A STUDY ON THE MARKETING STRATEGIES

FOR AN AIRBNB PROVIDER

IN CHIBA-KEN, JAPAN

Submitted by:
Faustino, Jessa Marie
Igarashi, Aika
Marcon, Louise Margarette
MA - 151

Submitted to:
Mrs. Cecille Asoy
Marketing Research Professor
TABLE OF CONTENTS

CHAPTER 1: THE PROBLEM AND ITS BACKGROUND

Introduction --------------------------------------------------------------------------------- pg. 1-2

Background of the Study ----------------------------------------------------------------- pg. 2-3

Conceptual Framework ------------------------------------------------------------------- pg. 4-5

Statement of the Problem --------------------------------------------------------------- pg. 5-6

Scope and Limitation --------------------------------------------------------------------- pg. 6

Significance of the Study ---------------------------------------------------------------- pg. 6-7

Definition of Terms ----------------------------------------------------------------------- pg. 7-8

CHAPTER 2: REVIEW OF RELATED LITERATURE

Accommodation as a Basic Component

of Tourism -------------------------------------------------------------------------------- pg. 9-10

Service Marketing ---------------------------------------------------------------------- pg. 10-12

Airbnb Gets Green Light in Japan -------------------------------------------------- pg. 12-13

CHAPTER 3: RESEARCH METHODOLOGY

Research Design ---------------------------------------------------------------------- pg. 14-15

Data Gathering --------------------------------------------------------------------------- pg. 15

Research Locale ------------------------------------------------------------------------- pg. 15

Research Instrument ------------------------------------------------------------------ pg. 16

Sampling Technique ------------------------------------------------------------------ pg. 16

Sample Size -------------------------------------------------------------------------- pg. 17

Analysis Plan ----------------------------------------------------------------------- pg. 17

CHAPTER 4: FINDINGS/ DATA GATHERING

Feedbacks -------------------------------------------------------------------- pg. 18

Systematic-Random
Sampling Data -------------------------------------------------------------------- pg. 19

Sample attachments ---------------------------------------------------------------- pg. 19-20

CHAPTER 5: CONCLUSION AND SUMMARY

Conclusion and Summary --------------------------------------------------------- pg. 21

Bibliography ------------------------------------------------------------------- pg. 22

 CHAPTER 1—THE PROBLEM AND ITS BACKGROUND

A. Introduction

Travelling is one of the major recreational activities of the modern

generation. It helps one to have a quick escape from the hustle and bustle of the city life

and explore the outside of one’s comfort zone and familiar grounds. It is important since it

helps people transform themselves through exposures to different cultures and traditions

from the different places that a person visits. As how Ghandi put it, “be the change you

want to see in the world.” It is just the same as reading a book; it gives one the urge to

think, ideate, observe and adapt new things. It gives one a different perspective in life as

one encounters different people across the globe. Each person has the liberty to choose

whether you travel with someone or a group of friends to know them better or one can

travel independently to expand one’s knowledge and get to know one’s self better.

It would be convenient for one to travel if that person has sufficient

funds so most people do save for the whole year just so they have enough to go around.

One of the major considerations while travelling is lodging since anyone who travels needs

a place to stay even if that person is only backpacking. It provides one safety of their

belongings and the travelers who are not familiar with the places that they visit. It is a great

factor of influence whether the tourist will still return to that place even if they would not

spend most of their time in the lodging place. Accommodation in some places especially

in the cities are ridiculously expensive which is the problem of most travelers. Some would

say that one can just crash anywhere but having a secured and sure place to stay would be
convenient especially if one has a lot of luggage and of course no one wants to carry their

baggage wherever they go.

According to travel.usnews.com, Japan is one of the most visited

places in Asia for its beauty, preserved culture, scenery, cuisine and shopping districts.

