Marketing report airbnb ver 2

REPORT OUTLINE

EXECUTIVE SUMMARY

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CONTENTS

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I. Research background
1. An overview of the hospitality industry in Vietnam
2. The concept of Airbnb
2.1. What is Airbnb and how it works
2.2. Airbnb and the influencing factors
2.3. Airbnb and the competitors

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II. Methodology

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III. Research findings
1. The sample
2. Survey analysis

2.1. Questions used for survey
2.2. Findings on survey responses
3. Interview analysis
3.1. Questions used for interview
3.2. Findings on interviewees’ responses

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III. Highlighted points from the market research
1. Consumer buying behavior
2. SWOT analysis
2.1. Strengths
2.2. Weaknesses
2.3. Opportunities
2.4. Threats

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IV. Recommendations

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V. Conclusion

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REFERENCES

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APPENDICES
Appendix 1. Questionnaire questions
Appendix 2. Interview questions for Airbnb hosts

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EXECUTIVE SUMMARY

In this digital age, the widespread of technology advances is changing the way people think,
feel and act dramatically, many of which are related to consumer behaviors. To book a taxi,
calling a taxi agency or just waving a random car is no longer a common option, but

searching for the best-price drive on the Uber mobile application is preferred. This comes
with the rise of new types of business models integrated with the use of technology. At the
same time, the need of people to utilize spare resources in this fast-pace, efficient-seeking
world leads to the concepts of sharing economy. Airbnb, an online marketplace which lets
people rent out their properties or spare rooms to guests is one successful example of
business that operate on utilizing these trends.

Despite the fast-paced internationalization, there are certain barriers from cultural, legal,
social differences a product faces when it enter a different country. What is true for a market
may not work for another, Vietnam in this case. Airbnb is not an exception. Like the saying:
When in Rome, do as the Romans do”, when integrating in such a so-called ‘traditional’
market, Airbnb needs to beware of the differences and adjust the business accordingly in
order to succeed. Therefore, in this research, we would like to look more closely in a practical
manner about the Vietnamese consumer behaviours in their accommodation choices, evaluate
the potentials of Airbnb in Vietnam and give some recommendations.

In specific, we start by firstly looking at the big picture of the Vietnamese hospitality
industry: key players, the competition landscape and the current trends of the market. This
gives us the understanding about the position of Airbnb in the industry. Next, we utilize both
quantitative and qualitative research methods by conducting survey and interviews, which tell
us about consumer behaviours in their accommodations choices when travelling and the
perceptions people are having on Airbnb. This allows us to review our assumptions and come
up with some realizations which facilitate our further analysis:
● The target customers come from young generation
● People prioritize security, comfort and price when choosing accommodation

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● Perceptions and attitude of Vietnamese people towards Airbnb: as a new and exciting

business to try but not as a must
Along with some drawbacks of Airbnb when it operates in Vietnam, Airbnb is a potential
business and there is room for its growth. Finally, following our SWOT analysis, we give
some recommendations for Airbnb to overcome the challenges and adapt with the
Vietnamese market. This is presented in the order of a Customer Journey when they choose
Airbnb.

Last, we would like to admit the shortcoming in our research. While our online survey is
available to the general public and we try to diversify the background of participants in the
survey as much as possible, due to the limitation in the network of the members, young
people, who share similar background with us account for a large proportion, which may
affect the objectivity of the research. Being aware of that, the interviews with the people who
have experiences with Airbnb and know well about the industry really help consolidate our
conclusion.

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CONTENTS
I. Research background
1. An overview of the hospitality industry in Vietnam
Viet Nam is rising in its popularity as a tourist destination in South East Asia. In 2016, the
number of international guests which visited the country reached over 10 million people,
representing an increase of 26 percent. With diverse attractions and delicious food, Vietnam
provides appeal for a wide range of travelers. In a similar way, Vietnamese people tend to
travel more, because of the fact that the living standards increase and the living style and
perception of young people, the ​“millennial generation” h​ as changed dramatically. As
interest continues to mount, so too do opportunities for investors catering to the hospitality
industry. Therefore, Vietnam is considered as a very potential market for accommodation
services.

