it was a tough time for the Airbnb company.
But now the situation recovered, even everyone is vaccinated. Sonu again travels and the Tour industry took off. Now in 2021, Airbnb’s revenue was at $5.9 billion.
There are over 150 million Airbnb users across the world. Over 4 billion listed properties are there on the Airbnb site.
So the success of Airbnb Founders is the true inspiration for all budding entrepreneurs. The unemployed guys build multi-billion dollar businesses in the world.
During the journey, there lack funding and lots of problems. But Brian Chesky, Joe Gebbia, and Nathan Blecharczyk did not quit.
Instead, they were continuously fixing the issues. Also always tried to make the user’s experience better.
So, in this way, the Airbnb business is making a positive impact on society.