Apps like Airbnb: Business Model, Tech Stack & Cost

The travel industry has reached a market valuation of $8879.2 Billion in 2023, which is anticipated to reach $12315.5 Billion by 2032 with an expected CAGR growth of 3.7%.

Travel is such a widespread huge market space, which will increase over time. We are talking about travel here because travel and Airbnb are inter-relatable. The more people will travel, the more Airbnb’s booking rates will rise.

Hence, this is not a declining market. Stepping into the business and starting apps like Airbnb is not a bad idea. This could bring impressive profitability and great business expansion if the app development is processed very smartly and the market gets attracted to it.

To build an app like Airbnb, you will need a super-talented mobile app development team and also involve yourself in deep research to figure out what is best to include in your project. Well, we believe you better start from here only. This blog will brief you about Airbnb’s business model, how to build such an app, what will be the development cost, features to integrate, etc.

Read the important details to catch most of the travelers onto your website/app.

What is Airbnb?

Airbnb is an online marketplace platform that enables homeowners to put their entire house or certain rooms on rent. Those travelers, who are looking for homestays in the locals during travel can book the space through the website or app.

The home-like stays are always comfortable compared to hotel accommodations; which made Airbnb the most visited travel and tourism site. Brian Chesky and Joe Gebbia initiated the concept for accommodation in 2008, and by 2021 it has reached a total revenue of $48.9 Billion.

The accessibility and ease of Airbnb properties make it a better and more affordable option. Whereas, the app itself makes profits through hosts and travelers on both sides.

Coming onto your plan to develop Airbnb alternatives; success is possible if your homestay rental app has a uniqueness with more engaging features to compete with the existing big-giants of the marketplace.

How Does Airbnb Work?

If building apps like Airbnb is your concern, that’s very important to learn “ how does Airbnb work?” This is not like other hotel accommodations, so it is advisable to understand the particular vacation rental apps thoroughly.

Airbnb works in two ways – One is the Host and second is the traveler. Here we have an explanation for the working of the app from both users:

How Does Airbnb Work for Guests / Travelers?

• To use the application, travelers have to sign up for the application. They must register through contact numbers, email addresses, and social media accounts.

• Once you sign up and register on the application, the user has to create their profile, adding their names, pictures, living addresses, ID numbers, and other details. Providing the personal information is required for the authentication of users.

• Mention the desired location in the search bar where you are looking for the properties. Also one can receive shortlisted property options if they select filters; such as price, venues, type of rooms, property size, property type, etc.

• You can request and book the stay at any property, and later the traveler/user will receive a confirmation notification with all the updates on their application.

• After the property confirmation, use the one payment mode from the multiple payment gateway options given; such as PayPal, GooglePay, Debit/Credit Card, etc.

• After the property selection, booking confirmation message, and payment are done; you are good to check in the property and enjoy the stay.

How Does Airbnb Work for Hosts / Owners?

• The hosts/property owners have to register themselves as host on the application. Initially; they have to sign up here.

• Once they sign up, now register themselves by adding certain required information about themselves. Also mention the property details on Airbnb; such as venue, number of rooms, what are the appliances to use, number of guests to accommodate, profile picture, etc.

• Call the professional Airbnb photographer to click the authentic pictures of the property and upload them on the platform.

• The landowners can directly communicate with travelers when they request through application and discuss property cleanliness standards and other important norms.

• The property owner has the authority to accept/reject travelers for accommodation based on their convenience.

• The application transfers the amount into the owner’s account after 24 hours of the traveler’s check-in.

10 Vacation Rental Apps like Airbnb – Top AirBnB Alternatives

Have you decided to develop a vacation rental app like Airbnb? If that’s your last call; then it is more important to go through alternatives to Airbnb. Learn about how these alternatives are functioning, how about targeting the market, how being a tough competition to Airbnb, etc for your project’s success.