In fact, according to ​Do Hong Xoan, chairwoman of the Vietnam Hotel Association, Vietnam
has experienced unprecedented growth in the hospitality sector in recent years. Together with
the accelerating traveling trend, the accommodation services industries also experienced a
two-fold growth in the number of facilities. According to Vietnam National Administration
of Tourism, in 2017, 25,600 accommodation facilities with a total of 508,000 rooms across
the country were available, an increase of 21.9 percent in the number of facilities and 20.9
percent in the number of rooms, compared to the previous year.
When talking about kinds of accommodation in Vietnam, there are 2 main categories which
are traditional (hotels, resorts and hostels) and non-traditional services including homestay,
bed and breakfast (B&B), and condotels. The most favorite types of accommodation are
hotels and resorts, which account for 84 percent of the total supply in Vietnam. The typical
reason why people choose hotels is location whether it is near the airport or in the the heart of
the city. Similarly, resorts are preferred when travelers want to experience the breathtaking
scenery along the beach. In the second place, condo hotels, with about 8,000 units, account
for 12 percent of the market share. Specialized products, including those that offer specific

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functions such as wellness and spas and are design-oriented, with specific services, have
around 2,600 rooms, accounting for four percent.
Besides, there is an emergence of sharing economy in the accommodation services industry,
competing with traditional types which are homestay and (B&B). The reason for this
increasing trend is the changing in habit and behavior of millennial generation. The
millennial population is ​accounted for 38 percent of the total population in 2016. Thus, the
their behavior as consumers has a great impact on the change of accommodation services
industries. Millennials not only in Vietnam but also in other countries prefer to spend money
on experiences rather than on material goods. Instead of making an effort to embrace new
concepts, there has been a lack of product diversification, and developers are only replicating
what already exists. Mauro Gasparotti, director of Savills Hotels Asia Pacific admitted that

building large rooms or lobbies no longer delivers a sustainable competitive advantage and
guest satisfaction. Consequently, along with the increase in the demand for rooms, the
hospitality industry is witnessing a harsh competition between traditional and modern
accommodation suppliers. ​For example, it can be seen the fantastic growth in B&B
community every day when thousands of people are deciding to open their home to guests
from all over the world. Especially for millennials, B&Bs are a great value for them traveling
on a budget and give an immersive experience to remember.
The rapid growth in the demand for B&B service drive the need for the digital platforms
which connects hosts and guests. As a result, Airbnb is established to fill this gap. Since
launching in 2008, Airbnb has attracted a large number of travelers. Airbnb is an online
marketplace which lets people rent out their properties or spare rooms to guests, or as it puts
it, it is a place for getting “vacation rentals, homes, experiences and places”. ​Generally, the
operation of Airbnb is similar to ​Uber or Grab, utilizing the trend of a “sharing” economy
which is very popular in recent years. For the first time, anyone with a spare mattress or
room could run their own B&B. Creation of new user behaviours on the demand side is
introduced as well when travellers who rarely stayed at strangers’ apartments in a new city
now living with local people. The most important thing is that to create an environment of
trust between travellers and hosts, Airbnb invested in a strong curation mechanism, a process
by which they separate the best from the rest: a robust review system that lets each
party rate the other.

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2. The concept of Airbnb
2.1. What is Airbnb and how it works

For more details, Airbnb stands for Air- bed and breakfast which is part of sharing economy
in accommodation sector through online platform. Founded in 2008 in San Francisco,
California, Airbnb have been accommodated in more than 65,000 cities and 191 countries

around the world. With a compelling slogan ​“Live like a local”, Airbnb works as an
intermediary connecting hosts and guests, facilitating the process of renting. In other words,
Airbnb is a community marketplace and hospitality service that allows people to lease and
rent short-term accommodations all over the world.

So, how does Airbnb work? Hosts are people having unoccupied rooms or apartments to
offer to travelers. They make money by renting out their homes and Airbnb takes a cut too
(hosts service fee is generally 3% for each home booking done). Hosts have a person identity
and their profiles where guests can give feedbacks for the products and service offered. Vice
versa, in order to book the place, guests also have to create an account in Airbnb which
provides personal identities. Through this social profile, hosts can see and make a decision
whether to accept or reject the booking. Since the request is sent, the hosts can accept or
decline within 24 hours. In term of payment, Airbnb supports different methods of payment
in many currencies. The money paid by guests will be sent to the hosts only after 24 hours of
the arrivals (Airbnb, Inc). Moreover, Airbnb also provides an extra protection of the owners
in order to gain their reputation. According to Airbnb policy, the company guarantees
property damage protection of up to $1 million USD for every host at no additional cost.

