How Does Airbnb Make Money? 

Airbnb is an online vacation rental marketplace that allows travellers to book apartments (and other stays) from so-called hosts.  

With over 6 million active listings as well as 4 million hosts, it is by far the biggest platform of its kind. 

The founders launched the business to accommodate designers attending a local conference after all hotels were booked out.

Airbnb went on to raise billions of dollars in funding and ultimately went public back in December 2020. 

The platform has often been criticized for allegedly driving up local rental prices and helping landlords to evade taxes.  

Customers seem to enjoy the experience nonetheless. In 2021, Airbnb generated close to $6 billion in revenue. 

But how does Airbnb actually make money? 

Airbnb makes money by imposing a variable percentage fee to both the guests and hosts on its platform.

Hosts pay anywhere between 3 – 5 percent while guests are charged an additional 10 – 14 percent on top of the booking price.

Swipe up to read the full story