1. HomeToGo

HomeToGo has 17 Million vacation properties situated in different central; such as Western and Eastern Europe, and more. Customer support is provided by the vacation rental app in eight languages, including English, Russian, Polish, Italian, Spanish, French, Dutch, and German, to both hosts and guests.

The features include profile verification, search results, pricing comparison, filter options, save favorites, property listings, booking requests, and more.

Features:

• An affordable option
• Profile Verification
• Pricing comparison
• Booking sites request
• Save Favorites
• Property Listing

2. Bookings.Com

Bookings.com was built in 1996 in Amsterdam; it became the world’s leading digital travel company from a small start-up. The application is available in 43 languages with 28 Million accommodation listings (including 6.6 Million homes, apartments, and other uniquely designed properties.) No matter where you want to go and what to do; Bookings.com makes everything easier and does things based on the customer’s convenience.

Features:

• The Customer support services are available 24/7
• Guest reviews
• Bookings.com extranet where the homeowners will take full control of the listings and general presence of the property.

3. TripAdvisor

TripAdvisor majorly serves hotel bookings, restaurant reservations, and experience bookings. Users can avail of these services through the official website or mobile apps. The company serves travelers from all across the globe, where they enable the users to grab all the required information and make the right decision for their accommodation. Tripadvisor collaborated with other booking sites also; such as Yatra, ClearTrip, and MakeMyTrip; where the operators across the globe provide the best travel and tourism services.

Features:

• Travel planning to the users for their upcoming trips to make them conveniently step ahead.
• There are some helpful features; such as Near Me Now and Point Me There to locate nearby interested places and tap into the reviews or to get the maps for locational tracking.
• Trip advice and guides are provided to let travelers know how they can fully enjoy their destination.

4. OneFineStay

OneFineStay provides the finest houses and villas at the desired location enabling travelers to access the most luxurious stays at the right cost. The application is divided into two categories; one is the City Collection and another is the Villa Collection. The homestay service providers are mostly achieving popularity from the “word of mouth” because of their one-of-a-kind offerings. On the contrary, the app has a collection of the finest properties including private beaches, gyming and gaming rooms, fascinating landscape gardens, and more.

Features:

• Customer support for travelers 24*7
• Guests will receive professional housekeeping service if demanded
• Extra Services (private chefs, butlers, grocery delivery, chauffeurs, in-house yoga sessions, etc)
• Guests with babies can expect babysitters and nannies for comfortable and enjoyable stays.

5. Agoda

Whenever you book hotels or villas online; Agoda will always be there in the suggestions for booking. It is a great competitor to Airbnb launched in 2005, which has acquired 4 Million accommodation options across the globe. The reason why Agoda became very popular is its discounted rates. From budget-friendly to expensive luxury 5-star properties; one can find decent and mind-blowing vocational stay options at Agoda. Despite being renowned as one best apps like Airbnb; it also facilitates rental cars, discounted flight ticket options, and offers a full-travel package.

Features:

• The multi-lingual application covers 39 languages
• Separate option for discounts and coupons
• Agoda Widget features to gain anticipation for the next travel destination

6. Vrbo

Vrbo means Vacation Rentals by Owners, which was built in 1955. It is one of the best alternatives to Airbnb in the marketplace. This platform includes houses, villas, lake rentals, beach houses, cabins, condos, etc in different locations. As this is an age-old application, therefore it is considered an OG vacation rental app renowned for its competitive prices. It is a user-friendly app, which has the same parent company.

Features:

• A variety of options are available
• Many perks and rewards are available
• Agility to book accommodation on points
• There are useful filters
• Manageable and secured booking procedure

7. Vacasa

If someone is looking for a decent vacation rental app; search for Vacasa. It is one of the best vacation properties management ensures the guests stay at the best and most comfortable accommodation space. This is one of the best apps like Airbnb, but better than that due to the extra features added. Moreover, Vacasa will give you a 3D walkthrough of the properties; which helps travelers/guests to choose the best and most feasible property appropriate to their requirements.

