EP135: The Airbnb Story with Leigh Gallagher

03/13/17 • 38 min

Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management

Airbnb owes much of its success to the visual appeal of the site, which has been referred to as “Pinterest meets real estate porn.” But did you know that in Airbnb’s early days, Brian and Joe spent time with hosts in New York and took the pictures themselves to help upgrade the listings?
The Airbnb story is a compelling one, and you might be surprised by many moments in Airbnb history that made a significant impact.
Today Jasper chats with Leigh Gallagher, Fortune editor and author of The Airbnb Story: How Three Ordinary Guys Disrupted an Industry, Made Billions ... and Created Plenty of Controversy. They discuss the company’s early struggles, pivotal moments in their growth and development as well as the ongoing controversies that plague Airbnb.
Topics Covered
The inception of Airbnb and its early struggles
•Joe and Brian met at RISD
•Rented out their apartment in San Francisco to pay rent
•Each racked up $20,000 in credit card debt during development
•Launched at SXSW but gained little traction in first year
•Investors skeptical due to issues around safety
When Airbnb finally began to turn things around
•Pushed to apply for Y Combinator in 2009
•Received critical advice from Paul Graham
•Go to your users
•Do things that don’t scale
•Obtained investment from VC Greg McAdoo
The major challenges of creating a company around the Airbnb product
•German competitor Wimdu
•Ransacking incident in June 2011
•Building a culture
•Hiring seasoned executives, i.e.: Chip Conley
How Airbnb shifted from technology to hospitality
•Began as a platform with software as product
•Realized hosts were product
•Sought to formalize standards and teach hospitality at scale
Airbnb’s grand ambitions to expand to products outside homes
•Experiences
•Restaurant reservations
•Event booking
•Flights
•Other services
The controversial aspects of Airbnb
•Legal challenges
•Neighbor issues
•Safety incidents
•Discrimination
Connect with Leigh
leighgallagher.com
Resources Mentioned
The Airbnb Story on Amazon
The Airbnb Story at Barnes & Noble
Connect with Jasper
Email: [email protected]
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!

Hosted on Acast. See acast.com/privacy for more information.

Hosted on Acast. See acast.com/privacy for more information.

Previous Episode

EP134: This Week in the World of Airbnb

As Airbnb continues to grow and pursue its ambition of becoming the Superbrand of Travel, changes in the company’s model are sure to follow. On some fronts, Airbnb seems committed to maintaining the hands-off, platform-only approach to business in the sharing economy. Yet in other areas, they are taking a more proactive approach that allows the company more control over the guest experience.
Jasper is joined by Deanna Ting, Hospitality Editor for Skift, and David Jacoby, CEO and Co-founder of Hostfully, to discuss Airbnb’s pursuit of world domination in the travel space. Their round-table discussion delves into the company’s ongoing legal issues and how recent acquisitions point to a shift in the company’s tactics.
Listen in to learn how you can stay on top of what’s happening in the travel industry as well as the specifics of Airbnb’s evolving approach to business.
Topics Covered
Airbnb’s Legal Issues
•Cities more cognizant of complications that can arise with Airbnb
•Company seems to have different response in Europe vs. US
•Airbnb assisting with enforcement of regulations in London and Amsterdam
•Partnership with Chicago shares host info with city, but raises privacy concerns
Airbnb Experiences
•On brand
•Unlikely to match success of home product
•Anyone can apply, but tour guides hand-selected by Airbnb
•Airbnb involved in building itinerary
Airbnb Acquisitions
•Luxury Retreats indicates an intention to gain more control of guest experience
•Tilt technology is a good fit to allow for ease of payment for groups
The future of Airbnb
•Continued pursuit of Travel Superbrand status
•Addition of flights, complementary services
•Persistent regulatory issues
•IPO in 2018 or later
Resources Mentioned
skift.com
Airbnb Experiences
Co-Working Space Article
Connect with Jasper
Email: [email protected]
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Aviva IQ. Aviva IQ automates messages to your Airbnb guests. It's also free!

Hosted on Acast. See acast.com/privacy for more information.

Next Episode

EP136: This Week in the World of Airbnb

Has the student become the teacher?
One of the headlines in Airbnb news this week comes from the South China Morning Post, its author arguing that Chinese copycat home-sharing sites have begun to surpass Airbnb when it comes to innovation.
Silvia Li Pham of Hostfully is back to chat with Jasper about this and other news stories, including the additional capital Airbnb has raised, the company’s intention to expand corporate business travel, and the reason behind Brian Chesky’s new title as CEO and head of community. Jasper and Silvia have fun unpacking this information – though maybe not as much fun as the guests at an Airbnb flat in Islington last week!
Topics Covered
Article #1: Airbnb Raises $1 Billion More in a Funding Round
•Extends private face, postpones IPO
•Facilitates additional acquisitions in the travel space
Article #2: Airbnb Explores Expansion in Long-Term Home Rentals
•Cater to business travelers
•Stays up to six months
•Craigslist currently dominates
Article #3: How China’s Airbnb Copycats Beat the Silicon Valley Titan at its Own Game
•Chinese companies borrowed Airbnb template
•Several of their innovations have been emulated by Airbnb (i.e.: Airbnb Trips, cleaning services)
•Chinese managers visit hosts to consult
•Seamless integration with apps like WeChat
Article #4: Airbnb Offers Hosts Greater Role in Company
•Airbnb announces intention to give hosts a voice
•Chesky will host quarterly Facebook Live event
•Goal to increase host clubs from 114 to 1,000 by the end of 2018
Article #5: Airbnb Renters Turned a Flat into a Nightclub with Tickets and a Bouncer
•Islington, near London
•Host on holiday
•200+ people
•Police arrived, called for backup
•Guest banned from Airbnb
Resources Mentioned
Article #1: www.nytimes.com/2017/03/09/technology/airbnb-1-billion-funding.html
Article #2: www.bloomberg.com/news/articles/2017-03-08/airbnb-explores-expansion-in-long-term-home-rentals
Airbnb Sublets
Article #3: www.scmp.com/week-asia/business/article/2074802/how-chinas-airbnb-copycats-beat-silicon-valley-titan-its-own-game
Article #4: www.sfchronicle.com/business/article/Airbnb-offers-hosts-greater-role-in-company-10984131.php
Article #5: www.factmag.com/2017/03/09/airbnb-renters-turned-flat-nightclub-tickets-bouncer/
Connect with Jasper
Email: [email protected]
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Aviva IQ. Aviva IQ automates messages to your Airbnb guests. It's also free!