Airbnb is a leading platform in the global short-term rental market, founded in 2008. It connects hosts offering accommodations with travelers. For many, Airbnb has become a great source of income. However, this brings us to an essential question: how to run a successful Airbnb and why do travelers choose Airbnb over other popular accommodation providers like hotels?
The lower costs, convenient locations, more authentic local experiences, and use of household amenities make it the first choice.
Airbnb helps users make the right choice by recommending top-viewed and wish-listed listings and best-selling experiences. It has also built a strong rating and review system, which is crucial in the e-commerce space.
One of the major secrets behind the success of Airbnb is its user-centered approach to design and innovation. According to Joe Gebbia, Airbnb’s co-founder, “The number one secret for Airbnb’s success has been its ability to tackle the stranger.”
In the past few years, Airbnb has turned into a global leader by redefining the travel and hospitality industry. Before diving into its business and revenue model, and exploring the tech secrets behind the success of Airbnb, let’s discuss some key stats to measure the success of Airbnb in recent years.
Key Airbnb Stats in 2024
- It operates in over 220 countries and has transformed travel with its unique offerings of homes, apartments, and experiences.
- In recent years, the platform facilitated over 448 million nights and experiences marking a strong rebound from the pandemic’s impact.
- In 2023, Airbnb achieved a revenue of 10 billion U.S. dollars.
- These days, over five 5 million Airbnb hosts are renting out properties worldwide.
- Airbnb generated $73.25 billion from gross bookings in 2023—and $22.9 billion in the first quarter of 2024.
- The international booking service accumulated $9.92 billion in revenue in 2023. Meanwhile, the company’s revenue in the first quarter of 2024 amounted to $2.14 billion.
Airbnb Growth Over the Years
According to statistics, there are more than 8 million active Airbnb listings recorded for 2024. That’s an increase of 1 million listings compared to the past year. In 2023, the number of active listings on Airbnb was recorded to be 7 million.
Here are further details about the Airbnb active listings recorded over the years.
| Year | Airbnb Listings |
|---|---|
| 2024 | 8 million |
| 2023 | 7 million |
| 2022 | 6.6 million |
| 2021 | 6 million |
| 2020 | 5.6 million |
| 2019 | 7 million |
| 2018 | 6 million |
| 2017 | 4 million |
| 2016 | 2.1 million |
Airbnb Business Model
Airbnb is an online accommodation platform that facilitates the process of booking private living spaces for travelers. Its simple and easy business model is one of the secrets behind the success of Airbnb. It operates as a multisided platform that earns money by connecting travelers with hosts from all over the world through commissions and fees.
It enables property owners or hosts to list their space and earn rental money. On the other side, it provides travelers easy access to accommodation by connecting with hosts. Airbnb also allows setting up a personal profile and a rating and reviewing system to provide information about the host and their offers. It allows hosts to choose who to rent out their space to.
Airbnb Revenue Model
Airbnb receives commissions from both host and guest upon every booking. The Airbnb can generate revenue from three primary sources:
Commission from Hosts
This fee varies from 3% of the amount charged for the rent. The host can list their properties for free and, with each booking, Airbnb deducts its commission. However, for hosts offering experiences like events and other activities, and Airbnb management fees the commission is 20%;
Fees from Guests
Airbnb charges the guest under 14.2% of the booking fee. In this way, Airbnb is currently earning millions of dollars.
Host-only fee
Host-only fees are usually between 14% and 16%, but for hosts with Airbnb Plus listings or who have a very strict cancellation policy, the payment is likely to be higher.
Airbnb Tech Stack
Airbnb’s tech stack is a combination of tools, frameworks, and languages used to handle its massive data, operations systems, and user demands. Here’s an overview of Airbnb tech stack components:
Programming Languages
- Ruby: Initially, Airbnb was built using Ruby on Rails for rapid development and prototyping.
- JavaScript: For front-end development, using frameworks like React.
- Java, Kotlin, and Objective-C/Swift: For native Android and iOS mobile apps.
Frameworks
Airbnb used Ruby on Rails for backend development and React for front-end development.
Additionally, it used Next.js for server-side rendering in React.
Cloud Databases
MySQL is a primary relational database for structured data and Amazon RDS manages MySQL databases for scalability.
Cloud Storage
Airbnb used Amazon Web Services (AWS) for cloud hosting, storage (S3), and computing (EC2), Kubernetes for container orchestration, and Docker for containerized deployment.