Features:

• 3D walk through the property
• 24*7 customer support available
• Travel is easier via having an appropriate travel guide; such as driving directions, and a home entry code.

8. HomeExchange

It’s been heard by travelers that “HomeExchange Thinks of its Guests.” The application provides one-of-a-kind homestays under the guest’s budget. This is a platform, where you can either swap homes or stay in people’s homes in exchange for earning points. HomeExchange has built a community of 150000 members across 145 countries, and still, the count is growing rapidly due to its unique concept of accommodations. Also, the app will charge $220 yearly for unlimited exchange.

Features:

• You are liable to discuss and plan things with hosts or guests before the home exchange takes place
• The application enables you to organize and plan for other trips
• Through the platform, you can come across host’s or guest’s lifestyles and cultures
• Live chatting is possible with other members
• Reverse Swap feature; where you can check who’s traveling to your location for direct home swapping

9. Sonder

Sonder functions similarly to Vacasa in that it connects you to managed properties worldwide via its app. Its distinctive feature is its strong emphasis on fusing a mobile-first service experience with award-winning contemporary design. With full-service options that are all accessible from your smartphone, Sonder boasts that “Everything you need is just a tap away.” These services include Wi-Fi access, area tours, in-app customer care, and special checkout requests.

Features:

• In-app chatting for query resolutions
• Curated neighborhood guides for better exploration
• Managing all the stays in one place
• Delay in check-out – tap the buttons and take the support from the app

10. Expedia

Expedia is your one vacation rental app; which plans and books everything for your travel; from flights to cabs to hotels, and everything. Also, the application is serving across the globe among different countries. Moreover; this is a multilingual platform that enables the guests to access information in their personalized language. It is the most user-friendly and fully packed travel service offer; which makes a completely comfortable package for the guests to make their experience better.

Features:

• Available in different languages
• Trip planner for upcoming trips by Expedia
• Enable travelers to explore different activities across the destination
• Excellent search filters

Airbnb Business Model – How Does Airbnb Make Money?

Airbnb is an affordable travelling accommodation option. It facilitates access to distinctive spaces and local culture. According to Airbnb business plan, travelers are enabled to build connections with local hosts anywhere in the world, operating as a transaction facilitator who are looking for a comfortable accommodation at reasonable price. It also provides host protection insurance and a system to rate and review its services.

Apps like Airbnb facilitates booking of private living space for travelers or guests. Travelers have access to rent out private homes. Airbnb as well enables owners to list their space and earn rental money.

Airbnb is an aggregator business model that acts as a middleman between hosts/property owners and guests/travelers. The hosts will post on Airbnb for their property, whereas the travelers will come and accommodate at the space to experience the local vibes. The biggest assets of Airbnb are its Hosts and Guests enable the platform to generate revenue.

How Airbnb Generates Revenue?

We got to know about what’s the business model. But what’s important is to understand how it is generating revenue. Here is an explanation for that; read wisely:

• Airbnb charges a 10% commission when anyone books the property of the hosts through the platform.
• When travelers make payment for their stays, the app charges a 3% fee from the total payment added to Airbnb’s revenue,

That’s a query among all interested entrepreneurs, “how does Airbnb make money?” The information will help them to build a profitable revenue model for their application. Follow the given methods, and also add your own customized monetization strategies; such as in-app purchases, subscriptions, or anything that suits better for the business and users to have a competitive presence in the marketplace.

How to Build an App like Airbnb?

How to create apps like Airbnb? Well, that’s a vital question every individual is asking who is interested in building such kind of application. Here are some steps, acknowledge them to understand the development process:

Create the Plan

If you want to develop apps like Airbnb; the first thing is to do conceptualization. It is vital to do in-depth market research, analyze the competition, know what to build, learn about technologies to use, monetization, final business goals, etc. The first step will help you make further development processes streamlined for impressive results.

