Love to Read SWOT Analysis of Airbnb

Airbnb SWOT

by Shamsul
SWOT Analysis Airbnb
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SWOT Analysis of Airbnb

Airbnb is an online booking service for vacation residence service, tourism, and lodging. It was founded in 2008 in San Francisco, California. Travelers can book rooms or homes through its site or app. The company operates in a sharing economy system. They don’t own any property, home, or room. They receive a commission. Airbnb stands for Air bed and Breakfast. In this post, we will conduct an enjoyable SWOT analysis of Airbnb.

Company Name: Airbnb

Founders: Brian Chesky, Joe Gebbia, Nathan Blecharczyk

Founded: August 2008, San Francisco, California, United States

Headquarters: San Francisco, California, United States

CEO: Brian Chesky (August 2008-)

Type: Public

Sector: Lodging

Tagline: Belong anywhere

Unique Selling Proposition (USP): The ability to offer guests or travelers with a comfortable and affordable lodging experience.

Customers: Hosts with available spaces and guests looking for a place to spend time.

Target Consumers: Travelers or visitors who are looking for affordable and comfortable lodging options.

No. of Employees: 6,907 (2023)

Revenue:  9.917 billion USD (2023)

Net Income: 4.792 billion USD (2023)

SWOT Analysis of Airbnb

This SWOT analysis of Airbnb will help to determine the company’s standing in the competitive market, its future growth, and business prospects.

Strengths of Airbnb


The main unique selling proposition (USP) of Airbnb is its affordability. When compared to other lodging options, it is really inexpensive and comfier. If you are on a budget, you can choose this lodging option. You have the freedom to search for the most suitable place for you through their app or site. You can also read reviews to make up your mind. This type of business structure of Airbnb has allowed it to gain travelers’ confidence.

Amazing Experience

Whether you are on a budget or not, Airbnb is still the most favorable option for you. This is because it offers an incredible lodging experience to travelers. It differs greatly from traditional hotels, motels, and other lodging options. You will get the feel like you are at home because of its relaxing experience. If you are someone who likes comfort and affordability, then Airbnb is the ultimate choice for you.


The innovation of Airbnb will definitely fascinate you. You will enjoy staying in different interiors, which will surely thrill you. It also values your privacy and you will feel utmost comfort. Despite being an affordable option, you will feel like an owner when you book an Airbnb room, apartment, or home.


Airbnb operates in over 190 countries and more than 30,000 cities, allowing anyone from anywhere in the world to select their preferred room and book based on availability. With over one million listings currently available, users can effortlessly find an excellent room if they have additional time to search. Airbnb has successfully expanded globally and shows no sign of slowing down.

SWOT Analysis of Airbnb

Weaknesses of Airbnb

Legal Actions

Airbnb allows individuals to rent out their rooms or apartments for a commission, and the payment process is completely straightforward. Moreover, this ease of use entices people to rent out their homes without knowing the state’s housing regulations. So, the company can face lawsuits or legal problems.

Customer Dissatisfaction

Some individuals rent out their spaces on Airbnb despite clear instructions prohibiting such rentals for personal gain. Travelers who accept these offers may only be aware of the regulations once they arrive, resulting in a bad experience during their stay. Unluckily, Airbnb is often held responsible for the actions of these immoral individuals, leading to negative consequences for the company.

In addition to external factors, Airbnb’s reputation can also be negatively impacted by irresponsible hosts who fail to comply with the guidelines and regulations of the company. Negative feedback and poor ratings on different social media platforms can damage the company’s overall image. Since Airbnb heavily relies on its hosts worldwide, the company is highly vulnerable to the actions of these individuals.

Dependency on Reviews

If a host fails to adhere to Airbnb’s rules, there are consequences that can damage the company’s image. Since it is an online service, it heavily depends on virtual recommendations. Bad reviews resulting from a host’s poor judgment can impact the company’s image in a negative way.

SWOT Analysis of Airbnb

Opportunities for Airbnb

Increasing Urbanization

Recently, the company has been working to support urban establishments by complying with lodging laws and regulations. Previously, many establishments were hesitant to register with the company due to legal problems. Now, Airbnb is taking full responsibility for these legal matters; it opens up more growth and expansion opportunities for them.

Easy Communication

The company minimizes hotel communication to the fullest extent possible. It reduces the demand for paperwork and human effort. Both guests and hosts can utilize the mobile app for check-in and checkout. This approach is not only fitting but also eco-friendly, and it has the added benefit of being pandemic-safe.

Competitive Lead

Without any doubt, Airbnb has a tremendous competitive advantage over its competitors operating in its sector. This competitive advantage can create so many growth and expansion opportunities for the company. The major thing is that it is very cheap when compared to hotels, inns, or motels. You can get luxury with affordability from Airbnb. In other words, this lodging service is far better than other traditional lodging services.

Celebrity Association

Having celebrity affiliation can boost the company’s awareness or success, and it has made significant success just because of this factor. Famous people like Bill Cosby, Jonas Brothers, and Elizabeth Taylor have listed their rooms on Airbnb, allowing fans to try their most favorite celebrities’ residential options. Since the mass population trusts these famous people, their shutout is valuable for any business like Airbnb. By welcoming guests, these celebrities can provide a luxury opportunity for the company to diversify its revenue stream or profitability.

Tour Guide

The company expands its business beyond lodging facilities by offering additional services that travelers or guests may need. For instance, they now provide tour guide services where travelers or visitors can hire someone to show them popular places for a fee. This service is going to expand soon.

SWOT Analysis of Airbnb

Threats to Airbnb

Covid-19 Pandemic

The recent Covid-19 pandemic has affected the hospitality industry drastically, including Airbnb. It means this type of disaster or epidemic can impact the company’s business. This is one of the strongest threats for the company.

Pandemic Indignation

Covid-19 pandemic has brought a severe economic downturn in the hospitality and travel industry, posing a significant threat to Airbnb.

Rigid Competition

The company has always worked hard to stand out in its sector by fulfilling the needs or demands of travelers or guests. But, the lodging sector is full of competitors. It is a thriving sector, so Airbnb’s competitors are continuously eating their market share by offering innovative and affordable services. These new services and even businesses can create a major threat to the company’s overall revenue.

SWOT Analysis of Airbnb

The Bottom Line

The brand recognition and global expansion of Airbnb are impressive. They have a loyal customer base and only choose the company due to its affordability and comfortable options. However, its business operations also have several drawbacks that can hurt the company’s image globally. Moreover, Airbnb should enhance its service to attract more customers and to increase its customer base.

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