Intensive Exploration on Airbnb What Makes It Best Vacation Rental Booking Business

Airbnb holds a global rank of 319 and 92 in the US while its competitor VRBO holds a global position of 2,373 and 427 in the US.

Interesting Inspection Story of Airbnb

If you have the spark, you won’t let the world suffer from what you have suffered

On the same lines, two enthusiastic individuals Brian Chesky and Joe Gebbia came up with an idea of Bed and Breakfast.

When the Idea of Airbnb Struck

When they shifted to San Francisco in 2007, they could not afford the rent for their loft apartment.

Chesky and Gebbia came up with an idea of putting air mattresses in their living room and turning it into a bed and breakfast portal.

The goal at first was just to make a few bucks just so that they could pay the rent hassle-freely, but then they started getting good response from the travelers and in 2008, Nathan their former roommate joined as the Chief Technology Officer and ventured into forming ‘Air Bed & Breakfast’ which would later be known as the best vacation rental booking business.

Shaping of Airbnb

The founders put together a website which offered short-term living quarters, breakfast, and a unique business networking opportunities for those who were unable to book a hotel in the saturated market.

The site was officially launched in August 2008 and their first customers were the ones who had a really hard time finding the lodging in the new city.

Dilemma of Funding

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The concept was somewhat new in the travel and hospitality marketplace, and obviously, no investors would fly and come down to spread their grace in order to help raise the bars of the newbie Airbnb.

Thus, funding was an issue as it is common in most of the businesses.

Since the venture they started was with an initial view to just pay off their rent, they overlooked this aspect of funding and so at this stage the dilemma to raise the fund sprouted on its own.

But…. A smart businessman is therefore smart because they have a knack of finding the solution of their problem.

And you all would definitely agree with me if I say that the founder of Airbnb turned out to be smarter.

To help fund this site, the founders created special edition breakfast cereals and within the short span of 2 months, 800 boxes of cereal were sold at $40 each.

This was enough to generate the revenue of $30,000 which gave an air for the incubation of Airbnb.

Their dedicated endeavors were noticed by the computer programmer Paul Graham who gave them the training and $20,000 in funding in exchange for a small interest in the company.

With the website already built, investment already obtained, and the fund already raised, the only business aspect to focus was?

Marketing. 

Today the marketing strategies of Airbnb is taken as reference by new startups and marketing agencies, but it wasn’t the case back then.

They went to New York City to meet the users and promote their site.

Thus, with a profitable business model, the site already had 10,000 users and 2,500 listings.

A Pace to the Top Spot

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In March 2009, the listings were then expanded from air beds and shared spaces to a variety of properties including entire homes, apartments, private rooms, castles, boats, tree houses, private islands, and other properties.

In 2011, Airbnb announced its 1 millionth booking and in the consecutive year announced its 10 millionth booking since its inception in 2008.

At this point, the founders noted that 75% out of these bookings came from outside of the US and started expanding Airbnb in other continents as well.

It basically relies on three stakeholders.

Talking of the day, Airbnb became a profitable business as its revenue grew more than 80% just in a year.

Yeah! You read it right. And the year was 2015 – 2016.

And today, with its unique business strategy AirBNB is way ahead of their competitors.

Here are Factors That Made Airbnb Best Vacation Rental Booking Business Today

Since the idea of such a rental service platform has not even completed a decade, there are not many definite rules to game in the industry competing Airbnb.

This is the key point where the upcoming rental businesses can dive in and set their own flow with their innovation.

The business comprehensiveness of the Airbnb model includes enabling the owners to list their spaces or spaces on the platform and make money with this rental service.

In case of any damage or destruction caused to the accommodation during the staycation of the travelers, Airbnb provides insurance to the property that the host lists out.

It offers the travelers inexpensive rental options unlike hotels to the travelers by matching them with the host of their preferred accommodation.

Think Airbnb gets off its hand once the booking is done? No!

Even after the booking, the cleanliness, hygiene, security, and safety of the guests are taken care of by the rental platform.

Apart from the services, a centralized rating system is built for both the hosts and the guests.

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Who are their key partners?

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Hosts

It creates an online earning platform for the hosts in return for renting their space to the customers.

Guests

It provides accommodations for the travelers who are looking for a homely space than that of the hotel.

Photographers

It employs freelance photographers in order to take professional pictures of the rental.

Business Lesson

Create a complete chain of stakeholder is the secret for success in such an open marketplace

The front stakeholders for Airbnb are hosts, guests, and photographers.

