Sienna mercer s addressable market

Globally 2 Billion+trips booked: Airbnb pitched to its investors in 2008. What does this mean?

Let’s understand this further.

When Airbnb pitched its business to investors in 2008, it proposed tapping into a global travel market with over 2 billion trips booked annually. 

This broad market perspective outlined its Total Addressable Market (TAM), indicating the overall revenue opportunity available or the complete market demand for its service, assuming it captured a certain percentage of this market. 

Fast-forward to 2024.

Airbnb reports approximately 450 million bookings per year, and this figure is growing at around ~10% year over year.

So does this mean Airbnb captured 25% of its original TAM in these 16 years?

It's not a straightforward assessment.

Initially, renting a bed and breakfast was novel, but as this idea became mainstream and travel increased, the category expanded.

Airbnb's initial TAM also grew, ad TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them? JIMOP