How Airbnb Operates for Hosts, Visitors, and the Business

How Airbnb Operates

Airbnb has completely changed the hospitality sector. Before the company’s formal launch in 2008, tourists would usually reserve a hotel or motel room when visiting a different location. Many of these same people are using Airbnb now days.

Airbnb’s concept is straightforward: it connects locals who have a spare room or complete house to rent to tourists. With the guarantee that a large corporation will manage payments and provide further support, hosts who use the platform can market their rentals to millions of individuals worldwide.

Additionally, Airbnb may provide visitors a cozy place to stay—possibly with a kitchen to cut down on eating out—often at a cheaper cost than hotels.

Airbnb’s background

The current CEO, Brian Chesky, Nathan Blecharczyk, and Joe Gebbia founded the business that is currently known as Airbnb in 2008.

After two of the founders began renting out air mattresses to conference attendees in their San Francisco home, the concept took off. That’s why Airbed & Breakfast got its original name.

After being rebranded as Airbnb in 2009, the company’s services expanded beyond air mattresses to include spare rooms, apartments, whole homes, and more. Its operating locations expanded as well. In 2013, Airbnb established its European headquarters in Dublin, Ireland, after opening an office in Germany by 2011. San Francisco continues to be its principal corporate headquarters.

In order to accommodate first responders during the COVID outbreak, Airbnb started its Frontline Stays service in 2020. The company went public in 2020 as well. Under the ticker symbol ABNB, its common stock is traded on the Nasdaq platform.

Airbnb for Visitors

When visitors click on any listing on Airbnb’s website, they may see a wealth of information about the property, such as a description (including amenities), pictures, check-in and check-out timings, costs, house rules, availability, host details, and more. Additionally, they have access to past visitors’ reviews.

Generally speaking, you must do the following in order to use Airbnb:

Check out the Airbnb website.

If you don’t already have an account, create one. It may take a little time to register. Among other things, you’ll need to upload identification and confirm your phone number.

After choosing the desired area and day or dates, start looking through the listings to find a spot that is open. To tailor your search, use the site’s many filters.
Once the lodging of your choice has been identified, reserve it by making a reservation.

For Hosts, Airbnb

Both individuals and businesses can host on Airbnb. You can rent out extra space in your house, like a second bedroom, as an Airbnb host. Or you could rent out your whole house.

Although Airbnb has delayed adding new activities to the list, you can still offer unique events in your community, such as concerts, excursions, and classes.

Certain aspects of their rental, such amenities and unique characteristics, are at the host’s control. You may offer to pick up and drop off visitors at the airport, for instance. Prices, security deposits, refunds, check-in and check-out times, and other details are all decided by the hosts.

Generally speaking, you must do the following in order to rent out your property:

Start by finding out whether there are any fees or limitations on rentals in the neighborhood where your property is located.

Learn about the criteria that Airbnb has for hosts.
6.
Make an account on Airbnb for free. Next, select Airbnb Your Home from the menu in the top right corner.

Click Airbnb Setup after that. Make your property’s listing appealing and eye-catching. It can be beneficial to have eye-catching pictures that provide prospective visitors with a comprehensive view of the area.

You can get in touch with a local “Superhost Ambassador” if you need inspiration or assistance developing your listing.

Decide on your price. To help with this, Airbnb has a tool in its Help Center.

Publish your listing as soon as everything is finished.

After you publish your listing, you’ll be able to add or modify things like your house rules and basic settings. To learn more, visit Airbnb’s Help Center.

Cost Airbnb

The host’s pricing plus Airbnb‘s guest service fee (up to 14.2%) make up the total amount that guests pay for a room or other space on the website. Airbnb charges hosts a fee of about 3%.

What Benefits Do Airbnbs Offer?

There are other reasons to think about Airbnb besides saving money; in fact, some premium Airbnbs are more expensive than some hotels. However, you can often get a decent offer. And that’s not all. You can theoretically meet a local through Airbnb, and they could be eager to suggest events that are coming up as well as their favorite eateries, pubs, and tourist destinations. You’re paying for a more intimate setting and a customized touch.

Protection and security

Reservations may be refused or canceled by hosts if a visitor makes them feel unsafe or uneasy. Airbnb also provides “top to bottom protection” with its Air Cover for Hosts service, which includes 24-hour safety phone access, liability and damage insurance, reservation screening, and guest proof of identity.

How Does Airbnb Generate Revenue?

The business strategy of Airbnb is really successful. The business has profited from the so-called sharing economy, much like Uber, Lyft, and others, by renting out real estate that it does not own.

Airbnb receives a cut each time a reservation is made. Customers will get a breakdown of the fees they would incur if they proceed after clicking on a property. As previously said, hosts normally pay roughly 3% of their revenue, whereas guest fees usually peak at 14.2%.

Airbnb’s benefits and drawbacks

Although using Airbnb allows hosts to profit from their property, there is a chance that guests could do damage. The benefit for visitors may be reasonably priced lodging, but there is a chance that the property won’t be as desirable as the listing suggested.

What Is the Refund Policy of Airbnb?

The cancellation policies of Airbnb hosts vary, ranging from free to extremely stringent. If a guest decides to cancel after making a reservation, they might be eligible for a full or partial refund. The amount of the refund is often determined by the host’s policies and the remaining time before check-in. A detailed breakdown of how much they will receive back if they choose to proceed will be shown to guests who opt to cancel their reservation.

If the guest files a request within 24 hours after check-in, they can also receive a partial refund.