App Development

A Comprehensive Guide to Building an App like Airbnb (Monetization Strategy Included)

Yes, we are talking about the dramatic rise of Airbnb. What started as a single-house rental business has now become a monopoly in the tourism and accommodation industry. Yes, we are talking about the dramatic rise of Airbnb.

In this blog, we will talk about the unprecedented growth of Airbnb in recent years and how it managed to scale to 4 million active listings from merely a single rental house. Moreover, we will share a comprehensive guide to building an app like Airbnb along with a bonus monetization strategy.

So without further ado, let’s get started!

About Airbnb

Airbnb (Air Bread & Breakfast) is a much more affordable alternative to hoteling, with over half a million people using it during travels and tourism. It currently has over 5 million property listings, including studio apartments, bungalows, hotels, resorts, beach houses, and even private islands.

Step-by-Step Guide to Build an App like Airbnb

Here’s how you can create an app like Airbnb.

Planning & Analysis

The first step is to come up with a sound business plan for the app, especially in such cases where the business owner would own no properties and have little to no investments in them in the future.

Conduct detailed market research, create a business plan, answer the possible obstacles, and explain to your users how your app will address the shortcomings of your competitors.

Once you have a comprehensive business plan, you can interview multiple app development companies and decide to partner with the most credible one. Make sure you ask them to sign an NDA (Non Disclosure Agreement) before you share your business plan with them.

Wire Framing & Prototyping

In the second step, the design team of your app development partner creates wireframes and prototypes for the app. The prototypes then undergo a series of testing, and a final output for the app architecture is created.

The front-end team then follows this prototype to create an intuitive user interface design and app screens. Once the design is finalized, the backend development team takes the lead in the project.

Development & Testing

The development phase includes algorithm design, logic building, and linking relational databases with the app components. This phase is often the most time-consuming and takes between 3 – 12 months, depending on the complexities and features of the app.

The tech stack used in backend development comprises Swift or Objective C for the iOS version and Java or Kotlin for the Android version.

Once the development phase is completed, the final product goes through a series of manual and automated testing to check and remove any bugs or errors.

How Does Airbnb Make Money?

Airbnb has a fascinating business model. It neither owns any property nor oversees operations at the venue but still makes a truckload of money from a commission-based model.

Airbnb takes a 3% direct commission as a platform fee from hosts, while it charges a flat 14% of the booking sub-total to the client.

Simply put, Airbnb earns $17 as a commission for a $100 booking.

Besides affordable accommodation, Airbnb has become the safest and most secure alternative to hoteling. Over a decade of operations for Airbnb has been reported without any extreme violation case. And that’s the main reason why Airbnb has succeeded in gaining the trust of billions of travelers who see it as their go-to accommodation spot.

Key Takeaways

Tourism has returned to normal, and people are excited to finally travel worldwide after a long break due to the recent pandemic. If you are interested in building a similar app to Airbnb or others, now is the right time!

Hire app developers in Los Angeles, Houston, or any other major tech city and jumpstart the development of your project.

 

 

 

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