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A I R BN B
FLOWER OF SERVICES ANALYSIS
& SUGGESTIONS FOR COMPANY DEVELOPMENT CONTENTS
I. Introduction.................................................................1
II. Overview of Airbnb's Flower of Service..................................3
III.Analysis of Customer Behavior in the Airbnb Context...................5
IV. Suggesting solutions to improve the services..............................6
1. Enhancing pre-booking services........................................6
2. Elevating in-stay services................................................7
3. Enhancing post-stay services............................................7
V. Conclusion..................................................................8
VI.References...................................................................9 PAGE 1 I. INTRODUCTION
Airbnb is an online platform that enables people to rent out their homes or
apartments to travelers, thereby creating a sharing economy that reduces waste
and saves money. The company was founded in 2008 by Brian Chesky, Joe
Gebbia, and Nathan Blecharczyk and has since grown to become one of the
most popular travel booking websites in the world.
Airbnb has emerged as a trailblazer in the hospitality industry, revolutionizing
the way people travel and experience accommodations. Since its inception in
2008, the platform has experienced remarkable growth and achieved
tremendous success, challenging the traditional hotel industry. By leveraging
the power of the sharing economy and technology, Airbnb has created a global
community of hosts and guests, facilitating unique and personalized travel
experiences. However, in order to sustain its competitive edge and continue
providing exceptional service, it is crucial for Airbnb to understand customer
behavior and align its offerings accordingly.
Airbnb's meteoric rise in the hospitality industry cannot be ignored. What
started as a small startup has now transformed into a global phenomenon,
disrupting the traditional accommodation landscape. The platform's success can
be attributed to its ability to tap into the evolving needs and desires of modern
travelers. By offering unique, affordable, and authentic experiences, Airbnb has
attracted a diverse range of customers, from adventurous backpackers to luxury- PAGE 2
seeking jetsetters. Its innovative approach to hospitality has not only
empowered individual hosts but has also created a sense of belonging and
cultural exchange for guests worldwide.
Understanding customer behavior is pivotal in enhancing service offerings, and
Airbnb recognizes this importance. By comprehending the motivations,
preferences, and expectations of its customers, the platform can tailor its
services to deliver personalized and memorable experiences. Customer behavior
encompasses a multitude of factors, including decision-making processes,
motivations, preferences, and post-experience evaluations. It is influenced by
various external and internal factors, such as socio-cultural influences,
economic considerations, personal values, and past experiences. By dissecting
and analyzing these factors, Airbnb can gain valuable insights that shape its
strategic decisions and drive continuous improvement.
By examining Airbnb's flower of service, we can identify areas where
improvements can be made to enhance the overall customer experience.
Whether it is streamlining the booking process, strengthening communication
channels between hosts and guests, or implementing innovative post-stay
services, this essay will propose practical solutions based on customer behavior
insights and industry best practices. PAGE 3 II.
OVERVIEW OF AIRBNB'S FLOWER OF SERVICE
Airbnb's flower of service model comprises various components that contribute
to the overall service experience provided by the platform. The core service of
Airbnb is its accommodation booking platform, which serves as the foundation
for the entire customer journey. Within the flower of service model, the core
service is supported by a range of elements that enhance the overall experience.
Firstly, information plays a critical role in the Airbnb experience. Guests rely on
detailed and accurate information about the accommodations, including
property descriptions, amenities, location, and pricing, to make informed
booking decisions (Cheng, Jin, & Lee, 2017). The availability of comprehensive
and transparent information establishes trust and helps guests align their
expectations with the actual experience.
Secondly, consultation is an important component of Airbnb's flower of service.
Hosts act as consultants, offering guidance and support to guests during the
booking process and throughout their stay (Guttentag, 2015). Effective
consultation involves understanding guest preferences, providing
recommendations, and addressing any concerns or questions. This personal
interaction contributes to a positive and personalized experience for guests.
Order taking is another key element within Airbnb's flower of service. The
platform facilitates seamless and efficient booking processes, allowing guests to PAGE 4
make reservations with ease (Guttentag, 2015). The user-friendly interface and
intuitive design enable guests to select their desired dates, review pricing
options, and complete the booking transaction effortlessly.
Hospitality is an integral part of the Airbnb experience. Hosts play a crucial role
in welcoming guests, ensuring their comfort, and providing a hospitable
environment (Wang, Park, & Fesenmaier, 2012). This can include gestures such
as greeting guests upon arrival, offering local recommendations, and creating a warm and inviting atmosphere.
Safekeeping is an important consideration for guests, and Airbnb incorporates
measures to enhance safety and security. This includes verification processes for
hosts and guests, secure payment systems, and policies that protect guests'
privacy and personal information (Guttentag, 2015). By prioritizing
safekeeping, Airbnb instills confidence in guests and contributes to their overall satisfaction.
