Officially registered in 2008, Air BnB is a global corporation that offer rented private lodgings through an online booking system. It seeks to offer a positive, cheaper traveling experience where users are thrust into the heart of local culture by being given a chance to live in it. It also operates an online marketplace and hospitality service via mobile app to help clients make the most of their traveling experience.
Air BnB has achieved so much success that it has a current worth of $29.3 billion USD as of 2018. This puts it among a top rank of some 260 ‘Unicorn’ companies around the globe. These are the golden geese of their industries; and Air BnB is no exception to the rule. It has used it’s business model to encourage local businesses all over the world. By providing a platform where users can rent their own rooms and start their own lodging business Uber has been so successful because it offers cheaper rates for stays while simultaneously allowing these small business owners an alternative source of income.
Let’s look at what Air BnB do to make themselves quite so popular.
Although corporate residences are kept in San Francisco, Air BnB are a globally renowned corporation. With a revenue of over $450 million in 2017 alone this firm has come a long way since it began ten years ago. They operate an intriguing business model that we are seeing more and more of in the digital age. Rather than selling a product or service in themselves, Air BnB facilitate and connect travelers with hosts and allow them to sort out the details between themselves. The firm then takes a share in any business transaction made through the site, allowing them to make money without really selling anything.
Air BnB are part of the Sharing Economy that has risen alongside the growth of social media and the new generation of internet users. The modern consumer spends more time online than any previous generation, and companies that capitalized on this early are now making a fortune. As well as its success with the E-Commerce Marketplace model it also owes some of its success to the acquisitions of Adreessen Horowitz and ENIAC Ventures. Founded by one Joe Gebbia, Air BnB offers a wide range of rating services, safety measures and opportunity for those who want to start their own small business using a time-tested technique.
List of Services
It might seem like Air BnB is just a fancy bed and breakfast service, what they offer is a whole lot more important. Their service is mutually beneficial to all who use it and it has opened up new parts of the world to adventure seekers everywhere. They have offices in 21 cities around the world and some of their specialized services are as follows:
- Guesty – Air BnB have their own property management software for hosts.
- Hostmaker allows you to maximize your listing.
- A guest and host review system where users can leave ratings of their encounter and experience.
- Hosting of long term tenancies, short term tenancies and vacations
- Real Estate listings through an interactive online interface
- Online help and assistance whenever you need it.
- An opportunity to become a host for yourself and make money renting your spare room.
Effectively, Air BnB acts as an online broker who connect guests with hosts and try to make the whole process simple for everyone. It is a legitimate idea and it has earned them millions. The likelihood is that it will continue to do so well into the future.