Airbnb Ansoff Matrix: a brief overview

By John Dudovskiy
September 6, 2019

Airbnb Ansoff Matrix is a marketing planning model that helps the global hospitality service brokerage company to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for companies. These consist of market penetration, product development, market development and diversification.

Airbnb Ansoff Matrix

Airbnb Ansoff Matrix

Within the scope of Ansoff Matrix, Airbnb uses all four growth strategies in an integrated manner:

1. Market penetration. Market penetration involves the sales of existing products to existing markets. The accommodation and experience marketplace uses market penetration strategy extensively. Airbnb marketing strategy and exceptional customer services play instrumental role in engaging in market penetration by Airbnb.

2. Product development. This strategy is associated with developing new products to sell to existing markets. Product development is one of the main growth strategies for the global rental and experiences platform. Specifically, starting only as a short-term accommodation provider in 2008, Airbnb consequently increased its service portfolio to include experiences, adventures and restaurants services.

3. Market development. Market development strategy refers to finding new markets for existing products. The global rental and experiences platform aggressively engages in market development. Airbnb started its operations in San Francisco, California and today it has more than 6 million listings in more than 191 countries and regions worldwide.[1] Moreover, there are about 100000 cities with Airbnb listings.[2]

4. Diversification. Diversification can be explained as developing new products to sell to new markets. The global lodging company has engaged in diversification business strategy a number of times. Entering the industry as cost-effective accommodation provider for cost-conscious travellers, Airbnb has diversified the business to also serve premium market segment with respective offerings such as villas, mansions and even castles.

Airbnb Inc. Report contains a full analysis of Airbnb Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Airbnb. Moreover, the report contains analyses of Airbnb leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Airbnb marketing strategy, ecosystem and addresses issues of corporate social responsibility.


Airbnb Inc. Report (2019)

[1] Fast Facts (2019) Airbnb Press Room, Available at:

[2] Fast Facts (2019) Airbnb Press Room, Available at:

Category: Strategy