Most wanderlusts look for immersive experiences during their travel. Now, the condition is no different for professionals going outside for a business trip. The authentic experience of the traveling location is enjoyed to the fullest when they get accommodation in the middle of local people. Such a thing is made possible two decades back by Airbnb.
The Airbnb marketplace that started operating in one country has expanded to over 1 million cities across 191 countries with more than 6 million listings. With more than 4 million hosts and 150 million guests, Airbnb enjoys the virtue of getting booked for over 1 billion stays.
The peer-to-peer marketplace is leading the rental property marketplace with a 25% market share. Airbnb gross revenue and profit are constantly increasing with growing listings and bookings from the day it launched.
The popularity of the Airbnb business makes you interested to try your hands at the rental property business, it’s the right time to start a business like Airbnb right away. Let’s understand everything about the Airbnb business in detail.
Table of Contents
Airbnb is a rental marketplace that provides a platform for local people who want to host travelers or rent some space in their apartments for some time and guests (travelers) looking for accommodation. The revolutionary Airbnb marketplace gains an edge in the market with a unique concept. Going beyond arranging hotel stay, Airbnb attempt to create a diverse, inclusive, and authentic experience that helps in making travel memorable forever.
The hosts who want to list the property need to add property details followed by high-end photos that highlight the uniqueness of the property. The guests looking for the property get similar search results, then send the booking request to the hosts. Post-booking confirmation, the guest makes the payment that is transferred to the hosts after the deduction service fee.
Next, dive into another section that lets you know how to get into the Airbnb business and run an Airbnb business hassle-free without owing any property.
Joining the gold rush- Airbnb like business development is a good move. It brings enormous success and prosperity when the business is started and launched aptly. Here are the steps to follow to start your own Airbnb business.
Initially, decide the location where you want to provide rental property services uniquely. It begins with identifying target customers such as frequent travelers or corporate travelers and then analyzing their preferences for stay. Thereafter invite hosts from the location to list their property and start hosting guests to make huge bucks.
After identifying a niche market and giving a trendy name to the business, it’s important to create your business- a legal entity. If you have properties that you want to list on the Airbnb business, then you can protect your real estate properties with a limited liability company selection as a legal entity.
You need to pay sales tax for allowing the hosts to rent the available space to the guests. The sales tax is calculated based on the number of stays booked through the platform. It is calculated every month and you can pay every month or quarterly.
Some local areas won’t allow people to rent space for short-term travelers. The businesses need to gauge license and permit for operating rental business like- Airbnb. You can register the business with a local county agency, and need to acquire a lodger tax license or TOT certificate.
Open a business account to keep personal and business transactions separate. It makes bookkeeping and accounting effortless. During the audit- you will rest assured as account reconciliation eliminates the possibility of record duplication.
You need to partner with a general insurance company that insures all the properties listed and rented by the hosts for any damages. In the case, employees are hired for property management, worker compensation insurance is also important.
Competition analysis is vital to know what property rentals, amenities, and prices they are offering. It helps in identifying the gaps and coming up with a competitive price structure. The reasonable price and unique offering attract users globally and improve the chances of using the platform.
It’s essential to create a business plan before you set up an Airbnb business. The business plan creation goes ahead with business structure development that defines who will be the guest and host, and who is going to handle customer complaints. In addition to target audience research, monetization strategies along with expenses must be calculated. It helps in crafting a marketing plan accordingly.
Property listing is a cardinal aspect of the profitable Airbnb business so properties must be listed with all the necessary details defined under various tags. For instance, the description of the property, photographs, amenities, number of people allowed, pets allowed or not, and other specifications gives the guests- a complete understanding of the property before visiting it.
After doing all the homework, it’s time to make your business available in the market with website development for the best Airbnb management. Get build a high-performance website with an intuitive design that’s simple to use and navigate through. You can take the help of reliable website developers to get a quality website with all the high-end features, designs, and backends engineered to precision.
Launching an Airbnb like startup is an expensive affair in terms of money, effort, and time consumption. The average cost to start an Airbnb business ranges between $16,000-$50,000 depending on various factors such as countries where the business will be launched, permits and license collection, taxes, insurance, and web and app development cost. As the startup makes inroads into more geographical locations, the expenses surge accordingly. However, revenue potential in this landscape makes it a profitable venture.
The on-demand landscape is taking the world by storm. If you want to jump into the on-demand app development bandwagon by starting a new Airbnb like venture, you should complete the work behind the scene. It starts with identifying the business objective and mission followed by refining the search for startup app developers that can help to develop an app like Airbnb.
Once your search for the best tech partner is completed, brainstorm the app idea and list of app features with business analysts and technology consultants. It helps you get sure of your business goals related to Airbnb like app development.
Summing it up
The financial projections around Airbnb like businesses state that the future of such businesses will shine. The growing number of people’s preferences for rental vacations rather than hotel stays to enjoy the authentic experience of diverse cultures and cuisines amidst those locals is giving a boost to the industry growth. If you are the owner who wants to take on this opportunity, the guide will help you how to start an Airbnb business from scratch. Go ahead with peer-to-peer marketplace development that bring good returns in the future.
My two cents: If you want to launch your business with a huge buzz. Prefer partnering with a trustworthy mobile app development company that takes care of development and design to support and maintain services. If you need some assistance, take the help of business consultants to clear up the air.
Yes, Airbnb like startup launch is profitable because you start earning money without buying or having any property. A few hundred dollars invested in the business setup will pay you off in the long run.
When you launch a website or mobile app for Airbnb business, you can deduct a certain percentage from every transaction as commission when guests make the payment for booking. Also, you can make the property listing premium once the platform scored enough popularity.
An enthusiastic Operations Manager at TopDevelopers.co, coordinating and managing the technical and functional areas. She is an adventure lover, passionate traveler, an admirer of nature, who believes that a cup of coffee is the prime source to feel rejuvenated. Researching and writing about technology keeps her boosted and enhances her professional journeying.