Airbnb and An Airbnb Business Model Case Study

Airbnb and An Airbnb Business Model Case Study

An Airbnb could be a residential property that hosts rent on a brief term basis to travelers. It can be something from a house, one space, a ship or perhaps a tree house. consider it as pop-up accommodation, a marketplace wherever individuals rent out their properties.

In this article, I’ll tell you precisely what Airbnb is,its history, how it works and the way to begin an Airbnb business and An Airbnb Business Model.


Airbnb stands for Air Bed and Breakfast, a very easy meaning to understand.

Airbnb is a web based marketplace that connects those people who wish to lend their homes with people who are searching for shelter in that area. It presently covers over 100,000 cities and 220 countries worldwide.

The company’s name comes from “air mattress B&B.”The name was originally Airbed & Breakfast when one in all the founders rented an area in his apartment with an airbed to accommodate the guests.

Airbnb History

The company was based by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk in San francisco throughout 2008 wherever they became one of the primary peer-to-peer services that specialised in housing accommodations.

The founders were traveling to a conference in 2007 however couldn’t acquire their housing, therefore two of the founders decided to lend a part of their flats in order to assist pay for the price of the trip. This sparked their plan. The founders wished to alter the way that individuals thought of travel. In 2009 they made a partnership with Y Combinator and expanded its limited offerings.

They continued their growth and capital raising efforts to eventually grow its operations internationally by exploiting Accoleo. Airbnb currently has operations in 191 countries and is in a position to rent out a room, a home, or perhaps a castle for an evening or longer.

When you lend (‘list’) your home, or a room among your home, on the Airbnb platform for guests to stay in. Or, once you stay in another person’s home on the Airbnb platform.

“We’re Airbnb-ing in Paris”

Additional info

The online travel platform, originating in the urban center in 2008, permits property homeowners (‘Hosts’) to list their home on the site for others (‘Guests’) to book and keep in. Examples in style Culture/Media: The Telegraph: “Can buy-to-let investors get a lot of by Airbnbing their properties?

The Wall Street Journal: “I told my sister we had Airbnb. Once a sharing-economy platform becomes a widely known verb, it’s left the realm of trend and becomes a cultural game-changer.”

Airbnb Business Model Case Study


Airbnb is a web platform that enables individuals to rent short term accommodation. This ranges from regular individuals with a spare sleeping room, to property management companies who lease multiple rentals.


The original plan for the corporation began in 2007 with roommates Brian Chesky and Joe Gebbia. that They had recently moved to an urban center and were searching for fascinating opportunities.


The idea didn’t really take off for one more two or for another year. The buddies went through many various models before the corporation became successful. In fact, their 1st spherical of funding was an original plea of slight desperation.


Brian Chesky has done a fearless job at selling Airbnb as a community of individuals interested in making a home far away from home, wherever travelers feel that they really ‘belong’. He talks regarding trust, sharing, and making a lot of open world houses. within the era of hotels the majority would rarely see the traditional aspects of life in a foreign location.

They would have extremely catered and curated expertise. Airbnb offers a middle ground within which several will expertise a more residential life-style, at a price abundant below hotels.

Struggles/ Disruptions

Throughout this success story there are thousands of stories of struggle and frustration. I’m talking focusing on the neighbourhoods, communities, and cities that Airbnb has influenced.

After all that it becomes one in all the simplest and reliable websites for the travelers.

Airbnb Competitors

Airbnb’s fast rise to world domination within the vacation rental business has kick-started a world arms race to scoop out the maximum amount of the market share during this sector as possible, with the likes of spending in far more than $5 Billion in 2019 on marketing alone.

So, who are the most important competitors for Airbnb? And, what are their distinctive worth propositions?

Here are some airbnb competitors that you simply should know about :


HomeAway has been dominating the business for several years currently and is one of the foremost celebrated Airbnb competitors. you’ve got most likely come across it on Google as it may be seen among the highest search results for booking sites. There are over a pair of million listings on HomeAway and also the platform operates in 190 countries.


Another nice difference to Airbnb is Vrbo, which stands for Vacation Rental By Owner. Like HomeAway, Vrbo offers solely non-public homes and residences.

In 2006, Vrbo was acquired by HomeAway, and as of 2015, the Expedia cluster acquired HomeAway, and, thus, Vrbo likewise. If you list your property on Vrbo, it’ll mechanically be listed on HomeAway is before the curve with its guest-friendly, easy-to-navigate program and instantly reserved choice. This makes it a favourite among inquiring guests. These options mean that it should increase your occupancy rate as additional guests can elect creating reservations through the web site due to its simplified booking method. offers over twenty seven million listings and covers over 130,000 destinations in 227 countries.


Expedia is often not the primary vacation rental platform that involves guests’ minds when they are trying to find vacation rentals. Thus, it’s typically overlooked by several hosts. Listing your property on Expedia will assist you get ahead of the competition as many hosts don’t have it on their radar.


TripAdvisor’s most outstanding feature is providing feedback from the travel community. This can be conjointly the reason why guests like to hunt for places to remain through its web site. it was supported in 2000 and contains a large variety of reviews that are collected over the years. TripAdvisor is a trusty supply of data for several travelers.


