Airbnb is a popular online platform that connects hosts and guests from all over the world. This company is known for disrupting the traditional hospitality industry by offering a more personalized and unique experience for travellers. In this blog post, we will provide a breakdown of the Airbnb business model for hosts and guests, as well as a brief history of how the company got started and its impact on the hospitality and housing industries.

How Does Airbnb Work?

Airbnb is a marketplace for people to list, discover, and book accommodations around the world. Hosts can rent out their entire home or a private room while guests can search for available listings based on their desired location, price range, and amenities. The platform takes a percentage of the rental fee as a commission for each booking.

How it Works for Hosts

To list a property on Airbnb, hosts need to create a profile and provide a detailed description of their space, including photos, amenities, and house rules. They also set the price, availability, and any additional fees such as a cleaning fee or security deposit. Once a guest books a reservation, hosts are notified and have the option to accept or decline the request. Upon acceptance, hosts are provided with the guest's contact information and can communicate directly with them to arrange check-in and answer any questions they may have.

After the guest has checked out, hosts have the opportunity to rate their experience and leave a review for the guest, which is then displayed on the guest's profile. This review process is important for both hosts and guests as it helps to build trust and establish a good reputation on the platform.

How it Works for Guests

To search for accommodations on Airbnb, guests can create a profile and search for listings based on their desired location, price range, and amenities. They can then read through detailed descriptions of each listing, view photos, and read reviews from previous guests to make an informed decision. Guests can then book the reservation and communicate directly with the host to arrange check-in and ask any questions they may have.

Upon arrival, guests are expected to abide by the house rules and treat the property with respect. After checking out, guests can leave a review for the host, which is then displayed on the host's profile. This review process is important for guests as it helps them to make more informed decisions when booking future accommodations on the platform.

How Airbnb First Started

Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. The idea for the company came about when the founders were struggling to pay rent in San Francisco and decided to rent out air mattresses in their living room to attendees of a design conference. They soon realized that there was a demand for alternative accommodations and decided to launch Airbnb as a platform for people to rent out their homes or spare rooms to travellers.

Since then, Airbnb has grown into a global company with over 7 million listings in more than 220 countries and regions. The company has also faced some controversies, including concerns over its impact on the housing market and accusations of discrimination against hosts and guests.

How and why Airbnb has disturbed the hotel industry

Airbnb has disrupted the hotel industry by offering travellers a more personalized and unique experience. Unlike traditional hotels, Airbnb properties are often located in residential neighbourhoods, allowing guests to experience local culture and get a more authentic feel for the city they are visiting. Airbnb also offers a wider range of accommodations, from private rooms to entire homes, giving guests more options to fit their specific needs and preferences.

How and why Airbnb has affected the housing market

Airbnb has also had an impact on the housing market, particularly in major cities with high demand for housing. Some critics argue that Airbnb has led to an increase in housing prices and a decrease in available long-term rentals as landlords opt to rent out their properties on short-term platforms like Airbnb for higher profits. This has led to concerns that Airbnb is contributing to the affordable housing crisis in some cities.

In response to these concerns, Airbnb has implemented regulations and policies to address the issue. For example, some cities have implemented restrictions on the number of days a property can be rented out on short-term platforms like Airbnb. Additionally, Airbnb has launched initiatives to encourage hosts to offer longer-term rentals, and has even partnered with cities to provide affordable housing options for residents.


Overall, Airbnb has disrupted the traditional hospitality and housing industries by offering a unique and personalized experience for both hosts and guests. Hosts can earn extra income by renting out their homes or spare rooms, while guests can enjoy a more authentic and affordable travel experience. However, the company has also faced some controversies and criticisms, particularly regarding its impact on the housing market. As the company continues to grow and evolve, it will be important to address these concerns and work towards sustainable and responsible growth.