Staying in the city, which is Tokyo, would be costly and one would not want to spend most

of their budget on that. Hotels are not even on the list since their rates are high and a traveler

who is on a tight budget would just cringe on the prices. Here is where Airbnb comes to

the picture—people get to stay with locals, interact with them and pay for cheaper rates

compared to hotels or apartments that are being leased or rented. This study focuses on

how the units of Mr. Ryou B. Igarashi would have a better marketing strategy since he is

not the only local offering Airbnb in the area of Chiba-ken, Japan.

B. Background of the Study

The researchers got this idea since one of them is the sister of Mr.

Ryou and would like to come up with a better marketing scheme in promoting 1 Chome

27 Ojidai Sakura-Shi units 401 and 404 which are owned by Mr. Ryou.

He got the idea to engage into Airbnb when one of his friends

visited him and they stayed in an Airbnb apartment in Tokyo, Japan. Affordability and

convenience is one of the factors that made Mr. Ryou pursue providing services of

Airbnb. He started by recalling a vacant unit in the apartment that his family owns in

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Japan and up to date, the unit is still earning profit.

Mr. Ryou thought of another strategic way to market his units by

letting his guests use a pocket Wi-fi system while they are staying in the apartment since

most travelers would need it especially if they need navigation or map of the area or would

talk to their family or friends online. In addition to this, the present outlook of Mr. Ryou’s

earning is estimated to be 90,085.93 Japanese Yen or to an equivalent of 40,000 Philippine

Peso per month.

The Airbnb providers all over Japan are getting well-known

especially since Tokyo, Japan was chosen as the place to hold the 2020 Olympics. By that

time, Mr. Ryou is certain that the hotels in Tokyo will not suffice for the accommodation

for the tourists especially those who are on a tight budget.

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 C. Conceptual Framework

Input Process
 Present reviews  Online reviews
 Status of the business  Interview Mr. Ryou
 Prices regarding the status of
 Prices of competitors the business
 Compare prices of Mr.
Ryou’s and other
competitors
 Identify competitive
edge

Output
 Recommendations for
better marketing
strategies

Figure 1.0
Shows the Conceptual Framework

Airbnb relies mostly of its recommendations and ratings from online reviews

since according to www.quora.com, a website where most Airbnb hosts comment and do

studies, 78% of their guests leave feedbacks on their page, so having a good review is

crucial to any Airbnb provider. One of the basis for this research is from online reviews of

pasts guests. Present records of the business will also be needed like the current prices, the

standing of the business, and the unique services the business has. The researchers will also

need the prices and the standing of other locals offering Airbnb services. The researchers

will collect the feedbacks online on the official page of Airbnb and also the page of Mr.

Ryou’s business.

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An interview with the owner of the business is also a part of the process as we will need

personal feedbacks on how it is going.

Comparison with neighboring Airbnb providers is also considered so the

researchers can determine on how the prices and offered services can be competitive for

the side of Mr. Ryou.

D. Statement of the Problem

According to the official website of Airbnb, there is a total of three hundred six

(306) other Airbnb providers who offers the same services as Mr. Ryou in Sakura, Chiba

Prefecture, Japan; The minimum stay of guests is for one (1) night and the average price

for private rooms is forty-five (45) US dollars or one thousand one hundred twenty-nine

and sixty (1,129.60) Japanese Yen which is equivalent to five hundred four and eighty

(504.80) Philippine Peso. This makes Mr. Ryou’s competition tight because of the number

of competitors in the area that has the same value, and same room type as his.

Providing Airbnb services in a contemporary community makes every Airbnb

lessors face a lot of conflicts towards this end, this research aims to address the following

synthesis:

 The Airbnb provider can they match or be greater than the competitors in

the area.

 The Airbnb provider’s units can have a unique approach compared to the

other rental providers, and;

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  The Airbnb provider can they generate more bookings throughout the year.

