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Airbnb's popularity has skyrocketed since its inception in 2008. Airbnb became a billion-dollar company by offering travelers the opportunity to stay in other people's homes. It has changed the way people travel. According to recent reports, more than 260 million people worldwide have stayed in Airbnb properties while traveling or for other reasons. Airbnb is now present in approximately 81,000 cities across 220 countries.

The unique idea of the Airbnb business model is the reason for its huge success. 

Let's get started!

What is Airbnb Business Model?

The Airbnb business model is an aggregator business model like Uber and other organizations. Airbnb act as a bridge between the host and guest (Travellers) to connect. Hosts can list their property on the Airbnb platform and guests can book on the same platform as per their requirements. Hosts will get the rent for their property in exchange.

Let's see the market segment of the Airbnb business model,


  • They are the one who owns the property and wants to rent the extra spaces/houses to earn extra bucks. So, they can list their property on the Airbnb platform with proper descriptions.
  • Hosts have the option of accepting or rejecting travelers based on reviews from other hosts.
  • They can list their property along with the amenities they will provide, as well as the rent, check-in, and check-out times.


  • Travelers are people who rent out their living space from hosts.
  • They have the option to filter the listing as per their requirements.
  • They can make the payment online, which makes the hassle-free booking.


  • Airbnb hires freelance photographers to take high-quality photos of the property.
  • Airbnb pays for the highest-quality photographs that generate the most bookings.

Airbnb Revenue Model

Airbnb's revenue model is based on a fee charged to both hosts and travelers. Airbnb's revenue model is based on listings and stays. Airbnb makes money by providing a platform where these listings and bookings can be made. Airbnb generates revenue from two major sources:

Host's Commissions:

Airbnb takes 10% of the payment amount as a commission from hosts whenever someone chooses a host's property and makes a payment. This is a component of the Airbnb fee structure.

Transaction fee from travelers:

When travelers pay for their stays, they are charged a 3% transaction fee. This amount is added to Airbnb's revenue.

These are the two major revenue sources for Airbnb.

Planning to start a vacation rental app like Airbnb?

Get to know the RentALL – Airbnb Clone is a technical solution for entrepreneurs for launching their rental marketplace platform faster in the market. It is equipped with essential features to run a marketplace where customers can share their properties.




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