Airbnb is everywhere these days, but how does it actually work?
Airbnb is a listing site for condos & homes in the same way that Booking.com, Expedia.com and Priceline.com are listing sites for hotels. Condo and homes that are rented on a short-term basis to travelers are called Vacation Rentals or Short-Term Rentals.
The sites where accommodations are listed for rent are often called Online Travel Agencies (OTA’s) and Airbnb has only one major direct competitor in the Vacation-Rental OTA space and that is Homeaway.com/VRBO.com.
Airbnb works by letting you list your home for rent for any number of nights. For the advertising of your listing Airbnb collects a 3% fee on any reservation you get from their site.
Whenever a guest books your home for rent, you will be notified by Airbnb and given the option to accept or deny the booking request. If you accept, AriBnB then charges 3% of the total reservation as their fee, and passes the rest of the money on to you.
Airbnb offers hosts a wide range of tools from pricing advice to dispute resolution with guests, and they are one of the fastest-growing companies in the world.