Airbnb has taken the travel and accommodation industries by storm. It has since become the preferred choice for short-term rentals.
The relatively new brand in the market has attracted millions of clients from across the world. It has given hotels and lodges a run for their money.
Unfortunately, most people do not know how it operates.
People also do not know how to make use of the platform. This article explores in detail everything you need to know about Airbnb.
What is Airbnb?
Air Bed and Breakfast, alias Airbnb, is an online marketplace. It deals with short-term rentals. People can rent their residential property and get paid.
Airbnb was launched in 2008 by Joe Gebbia and Brian Chesky. It connects property hosts with clients who are looking for affordable accommodation.
The platform offers people an easy way to find cheap places where they can spend one or more nights and still enjoy the comfort of home.
Hosts also make some income from their property.
As of 2022, Airbnb has over 6 million listings in over 100,000 cities across 220 countries worldwide. This indicates that most people prefer Airbnb to other accommodation models.
What’s the Origin of this Unique Business Model?
In 2007, two industrial designers, Brian Chesky and Joe Gebbia lacked rent for a month. As a means of raising funds, the duo decided to rent out their home to people who couldn’t find rooms in hotels. They set up air mattresses in their living room, where the guests slept.
In the morning, they cooked them a homemade breakfast.
They were then paid some good money which enabled them to pay their rent. That turned out to be the beginning of an idea that has now become a global phenomenon.
Thanks to the Airbnb platform, which they established in 2008. Today the company is estimated to be worth over 40 billion USD.
How Does Airbnb Work?
Before the coming of Airbnb, travelers would have had to book a hotel or resort for accommodation. The traditional accommodations had their cons, which inconvenienced many travelers.
When the option of Airbnb came up, millions of people jumped on the platform.
It is based on a peer-to-peer business model, which is profitable for both parties.
The hosts use the Airbnb platform to advertise their homes or properties globally. The company helps process and handle payments on their behalf.
Guests can get cheap and convenient accommodation that is more of a home away from home.
The Airbnb company charges a service fee for each booking processed on the platform.
How Airbnb Works For Guests
If you want to be a guest in an Airbnb, there are five steps that you should follow, including:
Visit the Airbnb Website here.
Create an account with Airbnb: This may take several minutes. You must confirm your information. These include your address, identification documents, and phone number. The process becomes shorter when you already have an account as you will only need to log in.
Input your details: This includes the date and location where you want to stay. You can browse the site, looking at the available options.
Bookings: once you have found the right facility, you can make reservations and wait for the host to accept them.
Payments: once the host has accepted your reservation, you can pay for the accommodation. You will receive a notification with all the details, including the location address. If you wish to spend a long time in the facility, you can arrange a payment plan. It should involve paying a deposit and then paying the balance in installments.
How Airbnb Works For Hosts
Life seems to be leaning more on the internet day after day. Online directories are, therefore, an income-fetching avenue for all business owners. You should not be left out.
To host your property on Airbnb, you are required to follow several steps, including:
Registration: You need to register on the Airbnb website. It will enable you to get a license, which is needed before listing your property. You must input your personal and property information. These include the amenities you offer, such as a TV, iron box, air conditioning, etc.
Posting pictures: You are then required to upload photos of the premises. This gives potential visitors a glimpse of what you are offering. You are then required to add a description of the facility. These include how guests will get there, the neighborhood, and your availability.
Booking Settings: This step involves establishing the rules and regulations. You need to state whether you allow smoking or pets. It’s also important for the guests to know the number of nights you allow them on your property.
Pricing: You are then required to input the price you charge per night. You can also offer your first guest a special offer to entice visitors.
Make your property public: Publish your facility on the platform. Your listing will then be visible to everyone using the Airbnb platform worldwide.
Advantages of Airbnb
The millions of people who have turned to Airbnb speak volumes. There is something attractive offered. Here are some of the advantages:
Free Listing: Airbnb does not charge anyone to host their property on the platform. This enables people to list their private homes whenever they want.
Pricing: Airbnb allows the host to determine their price based on their offer.
Payments Process: Airbnb facilitates the payment process. It holds the guest’s payment for 24 hours after check-in before the funds are released to the host.
Amenities: Airbnb’s fully furnished house model offers a customized experience for the guests. You will find a full kitchen that allows you to cook your meal as you would at home. You will also likely find a washer and dryer where you can do your laundry.
Cost: Airbnb is cheaper than hotels and resorts. This allows travelers to save money and get value for their money.
Convenience: Guests can secure accommodation anywhere and at any time.
Disadvantages of Airbnb
Everything that has advantages also has disadvantages. Here are some of the cons of booking Airbnb:
There is no guarantee that what you see is accurate: Airbnb does not verify the photographs uploaded to the platform. There is no guarantee that what you see is what you will get.
Damages: Hosts risk damages. Guests may ruin the property or household equipment. There is some good news, though. Airbnb recently launched a host damage protection program. It covers up to 1 million USD worth of damages. The program does not cover everything though. Exclusions include jewelry, artwork, and pets, among others.
Taxes: Most countries subject Airbnb guests and hosts to a value-added tax (VAT). It may be quite expensive. Hosts in some locations may also be subject to rental income taxes.
Extra fees: Airbnb charges a service fee for every booking process on the platform.
Should I Use Airbnb?
After reading through this article, you may be wondering whether to engage as a host or a client. Well, despite the small disadvantages, the pros outweigh the cons.
Airbnb offers a reliable and convenient platform. Individuals traveling on a budget can be significant beneficiaries of its convenience.
The company has also enhanced its safety precautions. It ensures all its users upload the necessary documents. This reduces theft and damage.
The world is moving into the digital space. Airbnb is revolutionizing the accommodation industry. Change is inevitable, and we must embrace it. It is important to note that Airbnb is here to stay.
Either way, using Airbnb as a host or a client is convenient.