A great way to make money by renting out your spare bedroom or living room couch, but you also have the benefit of meeting new people and making new friends.
Airbnb is an online marketplace connecting travelers with local hosts. On one side the platform enables people to list their available space and earn extra income in the form of rent. On the other, Airbnb enables travelers to book unique home stays from local hosts, saving them money and giving them a chance to interact with locals.
Benefits for the Airbnb Business
- Enables owners to list their space on the platform and earn rental money.
- Airbnb provides insurance to listed properties.
- Gives cheap options to travellers to stay with local hosts.
- Facilitates the process of booking living space for travellers.
- Rating and review system for hosts and guests.
Problems and Solutions
travelers or hosts using Airbnb is the trust factor. After all giving your space to a stranger as a host and living with strangers at their place as a traveller might not be easy.
But Airbnb has a verification process in place for every host and traveler on its platform. Apart from the verification badge, Airbnb also motivates people to sign up with their Facebook account or at least link it with their airbnb account for better transparency.
How Airbnb makes money
Airbnb offers free listings to property owners and let’s travellers browse the listed spaces and select the one which best suits their needs on the platform. The business model of Airbnb is such that the booking and monetary transactions are done on Airbnb’s platform.
- Airbnb charges 10% commission from hosts upon every booking done through the platform.
- Airbnb charges 3% of the booking amount as transaction charges from travellers upon every confirmed booking.