Tuan Nguyen
CS100W
de la Calle
October 28, 2016
The Start Up
In this video, Charlie Rose spoke with AirBnb co-founder and CEO, Brian Chesky, about the success of his company. Being a co-founder of one of the largest rental websites, the founders would have to start from the bottom up. They wanted to travel and feel like they were a part of that community. By doing so, they thought about how “cool” it would be to live in one of the homes there, which in turn, started their business. Every business has to start from somewhere. Whether it was a general idea from what a potential entrepreneur may joke about or a business idea that they may have planned since they were young.
AirBnb started off as a simple idea which is now a multibillion company. They are featured worldwide and has businesses in hundreds of countries. Their business model is to handle all forms of bookings, payments, and damage protection for a cheap commission of 14% per transaction (“Chesky,” 2016). With a commission that low, some people may question how AirBnb could profit. But because of their excellent business values and exceptional customer satisfaction, the company was able to grow through word of mouth.
(“AirBnB,” 2016)
Most businesses struggle with their company because of poor customer satisfaction. When customers dealing with any businesses, all they want is to leave satisfied. Businesses who struggle with customer satisfaction will never get business because of word of mouth; word of mouth from customers who left dissatisfied with the company. Businesses will only grow if customers love their products and services.
AirBnb was able to grow into a multibillion company because their customers loved their products and services. When the company ran into trouble with property damage with an owner’s property during one of their rentals, AirBnb stepped in and created a program called the “AirBnb Guarantee”. This guarantee protects the owners by giving them a property damage protection of up to $50k (“Chesky,” 2016). This protection gives the owners a comfort level of working with AirBnb because they know the company will refund them if any property damages occur.
Customers will work with companies they know that will help resolve any issues if they should occur. AirBnb has not only created a business model that allows their hosts to earn a high share of commission, but it is also focused on driving customer satisfaction with their products and services. AirBnb’s success is evidenced by its continued growth and use of vacation rentals, serving as a convenience to make traveling memorable.
References
Brian Chesky - Charlie Rose. (n.d.). Retrieved October 28, 2016, from https://charlierose.com/videos/25522
Our Co-Founders. (n.d.). Retrieved October 28, 2016, from https://www.airbnb.com/about/founders