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As regard to value proposition, Airbnb is established to enable owners to list their space
publicly and give cheap options to travelers. With rating and review system for hosts and
guests, Airbnb applies an user-friendly app and web based structure in order to efficiently
facilitate the process of booking living accommodation for travelers. Through facilitating
access to distinctive spaces and local culture, Airbnb aims to enable travelers to “Feel at
home anywhere you go in the world” ​by serving as a bridge between guests and local hosts. It
builds connections with hosts, gaining access to outstanding spaces and culture of their
destinations. Last but not least, “Price is what you pay, Value is what you get”- ​Value
proposition equals to products or services that generate value for a particular customer

segment. Since Airbnb business model is duo-sided platform that serves to fetter customers
who are on the lookout for a space to rent during vacation and sellers who are convinced to
share their homes for extra money. So the business works with 2 different customer
segments: the guests and the hosts.

Airbnb Business Model Canvas

Airbnb is considered as a phenomenon internationally and in Vietnam since its launch in
2014. In Vietnam currently, it is estimated to have more than 7,000 Airbnb facilities across
the country while this number is only 1000 in 2015. In particular, Airbnb Hanoi, Airbnb Ho
chi minh, Airbnb Nha Trang, Airbnb Vung Tau saw the greatest rise because those are

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popular touristic areas. Notably, one third of those accounts are owned by the same owners,
who are professional businessman but not households who just conveniently rent out their
vacant rooms. According to Airbnb, Vietnam is one of the countries having a great number of
people who utilize this platform for a professional business.
2.2. Airbnb and the influencing factors
Turning to the influencing factors of sharing economy and Airbnb in particular,

the

motivation of sharing can be derived from 4 main driving forces: economic factors,
technological factors, social factors and political factors.
In term of economic factors, collaborative consumption is suitable for those who want to
make extra money and for a person who want to save money. House for example. In some
cases, the house or unoccupied rooms are not utilized all the time then the owner can make
use of it to offer a rent to other people. This is win-win situation where the owner can have

more income and the demand side can also receive the value from hiring the house for the
temporary need with affordable price. Furthermore, more and more professional renters start
their business in Airbnb. Notably, ​Vietnam is a fast-moving market where up to one third of
homeowners own a lease, which means they are professional renters rather than just
landlords. This proportion in Vietnam is quite high (about 30%), compared to Paris (9%),
New York (16%) or Sydney (17%), according to Airbnb.
Another underlying forces is technological factors. With the proliferation of new technologies
and social networking, people are able to share information as simply as a mouse click.
Therefore, social media becomes an effective instruments for both supply and demand sides
to contact with each other from distance. In addition, online payment system like internet
banking also promotes the process of transaction in a more convenient way. Users can easily
access Airbnb through laptop or mobile phone.

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The percentage of users accessing via website and application
(Source: Airbnb.com)
Besides, social factors also influence the sharing economy in many ways. It is a widely held
view that people want to experience not only the goods and services but also local culture. As
a consequence, sharing accommodation becomes so popular nowadays. This is one of the
reasons why visitors choose to stay in local houses through Airbnb in steady of the traditional
accommodation as hotels. In Vietnam, as a rising trend, young generation is not only looking
for an affordable lodge but also a place to take pictures, to express their personality and
uniqueness. Providing ​an attractive and dynamic concept together with comfortable room,
Airbnb quickly receive lots of attention form Vietnamese ​millennials.
Apart from that, political forces have an ample impact on Airbnb in a negative way. Since
Airbnb is a unique business, there is still no transparent legal system to administer this kind
of business. The lack of legal provisions for e-commerce brokerage causes difficulties
relating to the brokers, the clients and the tax obligation. With the current transaction method,

there is a widely held view that the hosts and the intermediary service agent, Airbnb, collect
money without paying taxes. In addition, there are many cases that Airbnb has faced legal
issues for failing to comply to housing regulations. Because it is based mostly on the contract
between host and guest, it is difficult to deal with dispute as it happens. Moreover, according
to Le Mai Khanh - Vice President of Vietnam Hotels Association, it can not denied that the
adverse impact on the business environment significant. But the more concerning issue is the
quality of service and concerns about safety and security for tourists. "Obviously when
renting self-sufficient, the owner has the right to adjust the price increase arbitrarily. The

