As the idea to travel places comes to your mind, what is the first thing you think about? Certainly an exciting and incredible experience but at reasonable prices, isn’t it? This we can say is the reason behind the ever-growing popularity of Airbnb: the one-stop destination for all travel lovers that allow them to discover renting prospects whether in terms of a small apartment or be it in a castle.
With people nowadays every keen on travelling, no wonder Airbnb and alike apps have become an impressive business idea. So, if you are wondering how you can use this idea to make your own profit, then you are at just right place. Here we will be analysing the business model and important features of Airbnb that sets it apart, so that you can create a similar yet unique platform. Let’s begin.
What is Airbnb?
Now, first let’s begin with Airbnb, which is an online marketplace for the people where they can find out & book online extraordinary accommodations across the globe using their smartphones or tablets. This platforms connects the people to amazing travel experience. It offers unique adventures for people as they can rent anything from a single room, to an apartment, a suite, a yacht, a castle, or even a houseboat. Airbnb describes itself as this peer-to-peer online marketplace and a home-stay networking enabling people to list/rent short-term stays/lodging in the residential properties.
Now, the accommodation cost obviously varies, however it is always decided by the owner of the selected property. Airbnb earns its revenue by charging a percent of service fee from the hosts and guests with each booking.
Airbnb’s headquarter is in San Francisco and it was founded in the year 2008 in August. The idea was originated by Joe Gebbia and Brian Chesky in 2007 when they failed to afford rent for their apartment. It was then that they did their living room into this bed and breakfast for three guests & offer them homemade breakfast. Thus, they started earning profits and begun working with the investors and ultimately become this global powerhouse of the short breaks. Today it has more than 3,000,000 logging listing in around 65000 cities & 191 countries, while lodging price being set by the host.
In case you are keen on improving your business too with a versatile utilization of this kind, then you can begin by creating a mobile app like Airbnb.
Aim to offer a new traveling experience?
When creating a similar platform, one must keep in mind the two main groups of their target audience, i.e. hosts & guests. Thinking about each of them will be your step successful step towards your project.
How does Airbnb work?
Airbnb works by booking hosts all across the world and to create an app like Airbnb, you must follow suit. Today, Airbnb is providing services in more than 190 nations and using this platforms, people can’t just book a room but also rent their room or maybe house out. It functions simply where people simply need registering and filling up their profile. Then on, they can explore various options in the place they want to visit and estimate how much the home may cost them and then it can be rented out. Needless to say, the app has incredibly made people’s lives easier by making traveling super easy for them.
Market Statistics & Presence of Airbnb
Talking in global terms, today Airbnb has 60 million registered active users, approx. 500,000 guests stay/night booking via Airbnb, people have travelled around 10 billion miles to the Airbnb destinations, there are more than 700,000 hosts, with 2 million listings, and 192 nations and 57000 cities where Airbnb is active in while the estimated revenue is around $900 million.
Who are the probable competitors of Airbnb?
Ever since the concept of Airbnb entered into the market, several other businesses have introduced their own apps as well, hence the competition is pretty high and so are the chances of earning huge revenues. Today, Airbnb is not the sole platform that lists and books accommodations across the world. Here we have mentioned few other firms that have made an app like Airbnb and have made their mark with their offerings. They are:
Roomorama: This is a safe service requiring users to confirm what their intentions behind sharing the houses with guests are. It cross-checks personal picture, bills and personal IDs for verification of people.
FlipKey: This big company is owned by the famous TripAdvisor. It has many users with highest quality rates owing to the manual verification program by the website’s employees. It has around 5000 special deals going on daily for everyone.
HomeAway: With over one million global listing, HomeAway offers same range of services and some other like their own insurance program, while also operating a few more regional sites in this horizon like VacationRentals, TravelMob, & VRBO. Thus, it is a big-time competitor of Airbnb.
Besides, there are few more well-tried out offerings in this arena and still there is enough room for interesting concepts, services and their implementations. Hence, in every way this is just a great time to build an Airbnb mobile app.
Features of App-like Airbnb
To start with, there will be three kind of users in the system:
- Front-end User: Customer & Host
- Back-end User- Admin
Features of the User Panel:
Features of the Host User Panel:
Features of the Admin Panel:
The additional features that you would need to integrate into your Airbnb-like app to make it amazing are:
Registration: Same as for most travel apps, here as well the user first needs to register via their email ID and phone number. Once the user has agreed to your terms & conditions, the registration process will be complete. The estimated time to develop this feature can be around 12 hours, so the cost would be somewhere $300.
User Profile: Here the user will require entering their personal information. However, as the app developer creates the app, he would need to build a platform to create two types of profile, same as Airbnb: one for guest and other for host. Here the information such as email ID, phone number, user’s name, birthdate, sex, residence address and other crucial description needs to be entered by the user. Once it’s done, their profile would be created. User profile ID will allow you to keep a record of every customer of your and their favorite destination and tours, etc. Accordingly, you can send notifications for the special offers. Integrating this feature in the app takes around 24 hours and the cost is approx $600.
Filters: Once the registration process is over, now the users can begin their search accordingly. Like, if a user is a tourist, then he can begin searching out for a suitable accommodation in their desired city. They will come across hundreds of options to pick from as per their budget. However, in case of host, he can lend his house for a rent or a lease for a certain period of time. Like, if someone is offering their house/villa for rent, then they must provide suitable details regarding it, like what kind of house is that, information regarding rooms and whether it can be rented privately or the guests can share it. Then the price details will follow.