E. Scope and Limitations

This research will be based on the online reviews of the guests of Mr. Ryou

from the page of Airbnb and Mr. Ryou’s listing where his clients leave feedbacks. It is

limited to the area of Sakura, Chiba Prefecture Japan, where Mr. Ryou’s units are located

and is also limited to other providers of Airbnb private rooms. Other sources of information

will be from Mr. Ryou himself and from online feedbacks of competitors from Airbnb’s

official page. The reviews that will be used in this study will also be limited only to the

English language.

F. Significance of the Study

Per inurture.co, “Accommodation is one of the basic necessities of international

and domestic travellers. A government which is focused on developing tourism in the state

normally considers reducing tax and increasing incentives for hotels or businesses that

provide accommodation in travel destinations. This can promote the construction of new

hotels or resorts in the locality driving the growth in tourism sector. To ensure good traveler

experience it is important for hotels to have well-set quality standards for operations and

safety, hygiene and health policies.”

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This study would benefit:

1. Mr. Ryou for having a reference study to enhance his marketing strategy to

attract more guests and gaining greater income.

2. Marketing students to practice their analyzation skills and learn from the current

status of the business so the students can adapt the skills and knowledge earned

G. Definition of Terms

 Accommodation—a place (such as a room in a hotel or any lodging area)

where travelers can sleep and find other services that supplies something

for convenience or to satisfy a need.

 Backpacking—a form of low-cost, independent travel. It includes the use

of a backpack that is easily carried for long distances or long periods of

time. It may include wilderness adventures, local travels and travel to

nearby countries.

 Bookings—the official arrangement of a person or a group which has a

specified schedule to stay or lodge at a particular place.

 Budget—an amount of money available for spending that is based on a plan

for how it will be spent.

 Destination—a place to which a person is going or something is being sent

with the purpose for which something is predetermined or destined.

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 Feedbacks—helpful information or criticism that is given to someone to

say what can be done to improve a performance, product or services.

 Local—people who has been residing in the area for a long time.

 Luggage—the bags and suitcases that a person carries when travelling.

 Profitable—something that is beneficial or has a financial gain for the

business.

 SEO (Search Engine Optimization)—methodology of strategies,

techniques and tactics used to increase the number of visitors to a website

by obtaining a high-ranking placement in the results page of a search engine.

 Tourists—people who travel to a place for pleasure, fun or recreation. It

may be locally or far from their country.

 Travel—to go on a trip or journey especially one that is far away, or to

move from one place to another.

 Traveler—a person who moves around from place to place instead of living

in one place for a long time.

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 CHAPTER 2 – REVIEW OF RELATED LITERATURE

A lot of travelers especially those who are on a budget prefers to spend most of

their time on their activities rather than on their lodging which of course they would

consider to book if it is proven to be safe, reliable and budget-friendly. Presented in chapter

2 is a synthesis of research that supports the effectivity of Airbnb towards travelers, tourism

of the country and as well as its importance to its providers. Included in the chapter is the

overview of researchers toward the importance of accommodations for the tourism of the

country, its effect towards economic activities and the income it generates for the locals.

Accommodation as a Basic Component of Tourism

Xhiliola Agaraj (2009) cited that: “Tourism has become an important sector

that has an impact on development of country economy. The main benefits of tourism are

income creation and generation of jobs. For many regions and countries, it is the most

important source of welfare. The ability of the national economy to benefit from tourism

depends on the availability of investment to develop the necessary infrastructure and on its

ability to supply the needs of tourists”. According to worldatlas.com, Japan is one of the

top five most visited countries in Asia for its eco-tourism and the preserved culture that it

displays. Tourism is a major factor when it comes to the contribution to its economy

besides that fact that Japan is a manufacturing country. A lot of tourist enjoy staying here

not only for the places that they visit but also for the locals who welcome them to their

country. Whenever someone is planning to visit a foreign land, their first course of action

would be looking for a place to stay since you cannot just crash anywhere and go looking
for somewhere to vacate, people tend to look for a secured and comfortable place to stay—

