Since its 2008 launch, Airbnb has seen a rise in popularity as an alternative to hotels. Airbnb is an online marketplace that allows travellers to find a place they like in another city, and hosts to offer their homes in return for a rent.
Airbnb currently has 2.9 million hosts worldwide and over seven million listings in more than 200 countries. It has over 150 million registered users. On average, six renters check into each Airbnb-listed property every minute.
Airbnb’s unique service has helped it rise the success ladder within a short time of its launch. We will then discuss in detail the Airbnb business model as well as the revenue model.
What is the Airbnb Business Model?
The Airbnb business model is similar to OYO and Uber. They don’t have the same business model as hotels like Hilton or Marriott. Airbnb operates in the same way as Grubhub, using an online platform to connect each component of the model. The key components of the Airbnb process are its hosts and individuals.
Airbnb is a platform that hosts and travellers can use to connect. Airbnb hosts can offer their homes for rent, which allows guests to come and stay. Airbnb hosts have a unique experience because they live close to locals.
Airbnb employs photographers to take high-definition shots of its properties. This allows travellers to see the actual places and makes it easy for them to make the right decision.
Airbnb Revenue Model
Airbnb’s revenue model is based on a fee charged by hosts and travellers. It is similar to Postmates’ revenue model. Postmates also makes money through fees. Listings and stays are the Airbnb revenue model. Airbnb is a platform that allows listings and bookings to be made. This is how Airbnb makes its money. Two major sources of revenue for Airbnb are:
Hosts may request a commission
Airbnb receives 10% commission for every person who makes a payment to host a property. This is part of the Airbnb fee structure.
Travellers pay a transaction fee
Travellers pay a transaction fee of 3% when they make payment for their stay. This fee is added to Airbnb’s revenue.
Airbnb Pricing Structure
There are three major costs to the Airbnb cost structure. These are:
Salary for permanent employees:
Every employee in the physical office at Airbnb must receive a monthly salary as well as other amounts.
Technological setup and running costs:
Costs incurred for setting up technology in order to manage the business, such as servers and websites. Airbnb will pay for these costs. They must also pay for the running costs of the business, such as electricity bills and small rents.
Freelance photographers are eligible for payment
Airbnb has contracted freelance photographers to take the best quality photos for its website. Airbnb must pay the photographer the agreed amount.
This is our view on Airbnb’s business model. We hope you enjoyed our blog about Airbnb’s business strategy. You can also find more information on OneClick IT Consultancy’s official blog. You can reach reputable travel app development companies if you are interested in developing a travel app for your business.