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quality is also very dim. There is no guarantee that the money will be spent there.”. Hence,
when anything happens to visitors it is difficult to investigate. Because the detection of
violations must have a large inspection and inspection force, while the management of the
tourist resorts are also facing many difficulties. Thus, sooner or later it’s essential for
government to enforce sufficient legal laws for accommodation sharing industry.
2.3. Airbnb and the competitors
In order to success, one must thoroughly know himself as well as his competitors. Similarly,
for Airbnb to thrive in Vietnamese market, understanding its competitors in the industry and
how the consumers perceive them is of great importance. Therefore, we would like to assess
the strengths and weaknesses in terms of the features of four main types of accommodation
from consumers’ perspectives, which gives us implications about the current consumers’
preferences.

Types of

Pros

Cons

accommodation
- ​Mannered and helpful staff​: - ​Price: n​ ot for everyone
Hotel

staffs in hotel are trained to budget: hotels usually have a
resolve any travelers’ confuse high price range, which are
and provide them the most more suitable with middle
comfortable experience while income people and above.
- ​Place​: only located in dense

staying in the hotel .

- ​Privacy​: hotels provide non urban area.
shared room and non shared - ​Limit in personalization​:
services.
accommodation

Sharings most rooms have uniformed
is

budgeted designs and may lead to less

friendly but it is not really safe interesting stay experiences.
and comfortable.

-

​No

or

little

cooking

- ​Augmented services​: Since facilities
travelers have to pay higher
price, hotels provide them with
wider and more luxury ranges

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of services : pools, spas, health
centers, clubs, etc
- ​Security​: hotel usually have
trained security teams that can
ensure travelers safety while
staying there.
Hostel

- ​Price:​ affordable - hostels are - ​Lack of privacy: due to
usually have low prices, great shared accomodation.
options for students and people - ​Lack of standard services:​
who have small budget.

hostels usually owned and

- ​Everywhere:​ Since they are run

by

individuals

and

easy to form, hostels present in family, who are lack of
every places.

hospitality work experience.

- ​Suitable for travelling in
groups: hostels can offer large
rooms for travelers who want to
stay in groups and shared the
expense.

Homestay

- ​Price:​ affordable– no extra fee - ​Lack of privacy
for utility bills and internet

- ​Limited freedom​: you may

- ​Chances to engage in the not
culture​: as you
and

experience

be

free

to

change

stay and live something in the house as
with

people.

local your preferences
- ​Different lifestyle

- Comfortability:​ the feeling of a - Have to follow the family
home away from home

rules

- ​Get valuable advice and - Housekeeping services not
travelling tips from the host as guaranteed:​ as it is provided
locals.

by the host which may not be

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up to your standard.

Airbnb

- ​A variety of choices: ​unlimited - ​Risks:​ the property might
types of accommodations with not be as advertised, or there
easy access via mobile and is something not mentioned
website platforms, which may that spoils your stay.
help you get a lower price deal.
-

-

​No guarantee for the

to communicate utilities​: some services that

​Chances

directly with the host of your hotels often provide as food
Airbnb
-

service, gym, spa, pool, daily

Authentic

and

experiences​:

unique cleaning, and a front desk

similar

as receptionist may not present

homestays, you may stay with a in Airbnb
local family and experience - ​Limited privacy: if you are
local customs, food, and culture. staying in a private room
Some

of

accommodations

Airbnb within the host's home.
are

exotic,

such as boat houses, tree houses
and

even

castles

that

are

available for short term stays.
-

​Bonus

services:​

Airbnb

properties often give guests
access to things like cooking
facilities, washing and drying
facilities, and refrigeration for
drinks and food.

