Airbnb was founded in 2008 to address the problems of expensive hotels that isolate travelers from local culture and the lack of an easy way for people to book stays with locals or become hosts themselves. Airbnb operates a website and mobile app that functions as an online marketplace connecting travelers with hosts offering local accommodations ranging from entire homes to individual rooms. Airbnb earns commissions on bookings and has grown rapidly since launching, reaching over $4 billion in total funding and $2.6 billion in revenue by 2017.

1. uniqname: davcao

2. The Problem
● Travelers need a cheap place to stay
● Hotels leave you disconnected from the city and local
culture
● No easy way to book a stay with a local or become a host

3. Product
Website Mobile App
Marketplace to match travelers and hosts

4. Search for city Review Listings
(Homes or Experiences)
Book it!

5. Host local experience Host your property

6. Value Proposition
● Cheap, local stay
● Income
● Information-driven marketplace

7. Financials
● 2017
○ $4.4 Billion Total Funding
○ $2.6 Billion Revenue
○ $93 Million Profit
Airbnb Revenue

8. Business Model
Commission Fee + Transaction Fee
3%
Experience
6-12%
20%
Property
6-12%
(Hosts) (Guests)

9. Timeline
AirBedandBreakfast.com,
DNC Solution
Aug. 2008
Sold cereal boxes for $30k
Nov. 2008
Y Combinator
Jan. 2009
$7.2 Million Funding
Nov. 2010
1 million bookings
Feb. 2011
Airbnb Law
Oct. 2014
Airbnb Experiences
Nov. 2016
Hire CFO
Nov. 2018
$112 Million funding
July 2011

10. Secret Sauce

11. Competition - Hospitality / Short-Term Rental
Varying Size Entire Property Per Room
Varying Size Entire Property
Guests: 5-15%
Hosts: 3%
Guests: 6-12%
Hosts: 8% or $500 / yr
None
Community
Ratings + Reviews
Booking
Fees
Experiences
Hosting

12. Challenges
● Trust
● Traveler retention
● Regulations

13. Prediction
Success!

14. References
● https://www.statista.com/statistics/339845/company-value-and-equity-funding-of-airbnb/
● https://www.businessmodelsinc.com/exponential-business-model/airbnb/
● https://jungleworks.com/airbnb-business-model-revenue-insights/
● https://fourweekmba.com/airbnb-business-model-explained/
● https://www.investopedia.com/articles/investing/112414/how-airbnb-makes-money.asp
● https://www.cnbc.com/2018/01/02/airbnb-from-1400-guests-on-new-years-eve-2009-to-over-3-mil
lion.html
● https://techcrunch.com/2018/11/26/amazon-exec-dave-stephenson-tapped-to-lead-airbnb-to-the-p
ublic-markets/
● https://www.nolo.com/legal-encyclopedia/overview-airbnb-law-san-francisco.html
● https://mashable.com/article/airbnb-vs-vrbo-trip-booking/#2PC5NsX0zPqa
● https://www.airgms.com/airbnb-regulation/?utm_medium=Post&utm_source=Quora
● https://www.crunchbase.com/organization/airbnb#section-funding-rounds

15. Q/A