Research On Airbnb's Pricing Strategy

Over the years,people's life has been improved,and our demand for travel and tourism has increased greatly.These demands also bring about the need for accommodation.All these make the sharing economy develop rapidly.In the past,there were also some informal or smaller sharing platforms.However,due to the backwardness of mobile phone and Internet technology,the efficiency and security of sharing platform can not be guaranteed,which makes the development of sharing economy so difficult.In recent years,the dramatic improvement of network technology and positioning technology makes the sharing platform no longer have technical barriers.Some well-known network sharing platforms,such as Ctrip,Uber,Droplet,Airbnb,etc.,provide a large number of convenient choices for users with transaction needs,make more use of idle tourism,accommodation and other resources,and provide a variety of pricing models,which bring great convenience to our daily life.With the involvement of more platform enterprises and the division of products and services becoming more detailed,and the price transparency caused by the rapid spread of information in modern networks,the prospect of sharing platforms and the difficulty of competition are worrying us.In order to increase the volume of transactions and users,many online economic platforms have implemented many subsidy and cash-back policies to compete for market place through the way of making consumers benefit.However,this policy has been in effect for a while.With the intensification of the capital subsidy war,profits have gradually declined.In this case,how to optimize the pricing strategy,without increasing large investment,through reasonable pricing to improve transaction success rate,service quality and user satisfaction,has become a pressing need for many shared competitive platforms.Pricing strategy is related to the survival of enterprises,so it has to be treated with caution.Airbnb is the representative of the recently booming shared economy.I take Airbnb as the starting point to analyze and explore its pricing strategy.In order to maximize profits,we provide pricing strategies and development strategies for them.