It works similar to other Airbnb competitors. you have the power to optimize your listing by adding photos, spelling out the minimum and maximum-stay policies, the amount of rooms, etc.

9flats has over 30,000 hosts in 104 countries.


What makes this Airbnb competition stand out is that it focuses exclusively on hosted housing wherever the host is present.

Here you’ll hire out a personal or shared room, or bed at costs that are additional fitted to small budgets. If you’re simply beginning out and have an additional area to rent, this might be a decent place to start out.


This Airbnb competition has a completely different approach to the holiday rental business. It offers luxury rentals in Newyork town, Los Angeles, San Francisco, London, Milan, Florence, Rome, Paris, and Sydney.

Listing your property on onefinestay can assist you to attract additional upmarket guests. this may take your vacation rental business to an entirely new level.

Kid and Coe

If your rental is family-friendly and your arrangement is to attract additional families, this can be the best  Airbnb alternative that may bring you additional guests.

This Airbnb-competitor platform focuses on family-friendly accommodations and providing unflawed expertise for families with children. Therefore, promoting your rental on kid and Coe can make sure that additional such guests see your offer and book your rental.

An Airbnb Business Model 

Airbnb is an economic revolution that’s turning countless individuals like myself into entrepreneurs. but how does one quit your 9-to-5 and switch your Airbnb side gig into a full-time job? I supported Passive Airbnb to support different Airbnb hosts on their entrepreneurial journey. Currently I am sharing my prime tips with those of you who are simply getting started.

Decide on a Budget

Whether you propose to invest {in a|during a|in an exceedingly|In a very} ancient rental property or an Airbnb rental, the primary step is to calculate what proportion of money you’ll afford to pay on an investment property. To do this, you have got to seem at your savings likewise as how much money you expect to be creating within the returning years.

As a beginner real estate capitalist, it’s necessary to not leave yourself with zero money reserves as anything will happen within the world of real estate finance. As an example, you’ll face a surprising repair issue with your Airbnb financial gain property otherwise you may experience a below-average Airbnb occupancy rate for a couple of months, like the situation caused by the Coronavirus pandemic.

Choose the simplest assets marketplace for beginning an Airbnb Business

The next step in the way to begin an Airbnb business is to pick out a location. As you already recognize as a true estate capitalist, location is one of the foremost necessary factors for the success – or failure – of your rental business endeavor.

Study the native Airbnb Laws and regulations

After conducting rental marketing research and selecting a couple of top locations for vacation home rentals, you ought to acquaint yourself with the native short term rental rules. In response to the rapid growth of the house sharing business within the past decade, several US cities and towns have adopted restrictive legislation in a trial to limit the any unfold of short term rentals and shield the native population. As a result, vacation home rentals became outlawed in several locations, whereas in others they’re strictly regulated.

Analyze the return on the Investment of Your Airbnb Rentals

The next step in the way to begin an Airbnb business is to investigate the rate of return on the rental property that you’re progressing to obtain. you ought to conduct rental property analysis on a couple of the foremost promising listings that you found throughout your property search.

Typically, using the Airbnb program for analysis requires months of Airbnb knowledge assortment, gathering, input, and analysis. By the time you’re finished the analysis and prepared to maneuver forward with the acquisition, all profitable opportunities will be gone.

Buy an Investment Property

You have done everything to be prepared for purchasing a rental property confidently that it’ll bring you a positive income and a high return on investment. If you’re an skilled assets capitalist who is currently switching to beginning an Airbnb business, you’ll purchase the property on your own.

Fix Up the Airbnb Property

Next in the method of the way to begin an Airbnb business is to make sure that your short term rental property is in an exceedingly sensible rentable state. Throughout the house examination before buying the holiday home rental, you ought to have gained a decent understanding of this state of the property and what repairs are required before you’ll rent it out on Airbnb.

Choose the most effective Short Term Rental Platform

Although short term rentals are ordinarily referred to as Airbnb rental properties, Airbnb isn’t the only web site wherever you’ll list and market your vacation home rental. There are dozens of different home sharing platforms like,VRBO,, and plenty of others.

As a primary time Airbnb host, it’s necessary to explore a couple of completely different websites and select the most effective one for your particular case. check up on whether or not they have a list fee otherwise you only pay a percent of your bookings. ensure that you just recognize specifically what proportion you’ll be expected to pay and what you’ll get in return for this fee.

Create a list

The last step in the way to begin an Airbnb business is to list your property on the platform or platforms that you have chosen. keep in mind to use high-quality photos that show your Airbnb rental within the absolute best approach and highlight its advantages over different similar short term rental properties.

In addition, write a truthful description that emphasizes the expertise – not only the property – that you offer. point out native attractions. Don’t exaggerate because the last item you want as a brand new real estate capitalist in vacation rentals is to disappoint an Airbnb guest and acquire a negative comment.

This is the way to begin an Airbnb business or a popper Airbnb business model. According to nationwide real estate market knowledge analysis by Mashvisor, within the overwhelming majority of markets Airbnb rental properties offer a considerably higher return on investment than ancient investment properties. buying an Airbnb property is completely worthwhile.