Here, even before the photographers got on board, the main focus was on acquiring the hosts and the guests.

The hosts list their accommodations and the guests rent them. Thus, no extra investment was to be made for the service to be offered, but rather a cut is obtained out of it.

Then, the photographers came into the picture, which drastically increased the number of the users and a source of revenue

Time Management

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It is really a tedious job to schedule your day after reaching a particular domestic or foreign city.

The Airbnb came up with a complete package to let its users plan out their day-to-day traveling schedule within the platform. The users can schedule cuisine with its ‘Try new cuisine’, experiences, shopping, and so on and make reservations for the activities as per their conveniences.

Business Lesson

An opportunity to cut in

The smart businesses if targeting to be an Airbnb for X should keep in mind that the core focus should be to facilitate the users to subscribe for the activities with more targeted recommendations for the things to do.

You can charge money for featuring of the activities and on a monetary basis, the listing of these things to do can be featured.

Knows it’s Strong Customer Acquisition Policy

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Airbnb does not earn on its own. It lets the host and the photographers earn too.

To say more about this, while managing the work on Airbnb, some of the hosts have adopted it as a full-time employment opportunity.

No matter what the property type is, the host can gain a steady income and the photographers can work as freelancers and make some extra bucks.

They are busy marketing their own listing and service promotion on social media as well.

Ultimately, Airbnb gets promoted!

Business Lesson

The business model of Airbnb is so powerful that it serves two purposes at the same time customer acquisition and promotion.

Business Comprehensiveness Of Airbnb

Insurance

Logged Private Messaging System

Cancellation of reservation

Secure Payments

Verification Identity

Linking to the Social Network Accounts

Wish list feature

Neighborhoods Travel Guide

What Helps You to Expand Your Business in Market

If your company is ever used as the subject of the X for Y analogy, that’s .”

For aspiring Business Buddies, to be a business like Airbnb is highly remunerative.

Just like Uber made it an ace business by starting as an on-demand service, and then it extended its business as Uber for Walmarts, Uber foods; in the same way you too can expand your business by venturing into the other similar niches.

Some of the articles recommended for you:

• Airbnb Similar App Development
• 10 Challenges To Which Airbnb Gave The Best Solution And Became The Foremost Vacation Rental Booking Business
• Important Keypoints You Should Keep In Mind While Developing Rental Booking Business Like Airbnb

Quality of Airbnb that Makes it Different from Other Rental Booking Platform

When dealing with such rental services there are some challenges and drawbacks which Airbnb efficiently takes care of.

And this makes Airbnb a one-stop rental platform that outwits its competitors.

Trust

The major problem faced by travelers and the hosts that use Airbnb is the dynamic trust factor.

For the hosts, they provide a place to complete strangers and for the guests, they are living with the strangers!

But as we guessed, Airbnb has its own personalized module for the verification process in place for every host and guest on the platform.

Next, it encourages its audience to sign up using their social media accounts or linking the accounts for a transparent process.

For a more foolproof process, Airbnb even provides an insurance policy.

Retention

Since such services do not make a part of the day-to-day lifestyle of people, it is very difficult to retain its travelers.

But on the other hand, in order to grow the business traveler retention is extremely important so that the guests prefer their offered platforms instead of booking hotel rooms.

Thus, Airbnb offers promotional codes, discounts, and credits to frequent travelers.

Apart from the travelers, it also gives points and promotions to the hosts to encourage them in response to their service.

What are the Unique Features of Airbnb?

Guest on-boarding

Smart Pricing

Business Ready Listings

Connect with fellow hosts

Airbnb Personal Photographers: Airbnb Provides What No One Provides

A unique feature that Airbnb provides is professional photographers for taking high-quality pictures.

Photo shoots are free for the hosts who match with the eligibility criteria. The photography is not guaranteed — since the photographers are registered as freelancers.

Once if the host is matched with the photographer, he can schedule the shoot directly with them.

Perhaps, the review process can consume up to an entire month.

While the hosts wait for the professional photos, the hosts can still list their rentals using their own pictures.

The Power Lies In Your Hands.

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Conclusion

With such a thoughtful business plan, Airbnb grew with all the struggles that it faced in its journey to be one of its kind.

And undoubtedly it has become one today – call it the marketing strategy, revenue structure, customer acquisition, business comprehensiveness, and ultimately the business spark to excel.

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