Foremost Vacation Rental Booking Business- AirBnB Solved These 10 Challenges



My question to you is, what makes up a vacation rental booking app?

Get the hosts on-board with their listing, get the guests to book the listing, and earn like anything!

Do you think on the same lines?

Then dear, you definitely need a paradigm shift about the business.

Hotel Industry was easy. No worry about the security, no anxiety about the offline payments; just get the room booked and receive the payment.

By providing the same service as that of Hotel, yet going a step ahead, Airbnb encountered challenges and dilemmas encircling the vacation rental industries. This is when it came up with the solution to each one and highhandedly navigated the business to become the foremost vacation rental booking business app in the world

Airbnb’s supply and demand are often ones and the same, creating uniquely overlapping network effects.

Handling the guests can seem really easy since they are a needy community who would pay off for the space they rent, but when talking about the hosts, they are a community that is getting paid and can go to any extremities to get paid more by eliminating the mediator, Airbnb itself.

Therefore, it is important for the startups to know certain norms which Airbnb has set up to keep in check with the dilemmas that might pop up and ruin the seamless flow of the business.


How Airbnb became the foremost vacation rental booking business & overshadowed the Hotel Industry

1. Exchange of Contacts Between Hosts and Guests


Let’s face it. Hosts will be a set of greedy people and will try their best to avoid the instances to pay the 3% processing fees they receive.

Moreover, here is where there is a direct interaction between the hosts and the guests, making it an organic way to make payments offline or with the help of cash.

To completely eliminate the chances of such unfavorable occurrences of the host and the guest interaction, Airbnb masks off the contact information.

The Solution: Contact Masking


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2. Offline or Cash Payments During the Trip


The very common dilemma to deal with are offline payments that might occur since the host and the guest share a direct interaction in vacation rental booking app.

Airbnb suggests the guests to not get manipulated as they will not ask the guests to make payments by anything outside the site through email id or through a third-party.

But this doesn’t involve the taxes that they have to pay to the hosts.

The Solution: Being a Mediator and Monitoring the Payments


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3. Frequent Cancellations by the Hosts


When the hosts frequently cancel their bookings, the entire plan of the guests is affected and they have to look for another booking within a short notice of time.

Thus, to completely subtract such scenarios, the foremost vacation rental booking business- Airbnb, came up with a ‘Superhost’ feature. Such a feature calls for Eligibility criteria wherein the hosts need to make sure of the following:

The Superhosts need to take up all the bookings they are given to.

The Solution: Alluring the hosts by the benefits of ‘Superhosts’


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Being Superhost provides the hosts with plenty of benefits:

Priority Support: The Superhosts will receive priority phone support whenever they reach out to Airbnb.

Search Filter: When the hosts filter down the listings, the properties they get to see is of the recognized Superhosts.

Travel Coupon: When the Superhosts maintain their position for a complete year b passing out all the 4 evaluations and have an active listing on the day marked as the 1st anniversary of the Superhost status will be benefited with a reward of $100 USD travel coupon for their own Airbnb trip.

Providing Exclusives: The Superhosts will be invited to preview upcoming releases and attend exclusive events




4. Frequent Cancellation by Guests


The guest has booked an accommodation and the host has blocked the dates for those particular days.

Again, when the guest finds a better space to stay at a lower price, he will choose the newly searched accommodation and can ditch the already booked one.

Who is to suffer for this loss?

The host.

Thus, the cancellation policies in a vacation rental booking app should be enforced to the guests so that they don’t cancel the booking very frequently.

The Solution: The dynamic cancellation policy


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5. Host – Trust and Security Issues


The entire house of the host is open for the guest during their stay.

Say for instance the premise of the host is damaged during the stay. Who should be considered responsible and who is going to pay for the damage done?

For such circumstances, Airbnb provides the host with the Airbnb Host Guarantee for up to $1,000,000 to a host for the damages to cover property in the account of the guest damage above the amount that is deposited.

The Solution: Providing insurance to the hosts for their property.


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6. Price Determination


There are some prices that are to be determined by the hosts while there are some prices to be determined by the vacation rental booking app.

For example, It is upon the host to decide the nightly rate of the property, the one-time cleaning fee is charged depending on the hosts, and when there are more than the pre-stated number of guests, they are charged a one-time extra guest-fee.

Apart from the host, the ones that are charged by Airbnb is clearly made open as a service fee.

Other than this, on the basis of the country, the booking is made in the costs may include currency exchange fee, value-added tax or more commonly known as VAT and similar other local taxes are charged.

The Solution: Be clear about how to calculate the price


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7. Currency Exchange


Many a times, the price of the listing and the currency in which the guests will have to pay differs. In this case, it is upon the bed and breakfast portal to display the price of the listing in the currency of the guest, charge them with their currency and then make the conversion and deliver the same to the host.

This further comes as an additional advantage for the admin since there is a chance of cut in the form of currency conversion fee.


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Check out other articles related to AirBNB

8. Cross Border Fees


Of course, you won’t want your bed and breakfast portal to know any boundaries and there comes another issue for transacting the charges across borders.

There is a cross-border fees if the bank of the guests considers the portal’s processing entity International even if the charge was processed in the native currency of the guest’s payment method.

Such fees are automatically added by the bank and the platform cannot refund them.


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9. Behavior in Check/ Disputes in Check


The game of Airbnb is a very dangerous game. The hosts let the people they know nothing about in their space and the guests make booking for a stranger’s place they know nothing about.

Thus, there might be chances of ill behavior from both the parties. This is where the ratings and reviews play a major role in getting the behavior in check for both.


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10. Response Rate


Now say the guest is in urgency to book an accommodation. He inquires for the accommodation and waits for the host to respond. But what if the host does not respond back in urgency?

This is the reason why many of the hosts can lose their bookings and most of the guests can lose their rentals.

That’s when the response rate comes into the picture.

The response rate and the response time measure how quickly and consistently the hosts respond to inquiries and requests.


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The Final Words…

By providing the same services yet going a step ahead, Airbnb disrupted the traditional Hotel Industry and became the foremost vacation rental booking business, but this were just the problems that Airbnb faced, you should be well-acquainted with the complete strategies and tactics of Airbnb

There is an interesting story of how Airbnb was incepted and further managed to crawl through its contenders which you should not miss out.

Do you have any idea that could possibly beat this vacation rental booking giant?


Interested in developing AirBNB similar app?

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More About Author

Vishal Nakum

Vishal Nakum is a tech enthusiast with a passion for exploring the latest developments in the world of technology. He has a keen interest in emerging technologies such as Artificial Intelligence, Machine Learning, and Blockchain, and enjoys keeping up-to-date with the latest trends and advancements in these fields. Vishal is an avid learner and is always on the lookout for new ways to expand his knowledge and skills. He is also a creative thinker and enjoys experimenting with new ideas and concepts. In his free time, Vishal enjoys playing video games and reading books on technology and science.