Insights for Entrepreneurs

Understanding Airbnb – What, When, How and More?

Amresh Babu

12 Apr 2019 on Insights for Entrepreneurs · 8 min read

airbnb clone

8 min read

What is Airbnb?

Airbnb is an online rental business platform that stands for the Air, bed, and breakfast.

For travelers, Airbnb is the best shot to search and book online home stays/rentals, travel accommodations, invite friends and family for a trip, save dream destinations.

And for the hosts, it is the best online rental platform to message and manage guest reservations, update listings and availability, to share what’s special around there with host guidebook, etc.

Short Story of Airbnb

Two guys Brian Chesky and Joe Gebbia in San Francisco couldn’t pay rent so they thought why not rent out three air mattresses. So, they made a simple website and a blog with maps.

Two men and a woman showed up paying $80 each and after that, they thought this could be a big idea.

Then one day, they invited a former roommate Nathan as a co-founder to build the site and launched the site at South by Southwest (SXSW Conference 2008) and got only two bookings.

In 2009 they got $20,000 in the first funding from Paul Graham through Y Combinator. At this time, they were making $200 a week for months which was not growing much.

Finally, they realized that photos of places were not so pretty. So, they went door-to-door in New York City and took photos by the hand of listed houses.

One week later they were making $400 a week and started growing but they were still rejected by famous VC in New York City Fred Wilson.

At last, one fine day, Barry Manilow, a famous singer/drummer rented out an entire house which increased the hype of their website. Then they started raising seed round initially six hundred thousand dollars which become 7.2 million dollars in 2010 and 112 million dollars in 2011. In 2014 Airbnb valued at ten billion dollars.

How Airbnb Started?

How Airbnb Works?

Launched in August 2008, Airbnb is one of the leading online rental platforms with mobile apps that allow users to list and book rentals according to their preferences.

It allows the users (host and guest) to directly interact with each other to sort out any queries or concerns. The app works with the web and all leading OS platforms.

Basically, Airbnb users include travelers who look for spaces and the hosts who are ready to rent out their spaces.

Airbnb Working Model

What does Airbnb allow a host?

Equipped with a lot of advanced features, Airbnb is known to deliver significant value to its users through great functional quality and traits.

If you have a space to rent, you can become a host. First, you need to create your profile, add a profile picture, and go through a few verifications and scanning process to list your first space in an online booking platform.

After that, you may list your space by using your profile. While listing you need to enter the information that is related to your space such as the number of rooms, area, size, etc.

Airbnb’s strength is a set of unique features it comes equipped with. Like the safety feature, which comes with the secondary insurance for the rental space and may come in handy in case of any damage to the property.

  • Share extra space for rent to make money
  • Update the listings and its availability on the calendar
  • Share what’s special in your neighborhood
  • Interact with guests through the message and manage reservations.

What does Airbnb allow a guest?

Airbnb allows guests to search for lodging according to their preferences with filters for type, date, location, and price.

And the other useful thing is that it also provides travel guides named “Neighborhoods”, which will have some useful suggestions for places to stay in major cities.

Although Airbnb is best remembered for online rental bookings, in recent years it has expanded offerings to also include experiences and restaurants.

On search, travelers will not only get the list for accommodation on the dates but also they will get a list of experiences by Airbnb hosts.

Airbnb Business Model Canva

How Airbnb Makes Money

Airbnb makes money through two sources:

  1. Commission from Hosts/Owners

Airbnb charges 10% of the commission from the Hosts whenever a booking is happening on the platform.

It also charges a 3% host fee for the installments of the visitors.

  1. Exchange charge from Travelers/Guests

For each booking, it charges 6-12% of the booking sum from travelers. This is non-refundable.

Airbnb also provides opportunities for individuals to spare cash if the booking is in extensive numbers.

Airbnb earns around $900 million in revenues. It is the leading revenue-making platform in the online rental industry because of its website which serves users in more than 190+ countries.