a home away from home. As said by Bhatia, (2006), “Accommodation is a very important

part of the tourism infrastructure and development of tourism is a function of

accommodation. It creates a home away from home for the tourist.” Many travelers go to

different places with the goal of exposing themselves to the local culture that the place that

they will visit has. Interacting with the people who live there and trying everything that the

place has to offer. If a person feels that the place that they will stay is not safe, it is

guaranteed that they will no longer go back there that is why a safe and comfortable

accommodation is highly considered. The popularity of Japan makes finding affordable

accommodation might difficult for some travelers especially those who are on a tight

budget. That is why Airbnb is providing low-cost lodging with experiences that the guests

will surely treasure.

Service Marketing
The promotion of economic activities offered by a business to its clients. Service

marketing might include the process of selling telecommunication, health treatment,

financial, hospitality, car rental, air travel and professional services.

When it comes to Airbnb’s clients, hospitality is the most essential among the

services because every guest expects and deserves hospitable treatment. Especially when

they own an apartment or hotel their main priority is to provide the highest level of

treatment.

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 In order to be remembered, they must provide the clients the satisfaction and

enjoyment they are expecting.

As per Mandy Li, (2017), “In Japan, “omotenashi” is a Japanese term for hospitality

or treating the guest well. Hospitality is not unique to any culture or people and most hotels

and apartments in Japan are used to follow their etiquette. Japanese tend to do everything

that they could just to satisfy the customers. When the customers stay in the hotel they are

treated like a VIP guest.

They will give the customers all the accommodations that they need before they

ask the hosts. Japanese people would also speak in polite Japanese keigo, which is the

honorific Japanese speech.” (Mandy Li, 2017). Some people are afraid to try the Airbnb

because it is still not common or well-known. They overthink that most Airbnb host are

scammers but in Japan it is all safe because the word hospitality or omotenashi is already

their norm.

When it comes to Airbnb, they also have rules to follow on how to boost the

hospitality of the host:

 Communication - the host must respond quickly to show that

they are attentive and considerate host. Whether the host has

reservation or non.

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  Timely responses – How frequently and quickly the host respond

to reservation requests and booking inquiries of the guests

 Support – It is important to remain available throughout their stay.

Guest should feel the guidance from the host.

 Commitment – When someone book from hosts, the hosts must

accommodate the guest and show some hospitality because it

means the guest trusted the host especially to their needs.

 Check-in – Guests may be tired from travelling so it is important

to put them at ease and give only a simple check-in process

 Cleanliness- The apartments or room must maintain the

cleanliness to have a satisfied and contented guest.

 Value – It is important to control the pricing. The price should be

balances expectations with what the host listing should offer.

Airbnb gets green light in Japan

When a person travels, the first thing that they search before leaving is the place

where they will rest at the end of the day. A popular country like Japan, where tourist flock

throughout the year, it is important that the country provides accommodation for everyone.

People will be discouraged to visit a place if they have nowhere to stay.

“A tourism boom has cut into Japan’s supply of available hotel rooms and helped

make the archipelago Airbnb’s fastest-growing market.

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The number of visitors from overseas will probably continue to reach records as Japan

prepares to host the World Rugby Cup in 2019 and the Olympic games the following year.

Airbnb accommodated 3.7 million of those visitors, according to the company. The

government aims to raise the number of visitors to 40 million by 2020.” (Singapore Press

Holdings, 2017). It is a good thing that Japan offers Airbnb services since hotels cannot

accommodate the big number of tourists that visit the country especially since there will

be two (2) major events that Japan will host this year and the following year. It is also an

opportunity for the guests to mingle with the locals, as they will be staying in the houses

or apartments of Airbnb providers.

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 CHAPTER 3 – RESEARCH METHODOLOGY

The research methods used to conduct the study is clearly defined in this chapter. The

researchers explain how the important information needed to address the research

objectives and questions was collected, presented and analyzed. The research design, data

gathering, research locale, research instrument, sampling technique, sample size and

analysis plan used are presented.

