Real Estate Investor Magazine South Africa October 2015 | Page 17

JOE GEBBIA, NATHAN BLECHARCZYK, BRIAN CHESKY
was founded on the idea of ‘collaborative consumption’ or the sharing
economy, which aims to re-invent traditional market behaviour such as
lending and renting through the means of technology (where, instead of
sharing music books or movies online, people are sharing property and
accommodation). The ability to offer more than just a place to sleep gave
Airbnb a foot in the door, but it was the substantially lower accommodation
costs that allowed them to complete alongside the major hotels. In general,
the prices are usually much cheaper
(Roughly 30%–80% lower) and guests are able to stay with a friendly
local who can steer them to restaurants and stores they would they may
never find otherwise. Hosts are able to offer shorter-term rentals from two
days up to two months, and are able to manage bookings based around
their own personal schedule
In the summer of 2010 Airbnb officially launched a photography program
that gave hosts the opportunity to automatically schedule a professional
photographer to take pictures of the space that they were renting. This
allowed the prospective customers the opportunity to verify the address as
well as see the space they were renting, assuring them they were not being
sold on false promises. In 2011 the company began introducing the Airbnb
Social Connections application, which, when combined with Facebook,
would show the avatars of mutual connections, friends or acquaintances
who have stayed with or know the host. The Social Connections also
allowed guests to search for hosts based on other characteristics, such as
Universities or High Schools.
The South African Market
On the 27th of July 2015 Brian Chesky launched Airbnb in South Africa,
the companies largest market in Africa with 9,400 homes listed. South
Africa makes up for two of the five largest markets in Africa, with Cape
Town hosting 5,000 listings and Johannesburg hosting just over 1,000. The
number of South Africans using the service to travel is increasing by 163%
per month, with the majority travelling locally and the US, France and the
UK making up the most popular international destinations.
At the launch Chesky detailed the companies plans to expand further
across the African continent, with listings in the region increasing by
145%, while the number of Africans using Airbnb to travel has increased
by 139% in the past year. Kenya and Morocco are two of the key areas they
plan to focus on, with Morocco currently hosting around 3 000 listings and
Kenya around 1 5000.
www.reimag.co.za

OCTOBER 2015 SA Re