Airbnb stands out in the Kantar BrandZ Global Top 100 not only because of its strong growth in brand value, but also because this growth was driven by a clear and consistent strategy of increased presence.
Presence means being available and easily findable at the moment of purchase and having the optimal range of products that meet the consumer’s needs at the right price.
The “how,” “where,” and “when” of that availability varies by category and brand, of course. But whether a brand sells physical goods or digital services, the same general principles apply. Airbnb’s digital sophistication has long been a cornerstone of its brand presence, while its ultimate offering is providing access to a vast network of physical accommodations. As such, Airbnb should be viewed as a prime example of what it means to have a more present both online and offline.
The company’s operational metrics demonstrate the effectiveness of its user-friendly platforms: $9.9 billion in revenue (+19.2% YoY) and 448 million bookings (+13.9% YoY). With a website optimized for user engagement and a solid SEO strategy, Airbnb ensures it remains a top search result, which translates into higher organic traffic and bookings, demonstrating an understanding of the importance of digital presence in travel purchasing decisions.
The brand’s global presence in over 220 countries is a testament to its strategic innovation and expansion. This diversified presence ensures that users have a wide variety of destinations and accommodations available, which contributes significantly to Airbnb’s market share. By localizing products and catering to regional preferences, Airbnb continues to expand its availability and offerings, driving its market share growth.
Airbnb’s annual results show a disciplined approach to growth. Over the past year, the brand managed to both increase profitability (thanks in part to strong cost management efforts) and find ways to be more present as an option for more budget-conscious travelers.
New pricing tools for hosts and a renewed emphasis on affordability and transparency have increased the quality and visibility of Airbnb’s lower-priced offerings. Most notably, the application of AI to Airbnb’s platform, particularly in features like smart pricing, has helped reduce friction in the customer experience while optimizing the host experience and profitability.
In short, Airbnb is successful because it optimizes its presence at every stage of the buying process. Data from Kantar BrandZ shows that Airbnb’s volume share is larger than expected given its equity (buyer power). This is evidence of how its brand presence in the market (activation power) drives sales.
Of course, presence alone is not enough; you also need predisposition. Predisposed shoppers are more likely to seek you out and find you, meaning other factors like price have less influence on the purchase decision. Sometimes brands that consumers are less predisposed to choose can come out on top over the option consumers initially favored. This is where Activation Power comes in.
Activation power is your brand’s ability to convert consumer preferences into brand decisions through market presence. Both demand power and activation power are necessary for brand growth.
Airbnb’s strategy is to build both demand and activation power – that is, brand equity and market presence – and to simplify selection and purchase.
Airbnb’s shift from performance marketing to brand building has been critical to its growth trajectory. Bold campaigns highlight unique offerings like Airbnb categories, underscoring the brand’s distinctiveness. Diversification into experiences like cooking classes and outdoor adventures demonstrates the brand’s commitment to addressing different traveler needs beyond accommodation.
Overall, by educating its customers about the Airbnb difference, Airbnb has moved from buying traffic to building a brand that is clearly different from others.
Airbnb’s continued success in investing in both the long and short term is due to two factors working harmoniously together: a significantly different brand that creates preference, and targeted management of brand presence that effectively converts preference into brand choice.
