Business is more like giving a solution to customers than earning revenue or visibility. I think that many businesses' major intentions would be offering quality products or services.
From food to travel industries, businesses have restructured their way of work to be more convenient with the help of the Internet. The travel industry has become a major part of economic growth. The reason for its boom is that it offers the needs of travelers.
“A satisfied customer is the best business strategy of all” - Michael LeBoeuf
Whether you travel for business or vacation purposes.
Your foremost concern must be where you should stay.
Airbnb is a vacation rental platform that allows renters to list their properties. Users can rent the property temporarily.
In this article, you can find the cost structure of Airbnb. Before getting into the blog, let’s understand the Airbnb market.
The Market View Of Airbnb
The total number of Airbnb script users is 150 million in 2022. Airbnb has listings in over 220 countries and regions.
As per the static, in 2021 the total value of the rental market is 44.4 million and the total revenue will grow to $ 86.5 million by 2027.
Last year's income was $ 2.104 billion. It is clear evidence that starting an Airbnb will be successful and fortunate.
The cost value is more important in the development process. Business models are also equally important to understand. Find the business model below.
Understanding Airbnb's Revenue Generation Strategy
Airbnb is a big revenue-generating platform. The revenue models include commission, transaction charges, listing charges, Ads, property verification charges, and top listings.
Choosing the correct revenue model is important because platform growth depends on the revenue model.
Commission Fees
Airbnb follows a commission fees model in its platform. A part of the amount given to the platform owner is commission fees. Whenever a booking is made on the platform, platform owners get an amount from the booking. Platform owners fix how much they will get.
In the maximum of bookings, guests need to pay about six to twelve percent of the non-refundable service fee. By doing this, the platform can increase revenue growth.
Transaction Charges
A transaction fee is taking an amount from guests when the transaction happens between hosts and guests. Guests pay an amount like how hosts pay commission fees to the platform.
Another revenue method that increases the platform's growth.
Listing Charges
Some vacation rental platforms have this revenue model. Airbnb takes money from the host for property listing. For every listing, hosts have to pay an amount. This is one good way to increase platform growth.
Host-Only Fee
The host-only fee is a charge that Airbnb takes from the host for using their platform. This fee is different from the guest service fee that Airbnb charges guests. The host-only fee will range from 14% - 16%. The fees cover host services, such as customer support, transaction service, and more.
Do you have doubts that service fees are refundable?
You get refunded if you meet all of the criteria that are mentioned below.
- If you cancel within 48 hours of booking.
- If you have not canceled three reservations in the last 12 months.
- If the canceled reservation is not overlapped with another reservation in your account.
Ads
Most online platforms follow this revenue model. It is one of the popular models that on-demand platforms follow. You can earn through advertising others' products and services. Third parties pay the amount for advertising their work on your platform.
The platform owners can also earn through it. This is the best strategy to follow for monetization.
When we are speaking of business model, we must mention the features that make Airbnb stands out from the competitors.
Let’s explore the features.
The Fruitful Features Of App-Like Airbnb
The feature is an important aspect of app growth. To work your rental business, you need fruitful features like Airbnb. So, let’s look at the features of Airbnb.
Multiple Login / Sign Up
This offers expedient multiple login / sign-up options like Facebook, Google, Apple ID & Email to login into the platform
Advanced Search Options
Guests get advanced search & filter options that help guests in grabbing a good property. Search options include location, duration of stay, number of guests occupying, room type, and price.
Advanced Filter Options
Guests can filter properties based on rooms, beds, bathrooms, and more. This option helps guests to discover the finest one among all the listings.
Multiple Booking Options
There are various options available for booking, including requesting a booking, instant booking, and contacting the host. With these options, users can book at their convenience.
Wishlist
Wishlist allows guests to prompt about their bookmarked place at the time of booking. It is one of the best tactics to enlarge business growth.
Shared Room
The shared room option allows guests to stay together in a single place. The whole booking option will remain available till all the listings have been reserved.
Listing Dupilcate
When hosts want to list their properties, they need verification from the platform owners. If they wait for platform owners’ verification, it will take a lot of time. To avoid that situation, the platform offers the listing duplicate option. With this, hosts can list as many listings as they want.
Rating & Reviews
Users can rate services after their visit is over. This would help the host to drive more guests to their properties. As users, the platform owners can give their reviews to the host who has excellent service.
Hope the business model is understandable to you. No delay. Let’s get into the cost structure.
How Much Will Take To Develop A Vacation Rental App Like Airbnb
Firstly, I remind you that the cost value can not be predicted because it differs based on the features, UI/UX design, technologies, team, and more. However, I have gathered a basic cost structure.
Each app is unique because each has a different preference. The factor that determines cost-effectiveness is
- Platform choice
- The number of developers with different expertise and experience.
- Development approach-in-house or outsourced development
- The cutting-edge features and functionalities
- Technology stack
The basic cost structure determines the use of common features and minimal designs. If we consider the cost based on it, then it would take from $25,000 to $35,000. As previously mentioned, we can not predict the exact amount. We can estimate a cost based on the platform.
The platform development cost based on the OS are
- Web development - 30,000
- Android app - $50,000
- iOS app - $40.000
If you still have doubts about cost structure, you can get help from app development companies. Many app development companies are similar to your requirements, find them and start your work.
Bottom Line
We have come to the end of the blog. A journey starts with a simple effort. So starting a business like Airbnb is not hassle-work.
If you want to create a business that is the solution for people, begin your business venture with your vacation rental business like Airbnb.
I can only discuss the cost-effectiveness, still have to cover many aspects of Airbnb. If you want to know more about it, you can refer to blogs related to it.
Airbnb has become a popular vacation rental platform to bring great travelling experience.
This extremely popular vacation rental space has become a true community with enormous options for business people & Global travelers.
The success story of airbnb and its journey makes the most for establishing a profitable startup business in vacation rental.
Organize your knowledge in developing Airbnb like website & app and important features.
Make segments of your work and explore each individually
· Airbnb market share & business competitors
