The Airbnb case describes the very early days of this startup, beginning with the founders' original concept of renting out air beds and serving breakfast ("Airbed and Breakfast") in their apartment to conference attendees as an alternative to expensive hotel rooms. The founders grew the business by providing finding lodging options in people's homes for attendees of large events such as South by Southwest and the Democratic National Convention. Despite positive reviews and high spikes in activity associated with these events, the founders faced challenges achieving sustainable growth. In early 2009, they joined Y-Combinator and were forced to confront a series of decisions around how to improve the product such that it could grow into a profitable, long-term business.

Discussion Questions

What skills and experiences were critical to Chesky & Gebbiato in conceptualizing Airbnb?
What was the context surrounding the Airbnb idea?
How did they take the idea and turn it into a business?
How much of the business formation was based on “gut” instinct and how much on “analytic” thinking?
What “patterns” did they recognize and how should they respond? Recommend a strategy and marketing plan.