CASE STUDY 2 EXPLORING THE CHARACTERISTICS OF CUSTOMER SEGMENTATION: A CASE OF AIRBNB Consumer segmentation involves cat
Posted: Mon May 30, 2022 3:24 pm
CASE STUDY 2 EXPLORING THE CHARACTERISTICS OF CUSTOMER
SEGMENTATION: A CASE OF AIRBNB
Consumer segmentation involves categorising consumers into
groups which are internally homogeneous but maximally different
from other groups, assuming a heterogeneous overall market. This
enables firms to target desirable market segments and then position
their own product accordingly. In the tourism industry consumer
segmentation focuses on determining travellers’ motivations,
destination choice, or their choice of accommodation. Next to
hotels, consumer segmentation within alternative forms of travel
accommodation has also gained importance in recent years. A
dominant alternative form of travel accommodation is Airbnb. Airbnb
was founded in 2007 when two hosts welcomed three guests to their
San Francisco home and has since grown to 4 million hosts who have
welcomed more than 1 billion guest arrivals in almost every country
across the globe. Every day, hosts offer unique stays and
one-of-a-kind activities that make it possible for guests to
experience the world in a more authentic, connected way. Two years
since the pandemic began, a new world of travel has emerged.
Millions of people are now more flexible about where they live and
work. As a result, they’re spreading out to thousands of towns and
cities, staying for weeks, months, or even entire seasons at a
time. Through Airbnb’s adaptability and relentless innovation, it
has been able to quickly respond to this changing world of travel.
Now, two years into the pandemic, Airbnb is substantially stronger
than ever before reporting a revenue of $1.5 billion in Q1 2022 –
an increase of 80% from Q1 2019, and 70% from Q1 2021. 2 Airbnb has
uncovered a segment of leisure travellers that is not served by
conventional hotel firms.
Describe and discuss this segment based on any THREE of the
characteristics of effective segmentation discussed in Week 8’s
Lecture: Identifiable, Substantial, Accessible, Stable,
Differentiable and Actionable.
500 words
SEGMENTATION: A CASE OF AIRBNB
Consumer segmentation involves categorising consumers into
groups which are internally homogeneous but maximally different
from other groups, assuming a heterogeneous overall market. This
enables firms to target desirable market segments and then position
their own product accordingly. In the tourism industry consumer
segmentation focuses on determining travellers’ motivations,
destination choice, or their choice of accommodation. Next to
hotels, consumer segmentation within alternative forms of travel
accommodation has also gained importance in recent years. A
dominant alternative form of travel accommodation is Airbnb. Airbnb
was founded in 2007 when two hosts welcomed three guests to their
San Francisco home and has since grown to 4 million hosts who have
welcomed more than 1 billion guest arrivals in almost every country
across the globe. Every day, hosts offer unique stays and
one-of-a-kind activities that make it possible for guests to
experience the world in a more authentic, connected way. Two years
since the pandemic began, a new world of travel has emerged.
Millions of people are now more flexible about where they live and
work. As a result, they’re spreading out to thousands of towns and
cities, staying for weeks, months, or even entire seasons at a
time. Through Airbnb’s adaptability and relentless innovation, it
has been able to quickly respond to this changing world of travel.
Now, two years into the pandemic, Airbnb is substantially stronger
than ever before reporting a revenue of $1.5 billion in Q1 2022 –
an increase of 80% from Q1 2019, and 70% from Q1 2021. 2 Airbnb has
uncovered a segment of leisure travellers that is not served by
conventional hotel firms.
Describe and discuss this segment based on any THREE of the
characteristics of effective segmentation discussed in Week 8’s
Lecture: Identifiable, Substantial, Accessible, Stable,
Differentiable and Actionable.
500 words