Airbnb is a company that helps its users secure short term lodging during travel and stay. The corporate was founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia. The abbreviation for Airbnb is AirBedandBreakfast.com. The company has seen enormous growth since then.

What is Airbnb?

Airbnb allows users to rent their occupied houses and apartments registered with the corporate. There are several benefits for both the guests and the hosts for their association with the corporate. The guests also get several additional perks if they book their stick with Airbnb instead of a hotel. Airbnb is a widely loved business almost as it’ll be fruitful. 

Before stepping into the business as a part of this discussion, it’s essential to answer questions like,

  • How does Airbnb work? 
  • Why do users choose Airbnb over hotels? 
  • How does Airbnb make money? and several others. 

during this article, we are getting to explore all of this to form your search easier and concise.

How does Airbnb work?

Airbnb has three major stakeholders which are the guests, the host, and the company. The guests are the first stakeholders since they create a business. The hosts are very essential because they’re the first partners who run the business and convey in profits. The corporate is essential because it bridges the gap between the guests and also the hosts. 

Why do users choose Airbnb over hotels? 

Since customers are the foremost importance of all stakeholders, their entire experience must be outstanding with the corporate.

Here are some steps that explain Airbnb is best over hotels.

Step 1: Register

For the primary step, the users are required to register on the mobile app or the web site via their email IDs or their website. This helps the customer to possess all their searches and bookings in one place with the assistance of their accounts. It also makes online payments easier.

Step 2: Select location

Once your account is made, the website prompts you to decide on the town you wish to explore your options in. There are several cities available since the business is international and is expanded across several countries.

Step 3: Browse

Once the town is chosen, the user can flick thru the several options available to them supported the kind of property they require to book, the budget they’re aiming for, and also the availability of the properties.

Step 4: Book and Pay

The final step for the completion of the booking cycle is to verify booking by paying for the stay before via the mobile app or the web site using the several prepayment options available on the web site. In 2014, the corporate also made prepayment optional, and also the users got a choice to acquire their accommodation in cash. To select cash payment you’ll just book your accommodation and make sure an equivalent.

These are the easy steps that target how does Airbnb works for guests. they’re easy steps and also the digital experience is very complementary to simplicity.

How does Airbnb make a profit of Million dollars per month?

We will check out the most important revenue streams of Airbnb and the way you’ll build a similar for your business also 

Guests

The most obvious and also the primary source of income are the guests. On every booking, the corporate charges an exact percentage of the booking amount from the guests as a service fee. This charge is common for all bookings.

Hosts

On each booking, the host must pay an exact amount of commission to the corporate. This can be because the corporate provides the hosts with the digital backup and a platform to showcase their property to urge business.

Additional services

In all properties, the hosts have additional services that may be availed by the guests at an additional cost over their booking charge. These services are provided by Airbnb and are added within the description to draw in more guests. Hence, the host is obliged to pay a commission on all those add-ons also.

These are the most important revenue streams of the corporate. There will be others like external investments, corporate deals, et al. which aren’t stable or consistent within the business model hence not added during this list.

How to Launch Your Own Online Airbnb like a business?

If you’re willing to begin your apartment rental platform business with advanced and customized features then open-source Airbnb Clone will be your key to success for scaling up your business.