What Is Airbnb, How does Airbnb work?

Airbnb is a service that allows property owners to rent out their spaces to travellers for short periods of time. It provides a diverse range of lodging options for those seeking alternatives to hotels.

Whether you’re planning your next vacation or looking to make money on Airbnb, there are several factors to consider before deciding if the platform is right for you. Here’s a look at how Airbnb works and the pros and cons you should weigh before using it.

What Is Airbnb

Airbnb was founded in 2007. When Brian Chesky and Joe Gebbia couldn’t afford to pay their rent, they came up with the idea. They decided to make extra money by renting out their apartment to people who couldn’t find a place to stay. Airbnb has grown tremendously since then, and it now benefits both guests and hosts.

Airbnb has approximately 6 million listings worldwide. The Airbnb website offers a diverse range of properties, including single rooms, apartments, houseboats, cabins, and moored yachts, among others. All of these property listings are tailored to the needs of travellers.

What Is Airbnb

How Does Airbnb Work?

Airbnb is a website that connects hosts who want to rent out their spaces to guests who need lodging at a lower cost than hotels. Guests can explore all of the available options in their destination by browsing the Airbnb website.

How It Works for Visitors

As a guest, you can narrow down your search options by using various filters. You can use these filters to find your ideal match based on price, location, amenities, and property type. You can also use keywords to narrow your search even further.

It is important to note that hosts have rules in place for their areas. Some hosts, for example, will allow you to stay in their spaces with pets, while others have a strict no-pets policy. Once you’ve found a suitable location, you can book your stay and communicate with the host via the website.

How Does It Work for Hosts?

Renting out your property or extra space can earn you extra money on the side. All you have to do is set up an Airbnb profile and go through a few verification steps. You can list your property once you’ve been approved. But, before you do so, make sure that listing a rental in your area is legal.

As a host, you have complete control over how much you charge your guests. If you’re unsure how to price your space, Airbnb can make suggestions, but the final decision is yours.

What Is the Difference Between an Airbnb and a Hotel?

In terms of service, Airbnb and hotels are similar because they are both in the hospitality industry. Depending on the luxury level, Airbnb prices are generally lower and more flexible than hotels with fixed fees.

Airbnb also provides a more personalised stay by allowing you to select a location that meets your needs as a guest. However, there are a few factors to consider when deciding between an Airbnb and a hotel:


Hotels provide their guests with a wide range of amenities, such as rooftop pools and lively bars. Furthermore, a hotel room often includes room service, which Airbnb does not guarantee. Some hosts charge a cleaning fee as well.

Genuine Experiences

Airbnb is a better option for people who are visiting a location and want to enjoy authentic experiences hosted by locals. There are several in-city experiences that can only be had through Airbnb rather than a high-priced hotel. In addition, hosts offer personalised recommendations for the best places to visit and activities to participate in.

Traveling with Children

Hotels may be a better option for those travelling with children because they have extensive security measures and facilities to keep the kids entertained. For anyone travelling with children, hotel accommodations may be a safer and more enjoyable option.

Security and safety

It’s understandable to be wary of staying in someone else’s home. However, Airbnb has gone above and beyond to ensure the safety of both guests and hosts by incorporating a thorough verification process during sign-up.

Airbnb also includes a $1 million guarantee for hosts in the event of damage caused by guests. However, this is only applicable in countries that qualify.

Airbnb’s Benefits

Airbnb has grown dramatically over the last decade, and it’s easy to see why. Airbnb has grown in popularity because it offers travellers low-cost lodging. Here are some of the reasons why many travellers prefer Airbnb.

A Wide Range of Properties

Airbnb offers a wide range of accommodations, including studios, apartments, condos, entire houses, houseboats, moored yachts, and even castles. Whether you’re looking for a vacation, a business trip, or a road trip, you’ll find something to suit your needs.

Pricing is determined by the hosts.

As an Airbnb host, you have complete control over how much you charge your guests. In comparison to hotels, this allows for greater flexibility. Because you set the price, there will inevitably be competition. As a result, hosts strive to make their property as affordable as possible, which benefits the guests.

Listings for Free

Airbnb, unlike many other online platforms, does not charge its hosts a fee to list their property. After providing all of the property information and a bit about themselves, hosts have their property listed for free. This adds to the appeal of the venture, which is highly profitable.

Personalized Searches

Because of the large number of listings available, guests can use various filters to find a suitable Airbnb based on location, size, affordability, and other factors.

Airbnb’s disadvantages

Airbnb, like everything else, has some drawbacks.

Inadequate Quality Assurance

With hotels, you can usually expect to get what you pay for because the rooms are typically as advertised. Because hosts can create their own listings on Airbnb, there is room for dishonesty and embellishment. As a result, before booking an Airbnb, read the reviews from previous guests about their interactions with the property and the host.

Additional Charges

Airbnb charges guests a service fee that is typically 14% of the booking subtotal. In contrast, hosts are typically charged a service fee of 3% of the subtotal.

Damage to Property

Property damage is a possibility for hosts. Although the majority of hosts report uneventful stays, there have been reports of property damage caused by rowdy partygoers and guests. Although Airbnb offers a damage protection programme for hosts, it only covers specific types of damage and is not available in all countries.


While Airbnb rentals are not subject to the same regulations as hotels, hosts must pay occupancy taxes. Value-added tax and rental income taxes are two other types of taxes that can be levied. These taxes are typically location-based and may differ from one location to the next. Both hosts and guests should become acquainted with the applicable taxing regulations.


If you’re looking for a cheap place to stay, Airbnb is a great option. You can select the most appropriate property for you from the Airbnb website based on your needs. You can also make extra money by hosting people if you have extra space in your house or a property lying around.

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