Airbnb Revenue

Airbnb Revenues

Business / By /

​In 2024, Airbnb reported revenues of $11.1 billion, an increase from $9.92 billion in 2023, $8.4 billion in 2022, and $6 billion in 2021. This consistent growth reflects the company’s expanding global presence and the increasing popularity of its platform among travelers.​

Key Facts
Total Revenues in 2023$9.92 billion
Net profits in 2023$4.79 billion
FoundersBrian Chesky, Nathan Blecharczyk, Joe Gebbia
Year & Place FoundedAugust 2008, San Francisco, CA
Airbnb’s first investor
Y Combinator, on January 2009
Year of IPODecember 10, 2020
IPO Price$146.00
Total Revenues at IPO$2.5 billion as of Nine Months Ended on September 30, prior to the IPO
Airbnb Employees6,132 employees in 27 cities around the world
Revenues per Employee$977,129.81
Founded by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia, in August 2008, in San Francisco, CA, Airbnb’s first investor was Y Combinator in January 2009. The company IPOed on December 10, 2020, at a $146 share price. At IPO, the company generated $2.5 billion as of Nine Months Ended on September 30, prior to the IPO, with 6,132 employees, thus $977,129.81 per employee.

Related Visual Stories To Airbnb

Who Owns Airbnb

who-owns-airbnb
Airbnb’s founders primarily own Airbnb: Brian Chesky, with over 76 million Class B shares, which give him 33..4% of ownership and 30.6% of voting power; Nathan Blecharczyk, with over 64 million Class B shares, which give him 29.4% and 26.9% of voting power; and Joe Gebbia, which has nearly 47 million of Class B shares which give him 21..5% ownership and almost 27% of voting power. Other institutional investors comprise Sequoia Capital, Fidelity, and The Vanguard Group.

Airbnb Business Model

airbnb-business-model
Airbnb is a platform business model making money by charging guests a service fee between 5% and 15% of the reservation, while the commission from hosts is generally 3%. For instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees. 

Why Is It Called Airbnb?

Why Is It Called Airbnb?
Airbnb was initially called Airbedandbreakfast, as the main idea behind the starting of the company was to rent air mattresses in their apartment, as San Francisco filled up due to various conferences, to make some money to pay back the rent. The Aibnb’s founders noticed this as they were designers. And a design conference (IDSA / ICSID) was about to happen in 2007; they launched Airbedandbreakfast as a service offering “Air Bed and Breakfast” to other designers coming to town who could not find available rooms in a hotel. Thus from there, the initial name. Yet, as Airbnb joined the Winter 2009 batch of the popular accelerator, YC, Paul Graham, founder of YC, suggested the founders change the name from Airbedandbreakfast to Airbnb – before demo day – as the name sounded better.

Airbnb Revenue Model

airbnb-revenue-model
Airbnb is a two-sided marketplace where hosts and guests transact via its booking platform. Thus, Airbnb makes money by charging a fee on top of hosts and guests when a transaction goes through. For instance, in 2023, Airbnb generated $ 9.92 billion in transaction rates, with an average take rate of 13.5%.

Airbnb Competitors

airbnb-competitors
The Airbnb story began in 2008 when two friends shared their accommodation with three travelers looking for a place to stay. Just over a decade later, it is estimated that the company now accounts for over 20% of the vacation rental industry. As a travel platform, Airbnb competes with other brands like Booking.com, VRBO, FlipKey, and given its massive amount of traffic from Google. Also, platforms like Google Travel can be considered potential competitors able to cannibalize part of Airbnb’s market.

Airbnb Business Model Economics

airbnb-unit-economics
As a peer-to-peer platform, Airbnb will collect a fee from both key players once the transaction between host and guest goes through. For example, from a $100 booking per night set by the host, Airbnb might collect $3 as a hosting fee. At the same time, it might increase the price for the guest to $116 ($16 above the price set by the host) to collect its guest fees of $12 and taxes for the remaining amount. In 2023, on $73.25 billion in gross bookings, the company reported revenues of $9.92 billion, a record of $4.79 billion in net income, and 13.5%, in take rates.

Airbnb Take Rates

how-much-does-airbnb-take
In 2023, Airbnb reported a 13.5% take rate (analysis by FourWeekMBA). Airbnb reported a 13.3% take rate in 2022 and 12.8% in 2021. The company’s take rate is a critical metric that Airbnb tracks to evaluate the financial health of its platform.

Airbnb Value Per Booking

airbnb-value-per-booking
In 2023, Airbnb generated an average value per booking of $163.51, compared to 2022, when Airbnb generated an average value per booking of $161, compared to $156 in 2021 and $124 in 2020.

