Amresh Babu

12 Apr 2019 on Insights for Entrepreneurs · 8 min read

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 for 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, updates listings and availability, shares 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 they made a simple website, a blog with maps.

Two men and a woman showed up paying $80 each and after guests left 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 is not growing much.

Finally, they realized 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‘s 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. That is how Airbnb is invented.

How Airbnb Started?

How Airbnb Works?

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

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 hosts and travelers: hosts list and rent out their unused spaces, where travelers search for and book accommodations in 192 countries worldwide.

Airbnb Working Model

What does Airbnb allow a host?

Equipped with a host 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 are qualified to become a host. First, you will be needed 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 it’s done, now you may list your space by using your profile. While listing you will be asked to enter the information that is related to your space such as a 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, that 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 around your neighborhood
  • Interact with guests through the message and manage reservations.

What does Airbnb allow a guest?

Airbnb is an online rental business and a community marketplace that connects people looking to rent their homes with people who are looking for accommodations.

It also allows guests to search for lodging according to their preference with filters for type, date, location, and price.

And the other useful thing is 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 be served up with the list of experiences offered by Airbnb hosts.

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

Airbnb Business Model Canva

How Airbnb Makes Money

Airbnb online rental business makes money through two sources:

  1. Commission from Hosts/Owners

10% of the commission will be received from the Hosts whenever a booking is happening through the platform.

Hosts will also be charged with 3% for the installments of the visitors.

  1. Exchange charge from Travelers/Guests

For each booking, 6-12% of the booking sum is charged from travelers via Airbnb. This is non-refundable.

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

Airbnb acts as an intermediary for hosts and travelers. Hosts (property owners) list their properties in Airbnb. Travelers search for their choice of accommodation in their destination locations.

It is said that Airbnb earns around $900 million in revenues. It is the leading revenue making business in online rental business because of their 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 every successful booking made through Airbnb, the website collects a service fee from hosts and transaction fees from travelers. Airbnb at no point in time owns any property.

Airbnb's Revenue Source

Reasons For Success:

  • Feel like you are at your home: Since Airbnbs are full of space with neighborhoods, condos, and townhomes, staying at one gives a feel which makes you belong in that city.
  • More Flexible: Certain policies like check-in or check-out at any time are only provided by rentals from Airbnb and not by any other rental sites, which makes Airbnb more flexible.
  • Less Money More Space: Most online rental business 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: Most Airbnbs comes with amenities which are more than our expectations, i.e., Airbnbs include 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 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 in 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 app 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 closely 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 Appkodes have followed the above and developed a fully functional & attractive Airbnb like online rental business app named Airfinch.

What is Airfinch?

Airfinch is an Airbnb like (Airbnb Clone) business which provides a unique platform to people who are interested in renting their space and earning money.

For entrepreneurs who are interested in building up a business like online vacation rental portal, Airfinch is the ultimate destination.

Airfinch is fully supported online vacation rental booking, travel and holiday Rental System, powered by most vital features of Airbnb. It can be utilized to kick-start a quick web based rental reservation system.

The Script provides a common roof for;

  • Buyers – to buy a home or space
  • Sellers – to list your own space and earn money
  • Renters – to list their own space to rent and agents.

Airfinch Features

  • Social signup and login
  • Instant/Request booking
  • Reviews and ratings
  • Wishlist
  • Advanced search/filter
  • Map and location-based search
  • Multiple currency/Currency conversion
  • Payment gateway/ Transaction history/Cancellation policy
  • Guest/Host reservation
  • Verified user and notification
  • Messages and Invite friends.

Additionally, explore more features which could be incorporated as add-ons to your online accommodation website.

How Airfinch Works?

Appkodes Airfinch Working Model

To Sum up

So, we have developed a software script which could be used to build an online rental business like Airbnb. 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. Group of experts working as a team make much more efficient for us to serve the Clients better. This benefits the client by receiving a well-crafted app which perfectly suits their requirements.

Reach Us…!

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

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