How it Works

Airbnb has a simple yet unique business model. I can summarise the working of Airbnb in 5 steps and its business model in 2steps. her's how it works.

      - Hosts list out their property details on Airbnb along with other factors like pricing, amenities provided etc.

      - Airbnb sends a professional photographer (if available) to the property location in order to take high quality photographs.

      - Travellers search for a property in the city where they wish to stay and browse available options according to price, amenities etc.

      - Booking is made through Airbnb where traveller pays the amount mentioned by host and some additional money as transaction charges.

      - Host approves the booking. Traveller stays there and finally Airbnb pays the amount to the host after deducting their commission.

The host and the traveler can rate each other and can write reviews based on the experience.
Business Model:

                - Commission from Property Owners (Hosts)

                  Airbnb charges flat 10% commission from hosts upon every booking done through the platform.

                - Transaction fee from Travellers (Guests)

                  Airbnb charges 3% of the booking amount as transaction charges from travellers upon every confirmed booking.

I would recommend you to go through this link to understand the working of Airbnb along with its customer segments, value propositions, revenue model etc.Click here