27th December 2021
A snapshot of Airbnb
Almost everyone in the world has heard of Airbnb (and if you haven’t, then you’ve probably never been on the world wide web).
According to Business of Apps, this billion-dollar business was started by Brian Chesky in 2007 as a way to pay off his apartment. This company was initially called ‘AirBed and Breakfast,’ and Brian would offer his property to the attendees of the Industrial Design Conference that needed a place to stay.
Since those early days, Airbnb has grown into a business worth 3.4 billion in 2020 (despite a global pandemic that led to a reduced income).
So, let’s get into Airbnb’s business structure!
Airbnb’s business structure
As Learnbnb says, Airbnb has achieved massive success and exponential growth despite using a simple business model which does not include any owned properties and very little overheads.
The reason why Airbnb’s business model has led to such success is that they made the most of a growing sharing economy and capitalised on a service that was missing from the market.
This company has also created a supportive community that is working to make money for themselves and the company.
How does Airbnb work?
According to Investopedia, the majority of this company’s revenue is made from service fees that are charged from bookings through guests and hosts.
Airbnb has made the most of the sharing economy (also known as a peer-to-peer economy), which is a commercial/economic model that connects buyers and sellers to share human and physical resources.
This kind of business model doesn’t provide individuals directly with goods and services, but rather, makes money by connecting buyers and sellers which enables them to continue growing their revenue.
Other successful companies to use this model are eBay, Craigslist, and Uber.
What values does Airbnb have?
As Learnbnb says, the values that Airbnb prides itself on are:
- Booking visits with locals rather than large chain hotels
- Providing unique stays while travelling
- Customising searches to meet customer’s unique needs
- Capitalising on free space/properties
- Providing money to its hosts
- Using reviews so people can book safe and desirable properties
What services does Airbnb offer?
Airbnb offers a wide range of services, some of which you may not even be aware of! So what are these services? According to Investopedia, these services include:
- Airbnb Experiences: Tourists can partake in fun activities such as classes, trips, and adventures.
- Airbnb Collections: Renters can find and use properties for special trips or other occasions. This could include entire homes and private rooms with either private or ensuite bathrooms.
- Airbnb Plus: This is a feature for homes that are rated very highly and so are more appealing for guests to book.
So that is a quick snapshot into Airbnb’s coming of age story, its growth as a company, its business model, and even the values and services it offers.
If you don’t already list your property on Airbnb, I would totally recommend this platform because, as BedBooking says, this company has great reach with new visitors, is suitable for any type of accommodation offered, provides great support for hosts, and can offer great payment in exchange for your property.