Airbnb plans to go public next year. The rapidly expanding community marketplace, which has 150 million guests in 191 countries, is now planning to expand its offering to include flights and rental cars. The presumed goal: to become a fully-fledged travel portal. Can this broad growth - a classic brand extension - work out well?
Brand extensions are one of the biggest temptations europe rcs data for companies. If things are going well in one segment, why should things be any different in similar segments? After all, it is the same area in which the company believes it has competence and skills. So what could be easier and more promising than offering the clientele more services under the same brand?
Ultimately, Airbnb also needs to show its future investors that their investment will quickly translate into cash value. The thinking seems to be: if full-range retailers such as tour operators and booking portals are extending their value chain in this way, it should also be a lucrative business model for Airbnb. After all, Airbnb knows how to handle commissions, knows the travel business and is used to success. Wouldn't that be the best breeding ground for further growth outside of its current core business?
That should work out, right? A look at the brand's history says: No. The history of failed experiments is long.