On-demand service apps have been the shapeshifter for almost every sector as it changed the way people perceive businesses. The travel and hospitality industry is not an exception as it has become a tempting marketplace for property owners and as well as travelers. It equally provides captivating business opportunities for both property owners and as well as travelers. Airbnb is currently available in over 190 countries and has conquered the global market's travel and hospitality sector. This sector's immense monetary potential has inspired several entrepreneurs worldwide to step into this sector with their custom-made Airbnb clone app.
The users can rent out their unused properties or spaces and can yield a great deal of profit from it. Airbnb also offers insurance for their properties free of cost so that they can feel safe. The users can also get professional photoshoot for their property without any charges. The guests can get an insider's experience by booking the properties. The guests will also have multiple options to choose from the list of properties based on the variety of prices, unique destinations, and housing options. The entrepreneurs can seamlessly earn a great deal of money as commission fee. Businesses that use an Airbnb like app have multiple revenue streams from which they can choose based on their requirements.
Running a business like Airbnb is different from other on-demand services as customers will play a dual role. They will contribute to the business and as well as be the consumers. They can be categorized as two key participants, namely-guests and hosts. Entrepreneurs running similar businesses will have the hassle of finding the customers. Airbnb has followed a unique strategy to lure customers, which involved organizing special events and launching mobile apps for Android and iOS. They have used five channels on the internet to attract the audience.
Social media applications
Guests can search for properties or spaces to rent on the platform.
They can search for properties based on filters like rent, amenities, location, etc.
Guests can pay directly from the app, and there will not be any middleman.
Hosts are the ones who own a property or space and are willing to rent it out to get some income.
They can create a custom listing on the app and will be asked to enter details like location, rent, property size, etc.
The hosts can choose to accept or reject a booking from the travelers and will not be questioned.
Airbnb has hired a vast network of professional photographers in almost every major city in the world.
Their job is to photograph the properties in high-quality format to post on the platform
High-quality photographs attract more viewers, and these photographers will be on Airbnb's payroll directly.
Airbnb does not charge the hosts to post their properties on the platform, but they will be charged for every booking made via the app. There are two major revenue streams in this business. The hosts will be asked to pay 3% of their revenue, and the tenants will be charged 6%-12% from their rent. Although it looks confusing, the situation is favorable for both parties as they will not be charged until a transaction is made via the app. The hosts will be paying a commission fee to the entrepreneur, and the customers will pay when they are satisfied with the service. In its early days, Airbnb allowed the hosts to set prices for their properties; however, there were several discrepancies in it, and eventually, they started losing customers.
They reanalyzed their business strategy and started to set prices for every property automatically. They have developed a unique AI to provide accurate estimates of the best price for properties in a particular location. The open-source machine learning tool is named Aerossolve, and it will predict the price based on factors like seasonality, unique features of a listing, market fluctuations, etc.
Since Airbnb follows a peer-to-peer economy business model, they are able to share human and physical resources without any hassles in the long run. They have established a community in which they need and demands keep increasing at the same pace. Here are the four pillars of the sharing economy:
The digital platform can connect spare capacity and demand prevailing in the market
Transactions can be made safer and more comfortable without any interference from the outside.
Airbnb has established itself as a brand and so it drives an emotional connection in its platform.
Not only Airbnb has established this peer-to-peer business model successfully; companies like eBay and Craigslist have also taken full advantage of it. However, Airbnb was the first company to develop this business model in the travel and hospitality industry. Airbnb's business model caught the attention of several budding entrepreneurs across the world and has remained a headline-grabbing startup ever since then.
Developing a complex app like Airbnb is not an easy task. Still, if things are lined up properly, and if the pieces fall in place appropriately, it is highly possible to successfully establish a business in this niche. Entrepreneurs can approach a reputed Airbnb clone app development company in the market and discuss their business needs to kickstart their venture. Before launching your app in the mainstream market, ensure that your product is viable and functional to cater to the modern customer’s needs.
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