Airbnb was established in 2007 when its founders invited paying guests to sleep on an air mattress in their living room. The company expanded on this first success with an online platform that allows property owners to rent accommodations to guests who don't want to pay sky-high hotel bills while traveling.

Since then, the service for guests has become increasingly more convenient and well known. Find out how it works for guests🌳, and how the company and hosts make money.

How Airbnb Makes Money

Airbnb (ABNB) is part of the sharing economy and has a very profitable 澳洲幸运5官方开奖结果体彩网:business model. The company makes money by facilitati✅ng the rental of properties.

In partic🅰ular, Airbnb takes a percentage of a booking subtotal when a property is rented. This subtotal includes the rental price and any additional fees charged by the host, such as a cleaning or pet fee.

The 澳洲幸运5官方开奖结果体彩网:fees Airbnb charges allow it to pay for its platform and associated costs💖, as well as for itꦡs customer service.

The company offers two fee options, the split-fee and the host-only fee.

Split-Fee

The split 🦋fee is the most common option. When it applies, the host and the guest sp𒅌lit the charge.

• Host-Fee: This is about 3%. Hosts in certain locations, such as Italy, pay a higher percentage. This fee is calculated from the booking subtotal, which excludes taxes and the guest service fee. Airbnb automatically deducts this fee from the host's payout.
• Guest Service Fee: This amount depends on different factors, including the type of property rented. Most fees are less than 14.2% of the booking subtotal. However, they may go as high as 16.5% if the guest pays in a currency different from the host's.

Let's say Airbnb charges the host 3% and the guest 10% for a total of 13%. On a booking for four nights at $500 ($125 per night) with a cleaning fee of $150, the company pockets $84.50.

Host-Only Fee

The host-only fee, also known as simplified pricing, is the less common structure and is usually reserved for traditional properties like hotels and apartment buildings. It's required when hosts use a 澳洲幸运5官方开奖结果体彩网:property management software or channel manager software to list their properties on Airbnb.

This fee ranges between 14% and 16% for most properties and is paid entirely by the host. The rate may change based on the host type and the stay length.

This means th♌at at a rate of 14%, the company earns about $147 on a seven-night rental of $1,045 ($895 for the rental and a cleaning fee of $150).

Property owner Dwayne Nonales made his rental available in 2022. He uses the host-only fee at the lower end of the range, saying it's a better option since he's the only one running the property. He went on to say he started hosting because he believes Airbnb is a great way to help him build equity in his Philadelphia property.

How Airbnb Hosts Make Money

Hosts make money by 🐈establishing a profile on tﷺhe Airbnb platform and renting their spaces to guests.

This could be a spare room or an entire hou꧙se. How much a host earns depends on the property type and location, the travel season, and local regulations.

Earnings

The average U.S. host earned about $4,300 per month between November 2023 and December 2024.

Airbnb also partners with apartment buildings across the country, allowing hosts to rent their units on a part-time basis. The company estimates that apartment hosts earn as much as $3,650 per month in the U.S.

How It Works

The host keeps whatever is left after Airbnb's fees are deducted. Let's say you rent your condo for $200 per night and charge your guest a cleaning fee of $150. If a guest books a four-night stay, they'll pay $950.

If the host uses the split-fee option, 13% of the booking subtotal goes to Airbnb. The host earns $826.50 ($950 x .87♓). Airbnb handles virtually everything. That includes providing security features and support to hosts and🐬 guests.

According to Nonales, who is a Superhost (a host who provides superior service and is recognized on the site with a badge), the platform is very easy to use. "I feel like anyone can ramp up to this," he said.

The company pays hosts through various channels, including deposits to a bank account, Fast Pay, PayPal, and Western Union. Depending on the method selected by the host, payment times range from 30 minutes to seven business days.

How Guests Can Use Airbnb

Set Up an Account

To rent a property using Airbnb, guests must create an account on the website or app. They must provide their name and email address and create 澳洲幸运5官方开奖结果体彩网:a secure password. They can also sign in🃏 using an Apple or Google account.

In addition, the company may require personal details such as a legal n🌄ame, an address, a phone number, and (in some cases) a profile picture.

You may also be🐓 asked to verify your identity by providing government-issued identification.

Start Searching for a Rental

After setting up your account, you can search for listings based on location, price, and travel times. Once you find one, input your rental dates and number of guests. Then, press the Reserve button. You'll get one of two options:

1. Confirm and pay. This means you book the property immediately by providing your payment information. You can pay using a credit card, debit card, 澳洲幸运5官方开奖结果体彩网:Apple Pay, Google Pay, or PayPal. Gift cards and coupons can also be used. Once you provide your payment information, your booking is confirmed. The host normally responds to your booking within 24 hours.
2. Request to book. With this option, the host has 24 hours to respond to approve your booking. If you don't hear back from the host, you aren't charged and your booking request is canceled.

After your stay, you can leave a review of the property and host. This can help future guests when they search for their rentals.

Before You Sign Up: Rules and Regulations

Rules and local regulations play a big part in who can use Airbnb. For instance, the company only allows people over 18 to create accounts. This applies to hosts and guests.

Hosts must provide accurate information about their properties. The company also prohibits any activity that "endorses or promotes illegal or harmful activity, or that is sexually explicit, violent, graphic, threatening, or harassing."

澳洲幸运5官方开奖结果体彩网:Local regulations bind hosts. This means they cannot rent their properties if Airbnb is not permitted in their jurisdiction. For example:

• The service is legal in New Jersey, but some townships forbid short-term rentals.
• Zoning restrictions may bind hosts in cities like New York and have caps on the number of guests per property.
• San Francisco hosts must pay a tax of 14% on reservations of less than 30 days.
  

The Bottom Line

Airb♎nb has changed how people travel by helping property owners rent their spaces, and visitors find places to stay. If you want to become a host, Dwayne Nonales suggests investing in high-quality, long-lasting furniture when you begin. Focus on getting five-star ratings that can help get you noticed.

Importantly, be sure that you understand all that's required, including local regulations. The service may not be allowed in your jurisdiction and is illegal in certain countries, including Iran, Syria, Crimea, and North Korea.