The guests will also be needed to provide certain information like where they would like to spend their vacation, the room type they are looking, check-in & check-out dates, total number of people that accompanies them. Additionally, one can filter search for more detailed information like offered amenities, bed types, neighbouring places such as park, market, etc. guests will also be able to avail information regarding local restaurants, cuisines, languages and lot more. The estimated time & cost to develop this feature is 32 hours and $800 respectively.
Global Currency Support: While making payments, users should be at ease, hence it is best that you provide a currency converter API that would convert the payment value according to the chosen currency via Google currency API.
Reporting & Analytics: Real-time reporting is crucial, as it allow the admin to stay updated and analyse overall app summary, like completed bookings, active bookings, cancelled booking with time range, payments, reviews, registered users, etc.
Personalization: This functionality will enable user to get specific results based on the following factors, like Location, Booking History & Booking behavior. There will be a need of API integration to fetch data.
Payment Gateway: To make online payment for bookings, payment API needs to be integrated like WorldPay, Sagepay& PayPal.
Cloud Storage: This functionality allow the system to store the data on cloud. This way, system will be able to access & manage data from anywhere and anytime.
CRM Integration: This feature is used to enhance marketing via SMS & emails. Here the admin deals with user analytics, promotions, communication and email tenplates.
Live Chat: For this, Live Chat API needs to be integrated like Zapier, Zopim & LiveChat, etc.
HTML Embed: This feature is great from marketing point of view, as it allow the users to embed HTML of any of the list to the platform. Here, the system will show HTML code, which the user can copy & paste on other platform.
Multi-language support: This functionality enable the host to choose the desired language for listing.
Social Media API: This needs to be integrated to the system through which user will be able to share the listing with their friends, as well as invite the user & host.
CMS Integration: This functionality is required to manage app content, both in text as well as Image form. Thus, CMS integration is crucial for the content management.
Room Details: Once the filter feature is integrated, next is providing feature that provides details regarding different variants of room for the accommodation. Thus, when guests search for a specific room to meet their requirements, they will be presented with the best options. Usually, the guests picks rooms based on various criteria such as images shown, room view, ratings & reviews, room description, direction, location, tariff and terms & conditions.
Tourixt: Travel App Developed By Octal IT Solution
Also the guests can check details of the host of the particular property. They can know what can be the maximum stay period of that property, and services to be offered and whether there will be any additional charges to avail those services. Developing this feature will be a lengthy process and hence it will take around 180 hours. The whole of development procedure in case of these specific features is divided into several categories with each of them taking their own time like for gridding it will require variants, room info, host profile, available dates, booking feature & much more. This will cost somewhere around $4500.
Translation Feature: This feature is really important for apps like Airbnb, as it will be helpful for tourists and guests to translate the whole information in a language they are convenient with. Here, the text will be sent to Google Translator and then it will be translated into the language desired by the user. The integration of this feature will cost $200 and 8 hours to develop.
Incorporate Maps: With the help of maps, the guests will be able to locate that specific place of stay along with the filtration option. This would give them a rough idea regarding the neighboring location next to their house of the hotel. It takes 32 hours to implement these features and the cost would be approx. $800.
Back-end: This indeed is the most critical aspect of any app development and with it being linked with the server, it is very much the app’s backbone. No app can ever be complete without the development of the backend. However, app developers must be every cautious as well as patient, as this task is really time-consuming and painstaking. Its integration takes over 160 hours while it cost whole of $4000. Also ensure here that you take help of third-party apps for room booking. This will makes your app whole lot better.
Guide: This component is associated with the map and it will start functionality as a user chooses to stay in a location. Then the feature guides the user regarding sightseeing & other must-visit spots. It will take 10 hours to develop this feature at $250.
Messaging: This functionality is crucial to reach your targeted audience from time-to-time to communicate important matters. SMS via messenger or push notifications can be sent to the users for instant communication. On average, it takes 80-100 hours and $2500 to develop this functionality.
Feature for Hosts: This functionality will allow the hosts to lease or rent out their place for the stay, at price they want to charge. They simply require giving commission to the firm for each booking. They just have to make an account and provide their details. Roughly, it will take 80 hours and $2000 to develop this feature.
Add to favorites: This section is quite crucial as it allows you to know the response for your app from the target audience. Here, the user can choose their favorite place/ hotel, and they can again search loo the same spot upon next visit over there. It takes 6 hours and costing of $150 to create this feature.
Friends Invitation: here, the user can invite his friends or family to join the mobile app. It takes 8 hours and $200 to develop this feature.
Next, let’s understand how you can earn money through this app.
Monetization Model for app like AirBnb
Well, in case of AirBnb, it makes money in a direct manner: “It charges its users”. It charges fee to guests and hosts alike. Now the guest fee range from 6-12%, as per the size of the reservation subtotal. So, higher the subtotal, small is the reservation fee percent, and that is non-refundable upon cancellation. For hosts, Airbnb charges 3% host service fee.
How much Development cost to create app like AirBnb?
Well, the development cost depends on a number of factors, such as:
- Choice of Platforms (Android or iOS, or both)
- Number of persons employed in project (Project manager, UX/UI Designer, QA Analyst, Apple or Android Developer)
- Region of the App Development Company (development cost is lesser in Asian countries)
- The technical complexity of Features & App Testing
Once, all of the above factors are considered, an app with basic features may cost $25000-$30000, while an app with advanced features and working on both iOS and Android platforms, the cost will be $40000.