What Is Airbnb?
Airbnb is an online marketplace that connects people who want to rent out their homes with people who are looking for accommodations in specific locales.
The company has come a long way since 2007, when its co-founders first came up with the idea to invite paying guests to sleep on an air mattress in their living room. According to Airbnb’s latest data, it has in excess of 5.6 million listings, covering more than 100,000 cities and towns and 220-plus countries worldwide.12
In this article, we break down how Airbnb works, how it makes money, and the pros and cons of using its online marketplace.
How Airbnb Works?
Airbnb has revolutionized the hospitality industry. Prior to 2008, travelers would have likely booked a hotel or hostel for their trip to another town. Nowadays, many of these same people are opting for Airbnb.
The idea behind Airbnb is simple: Find a way for local people to make some extra money renting out their spare home or room to people visiting the area. Hosts using this platform get to advertise their rentals to millions of people worldwide, with the reassurance that a big company will handle payments and offer support when needed. And for guests, Airbnb can offer a homey place to stay that has more character, perhaps even with a kitchen to avoid dining out, often at a lower price than what hotels charge.
