What can Airbnb learn from Uber’s experience in India?

Airbnb, the 8-year-old, room and vacation rental silicon valley start-up recently announced its arrival in India with its campaign “Belong anywhere“. Print ads of its global brand message were seen occupying full-page ads of Times of India.

Looking at the communication in the couple of print ads I have seen till date, I could not help but think, if this money was well spent to tell people of India what Airbnb is. Print media is not one of the cheap media to advertise in India. According to my estimates a one side, full-page ad in times India will cost anywhere close to Rs. 50L to couple of crores depending on the scale of your campaign.

While Airbnb will have its pockets deep enough to announce their arrival, as a thrifty Indian marketer I was compelled to question the creative and the ROI of the campaign. A level deeper thought made me realize that someone in India who has not heard about Airbnb (which is a huge population given the numbers) would have still not understood about the brand, business or product.

Having said that, we as outsiders are not aware of what the objective behind this campaign was and we could be wrong given the lack of context. For all you know, this could be a campaign towards making itself seen as an option for Indian’s travelling abroad. Was print the right media and the limited, minimalist creative the right approach as the launch campaign, is debatable?

Given the experience that Uber has in India, its silicon valley friend, Airbnb could learn a few tricks of the trade, learn from Uber’s best practices and avoid pitfalls, that will make sure its smooth sustenance in the second largest Internet country in the world.

Below are 7 things that Airbnb could take notes from Uber’s experience in India

1. Influence the influencers

Source : https://newsroom.uber.com/india/

What did Uber do?

Uber in the initial days of its launch did not try to go overboard with marketing announcements of its launch. While one reason could be that it wanted to test waters, another could be that it was phasing its launch and didn’t need mass marketing. Uber tried to tap into the influencer celebrity network from the launch city and got them on board to try Uber.

Tips for Airbnb

Not just influencers but make the Indian millennial your brand evangelists. Airbnb is a concept that has not been tested in India ever. The idea that one could rent a home-like home for a day or live in a stranger’s house is more likely to fly with the Indian millennial. They are your safest early adopters who can make or break a brand. Impress them and you have enough social media mileage coming your way.

2. Position as premium yet affordable

What did Uber do?

Uber while launching in each city gave the impressions to the end-user that they can order the most premium, high-end, swanky looking black Ubers at very affordable prices. This again was a part of their launch strategy in most cities and it worked. I remember having this perception about Uber that it is cheap but the cars are amazing. Till date if I were to choose between cab companies my initial impression and perception will say that Uber has better quality cabs than anyone else.

Tips for Airbnb

Airbnb needs to tread this path safely. I have asked people around about what they think about Oyo and while they say that they are fascinated by the story they still keep it under the category of “cheap rooms”. Oyo will be my option if I need a makeshift staying arrangement for a night but I will never use it when I am on a holiday.

Airbnb needs to occupy that space and to my understanding there is a dying need for the space to fit in between “cheap rooms” and “luxury stays”

3. Be price sensitive, initially

Source : https://newsroom.uber.com/india/

What did Uber do?

Uber, instead of spending money on expensive media went out and spent the same on their users in the form of cashbacks and discounts.This resulted in multiple trials and word of mouth for the brand. There is nothing more Indians would love than a service that gives them more than their money’s worth.

Tips for Airbnb

Inducing trials and exceptional customer service would be key to Airbnb’s success. A recent survey suggested that Indian consumers are the most unforgiving consumers in the world. For Airbnb, this will matter a lot that you impress who you serve.

Read more on Uber’s Unconventional marketing strategy in India

4. Prioritize safety

Source : Uber.com

What did Uber do?

Uber set themselves back by at least a year because of a security lapse. Uber had to work its way to regain the trust of its women riders and convincing people that it is safe to ride Uber post the unfortunate incident.

Tips for Airbnb

Airbnb needs to ensure safety and keep doing it till the time it wants to do business in India. Like Uber, Airbnb does not own any of its properties. The hosts (people who list rooms for rent) have to be verified and reviewed after each visit. Uber had to make arrangements as a reaction to the incident, however Airbnb has a chance to be proactive when it comes to safety of its users. This could be in the form of an emergency button in the app, proper verification of hosts, rock solid review and feedback mechanism, rewarding hosts for good behavior. The safety can be a concern over here need not be just at the host end but also at the user end.

Here are some honest confessions of Indian Airbnb hosts

5. Think global, speak local

Source : https://newsroom.uber.com/india/

What did Uber do?

Uber approached its communication by solving problems inherent to the city they were launching in and communicating in the language, typing up with partners that make the city what it is.

Tips for Airbnb

While the Airbnb campaign could be a major hit outside India, it does not guarantee its success in India. The communication needs to resonate with the target audience in India. Specially when you take to advertising in media like print, it becomes integral to connect with larger audience to justify the spend.

6. Go for market domination to ensure quality

Source : Bloomberg

What did Uber do?

Unlike its Indian counterpart, Ola, Uber did not launch itself across India but went for market domination. They phased out their launches after they have achieved working stability in the city they started with. This ensured control on quality and customer service.

Tips for Airbnb

Airbnb instead of going all out can probably figure out the cities in India which have a dying need of affordable luxury stays. Few reports can also suggest the cities or places which attract major tourist traffic and at what times. This obviously is a long drawn process but it will foresee problems, issues, operational and logistical before venturing out in every nook and corner. India is a diverse market with different intricacies from one place to another making it difficult to be a copy paste job unless you have earlier tried and tested.

7. When in India, comply and do good

Source : Linkedin

What did Uber do or did not do?

In his article in Quartz, Ravi Venkatesan points out few of the biggest mistakes companies like Uber make in India. Some of the self-inflicted mistakes by Uber that Airbnb could avoid

• Uber till the end of 2014 operated under stealth mode with no visible information about its offices in India or no senior or country manager for India, its second largest market
• Uber complied grudgingly on matters be it payment, service tax compliance, RBI regulations on use of credit cards.
• Uber did little in ensuring safety in a country where the same is a burning issue till reality hit hard

Tips for Airbnb

The article which was penned down in December 2014 gives Uber some tips which could very well be applied by Airbnb

• Run out a communication campaign continuously on how it’s helping India, it’s economy. How is it creating wealth and jobs, how it has made entrepreneurs out of people.
• Hire a senior person or constitute an advisory board with eminent people who can help them navigate many regulatory laws in India
• Be humble and apologize with conviction if you err. The distrust of businesses in general and of foreign companies is particularly high in India as innovators like Uber and Airbnb put huge pressure on traditional incumbent businesses.

Conclusion

There is no stopping innovation and disruptive technology. If Airbnb plays its cards right it stands at disrupting the entire hotel industry in India. Obviously when we are talking about businesses that are pro-consumers and dynamic that uproot traditional incumbents there are risks involved which can make or break or completely slow down adoption.