Since Airbnb came into inception in 2008, it has gone on to create a revolution in the way people book spaces when they travel for vacations. It has alternatively acted as a medium for hosts to promote their space and earn through the hosting services.
The revolutionary Airbnb business model has encouraged those in the quest to make their presence felt in this sphere to do so with utmost zeal and passion.
Known as a platform that connects travelers to hosts who have listed their spaces online; it has helped the latter to earn a good amount of money as well through the reservations, so to speak thereby enticing the attention of those wishing to revolutionize the operations of their vacation rental business.
If you are also planning to make your existence felt in this field, congratulations, you are at the right place.
So let’s begin.
Founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia, Airbnb made its name in the last 15 years as an American San Francisco-based online platform that connects hosts and travelers. It allows travelers to access spaces for short-term homestays enabling the hosts to earn a good amount of money from the commissions they receive for the bookings.
This is possible courtesy of the presence of these features that are present on the platform:
Check out the image below to know about the success story of Airbnb to understand how it became such a popular vacation rental platform.
As you can observe in the image, starting from 2008 when the idea for Airbnb was conceived, till 2017, the platform has gone on to become a successive model in the sphere of the vacation rental. Receiving funding of $447.8 million in 2017, the platform has made it easy for hosts to register on the platform to list their spaces so travelers can easily locate them and book them.
Here’s presenting interesting facts related to the Airbnb marketplace.
Take a peek at the graph to gain insight into the growth figures achieved by the vacation rental app.
Image source: businessofapps.com
Now, check out the market share of the platform in the pie chart to observe its performance in comparison to other apps.
Image source: businessofapps.com
Alongside possessing some of the best-in-line features, Airbnb also has easy operations. Check out how Airbnb works in the points below.
Read Also: How Much Does It Cost To Build A Travel Booking App
Gaining insight into the operations of this vacation rental app; let us now comprehend the Airbnb business canvas model to check how it connects hosts and travelers.
The main connection between the startup and the triumph of Airbnb is the Airbnb business model.
Possessing an aggregator model, Airbnb makes it possible for hosts to list their spaces online so that travelers can easily locate them and book them for a specific duration of time paying for the duration they will be staying.
Now you may be wondering if the model is similar to the likes of Marriott. The answer is no. This is because the travelers while booking the space get the opportunity to stay close to the locals. So, in short, the model is different from the likes of Marriott.
Check out the image to get a glance through the Airbnb business model canvas alongside cost structures and revenue.
Image source: apptunix.com
So far, we have learned the business model of Airbnb and its operations, let’s now take a comprehensive view of the Airbnb segments people and their requirements.
Read Also: Travel App Development Guide – Cost, Benefits, Features
It is time we understood how Airbnb earns money.
If we have to discuss Airbnb revenue model; the platform earns through the listings and stays that travelers make on the platform. Check out the image below to comprehend this better.
As you can see in the image, the host is charged a 3% service fee as commission whereas the travel gets charged 6 to 12% approximately as a transaction fee on the amount they pay.
Courtesy of the possession of a unique business and revenue model, having extremely easy operations, and as a result of these attractive figures, Airbnb has enticed the attention of those who plan to enter the vacation rental sphere by developing an app similar to the aforementioned one.
So how to go about that? How to make your vacation rental app development process a memorable one so you can earn maximum revenues through the platform that smoothly connects hosts and travelers.
When you embark on the journey to build an app like Airbnb; it is vital to focus on the budget aspect as it does not make sense to spend much on the development phase, particularly during the inception phase.
There are many factors that affect the cost of creating an Airbnb-like app, such as app design, app platform (Android, iOS, or both), app complexity level, team size, advanced features, the location of the mobile app development company, etc.
Thus, if we have to give a formative figure, the cost to develop an app like Airbnb would be around $20000 to $25000 for a single platform with basic features. However, if you want to launch an app for both Android and iOS, then it would cost you around $40000 to $50000.
If you feel the above cost is too much for you, it is wise to get the customizable Airbnb clone.
Airbnb, its business and revenue model is a source of inspiration for upcoming startups. Possessing an aggregator model, it helps connects hosts and travelers; acting as a medium for hosts to earn through the spaces they list on the platform. This unique model has helped it earn a huge user base and encourage new business owners to build an app on its lines so it earns handsome profits. If you are also planning to achieve something similar; get in touch with us today. The online travel industry is rapidly growing. That is why investing in developing an app like Airbnb or Airbnb clone could be a win-win situation for your startup.
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