Airbnb is started by Brian Chesky in 2008 when he and his friend thinking about the startup. Then they make a website for the customers of San Francisco when they noticed that the people face difficulty in the reservation of the room. They started with their own hall and the customers make reservations and stay at their hall very diligently.
Now the market size of Airbnb is 113 billion US dollars by expanding in cities of 191 countries named Brazil, Germany, the United Kingdom, Spain, Italy, and many more.
Business Model Of Airbnb
Airbnb is working as a mediator between the host and the traveler. It helps the hosts to provide their service to the customers without any third-party integration.
Revenue Model Of Airbnb
The basic revenue model of Airbnb is Commission. The commission is the main source of revenue for Airbnb. They charge a commission from the host and the traveler too.
Traveler: From travelers, they charge according to the per booking. They charge a commission from the fees they made to the host who provides the accommodation. Approximately it can be 6–9% of the fees.
Host: From the host, they charge according to per successful transaction made by the travelers to them during their travel. It can be around 5% of the total transaction.
They also charge the subscription fees from the host to give them beneficiation of the platform and make them able to reach an extended audience.
Components Of Airbnb Platform
Host: The host is the one who makes the listing of the property that is available for the accommodation.
- Powerful Dashboard: Dashboard with the number of opportunities to make the platform easy to handle. The host can get an analytical view of revenue, completed bookings, Pending bookings.
- Booking management system: The host can manage the bookings on the platform. They can update the availability of the accommodation.
- Account Management: To know the pending balances host can manage the accounts over the admin panel.
- Payment: Stripe payment methods to make the payment method easy as possible. That can help to gain the trust of the customers.
- Push Notifications: To make the travelers and the customers aware of the exciting offers and discounts available on the platform, the Host can send them to push notifications.
Traveler/Customer: The one without whom the platform will be meaningless. Traveler is the one who avails the services through this platform.
- Profile Creation: Customer can create their profile on the application with the option of social accounts.
- Synchronization of Calendar: The customer can sync the calendar with the platform and can check the availability of the accommodation according to that. Customers can make advance bookings too.
- 24*7 Customer Support: All-time customer support, to solve the customer queries over time without any delay.
- Live Chat: Live chat option is there to maintain the support of the customers. And give them support regarding their problems and solve their issues.
- Easy bookings: Easy booking system so that the customer can easily book their accommodations with hosts with the better-searching options, availability of rooms, with better choices, easy payment methods, and so on.
Final Words
Airbnb helps couples, families, and bloggers to pre-book their accommodations without any delay. Pre-booking system increases its popularity of it among travelers and people. Because they easily check out the interior and the room view without going in. that can help them to make a better decision in their budget.
To know How much does it cost? you can go to this link to know about it.
To build your own peer-to-peer marketplace like Airbnb you can get in touch with an app development company today.