Although hotels and hostels remain dominant in the Vietnamese hospitality industry as shown
in the overview, we can see that Airbnb has many competitive advantages. What’s more,
some of them align with the changing trends of the consumers preferences. The millennial
and younger generations, which account for a large proportion of consumers and travelers
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have higher needs for travelling and exploring ever than before. They greatly value the
experiences rather than simply find a nice place to stay during travel. According to an Airbnb
report on the preferences of millennials, they are looking for something new when they travel
– more adventurous, local and personal, and less scripted. If this is the case in Vietnam, there
is a basis to believe in the potentials and opportunities of Airbnb in this market. In order to

test the feasibility of Airbnb in Vietnam, we conduct different research methods to look into
Vietnamese customer behaviours and see if it matches what Airbnb has to offer.
II. Methodology
In many circumstances, one type of research method usually doesn’t provide the reliable and
validity results. All things considered, in this research, we apply both quantitative and
qualitative research in order to come up with the reliable conclusion. In specific, we
conducted online interviews with two Airbnb hosts. At the same time, questionnaires were
distributed online to FTU students and our acquaintances, so that we can collect more
opinions and perspectives of customers regarding Airbnb business model.
For preparing and distributing the survey, we designed 15 questions asking about customer
behaviors when choosing the type of accommodation for travelling. The survey then was
distributed widely to different Facebook groups. After two weeks, the result was collected
with over 200 responses from a wide range of age groups. Regarding the individual
interview, small talks with two Airbnb hosts were conducted online through Skype and
Facebook video call. The interview responses were recorded by phone then noted down on
paper.
III. Research findings
1. The sample

Among 252 people sending response to our survey in over two weeks, people aged between
18 and 24 make up for 91%. This part of our report, therefore, will focus on discussion about
generation Y and Z, who are considered the main target customer group for the research. The

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comparison between two generations will be also stated in order to have a more profound
understanding on characteristics of each generation.

Generation Y, also so called the millennials, are born between the years 1980 and 1994

(Kotler & Keller 2012, 242). They are described as socially and environmentally aware,
pragmatic, clever and open-minded to new experiences. They are the first generation, which
has grown up with the technology and Internet. They also has been called as self-oriented
generation as well as selfish. There is big difference between Generation Y and older
generations in their lifestyle and consuming habit. Their personal desire as well as work-life
balance is highly valued. Raised with relative affluence, technologically plugged in and
concerned with the environment and social issues, they also have a strong sense of
independence and a perceived immunity from marketing. They refer group of tourist who are
energetic, open-minded and experimental consumers. (Red Book Solutions).

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People who are born between the years 1995 and laters, however, are categorized as
Generation Z. The generation born completely within the technological age, war on terror,
and multiculturalism. This generation is the first true global culture as their characteristics
and trend is more uniform across the globe as they become the most open minded generation
to date. Comparable to grandparents (Silent Generations) and parents, Generation X,
Generation Z culture is rising. They are predicted to be more cautious, more conservative and
connected than ever with everyone around the globe (Urban Dictionary).

Generation Z is widely recognized as the next consumer powerhouse. Now all 22 or younger,
Gen-Zers are expected to account for about 40 percent of all consumers by 2020. Currently,
gen Zers represent a buying power of $44 billion, and influence an additional $600 billion of
family spending. They influence the way their parents spend more than Millennials did,
including over 70% of family food choices and 80% to 90% of items purchased for them.
They’re willing to challenge their parents, questioning things like how much they’re going to
pay for something, trying to evoke their own price-sensitivity. Gen Zers have high
expectations. With that said, if marketers focus on Gen Zers over Millennials, using them as
the barometer, they’re likely to please other generations as well (Adweek.com).

A great number of research already points to some fundamental differences between
Gen-Zers and their generational predecessors, the millennials. Influenced by their awareness
of terrorism and the Great Recession, Gen-Zers are more interested in participating in social
activism and working for their success.
Another significant difference is Gen Z’s multifaceted approach to social media. Gen Z uses
different platforms for different activities. On Instagram, they showcase their aspirational
selves; on Snapchat, they share real-life moments; on Twitter, they get the news; and on
Facebook, they glean information.
In other words, Gen-Zers fragment and focus their social media time - they share certain
types of content on particular social channels. All of this is done in quick touches, or

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micro-interactions, that might last only a few seconds. They’re also frequent, with some
Gen-Zers checking their social media accounts as often as 100 times per day.
2. Survey analysis
2.1. Questions used for survey
When it comes to questions for survey, the purpose is to understand different buying
behaviour of customers regarding two separate accommodation units: conventional
accommodation (hotels/hostels) and Airbnb, and from which conclude the trend as well as
their potential effects on each other. The detail for each question in survey is explained
below:

Questions regarding personal information

Question 1 – Age group is asked in order to classify group of customers. This is a multiple
choice question which allow respondent to choose only one answer out of four different
suggestions: under 18, 18-24, 25-30, and above 30.

