Business has become a dynamic sphere with the introduction of technology.
The internet has lessened manual work that takes a maximum amount of time to complete. With its advancement, they can finish work quickly and seamlessly.
The impact is superlatively high in the rental industry. Currently, you are hearing about Airbnb, the first platform to reach the top of the rental market. They developed a brilliant platform where people can find properties and rent them seamlessly as they do traditionally.
The reason for their success is an interface, reliable community, business model, revenue channel, secured security, and more.
In this article, we see two significant reasons, the business and revenue model of the Airbnb clone.
Let’s start!
Overview Of Airbnb Clone Achievements
Before 2017, Airbnb’s market scale was moderate. The active users of it rise to 1.6 % per month. As of now, the total number of active users is 1 billion.
Airbnb became a global business, reaching more than 100 thousand cities in 2019. Airbnb is valued at $75 billion in 2020.
This year, Airbnb has gained its user base to 100 million globally. It is interesting to know their growth, right?
Let’s see the business model first!
Business Model Of Airbnb Clone App
The rental business that follows the traditional method is slightly different from the digital platform. The Airbnb clone script is designed to connect renters with buyers. In technical terms, it is called a P2P platform ( Peer To Peer).
Users enter the platform with their accounts like social accounts, email IDs, and more. They will find their preferred property with the help of the advanced search option. After confirming the place and transaction mode, the user’s booking gets finalized by the host.
The same workflow is followed in the host panel. They log in with their accounts and list their properties. They have the power to accept and cancel the booking.
Airbnb’s value proposition is different from other rental businesses. Let’s see!
The best value proposition of a host is they can make money through the platform. Hosts get a secured business where they can list their location details and personal information. The platform follows robust security that keeps users’ details safe.
For guests, the biggest value proposition is that they can rent. They get a convenient way to rent properties and they don’t get any navigation issues. Above all, travelers can check the host’s profile and share it with others. Finally, they have a secured payment method.
Before we see the revenue channel, let’s see the revenue statistics of Airbnb.
The Revenue Analytical Data Of Airbnb Clone
Another successful year for Airbnb is 2022. Compared to the last year, it has increased 40% in revenue. The net income was $1.9 billion, the first company to reach this height.
The guest base of the platform rose in the last year. Globally, the platform can generate more guests than the previous year.
With its new introduction of features, it increased its active users to 6.6 million globally. They are keeping their record high this year. The Airbnb experts say that they expect to reach double the growth in upcoming years.
Let’s look at the revenue model of Airbnb like app development now!
The Revenue Channel Of Airbnb Clone
Airbnb clone or any online marketplace that emulates Airbnb’s business model typically adopts a similar revenue model to capitalize on the success of the original platform. Airbnb’s revenue model has been quite successful, and by replicating certain aspects of it, a clone enhances its chances of growth.
Let’s look at the type of revenue model!
Transaction Fees
The platform getting an amount from the host is called a transaction fee. Since the app is an intermediator for hosts and users, it takes an amount to use the platform.
- With its reasonable fixed percentage, it can increase its user base and revenue scale.
- As Airbnb has reached the global market, it can increase its potential. The transaction fees collected from these new markets contribute to the platform’s revenue growth.
- Users become potential customers and wish to book repeatedly. The transaction fees from repeat business contribute to sustained revenue growth.
Service Fees
It is similar to the commission fees. But the service fee is that the platform takes an amount from the guest. Guests are typically charged a service fee for using the platform. This fee contributes to the overall maintenance and improvement of the platform, covering expenses related to customer support, platform security, and technological enhancements. It is usually a percentage of the total booking cost.
- Service fees are an important source of income for the platform. This revenue is used to cover the platform’s expenses like investing in technology and infrastructure, and contribute to the platform’s growth.
- As said it has a big part in the platform’s update. One of the most important is the funding of customer support services. Providing excellent customer support helps build trust among users and contributes to the overall success of the platform.
Premium Services
One of the popular monetization models is premium service. If hosts don’t want to pay for each listing, they can buy the premium pack and post it as much as possible. Hosts pay extra for these services, contributing to the platform’s revenue.
- Premium features often come at an extra cost for hosts. The fees associated with these premium services provide an additional revenue stream for the platform. This diversification of income sources can be crucial for financial stability and growth.
- As the hosts can list many properties, the user base and revenue scale of the platform increase.
Concluding Part,
Airbnb is a big rental platform that offers places for renters to earn and users to find places easily and seamlessly.
The revenue channel of the Airbnb clone software is Starlight; the platform’s sustainability relies on its revenue model. Airbnb is a profit-building revenue model that is feasible for hosts and users.
Hope! The blog is insightful. If you want to know more about the Airbnb and Airbnb PHP script, read our other blogs.