Exceptional experiences are a distinctive component of Airbnb's flower of
service. The platform enables hosts to offer unique and memorable experiences
beyond traditional accommodations, such as guided tours, cooking classes, or
cultural exchanges (Cheng et al., 2017). These exceptional experiences enhance
the overall value proposition of Airbnb and contribute to guest satisfaction and loyalty. PAGE 5
Billing and payment are essential components of the Airbnb experience. The
platform facilitates transparent and convenient billing processes, ensuring that
guests are aware of the costs associated with their booking (Wang et al., 2012).
The availability of multiple payment options and secure transactions further
contribute to a seamless and hassle-free payment experience.
Considering all of these, Airbnb's flower of service model encompasses various
components that enhance the overall service experience provided by the
platform. From information and consultation to order taking, hospitality,
safekeeping, exceptional experiences, billing, and payment, each element
contributes to creating a positive and personalized experience for guests. By
focusing on these components, Airbnb can continue to provide exceptional
service and solidify its position as a leader in the hospitality industry. III.
ANALYSIS OF CUSTOMER BEHAVIOR IN THE AIRBNB CONTEXT
Understanding customer behavior is essential for delivering exceptional service
experiences in the Airbnb context. Several factors influence customer behavior
within the realm of Airbnb. Firstly, customers are motivated to use Airbnb over
traditional accommodation options due to various reasons. These motivations
include the desire for unique experiences, the opportunity for local immersion,
and the cost-effectiveness of Airbnb accommodations. Secondly, the influence
of online reviews and ratings significantly impacts customer decisions. PAGE 6
Prospective guests heavily rely on the experiences and opinions shared by
previous guests to make informed choices. Positive reviews and high ratings can
instill trust and confidence in potential guests, leading to increased bookings.
Thirdly, trust and safety play a critical role in establishing customer satisfaction
and loyalty. Guests need to feel secure and comfortable during their stays, and
Airbnb's efforts to enhance safety measures and provide transparent information
are crucial in building trust among customers (Guttentag, 2015). By addressing
these customer behavior factors, Airbnb can further enhance its service experience.
Segmentation of Airbnb customers based on behavior patterns is also crucial for
tailoring services and experiences to meet their specific needs. Firstly, leisure
travelers are a significant segment seeking unique experiences. They are
motivated by the desire to explore new destinations, immerse themselves in
local cultures, and create memorable moments . For this segment, Airbnb can
focus on offering personalized recommendations, curated listings, and unique
amenities to enhance their experience and create a sense of discovery. Secondly,
business travelers form a distinct segment that prioritizes convenience, comfort,
and efficiency. For this segment, Airbnb can improve its communication and
support channels, ensuring prompt responses and addressing any business-
related requirements. Providing seamless self-check-in options and dedicated
workspaces can also cater to the specific needs of business travelers. Lastly, PAGE 7
long-term renters are a segment looking for affordable and flexible options.
They seek accommodations that provide extended stay options, competitive
pricing, and amenities suitable for longer stays. Airbnb can focus on offering
attractive discounts for extended bookings and emphasizing the flexibility and
cost-effectiveness of long-term stays to cater to this segment.
Understanding customer behavior and segmenting customers based on behavior
patterns provide valuable insights for shaping Airbnb's service offerings. By
aligning services with customer motivations, preferences, and specific needs of
different segments, Airbnb can create tailored experiences that resonate with its diverse customer base. IV.
SUGGESTING SOLUTIONS TO IMPROVE THE SERVICES.
1. Enhancing pre-booking services
To further enhance pre-booking services, Airbnb can leverage personalization
and recommendation algorithms to provide tailored accommodation
suggestions. By analyzing user data, such as past bookings, preferences, and
search history, Airbnb can offer personalized recommendations that align with
individual preferences. Implementing machine learning algorithms can also
optimize pricing strategies, taking into account various factors such as demand,
seasonality, and user behavior, to offer personalized pricing options. This level
of personalization not only improves the booking experience but also increases PAGE 8
the likelihood of guests finding accommodations that meet their specific needs and preferences.
In addition to personalization, streamlining the booking process is crucial for
enhancing pre-booking services. Airbnb can simplify search filters and enhance
the user interface, making it easier for guests to refine their search criteria and
find the most relevant options. A user-friendly interface with intuitive design
and navigation enhances the overall booking experience, reducing friction and
increasing efficiency. Furthermore, focusing on improving the mobile app
experience is essential for accommodating on-the-go bookings. Optimizing the
app for mobile devices, including responsive design, faster loading times, and
intuitive controls, enables guests to book accommodations conveniently from
anywhere. By prioritizing personalization, streamlining the booking process,
and enhancing the mobile app experience, Airbnb can significantly enhance its
pre-booking services and provide a seamless and user-friendly booking experience for its customers.
2. Elevating in-stay services
To elevate in-stay services, Airbnb can focus on improving communication and
support between hosts and guests. Enhancing the messaging platform can
facilitate seamless interactions, allowing hosts and guests to communicate
effectively before, during, and after the stay. This can include features such as
instant translation for international guests and real-time notifications for quick PAGE 9
responses. Furthermore, implementing real-time customer support during stays
can address any concerns or issues promptly, ensuring a positive experience for
guests. Accessible customer support channels, such as live chat or phone
assistance, can provide immediate assistance and guidance, enhancing guest satisfaction and trust.