A. Research Design

The research will be carried out by gathering all the information and

requirements needed to come up with a better marketing strategy to have a stronger

competition against other Airbnb providers in Chiba-ken. The researchers will use the

Descriptive-Qualitative Research approach by observing the information needed through

the online reviews of Mr. Ryou’s guests, the present standing of his business, and as well

as the online feedbacks of neighboring Airbnb providers. All the information required will

be obtained on the official website of Airbnb. Feedbacks from past guests shall be observed

properly so the researchers can analyze what is needed to be improved or is to be

maintained basing on the experience of the guests of Mr. Ryou. Through this, the

researchers will have a concrete basis on the performance of the business. Mr. Ryou will

also be interviewed by one of the researchers so they may have a better understanding on

how the business is being ran and the experience of Mr. Ryou as a host and as a lessor so
the researchers can also adapt the best suitable services and marketing strategy is suited to

Mr. Ryou’s preferences that matches the demands of his guests.

B. Data Gathering

The data for this research will be collected from the use of secondary data

which are the reviews of Mr. Ryou which can be found on his page on the official website

of Airbnb. On that page, prices of other providers are also seen. One of the researchers will

also conduct an interview with Mr. Ryou regarding the performance of his business, how

much his income is during the year, and what are the peak seasons of the bookings. Since

researchers will not be able to make a questionnaire due to the distance of the location, the

researchers will just then conduct an observation by tallying the common words used in

the feedbacks and make a comparison of various Airbnb providers in Chiba-ken.

C. Research Locale

This study is to be conducted in Makati City, Philippines. However, the focus

is in Chiba-ken, Japan, with the exact location of 1 Chome 27 Ojidai Sakura-Shi, Chiba-

ken, Japan. The two rooms provided by Mr. Ryou are described as affordable, is in a quiet

neighborhood and is a three-minute walk from the train station. Guests will automatically

gain a 10 percent discount if they dine at Izakaya Gubitto, a restaurant that is located at the

ground floor of the apartment where the units are located. In line with this, the researchers

will use the critical survey approach.

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 D. Research Instrument

The reviews and feedbacks of specific information to be obtained from past guests

on Mr. Ryou's units are the major instruments to be used in this study. A tallying sheet

using the Microsoft Excel program is used to determine what words are often used by all

the guests that are under the scope of this study. This will then show what is the overall

feedback of Mr. Ryou’s guests which then will be the basis on what areas are to be

improved and what are to be maintained.

E. Sampling Technique

The sampling technique of the research is based on the data that comes from the

listings of Mr. Ryou Igarashi which are Rooms; 401 and 404 respectively, the study will

take place in Makati Philippines, but through the information found in the official page of

Airbnb and interview from Mr. Ryou, the researchers could have a data of the said listing

in the locale of Sakura-shi, Chiba, Japan.

The researchers will use the systematic random sampling, it is a type of probability

sampling method in which sample are chosen according to a random starting point and a

fixed periodic interval. For example, every fifth and every tenth feedbacks from Mr. Ryou

Igarashi’s listing.

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 F. Sample Size

The sample size will be based from the number of reviews that are under the scope

of limitation. Upon analyzing the reviews from Mr. Ryou’s page in the official website of

Airbnb, 79 reviews from different guests were counted and tallied. It will then be the basis

for the information of the population size and the acceptable margin of error to find the

sample size needed for the research.

G. Analysis Plan

The data to be collected from Mr. Ryou will then be compiled in a Microsoft Excel

table which then would be the foundation and the basis of the research.

The data table will the following:

1. The total guests of Mr. Ryou Igarashi had for the past two (2) years

2. The guests’ maximum days of stay

3. The guests’ feedbacks.

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 CHAPTER 4—FINDINGS/ DATA GATHERING

Collection of the data and information needed to satisfy the conditions, questions

and needs of the study is presented in this chapter. Feedbacks and reviews from Mr. Ryou’s

past guests which are posted on his page on the official page of Airbnb, the tallied reviews

of the guests, and the conclusion of the researchers toward the study are shown.

