If you also do that, Airbnb is the goto app for you while you plan your next travel to another city.
Who does not know about Airbnb, right! It is one of the most talked-about companies in today’s world. Let us learn something more about the living space rental company. We are bringing you, the business model of Airbnb.
So, First thing first, how did Airbnb start?
The two roomies Brian Chesky, Joe Gebbia and the Techie Nathan Blecharczyk started Airbnb in San Fransisco in the year 2007.
Well! They were finding it difficult to pay their rent, so they rented out the extra airbed available in the room and rest is history.
Where are they now?
- Airbnb is present in more than 191 countries and has footprints in 100k+ cities
- On average, More than 2Million people use Airbnb every night
- The total guest count has crossed 500Million
- As per BusinessInsider, Airbnb is valued at $38bn
- Prominent Investors: Sequoia Capital, Tigar Global, K3, G Squared and many more
|Presence of Airbnb|
Let’s see how the business of Airbnb runs.
First of all, Airbnb is a platform which allows two parties to participate. The first is the one with the property(Host), and the other is the Guest(renters).
- The urban people having extra space or beds in their home
- The riches who have multiple houses and vacation homes located outside of the city
- Experience and Adventure clubs
- People who want temporary but safe homestay in another city
- Those who like to meet new people
- Who looks forward to gelling in with the new culture
- Those who want to stay in hotels
- People going on vacation
- To rent their property hasslefree, for a short duration, as well as for a long duration(Convenience, Accessibility)
- Earn by sharing the spare beds in the apartment/room (Safely)
- Meet new people and be part of the Airbnb community
- Get the best place to live in a new city quickly (Convenience, Accessibility)
- Check out multiple options which suit them (Airbnb recommended)
- Be part of Experience and Adventure clubs
Channels used for communication
- The Website, online support
- iOS and Android App
- Online Advertisements
- 24×7 Support
- Mostly Self Service
- Personal assistance as and when required
- Online Communities
- Guests(renters) pay a service fee, between 6 to 12 %
- A transaction processing fee of 3% is charged to the host
- The Platform and infrastructure
- The Customers, and the community
- The Brand Equity
- Intimate Customer knowledge
- Maintainance of Platform
- Facilitating transactions
- Security assurance
- Community connect
- Marketing and Onboarding of the new hosts
- Tourism departments of different countries
- Payment facilitator
- International Olympic committee
- Louvre Paris
- Several Medical Tourism services
- Platform maintenance cost
- HR, Insurance and support activities
- Marketing and business development cost
- The marginal cost of adding users is negligible
- Expanding to new cities is a cost centre
- Overall it is a Value-driven lowcost structure business