Airbnb, expanding the African market in 5 years 〜What is the “next strategy”?〜

Airbnb, expanding the African market in 5 years 〜What is the “next strategy”?〜

 

【Highlights】
■Africa’s market scale has expanded for the fifth year. Hotspots are South Africa, Morocco
■ Most Airbnb users in Africa are from Europe and North Africa (Totally 60%)
■ Airbnb aims to operate “Indivisual experiences that can only be done here”, focusing on specific targets

The tourism industry seems to be in the changing term in Africa.
An outstanding example is “Airbnb” , which handles Room rental platform globally.

Airbnb, since establishing a company in California in 2008.
It has developed their business in 191 countries (65,000 cities) so far.

In the African market, the presence of Airbnb is also worthy of attention.

Although it is still small as a market (it is on the same scale with French).
Both service users and listing number have been increasing for the fifth year.
What is the company’s strategy in the future to further customer acquisition?
What is Airbnb’s going Next?

【Hotspots in Africa are South Africa and Morocco. The growth of Kenya and Nigeria can not be ignored】

First of all, organize the data (2017) throughout Africa.

Africa (2017)
■ Number of users (1 year): 1.2 million people
(Approximately 570 thousand people in the previous year, doubling in 1 year)

■ Number of registered people (Active listing): 100,000s
(62 thousand numbers in 2016, about 140% compared with the previous year)

As you can see these figures, users and Hosts providing accommodation are both growing steadily.
(Especially this Remarkable rate of increase in the last 5 years).

Showing the number of registrants at the national level, its seem to be depend on the size of the tourism industry.
For example, Morocco ,has a tourist city Marrakech, there are 21000 registrars, mainly coastal areas.
It is the most popular among Africa in terms of number of listing numbers.

South Africa is the highest when looking at annual average revenue.
Although it has 17,600 listing, economic scale is 55 million dollars annually (about 6 billion yen).

In other countries, we should pay attention to Kenya and Nigeria.
Especially in Nigeria, the number of listing has increased sharply, showing a surprising growth of 325% over the previous year.

【Many users are from Europe and the US. Age is 18-35 y,o.】

Looking at Airbnb users from Africa, the biggest number is 46% in Europe. Next, it is 15% from North Africa.

Also noteworthy is the age of the user.
This report notes that users of young people (18 to 35 y,o.) have increased by 15% compared with five years ago.
They have analyzed that the reason is increasing of young people who have got tired of visiting general tourist attractions, and young people who like raw(REAL) -can be tasted only locally-experiences.

【The key to business expansion is to provide “My indivisual experience” instead of “just accomdation”】

It seems that the key to expand in Africa is to provide “unique experience”.

How can you provide the value of accommodation + α based on your needs?
For example, in Morocco…

· Not only Tourist eat just restaurant meal that is famous, But olso try making one of them with host family.
· Go to the workshop of a craftsman who is making pottery, and purchase the item just made on that day on the spot.
(Such as new activities beyond the function of accommodation)

It is not an alternative service of the traditional tourism industry in the high season, but it is possible to offer unique “MY INDIVISUAL EXPERIENCE” that can be offered “Real local”.

Airbnb is trying to proceed the next stage in Africa.

※※※

The value of “experiences” such as “Local” and “MY STORY” is increasing, rather than “consuming” existing packaged services and things.

It is important for touristic industry to manage the local real experience and emotions never before tasted that are connected to that unique experience, because the information is overflowing in the internet, also can research as Google easily today.

From consumption to experiences.
This trend is coming surely in Africa.

Reference:
CNN (18.Oct.2017)
Overview of Airbnb community in Africa (2017)

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