brian-chesky-net-worth

Brian Chesky Net Worth

Brian Chesky is an industrial designer and businessman who is also Airbnb’s co-founder and current CEO. Since the company was founded in 2007, Chesky has been in charge of it, amassing a net worth of about $10 billion, thanks to his shares in the company.

Education and early career

Chesky had an interest in design from an early age and would often draw imaginary versions of Nike sneakers. He later attended the Rhode Island School of Design and received a bachelor in fine arts in 2004. Whilst there, he met Airbnb co-founder Joe Gebbia.

Before the pair graduated, Gebbia is reported to have told Chesky that they were going to start a company one day and that books would be written about it.

Chesky’s first job out of college was as an industrial designer and strategist at Los Angeles firm 3DID, Inc. He then quit, moved to San Francisco, and shared an apartment with Gebbia, and it was there that the idea for Airbnb was born.

Airbnb

Both unemployed, Chesky and Gebbia found it difficult to pay the rent on their apartment. On September 22, 2007, Gebbia sent the now oft-quoted email to Chesky with an idea to turn their place into a “designers bed and breakfast” replete with “wireless internet, a small desk space, sleeping mat, and breakfast each morning.

The pair hosted three people that weekend after a designer’s conference in San Francisco meant hotel accommodation was in short supply. A few months later, the pair recruited engineer Nathan Blecharczyk and the site Airbedandbreakfast.com was launched in August 2008.

Today, Chesky’s creative roots have found their way into Airbnb’s culture, product, and community. This has resulted in a design-driven approach that increased trust between Airbnb hosts and the strangers staying in their homes.

Pandemic management and IPO

Chesky remains Airbnb CEO, he relinquished control of daily operations to Blecharczyk in 2014. Across the pandemic, Chesky was instrumental in managing the company as it burned through its cash reserves and was forced into mass layoffs. 

While around 25% of all employees were terminated, Chesky was also praised for his generous severance packages and offer to help individuals find employment elsewhere 

Most recently, he oversaw Airbnb’s successful IPO in December 2020 which valued it at $86.5 billion on the NASDAQ.

Philanthropy

Chesky is also a philanthropist who, with fellow billionaires such as Bill Gates and Warren Buffet, has committed to donating the majority of his wealth to charity as part of The Giving Pledge campaign.

In 2022, he then announced a $100 million donation to The Obama Foundation to support students in pursuit of careers in public service. As part of the initiative, individuals would receive free Airbnb accommodation during their summer work-travel experiences.

Key takeaways

  • Brian Chesky is an industrial designer and businessman who is also the co-founder and current CEO of Airbnb. Chesky met Airbnb co-founder Joe Gebbia whilst studying design at the Rhode Island School of Design.
  • Chesky’s first job out of college was as an industrial designer and strategist at Los Angeles firm 3DID, Inc. He then quit, moved to San Francisco, and shared an apartment with Gebbia who suggested they offer accommodation to designs to help pay the rent.
  • While Chesky remains Airbnb CEO, he relinquished control of daily operations to Blecharczyk in 2014. Across the pandemic, he was instrumental in managing the company as it burned through its cash reserves and was forced into mass layoffs. 

Related Visual Stories To Airbnb

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 2022, Airbnb generated $8.4 billion in transaction rate, with an average take rate of 13.3%.

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, once the transaction between host and guest goes through, Airbnb will collect a fee from both key players. For example, from a $100 booking per night set by the host, Airbnb might collect $3 as a hosting fee. While it might increase the price for the guest at $116 ($16 above the price set by the host) to collect its guest fees of $12 and taxes for the remaining amount. In 2022, Airbnb generated $63.2 billion in gross booking value on over 393.7 Million Nights and Experiences Booked, an average revenue per booking of $161, $8.4 in revenue, and an average service fee of 13.3%.

Airbnb Take Rates

airbnb-take-rate
Airbnb take rate is the percentage fee that the company gathers from hosts and guests on each booking that happens through the platform. The take rate for Airbnb fluctuated over the years, with a peak in 2020, at a 14.1% take rate and a 13.3% take rate in 2022.

Airbnb Value Per Booking

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

Airbnb Financials

airbnb-financials
Airbnb makes money by collecting a take rate on each transaction on the platform. In 2022, Airbnb processed over $63 billion in gross booking value, which translated into $8.4 billion in revenue. Airbnb also generated $1.9 billion in profits, and $3.4 billion in free cash flow in 2022.

Airbnb Hosts Number

airbnb-hosts-number
In 2022, Airbnb had 6.6 million active listings, compared to 6 million in 2021, thus a 10% growth year-over-year.

Who Owns Airbnb

who-owns-airbnb
Airbnb is primarily owned by its co-founders: Brian Chesky, with 76,407,686 Class B shares, which gives him 29.1% of ownership; Nathan Blecharczyk, with 232,306 Class A and 64,646,713 Class B, which give him 25.3%, and Joe Gebbia, which has 5,113,865 Class A and 58,023,452 Class B, which give him 22.9% ownership.

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 commissions and travel insurance fees. Almost 17% came from merchant fees, and the remaining revenues came from advertising earned via KAYAK. As a 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.

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brian-chesky-net-worth
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