Airbnb is an American based online marketplace company that connects travellers with the local inhabitants of a place who wants to rent their property to earn money. Airbnb provides services to the travellers so that they can get an affordable place and they get a chance to know the local residents of the place. Read our full Bog : https://www.appsrhino.com/how-airbnb-work-business-model-and-revenue-model/

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2. HOW AIRBNB WORK:
BUSINESS MODEL
AND
REVENUE MODEL

3. Can you name something more fun than travelling?
Travelling and exploring new places have always
been one of the most memorable parts of
someone’s life. But there are times people face
problems in terms of reservation in a hotel, or
cannot enjoy a different culture which leads to
mood-bombing experiences.
Such issues led to the rise of such businesses that
offered solutions for the travellers regarding
booking a hotel, or experiencing the new culture,
different places to explore, and so on.
Let’s move forward and learn about a marketplace
that has changed the travelling experience for the
travel-lovers.

4. Airbnb is an American based
online marketplace company
that connects travelers with
the local inhabitants of a
place who wants to rent their
property to earn money.
Airbnb provides services to
the travelers so that they can
get an affordable place and
they get a chance to know
the local residents of the
place.
Airbnb: A Marketplace
for Traveler's

5. Feature 1
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Airbnb Company was founded in 2008 by Brian Chesky, Joe Gebbia and
Nathan Blecharczyk
In 2012, Airbnb overtook Hilton Hotels for night booking which has over
1,500,000 listings in 34,000 cities and 190 countries.
Airbnb launched a travel guide known as Neighbourhoods that enabled
travellers to book a place in the neighbourhood according to their choice
Features
The company’s headquarters are located in San Francisco, California.

6. Key partners play a major role in defining and shaping up
the business model of Airbnb, hence they cannot be
replaced easily.
i. Hosts: The hosts in the Airbnb business concept are the
ones who bring their homes, or property and provide the
customers various options to live in. There are two types of
hosts:
Airbnb Business Model Canvas:
How Does It Work?
Airbnb business model canvas comprises some key
components that are an essential part to define Airbnb
and Airbnb business concepts. Let’s move forward and
discuss them one by one in detail.
1. KEY PARTNERS

7. · Rental hosts provide houses, rooms, condos, etc.
· Event hosts provide a tour guide across the local
streets, food, fashion, and culture.
ii. Investors: The Airbnb business model involves the
partners who are involved with the funding segment to
acquire customers, develop the app, balance the cost of
capital and other important operations of the business.
2. KEY RESOURCES
In the Airbnb business concept, key resources are the
hosts and the guests. Airbnb hosts make sure that the
guests do not feel total strangers at the new place. The
hosts try to make the guests comfortable by guiding
them about the region where the guests wish to travel.
Such quality services define Airbnb.

8. 3. KEY ACTIVITIES
Airbnb’s business model follows such key activities that involve
such functions that reduce negative operations and inculcate such
practices which lead to the profit in the business.
Ø Airbnb business concept is maintaining a bond with the
customers to gain their loyalty and trust towards the company and
at the same time persuading new customers to join and participate.
Ø Airbnb business model concept smartly deals with the customers
by taking their complaints into account and working on the
improvements and making the transactions between the hosts and
the customer easier.
Ø Airbnb business model works on the concept of spreading their
reach to as many areas as possible which entices many guests to
join and provides offers to the customers to keep their trust intact.
Ø Providing the customers with great experience is what defines
Airbnb.

9. The Airbnb business model operates on the demand and supply chain
system i.e. demand for the hosts and the supply to the customers.
a. Airbnb business concept works on the host value propositions
through following ways:
· Generating income
· Easy Transactions
· Interacting with new people
· Coverage of the Insurance
b. Airbnb business model canvas functions to provide the guest
value propositions through following ways:
· Booking convenience
· Ample number of choices
· Better cultural experience at the destination city
· Cheaper rooms availability
· Cashless transactions
· Sharing the experience through reviews
4. VALUE PROPOSITIONS

10. 5. CUSTOMER SEGMENTS
Airbnb business concept defines the customer
segmentation through two divisions which are
mentioned below:
§ Guests are divided on the basis of their travel
reasons, or time period. For instance, some guests
travel due to business purposes while some
travelers come to enjoy their leisure time, some
travel to a single destination while others want to
explore multiple destinations
.§ Hosts are divided on the basis of the type of
accommodation (room, house, etc), location
(country, or city), and location type.

11. Digital marketing: Promoting
Airbnb for work through digital
advertisements, content
marketing, social media
platforms, etc.
Word of mouth: Reviews and
ratings, messaging applications,
influencers, and so on.
Communication channels like
Airbnbmag, Airbnb newsroom,
Facebook pages, etc.
6. CHANNELS

12. Revenue Model of Airbnb: Airbnb Business Concept to
Earn Revenue
The revenue model of the Airbnb for work is described below:
1. Guests pay a little more money than the hosts due to the supply and demand. Hosts are harder to get as
there are not many people who own a separate place to rent while the guests try to save the hotel’s
accommodation fee.
2. The hosts have to pay some fee on the cancellation of any booking which accounts to 3% fees on a
flexible cancellation, 4% fees on a moderate cancellation, and 5% fees on a strict cancellation policy.
3. Event fees involve no service charges for the guests and 20% charge for the event hosts as the event
hosts are easily available as such hosts get a chance to earn additional income from their hobbies.
Airbnb earn revenue through two medium: Guests and hosts
Airbnb offers a platform to the hosts to earn revenue through their free space and enables the guests to
experience the local culture and stay at cheaper places rather than spending at the expensive hotels. Each
booking helps Airbnb to earn a commission of 6-12% from the guests and 3% fee on every transaction.

13. Airbnb is one such marketplace that can
act as an inspiration for many upcoming
start-ups. The business model of Airbnb
has taken the marketplace to more than
190 countries across the world and is
expected to grow its reach to other parts
of the world.
If you are also thinking of building a
marketplace like Airbnb, then contact
AppsRhino for your next Airbnb clone.
CONCLUSION

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