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.

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

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

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

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

But how does Airbnb actually make money?

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

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