Purpose

The purpose of this document is to provide newbies to Airbnb, an insight into its working model. This document provides a general idea of how Airbnb works for the two parties, i.e.,Guests (who rent the place) and Hosts (who rent their place out).

Airbnb

Introduction

AirBedandBreakfast, commonly referred to Airbnb, is a global online hospitality service provider whose services can be accessed through the website and mobile platforms. It operates in 190+ countries in nearly 100,000 cities with 6 million+ listings. It is not a real estate company but an online market place where it connects hosts with the guests. This platform can be used for listing as well as renting the property.

Airbnb Working Model

It started as a customer innovation by creating a new market for people who rent rooms in other’s houses. Before Airbnb, it was inconceivable to allow a stranger to share the space. So, Airbnb came up with Trust by design model. It uses a robust system of identity verification and reviews for both hosts and guests. The review system is the center of the trust solution that previous sites lacked.

Airbnb working model for hosts

After creating an account with Airbnb, hosts can post their property listing by providing details like amenities, rules, and house types. They can decide on the price of the listing based on Airbnb recommendations. The hosts get the review based on the service provided, and if they get consistently high reviews, they become super hosts. Hosts can also list their houses under a specialty listing category. These houses should have a unique style and high quality to get under this listing. To get into this listing, hosts need to apply, and an in-person inspection is conducted. When all the requirements are met, a special plus badge is given for differentiating these listings from the standard ones. Airbnb hosts can also become a tour guide but creating an Experience like city-tour, hike, tasting local kitchen, and more.

Airbnb working model for guests

After creating a free account, guests can browse through a variety of options available and select the one that suits them. If a guest is creating an account for the first time, a driver’s license is required. Guests can search for lodging based on their requirements using filters like date of their check-in /check-out, location, number of guests, price range, and Room-type. Using Request a book feature, they can book the listing and wait for the host’s approval. If the guest wants to book a listing immediately, they can use the Instant book feature without waiting for the host’s approval. Guests can also chat with the hosts. Guests can also book some fun experiences like city-tours, wine-tasting, yoga classes, and more by using the Experiences filter option. Guests can find a unique place that fits their criteria for specific occasions like weddings, official trips, dinner parties, and more using Airbnb Collections feature and also look for special plus badge houses.

Airbnb Payment method

The guests add billing information at the end of the listing selection, and the payment can be made through payment methods like a credit card or Pay Pal. Payment is collected only when the host accepts the reservation or if it is an instant Book, then the payment is charged completely. The payment is released to the host only after 24 hours of guest’s check-in. The payment is based on the reservation type. There are two types of reservations:

Short Term Reservations

All the reservations 27 nights or less come under this category; once a reservation becomes a confirmed booking, then the total cost of the reservation is charged.

Long Term Reservations

All the reservations over 28 nights or more come under this category; for these types of reservations, the first month down payment is charged and for the rest of the nights on a monthly basis.

Security Deposit : Some property owners charge a security deposit, and the host can file a claim within 14 days of the guest check-out period.