A. Feedbacks

Upon collecting all the reviews from the page of Mr. Ryou from the official website

of Airbnb, considering 79 reviews which are under the scope of the limitation, the

researchers concluded with these results as per what words are most commonly used by

past guests:

Room 401 Word Used Frequency Room 404 Word Used Frequency
Clean 13 Clean 16
Comfortable 4 Comfortable 9
Complete 0 Complete 0
Convenient 8 Convenient 8
Easy 8 Easy 11
Far 0 Far 2
Friendly 1 Friendly 2
Great host 3 Great host 2
Helpful 5 Helpful 11
Incomplete 0 Incomplete 0
Near 12 Near 9
Nice 9 Nice 11
Recommend 7 Recommend 17
Small bed 0 Small bed 0
Cozy 1 Cozy 1
Great place 2 Great place 0
 B. Systematic-Random Sampling Data

For the fair evaluation of the research, the probability sampling method aims to

appraise the concerns or consider the compliments of the guests. The random starting point

and the fixed periodic interval was allocated in every fifth and every tenth of guests’

reviews from the provider’s listing. The sample size total is equal to twenty (20) which is

fifteen percent (15%) of the one hundred and forty two (142) feedbacks.

(Please refer to the attachment)

C. Sample—Attachments

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20
 CHAPTER 5—SUMMARY AND CONCLUSION

Through this study, Mr. Ryou can then see what are the needs of improvement in

his business basing from the feedbacks of his past customers. After the researchers

reviewed the feedbacks and reviews, researchers did fid minor problems from his room

which is the lack of equipment, utensils and bed spacing. It is known that Airbnb does not

provide any insurance since it lacks budget to cover any damages in the apartment if ever

there is any emergency or reparations that guests might occur. Considering that factor, Mr.

Ryou did not provide any utensils or equipment to be utilized in his rooms. Regarding the

bed spacing, Mr. Ryou then decided to change the size of the bed from single bed to a

queen-sized bed to provide bigger space for his guests. Other than that, areas of

maintenance are to be observed as to Mr. Ryou being an helpful and friendly host which is

very important to customers as to considering where they should stay and the cleanliness

of his units.

Considering these recommendations, Mr. Ryou can then have a basis and guide for

the improvement and maintenance of his business and if ever he is to expand his area of

expertise, if he is to provide another unit for Airbnb guests like offering a larger room or

an entire home for a bigger group of people.

Bibliography

“Best Vacation Destinations.” Retrieved from Vacation Rankins, 2017,

travel.usnews.com/rankings/.

CBS/AP. “Tokyo Wins Bid to Host 2020 Olympics.” Retrieved from CBS News, CBS

Interactive, 7 Sept. 2013, www.cbsnews.com/news/tokyo-wins-bid-to-host-2020-

olympics/.

“Acommodation - An Important Role in Hospitality Business.” Retrieved from Inurture

Education Solutions, www.inurture.co.in/accommodation-management-an-important-

role-in-hospitality-business/.

Agaraj, Xhiliola. “Tourism an Important Sector of Economy Development.” Retrieved

from Ideas, ideas.repec.org/a/cbu/jrnlec/y2009v1p83-90.html.

Li, Mandy. Omotenashi: The Reason Why Japanese Hospitality Is Different. 4 Apr. 2017,

Retrieved from guide.michelin.sg/en/omotenashi.

Alpeyev, Pavel. “Airbnb Gets Green Light in Japan With Home-Sharing Law's Passage.”

BloombergTechnology, 9 June 2017, Retrieved from

www.bloomberg.com/news/articles/2017-06-09/airbnb-gets-green-light-in-japan-with-

home-sharing-law-s-passage.