In addition to communication and support, ensuring quality standards and trust
is essential for in-stay services. Airbnb can strengthen host verification
processes to enhance the authenticity and reliability of hosts (Guttentag, 2015).
This can involve robust background checks, identity verification, and
reviews from previous guests. By increasing the credibility of hosts, guests can
have greater confidence in their choices, leading to improved satisfaction.
Implementing rigorous quality control measures and inspections can
further ensure that listings meet the expected standards of cleanliness, safety,
and amenities. Regular inspections and adherence to quality guidelines can
enhance guest experiences and contribute to the overall reputation of
Airbnb as a trusted accommodation provider.
By focusing on improving communication and support and ensuring quality
standards and trust, Airbnb can elevate its in-stay services. These enhancements
contribute to a seamless and enjoyable experience for guests, fostering trust, and
increasing customer satisfaction and loyalty. PAGE 10
3. Enhancing post-stay services
To enhance post-stay services, Airbnb can focus on gathering comprehensive
feedback from guests. Implementing post-stay surveys and reviews allows
guests to share their experiences and provide valuable insights. By actively
seeking feedback, Airbnb can identify areas for improvement and address any
issues or concerns raised by guests. Utilizing sentiment analysis techniques
can further enhance this process by analyzing the tone and sentiment of
guest feedback to understand their overall satisfaction levels and pinpoint
specific areas that require attention (Xiang, Du, Ma, Fan, & Law, 2021).
This data-driven approach enables Airbnb to make informed decisions and
continuously improve its services based on guest preferences and needs.
In addition to feedback, implementing loyalty and rewards programs can
incentivize repeat bookings and positive feedback. By offering rewards, such as
discounts, exclusive promotions, or additional perks, Airbnb can encourage
guests to choose Airbnb for their future accommodations (Sigala, Christou, &
Gretzel, 2012). Recognizing and rewarding loyal guests not only fosters
customer loyalty but also creates a sense of appreciation and belonging.
Introducing exclusive benefits for frequent guests, such as early check-in, late
check-out, or access to premium listings, further enhances the value proposition
for returning customers. By cultivating loyalty and offering rewards, Airbnb can
strengthen its relationships with guests and encourage positive word-of-mouth recommendations. PAGE 11
By focusing on gathering comprehensive feedback and implementing loyalty
and rewards programs, Airbnb can enhance its post-stay services. This
commitment to guest satisfaction and loyalty fosters a positive brand image and
reinforces Airbnb's position as a leading provider in the hospitality industry. V. CONCLUSION
In conclusion, analyzing customer behavior plays a crucial role in enhancing
service offerings, and this holds true for Airbnb as well. By understanding the
factors that influence customer decisions and segmentation patterns, Airbnb can
tailor its services to meet the diverse needs and preferences of its customers.
The flower of service analysis has provided valuable insights into the various
components that contribute to Airbnb's service experience, including the core
service and supporting services throughout the customer journey. Moreover, by
focusing on pre-booking services, in-stay services, and post-stay services,
Airbnb can improve the overall customer experience and satisfaction.
To enhance its services, Airbnb can leverage personalization and
recommendation algorithms for tailored accommodation suggestions and
streamline the booking process for a seamless experience. Improving
communication and support between hosts and guests, as well as ensuring
quality standards and trust, can elevate in-stay services. Gathering
comprehensive feedback and implementing loyalty and rewards programs can
enhance post-stay services and foster guest loyalty. By adopting these strategies, PAGE 12
Airbnb can strengthen its competitive advantage and solidify its position as a
leading player in the hospitality industry.
Looking ahead, the future potential of customer-centric approaches is immense.
As technology advances and data analytics capabilities grow, Airbnb can further
refine its understanding of customer behavior and deliver personalized
experiences that exceed expectations. By continuously investing in customer-
centric strategies and leveraging emerging technologies, Airbnb can unlock new
opportunities for growth, foster customer loyalty, and maintain its position as a
trusted and innovative accommodation platform. VI. REFERENCES
Cheng, M., Jin, X., & Lee, S. (2017). The influence of review comments on
booking probability. International Journal of Hospitality Management, 61, 33- 42.
e_reviews_to_online_hotel_booking_intentions>
Guttentag, D. (2015). Airbnb: Disruptive innovation and the rise of an informal
tourism accommodation sector. Current Issues in Tourism, 18(12), 1192-1217. PAGE 13
Sigala, M., Christou, E., & Gretzel, U. (2012). Social media in travel, tourism
and hospitality: Theory, practice and cases. Ashgate Publishing.
Xiang, Z., Du, Q., Ma, Y., Fan, W., & Law, R. (2021). Sentiment analysis and
polarity shifting in online reviews: Implications for lodging service
improvement. Journal of Travel Research.
hospitality_and_tourism_a_thematic_and_methodological_review>
Wang, D., Park, S., & Fesenmaier, D. R. (2012). The role of smartphones in
mediating the tourist experience. Journal of Travel Research, 51(4), 371-387.
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