![]() It wasn’t unusual to have all hotels sold out during these large conferences. In 2007, Brian Chesky and Joe Gebbia tried to make extra income to pay their rent.Ĭhesky and Gebbia, friends from design school, saw a big opportunity when back in 2007, a large international design conference was about to be hosted in San Francisco. In 2021, Airbnb generated $5.99 billion in service fees. Thus making money as more bookings go through it repeatedly. Value Model: Expanding the hospitality industry, at scale.Īirbnb makes money by charging a service fee on top of each booking. We describe the Airbnb business model via the VTDF framework developed by FourWeekMBA. The take rate for Airbnb fluctuated over the years, with a peak in 2020, at a 14.1% take rate and a 13.3% take rate in 2022. Airbnb take rate is the percentage fee that the company gathers from hosts and guests on each booking that happens through the platform. In 2022, Airbnb generated $8.4 billion in service fees on $63.2 billion Gross Booking Value through the platform. In comparison, the commission from hosts is generally 3%.įor instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees. Home PageĦ,811 employees in 27 cities around the worldĪirbnb is a peer-to-peer platform business model, leveraging two-sided network effects and making money by charging guests a service fee between 5% and 15% of the reservation.Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.An Entire MBA In Four Weeks By FourWeekMBA.100+ Business Models Book By FourWeekMBA.
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