What is unique about the Airbnb business model?

As a conduit between hosts and travelers, Airbnb provides an established marketplace platform where both hosts and travelers can safely exchange goods and services. In a peer-to-peer model such as Airbnb, an in-depth review system adds value to prospective hosts and guests looking to accommodate their lodging needs.



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The Airbnb business model is a two-sided marketplace that serves both property owners and guests. Property owners offer their homes or rental properties on the platform, while guests book these properties for a specified period. Airbnb charges a service fee from both the guest and the property owner for each booking.

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Key Takeaways Airbnb offers people an easy, relatively stress-free way to earn some income from their property. Guests often find that Airbnb rentals are cheaper, have more character, and are homier than hotels. Airbnb makes the bulk of its revenue by charging a service fee for each booking.

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In conclusion, hosting through Airbnb offers various advantages, such as the ability to earn money and meet people from around the world. However, it also comes with drawbacks like high commissions and potential liability risks for damages caused by guests during their stay.

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Airbnb Strengths
  • Airbnb Enjoys First-Mover Advantage. ...
  • It Takes Advantage of the Network Effect. ...
  • Innovative Business Model. ...
  • Strong Branding and Effective Marketing. ...
  • They Offer a Unique Traveling Experience. ...
  • The Company Is Publicly Traded. ...
  • Global Expansion. ...
  • Dual Rating System.


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Using the Airbnb platform—or a competitor such as VRBO or HomeAway—to rent properties can be a lucrative real estate investment strategy, but it also has challenges. In some cases, it may be easier and more profitable to simply rent a property to a single tenant or to forgo real estate investing altogether.

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Airbnb is economically sustainable. We commissioned an economic study in San Francisco and are working on one in New York. There are surprising findings – first is our impact on our community and our hosts, who have real economic incentives to use Airbnb.

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Key Points. Airbnb is more family and group travel-friendly compared to hotels. In addition, the platform offers better non-urban location listings versus hotels. Airbnb also gains favor from travelers looking for extended stays.

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Aggregate results indicated that respondents were most strongly attracted to Airbnb by its practical attributes, and somewhat less so by its experiential attributes. An exploratory factor analysis identified five motivating factors—Interaction, Home Benefits, Novelty, Sharing Economy Ethos, and Local Authenticity.

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Weaknesses: Relying on strangers to host leads to legal violations. Airbnb faces problems stemming from housing laws and regulation violations. Hosts are paid for offering their rooms for a set time. It seems like easy money, and who doesn't want quick cash?

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Overall, Airbnb's success can be attributed to a combination of factors, including a unique business model, innovative use of technology, and savvy marketing. By disrupting the traditional hotel industry and creating a more authentic travel experience, they have transformed the way people think about travel.

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5 Ways to grow your Airbnb Revenue
  1. Optimize your pricing. By analyzing the demand and supply in your local market, you can adjust your nightly rates to maximize your occupancy and revenue. ...
  2. Improve your guest experience. ...
  3. Expand your listing. ...
  4. Use social media marketing. ...
  5. Partner with local businesses.


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Together these Airbnb core values emphasize community, safety, trust, innovation, respect, and inclusivity. They serve as reminders for Airbnb employees, hosts, and property managers that the platform should be focused on creating an environment where travelers feel safe and welcome.

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2016). For peer-to-peer accommodation, Airbnb creates value by matching guests and hosts while mitigating risk as well as by helping hosts manage short-term rentals and guests to experience destinations in a more personal setting than standardized hotel chains (Reinhold and Dolnicar 2017c) .

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Here are four of the major pros of going the Airbnb route.
  • More flexibility. Airbnb rentals offer you more flexibility compared to traditional renting. ...
  • A source of passive income. ...
  • A diversity of tenants. ...
  • Less marketing is needed. ...
  • Strict laws and regulations. ...
  • Difficult guests. ...
  • More maintenance. ...
  • High startup costs.


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The reason why experts and hoteliers think that Airbnb has the unfair advantage is that Airbnb hosts can provide lower prices than the hotels as they don't have to comply with safety requirements, fire safety codes, paying government taxes (Llewellyn, 2014).

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growth and potential within this new industry, Airbnb faces several strategic issues moving forward. Airbnb lacks a sustainable competitive advantage, faces a heavy influx of new competitors, and also faces multiple legal and trust issues in the market.

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The major downside of Airbnb is that you're staying in a random person's apartment, house, or room. Hotel chains or vacation rentals have some type of oversight to maintain safety and a positive experience for their visitors. With Airbnb hosts, you never truly know what you're going to get.

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