How Does Airbnb Make Money?

Airbnb is a very successful platform that allows travelers from all over the world to connect with potential hosts in many cities and countries. It all started in 2008 when two designers who had extra space in their home hosted three travelers looking for accommodation. Now, millions of hosts and travelers create free Airbnb accounts in order to list their space and book unique accommodations worldwide.

Airbnb does so much business and has an excellent 24/7 support team dedicated to helping guests and hosts. How do they pay their team? How do the owners make any money since the listings are free? It would not be possible to provide these excellent services without some kind of funding. All successful businesses require financing and need to pay their employees.

It turns out Airbnb makes money from the service fee charged to guests. The fees charged to hosts cover transaction processing fees. The service fees for guests finance the website’s operation, enable the platform, and allow the excellent customer service that Airbnb is able to offer. Travelers are charged a 6-12% service fee, depending on the total charge for the reservation. The higher the total charge for the reservation, the lower the percentage of the fee. The fee is scaled so that travelers can save money when booking expensive reservations. This service fee is on top of any cleaning fees and reservation rates charged by the host.

Have you enjoyed traveling via Airbnb? Have some extra space in your home that you might want to rent out to travelers? Think the whole concept of Airbnb is amazing? Sign up as an Airbnb host, what are you waiting for?

Image By Corey Coyle, CC BY 3.0,

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