Data Analytics
For real-time data streaming and event processing, Airbnb used Apache Kafka and Hadoop for distributed data processing. Furthermore, Apache Spark is used for big data analytics and machine learning.
Airbnb continuously evolves its stack, adopting new technologies to improve scalability, maintainability, and user experience.
Cost of Building an App Like Airbnb
Building an app like Airbnb can vary significantly in cost, depending on factors such as the app’s complexity, features, development team location, and platform choice.
Here’s an approximate cost breakdown:
Development Stages
| Stage | Cost | Steps Included |
|---|---|---|
| Discovery and Planning: | $5,000 - $15,000 | Research, wireframing, and project scoping. |
| Design | $10,000 - $30,000 | UI/UX design for web, iOS, and Android platforms. |
| Backend | $20,000 - $60,000 | Includes server infrastructure, APIs, and database. |
| Frontend (Web, iOS, Android) | $30,000 - $100,000+ | Depends on the number of platforms and the complexity of features. |
| Testing and QA | $5,000 - $15,000 | Ensures the app is bug-free and performs well. |
| Deployment and Launch: | $2,000 - $10,000 | Covers app store publishing and hosting setup. |
Feature-Based Cost Drivers
| Features | Cost | Things Included |
|---|---|---|
| User Management | $10,000 - $20,000 | Profiles, logins, and account management. |
| Listings and Search: | $15,000 - $30,000 | Advanced filters, maps, and listing options. |
| Booking System: | $20,000 - $50,000 | Real-time availability, calendar integration, and payment gateway. |
| Messaging | $10,000 - $25,000 | Secure, real-time chat between users. |
| Reviews and Ratings: | $5,000 - $15,000 | Allow users to review and rate properties. |
| Notifications | $5,000 - $10,000 | Push notifications and email integration. |
Development Team Location
| Region | Cost |
|---|---|
| North America/Europe | $150 - $250/hour |
| Asia | $20 - $80/hour |
Estimated Total Costs
| Type | Cost |
|---|---|
| Basic App | $60,000 - $100,000 |
| Mid-Complexity App | $100,000 - $200,000 |
| High-Complexity App | $200,000+ |
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Tech Secrets Behind Airbnb’s Success
Airbnb’s success owes much to its user-centric digital experience, driven by its mobile app. The app enables users to book accommodations, manage listings, and communicate globally, creating a user-friendly platform accessible anytime, anywhere. This highlights the crucial role of robust mobile app development in scaling businesses.
Mobile app development companies can replicate this model for startups or existing businesses, focusing on features like intuitive design, secure payment systems, and global scalability. Collaborating with expert developers ensures innovative, user-centered solutions that drive engagement and business growth.
Airbnb’s success can be attributed to several key strategies and principles. Here are the top tech secrets behind the success of Airbnb:
1. Scalable Platform Architecture
Airbnb built a robust and scalable platform capable of handling millions of users worldwide. Its use of cloud-based infrastructure ensures high availability, reliability, and adaptability to fluctuating demand.
2. Data-Driven Personalization
Advanced data analytics and machine learning algorithms help Airbnb provide personalized recommendations for both guests and hosts. This technology ensures users see listings tailored to their preferences and booking history.
3. Enhanced Mobile Experience
The mobile app offers a user-friendly experience, enabling users to browse, book, and communicate on the go. Features like push notifications and instant booking enhance convenience and engagement.
4. Trust Through Technology
Airbnb’s trust-building features, including identity verification, secure payments, and AI-driven fraud detection, create a safe environment for transactions and interactions on the platform.
5. Continuous A/B Testing
Airbnb rigorously tests user interfaces, workflows, and features to optimize the user experience. The iterative design approach ensures that changes are backed by data and improves conversion rates.
Final Thoughts
Airbnb’s success is deeply rooted in its innovative use of technology, including its intuitive user interface, robust backend infrastructure, data-driven decision-making, and advanced algorithms for personalization and search optimization.
By combining these with uninterrupted integrations, secure payment systems, and exceptional user experience, Airbnb has set a benchmark for app-based platforms.
A mobile app development partner can help you adopt the tech secrets behind the success of Airbnb by leveraging advanced technologies and tools to build a tailored app for you.
That’s where Clustox steps in. From understanding your business model to designing user-centric interfaces, implementing adaptable architectures, and ensuring high-quality security, Clustox can transform your vision into high-performing apps, setting the stage for your business to thrive in the competitive marketplace. So, get in touch with us now, and let’s discuss your next big idea.