Question 2 - Current job is asked so as to get a deeper insight on the possible income
respondent can earn, their potential consuming behavior in general and while travelling in
particular. This is an open-answer question which do not limit respondent to any available
choices.

Question 3 - Average income is asked in order to classify respondent’s income group and
testify how it reflects on their consuming behavior. This is a multiple choice question which
allow respondent to choose only one answer out of four different suggestions: lower than 3
million VND, 3 million VND - 5 million VND, 5 million VND - 7.5 million VND, and above
7.5 million VND.

Question regarding the travelling habits

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Question 4 – Types of travelling is asked with six suggested answers to choose: alone,
boyfriend/girlfriend, group (more than 7 people), with friends, family and other. This
question is a combination of both multiple choices and open answer “other” which do not
limit respondents to any available choices.

Question 5 – Average length of stay is asked with five suggested answers: 1 night, 2-7
nights, more than 1 week, about 1 month and more than 1 month. The question aims to
identify customers’ habit of stay in each accommodation unit.

Question 6 – This is a multiple choice question asking about the purpose of respondent’s trip,
with four suggested answers: family vacation, couple/friends hangout, business trip, and
“Other” for open answers.

Questions regarding accommodating habits

Question 7 - This question is about general motivation of customers when choosing
accommodation type when travelling. There are ten options to choose: financial reason,
privacy, comfort, accessibility, reputation, security, acquaintance’s recommendation,
curiosity, lifestyle matching and others. Respondents choose the three most important factors
that affect them the most.

Question 8 - This question requires respondents to arrange their frequency of using three
different accommodation types in the last 2 years. We give each type of accommodation a
number (1 for Airbnb/homestay, 2 for hotel, and 3 for hostel). Respondents would arrange the
respective numbers to show the frequency from the most to the least, for example, 2-1-3.

Question 9 - This question asks about where customers get information of their current
accommodation unit. The accommodation unit mentioned in this question is either Airbnb or
conventional ones, depending on whether Airbnb’s guests or hotel/hostel’s guests answer the
question. There are six suggested answers for this question: booking websites or mobile apps,
Facebook, Airbnb website, word of mouth, hotel’s or hostel’s websites, and others.

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Questions regarding respondents’ perception toward Airbnb

Question 10 - This question asks whether respondent have heard about Airbnb before, and if
yes, we ask them to briefly share what they’ve known about it. This is a Yes/No question
combined with an open space for respondent to express their knowledge about Airbnb (if
any).

Question 11 - This multiple choice question asks respondent about their frequency of using

Airbnb while travelling. There are four suggested answers: never, sometimes, frequently, and
always.

From this point of the survey, the questions will be different for respondents who have and
have never used Airbnb service before.

For those who have used Airbnb previously:

Question 12 - The level of satisfaction when using Airbnb is asked in this question with 5
suggestions: very dissatisfied, dissatisfied, neither satisfied nor dissatisfied, satisfied, and
very satisfied.

Question 13 - This open question asks respondents to list everything they like about Airbnb,
compared to other types of accommodation.

Question 14 - This open question, on the contrary, ask respondents about what they dislike
about Airbnb. Also, we encourage respondents to give Airbnb some recommendations to
improve what they dislike.

Question 15 - This question asks respondent to generally compare Airbnb and other
accommodation services they have experienced. Specifically, we would like our respondents
to point out which service they like better and why.

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Question 16 - This question asks respondents about their willingness to recommend Airbnb to
other friends or acquaintances, on the scale from 1 to 10.

For those who have never used Airbnb before:

Question 12 - This question asks respondents the reason why they have never used Airbnb
before. This is an open questions since we want to encourage respondents to list as many
reasons as they think.

Question 13 - This question asks respondents about their top-of-mind choice when choosing
an accommodation type for traveling. This is a multiple choice question with four choices
(hotels, hostels, homestays, and others), combined with an open part for respondents to
express why they make their choice.

Question 14 - This open question asks respondents to share what they are not yet satisfied
with the accommodation type they choose in the previous questions and also the reasons why
they have this dissatisfaction.