The Revenue growth of Airbnb is rapidly growing due to the listings from over 65,000 cities. For each and every successful booking, Airbnb collects a fixed amount of transaction fee from travelers and service fee from the hosts

Airbnb's Revenue Source

Reasons For Success:

  • Feel like you are at your home: Since Airbnb is full of space with neighborhoods, condos, and townhomes, staying at one gives a feeling which makes you belong in that city.
  • More Flexible: Unlike other rental sites, the rentals from Airbnb provide certain policies like check-in or check-out at any time. This makes Airbnb more flexible.
  • Less Money More Space: Most online rental marketplaces could be pricey when you try to stay out with more number of your friends. It is not in Airbnb when you book yourself an entire place.
  • Priceless Amenities: Airbnb comes with amenities that are more than our expectations, i.e., Airbnb includes complimentary breakfast for most bookings. A great way to save money.
  • Face-to-face interaction with the owner: Usually the hosts who rent their space will be the owners and they wouldn’t have much space to rent. This makes them avoid the burden which most hotel managers face. They will have one guest at a time and will be very much sweet & polite to increase their booking rates. Any inquiry could be made with the owner themselves.

How to go about building an app like Airbnb?

To start with, you need to curate all references and resources that should go into building the plan for your Airbnb-like rental booking app. You can explore the online rental business and get a feel for the Airbnb app.

Take it further by communicating the ideas you gather from here with an expert who have experience building such applications.

Moving further, take your decision on the online rental business platforms you would like to cover. Now you can finalize the feature list and functional components you would like to have in your Airbnb clone.

Pick your theme or get interface ready from the UI team and get the entire thing synced together to get you a real app.

Statistics of Airbnb Revenue 2016 - 2018In the process, keep yourself involved with the proceedings and test things as they take some prominent shape. This approach would allow you to keep control of how well you reach your product goal in the end.

Now, you have to arrange for the required infrastructure and build up a development environment. Or, you can look for a development company to help you with all of it.

Or you may simply contact us to build you a booking solution. We, at Appkodes, follow the above points and develop a fully functional and attractive Airbnb like online rental business app named Airfinch.

What is Airfinch?

Airfinch is a unique Airbnb Clone Script that helps in building a stunning online rental platform for connecting people who are interested in renting out their spaces with the people who are looking for those spaces for rent.

It is the best choice for entrepreneurs who want to build a full-fledged online vacation rental portal.

Airfinch helps in building a feature-rich online vacation rental booking, hotel booking system, travel, and holiday Rental platform. Because it includes the most vital features of Airbnb. It also helps to kick-start a quick web-based rental reservation system.

The Script provides a common roof for;

  • Buyers –  to rent a home or space
  • Renters – to list their own space for rent

Airfinch Features

  • Social signup and login
  • Instant/Request booking
  • Hourly/Nightly booking
  • Internal messaging system
  • Reviews and ratings
  • Calendar
  • Wishlist
  • Advanced search/filter
  • Map and location-based search
  • Multiple currency/Multilanguage
  • Payment gateway/ Transaction history/Cancellation policy
  • Guest/Host reservation
  • User verification
  • Instant notifications
  • Invite friends.

Additionally, explore more features that you can incorporate into your online accommodation website.

How Airfinch Works?

Appkodes Airfinch Working Model

To Sum up

We, at Appkodes, developed a remarkable Airbnb clone script to build astounding online rental platforms. We also provide additional features, add-ons, and extensions in our Airbnb clone script to build new business ideas.

I will be coming up with individual blogs for such business ideas with a brief analysis. Watch out this space for new posts in the future for online rental business ideas.

At Appkodes, we offer end-to-end app development solutions and services. Our team of experts focuses on delivering top-notch solutions to serve the clients better. This benefits the client with a well-crafted app that perfectly suits their requirements.

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Reach out to us if you are interested in launching an Online Booking business with our powerful Airbnb Clone script.

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