Our fairytales speak of the tired Snow White or Goldilocks who took refuge at the nearest home they found after tirelessly treading through the forest all day. Snow White found seven friends whereas Goldilocks’ story ends much differently. However, with an application like Airbnb, finding a home in the wilderness would not have been any problem for either of them. All in all, both may have come up with exception reviews about their wonderful homestay.
Airbnb makes use of the modernistic approach to business- an on-demand business model. In this case, they themselves do not own any of the properties but acquires them on rent from the householders. This is a win-win situation for both the householder and Airbnb. Householders having an extra space can put it up for rent as homestays and thus earn from it. Airbnb can collect revenue from the customers for providing their service of connecting to hosts; as well as from the host as a commission. In this scenario, both Airbnb and the householder is making a profit.
These homestays are provided by Airbnb through their website or through an on-demand business app, at the click of a button. Customers get to search from a list of all available places as per their desire in a locality and select the one that best suits them. This gives customers a sense of instant gratification. Added to this sense, the customers also get homestays at rates much cheaper than that for hotels and thus make a saving. Oftentimes, travelers choose to stay in a homestay over a hotel because of its rustic and local feeling. Travelers get a first-hand experience of the lives of the locals, get to live and interact with them, and thus have an all-together exceptional experience.
Airbnb has completely revolutionized the arena of hospitality models. They have changed how tourism used to be by large with their innovative business model. It not only provided benefits for the travelers but also beneficial to the householders. A study revealed that householders would give away their space to strangers because of their desire to meet new people and also to please someone with their homely generosity. Seeing an opportunity with Airbnb, householders jumped to take it.
Application of the on-demand business model in a home rental sector will eventually open a horde of new innovations. Airbnb has itself gone a long way from AirBed And Breakfast that started off in 2008. They now have services in over 190 countries, spreading through over 34000 cities across the world. Airbnb has resulted into a business valued at $31 billion. The simple idea behind Airbnb was highly appreciated by wanderers and travelers and thus their bold move paid off. With technology at its core, the idea of Airbnb surely opens up new horizons in home rentals!
Within only a decade or so, Airbnb has grown from scratch to a multi-billion dollar business. Its powerful business model allowed it to grow unstopped, unparalleled and Airbnb is still expanding its potential trying to access areas hitherto unheard of, or lying in some solitary nook. Airbnb’s unique idea was well appreciated by people who wanted to rather stay in a hotel than in a homestay and henceforth it has served on.
Come to Airbnb to chalk out your next trip, it provides the best halts at the lowest prices!