Question 15 - This question asks respondents about their willingness to try Airbnb service in
the future, on the scale from 1 (Never) to 10 (Very willing to try).

Question 16 - In this final question, we would like respondents to explain the reason for the
point given in the previous question. To be specific, the respondents are expected to explain
why the are very willing, or not really want to try Airbnb in the future. This will give us some
valuable insights to come up with some recommendations for Airbnb.

2.2. Findings on survey responses

The first three questions in the questionnaire aimed to clarify background information of
customers in terms of ages, occupation and average income.

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Figure 1: Age Group

It can be seen from the figure above that there is a significant difference in age groups of
guests in two accomodation types. Airbnb guests are mainly in a range from 18 to 30 years
old with especially 97.5% of Airbnb respondents are between 18 and 24. While there is no
Airbnb’s respondent at age of over 30, this age group seems to be the major group of hostels’
customers. This result refers that Airbnb gradually attracts more young people who are trendy
and looking for cheaper place to stay while more middle age people prefer to stay in
conventional accommodation types like hotels or hostels.

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Figure 2: Monthly average Income
Of 252 responses collected, 72.1% of respondents are university students. 80.2% of them
have the average income of less than 5 million VND per month, in which, noticeably, 67.6%
have the average income of just below 3 million VND per month. This figure has a
significant influence on the accommodation choice while travelling of respondents, which
will be analysed more thoroughly in later answers.

Figure 3: Travel Types

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Regarding the travel types, our survey respondents mainly travel with friends (43.2%) and
family (34.2%). A small number of respondents share the trip with their boyfriend/girlfriend
(11.7%), while the type of group travel or alone trip seems not to be in favor of the
respondents (both account for less than 10% of the responses collected). This figure, together
with the income figure, might give reasonable explanations for the choice of conventional

accommodation types instead of the new ones among respondents aged below 18 and from 18
to 24. Even though they are eager to try new things, the inability to afford the trip themselves
and the fact that they are travelling together with the family might, one way or another,
prevent them from choosing the accommodation types they really like.

Figure 4: length of stay

From the figures shown above, it can be easily seen that our respondents prefer shorter trips,
usually in only 1 night (26.1%) or from 2 to 7 nights (71.2%). The trip purpose is also limited
to vacation with family and friends (33.3% and 68.5% respectively), while no one have a
travel for business purposes. This can be explained by the age group of respondents, since
most of them are very young (91% are from 18 to 24), the possibility of a business trip is,
within expectation, not high. In order to get more accurate insight into this matter, further
research on a greater, more diverse group of samples is required.

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Figure 5: Trip Purpose

One point worth highlighting from this finding is that, though the percentage of respondents
with long travels is not high (only 2.7%), all of them report that they often choose Airbnb for
their trip. That is an important but also quite explainable insight: while the fee charged per
night for long and short stay at the hotel/hostel is fixed or reduced by an inconsiderable
amount, this number can be largely adjusted when it comes to Airbnb. In fact, Airbnb hosts
are encouraged to reduce the average price of one night for longer stays by 20%, or even
50%-60% to attract more bookings. This tactics, based on our survey findings, seems to work
effectively.

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Figure 6: motivation for choosing accommodation types

Among the suggested answers, three most priotied criteria by our respondents are price or
financial reasons (88.3%), comfort (70.3%) and security (68%). This can also give a reason
why Airbnb is not the top-of-mind accommodation choice for most of our respondents.
Compared to hotels or hostels, a much more familiar business model where security staffs are
in the house, giving a try with Airbnb, an unfamiliar business model in which the host is
totally strange, might cause unavoidable insecurity to the travellers. Airbnb, however, still
have the opportunity to compete with conventional accommodation types regarding the next
favored criteria (privacy, which account for 22.5% of respondents’ choice).

Turning to the question about customer’s top-of-mind choice when it comes to
accommodation types for travel, only 20% of people surveyed stated that they choose Airbnb
over other accommodation units like hotels or hostels. This figure, to our surprise, is quite
conflicting with the findings on the previous question. While a great share of respondents
consider price preference as their top priority, not many of them choose Airbnb even though
in fact, this service has a much wider and affordable price range compared to other
accommodation types. This can be partially explained by the fact that Airbnb has not been
really well-known in Vietnam. Thus, although it can offer most of what the customer need

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