Airbnb announced their new global marketing strategy earlier this month. This strategy is centered around customers enjoying experiences rather than booking a short-term stay at one of their locations. The company is expanding their core business model due to slow booking rates since COVID-19. The new category around creating experiences for customers is called ‘Icons’. Icons features 11 global experiences – including concerts and celebrity meet and greets – for free or under $100 to try to attract a larger audience (Reuters, 2024). Airbnb management has realized consumers are looking for other activities to do other than staying at a certain location. Studies have shown that consumers are willing to pay more for experiences rather than splashing out on an expensive rental.
Airbnb’s CEO Brian Chesky told Reuters, adding that they have reallocated a portion of its marketing budget towards the campaign (Reuters, 2024). Before the pandemic, Airbnb’s television ads were 200% more effective when it came to driving customer engagement. The company sees this data and is willing to rebrand the entire organization because of it. Management believes Icons will create the customer engagement needed to stay relevant and profitable. This is Airbnb’s way of attracting an audience they have not been able to capture before. The company has been shifting their budget around to allocate more towards global marketing because they realize the importance of customers being able to see Doja Cat or stay in a home that is a replica of the Disney movie “Up”. While these are just two of the experiences offered, the company says it plans on releasing new experiences every few weeks.
Management had stated that the release of Icons is to attract habitual hotel guests who are looking for experiences and once on the website they can book lodging as well instead of a hotel. The marketing plan is to make this process as seamless as possible for customers when they book on Airbnb’s website. The company said more than 4,000 tickets for Icons will be available in 2024 with plans to expand the category’s offerings over the next few years so that millions of people can participate (Reuters, 2024). To be able to offer a diverse set of experiences will allow the company to profit not only on these attractions but also if guests decide to stay at an Airbnb location. While television ad engagement is still lower than it was before the pandemic, the company is optimistic about the future and plans on attracting customers in using more diverse and global avenues.
References
Reuters. (2024, May 2). Airbnb launches new global marketing strategy geared around experiences. The Financial Express. Retrieved May 8, 2024, from https://www.financialexpress.com/business/brandwagon-airbnb-launches-new-global-marketing-strategy-geared-around-experiences-3474622/