Case Study: How Design Thinking Was Used to Launch Airbnb
Airbnb, now a global leader in the hospitality industry, is a textbook example of how design
thinking was used to identify problems, develop human-centered solutions, and successfully
execute a startup.
Background: Identifying the Problem
In 2007, two industrial designers, Brian Chesky and Joe Gebbia, faced a financial crunch and
came up with the idea of renting out space in their apartment to earn extra income. They noticed
that during large events, hotels were often fully booked, leaving visitors without accommodation
options. This highlighted an unmet need in the travel industry.
Applying Design Thinking Stages
1. Empathize: Understanding User Needs
Chesky and Gebbia realized that many travelers sought affordable, convenient, and
personalized lodging experiences. To gain deeper insights, they:
● Talked to potential users (both travelers and hosts) to understand their pain points.
● Learned that travelers were frustrated by expensive hotels, and homeowners often had
unused spaces they were willing to rent out.
Key Insight: Trust was a critical barrier for both hosts and guests. Travelers were hesitant to
stay in strangers' homes, and hosts were worried about welcoming unknown guests.
2. Define: Articulating the Problem
They framed the problem statement as:
"How might we create a platform that connects people who need accommodation with
those who have extra space, while building trust between them?"
This problem definition guided their focus on creating a seamless and trustworthy experience for
both hosts and guests.
3. Ideate: Brainstorming Solutions
Using brainstorming techniques, Chesky and Gebbia came up with several ideas, including:
● A website to list and book available spaces.
● A system for verifying hosts and guests to establish trust.
● Features like user reviews, secure payments, and cancellation policies.
They also decided to focus on creating unique travel experiences rather than competing directly
with traditional hotels.
4. Prototype: Building a Small-Scale Solution
They launched their first prototype in 2008, called "AirBed & Breakfast", offering air
mattresses in their apartment for attendees of a design conference in San Francisco.
● The prototype included basic features: space listings, booking functionality, and a
payment system.
● They tested it on a small scale by hosting three guests in their apartment.
Key Learning: The initial prototype revealed issues with scalability, photography quality for
listings, and trust-building mechanisms.
5. Test: Refining the Platform
To refine the platform, Chesky and Gebbia:
● Personally visited hosts in New York City to photograph their spaces and talk to them
about their experiences.
● Collected feedback from both hosts and guests, learning that professional photos
significantly improved bookings.
● Introduced a secure payment system and guest/host review system to enhance trust.
These iterations were instrumental in building credibility and usability for the platform.
Outcomes
By using design thinking, Airbnb transformed its small-scale prototype into a global platform.
Key milestones included:
● Rebranding as "Airbnb" with an emphasis on creating unique, trust-based travel
experiences.
● Launching features like Airbnb Experiences, which expanded the value proposition
beyond accommodations.
● Growing into a billion-dollar company with over 4 million hosts worldwide.