Airbnb Financials

airbnb-financials
Airbnb generated $73.25B in gross bookings, $9.92B in net revenues, $4.79B in net profits, and $3.84 in free cash flows.

Airbnb Hosts Number

airbnb-hosts-number
In 2023, Airbnb had over 5 million hosts on the platform, which generated 7.7 million listings in the same period; Airbnb had 6.6 million active listings, compared to 6 million in 2021.

Storyboarding

storyboarding-business
A storyboard is a linear sequence of illustrations used in animation to develop a broader story. A storyboard process is now used also in business to understand and map customers’ experience and enable the growth of the company using that process.

Airbnb Arbitrage

airbnb-arbitrage
Airbnb arbitrage is a business model where the renter of a house or apartment sub-lets the property to Airbnb users. This is a model where the Airbnb arbitrageur can transform a long-term rental, with the main property owner, into a short-term rental, with higher rates and margins.

ADU Market

adu-market
An accessory dwelling unit (ADU) is a term used to describe a secondary house or apartment located on the same plot of land as a larger, primary place of residence. This has become an industry for its own sake, with the potential to become the next trillion-dollar industry.

Samara Business Model

samara
Samara is a manufacturer of prefab accessory dwelling units (ADUs) that can be installed and operational in a matter of hours. It started as an R&D unit of Airbnb in 2016. And it eventually was spun off and run by Airbnb co-founder Joe Gebbia, who now runs it full-time.

OTAs Connected Business Models

Booking

booking-business-model
Booking Holdings is the company the controls six main brands that comprise Booking.com, priceline.com, KAYAK, agoda.com, Rentalcars.com, and OpenTable. Over 76% of the company revenues in 2017 came primarily via travel reservations commisions and travel insurance fees. Almost 17% came from merchant fees, and the remaining revenues came from advertising earned via KAYAK. As distribution strategy, the company spent over $4.5 billion in performance-based and brand advertising. 

Expedia

trivago-business-model
Trivago is a search and discovery travel platform part of Expedia Group. Trivago is widely known as a trusted hotel comparison service. Trivago doesn’t charge based on bookings but rather through a cost-per-click (CPC) model, monetized when a hotel searcher clicks one of its advertiser listings. This referral revenue comprises most of Trivago’s income. Trivago also has another minor revenue stream via subscriptions to its Business Studio, a tool that helps hoteliers track impression and click data associated with their properties.

Google (Google Travel)

Expedia-business-model
Born in 1996 as a travel platform of Microsoft, it would be spun off later on. Expedia became among the largest online travel agencies (OTAs) which comprise a set of brands that go from Hotels.com, Vrbo, Orbits, CheapTickets, ebookers, Travelocity, Trivago, and others. The company follows a multi-brand strategy.

Kayak

how-does-kayak-make-money
Kayak is an online travel agency and search engine founded in 2004 by Steve Hafner and Paul M. English as a Travel Search Company and acquired by Booking Holdings in 2013 for $2.1 billion. The company makes money via an advertising model based on cost per click, cost per acquisition, and advertising placements.

OpenTable

how-does-opentable-make-money
OpenTable is an American online restaurant reservation system founded by Chuck Templeton. During the late 90s, it provided one of the first automated, real-time reservation systems. The company was acquired by Booking Holding back in 2014, for $2.6 billion. Today OpenTable makes money via subscription plans, referral fees, and in-dining with its first restaurant, as an experiment in Miami, Florida.

Oyo

oyo-business-model
OYO’s business model is a mixture of platform and brand, where the company started primarily as an aggregator of homes across India, and it quickly moved to other verticals, from leisure to co-working and corporate travel. In a sort of octopus business strategy of expansion to cover the whole spectrum of short-term real estate.

Tripadvisor

tripadvisor-business-model
TripAdvisor’s business model matches the demand for people looking for a travel experience with supply from travel partners around the world providing travel accommodations and experiences. When this match is created TripAdvisor collects commission from partners on a CPC and CPM basis. The non-hotel revenue comprises experiences, restaurants, and rentals.

Trivago

trivago-business-model
Trivago is a search and discovery travel platform part of Expedia Group. Trivago is widely known as a trusted hotel comparison service. Trivago doesn’t charge based on bookings but rather through a cost-per-click (CPC) model, monetized when a hotel searcher clicks one of its advertiser listings. This referral revenue comprises most of Trivago’s income. Trivago also has another minor revenue stream via subscriptions to its Business Studio, a tool that helps hoteliers track impression and click data associated with their properties.

More Resources

Scroll to Top

Discover more from FourWeekMBA

Subscribe now to keep reading and get access to the full archive.

Continue reading

FourWeekMBA