That is, people who have extra space or underutilized property can earn extra income by renting them. Basically, it is a marketplace, accessed via the app or website, which connects travelers and hosts. The community is powered by hosts, who provide their guests with the unique opportunity to travel like a local”. Check out how the Airbnb business model works.Īccording to its own website, Airbnb “connects people with places to stay and things to do around the world. In a simple comparison, just like Uber provides over 1 million rides a day without owning a single car, Airbnb makes almost 80,000 reservations a day, without having a single room of its own. It only makes it possible to connect people who have something to offer with others who are interested in what they are offering. And Airbnb does not own any property itself. There is no face-to-face service, there is no physical space where you need to go.

And then, they realized that the idea could go much further than that.Ĭurrently, Airbnb is a fully digital platform, which operates via app and website only. They put together three air mattresses and put them up for rent. However, when the company was founded, back in 2008, it was just a simple idea from two friends who needed money to pay their own rent. If you like to travel, you’ve certainly heard of or used Airbnb’s services.Īirbnb is, in a nutshell, a marketplace that allows owners of space to rent to find people who need a place to stay.

By commoditizing trust between property owners and short-term renters, Airbnb has become one of the most recognized companies in the hospitality industry. The Airbnb business model is a multisided platform that connects travelers with hosts from all corners of the planet.

Airbnb business without owning a house