Hire Mobile Application Development Company

When you know what to build, how you want the app to process, custom ideas to integrate, budget, competitors, etc; now the time comes to discuss the plan with an iPhone app development company or cross-platform compatible developers. Cross-verify their experience, know their talent, acknowledge the portfolio, and hire in-house or outsource the project.

Build UX/UI

Due to the lack of attractions and engagement in the application; the users leave the platform too early. To hold the users on the application, that’s important to build great UX/UI using excellent app development tools. The developers have to process with great wireframing, do excellent prototyping, and build apps with engaging designs.

MVP with Basic Features

We advise you to create MVP with basic features implemented. Airbnb is not an easy target or competition, so it is better for you to save time and money by testing the market with MVP. The MVP creation allows for receiving user feedback and reviews, which enables us to understand the market needs. Moreover; it helps in learning about the advanced features implementation to gain expected user attention.

Test and Launch

The development is finished, the QAs will lead to testing and quality assurance processes making the app fully accurate and ready to launch. During testifying on the application, the responsibility is to keep the app bugs-free, eliminate technical glitches, resolve the problematic programming and functioning; and altogether make the app like Airbnb user-friendly with its full potential.

The moment QAs gives a “Green Sign” to your application for launch; let’s deploy it on the dedicated platform; be it Android PlayStore, iOS AppStore, or Cross-Platform (Compatible with both).

Update App Regularly

Keep an eye on the responsiveness of your product, and regularly update it with new & exciting features for more engagement. This stage is all onto the observation, where the developers will acknowledge new upgrades and alterations required based on market standards.

Airbnb Tech-Stack

Building the Airbnb alternatives requires similar kinda technologies; such as:

How Much Does it Cost to Build an App like Airbnb?

The cost to building apps like Airbnb lies between $25000-$35000 with common features and basic functioning. However, if you choose to build vacation rental apps with more complexity, advanced functionalities, custom designs, and personalized features; the cost may rise to $50000-$70000.

There are no criteria and scope for sharing the exact app development cost because that depends on various factors; such as:

• Size of Application
• Complexity of Application
• Custom Designs
• Deployment Platform
• Location of Development Team

How Konstant Infosolutions Can Help To Build an App Like Airbnb?

Konstant Infosolutions is the best mobile app development company, which has an experience of more than 21 years in the industry. We have worked on various domains, tackled complex applications, managed working in different industries, practiced different technologies & latest trends, etc.

Our experience and expertise made us your first choice to book for a consultation. It is an assurance that you will not regret appointing mobile app developers from Konstant Infosolutions, because:

• We are Affordable
• Use the best technologies
• Believe in implementing current market standard tech-trends
• Provide seamless custom support
• Provide transparency

Final Thoughts

So, did you understand about Airbnb business model and other details? When you build an app like Airbnb, better you consider the demonstrations in mind for agile development.

If you are still stuck in a dilemma about the travel industry, the scope of vacation rental app development, or anything else; then go deeper with analysis & market research and also consult with a mobile app development company. They will suggest better and right with the right way of processing.

We hope you build a robust vacation rental application and meet your business goals. In case you need any assistance, feel free to connect with us. Our experts will help you with the best possible advice and knowledge sharing.

Frequently Asked Questions (FAQs)

1. How much time it will take to build apps like Airbnb?

This will take nearly 3-6 months to build your mobile app. In case, there are some additional complexities and features added; the duration will extend to more days, weeks, and months – all based on the requirements.

2. Should I hire a Freelancer Developer or a Mobile App Development Company?

There will be pros and cons to hiring a freelancer or a mobile app development company. Such as hiring freelancers will be less expensive, whereas mobile app development companies will work much better to achieve the optimum quality. So both perks and lacks; you better evaluate and later decide the best for you.

3. What are the things to keep in mind before app development?

There are several things, you should always keep in mind before development; such as:

• Create a Plan of Action
• Know your targeted audience
• Research and Analyse your competitors
• What will be your monetization methods and process
• What’s going to be the deployment platform