What is Airbnb?

Updated 2026-05-28

Airbnb is an online travel agency (OTA) and marketplace for short-term lodging, primarily focusing on peer-to-peer home rentals. The platform facilitates booking transactions between hosts and guests, taking a commission or service fee from both parties.

Since its founding in 2008, it has grown to include millions of listings worldwide, ranging from single rooms to entire homes and unique stays like castles and treehouses.

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How it works

Hosts create a listing for their property on the Airbnb website or app, complete with photos, a detailed description, house rules, and pricing. Guests can then search for accommodations using filters for location, dates, price, and amenities, then request to book a stay.

Airbnb securely processes the guest's payment, holding it until after check-in before releasing it to the host, minus a service fee. To manage listings on Airbnb alongside other channels, many hosts use a channel manager, which is a common component of property management software from providers like Lodgify.

This software allows for synchronized calendars and rates to prevent double bookings.

Why it matters

Airbnb provides property owners with access to a massive global audience of travelers, significantly increasing booking potential and occupancy rates. It has become a primary distribution channel for many vacation rental businesses and has been influential in setting industry standards for guest expectations and host best practices.

For travelers, it offers a wide variety of unique, authentic, and often more affordable accommodation options compared to traditional hotels. See the official website for current details.

Examples

A property manager lists a portfolio of 15 urban apartments on Airbnb, using it as their main booking source to attract business and leisure travelers.
A retired couple lists a spare bedroom in their home as a 'Private Room' on Airbnb to earn supplemental income and meet new people.
The owner of a unique treehouse uses Airbnb's 'Unique Stays' category to market their property to travelers looking for a non-traditional lodging experience.
A family buys a beachfront condo specifically to furnish and list as an 'Entire Place' rental on Airbnb, generating passive income from tourists.

Frequently asked questions

What is the difference between Airbnb and VRBO?+

While both are major OTAs, Airbnb offers a wider range of listing types, including shared rooms, private rooms, and entire homes. VRBO, on the other hand, exclusively focuses on 'entire place' rentals like houses, cabins, and condos.

How does Airbnb make money?+

Airbnb's primary revenue source is service fees. It typically charges a fee to both the guest (a percentage of the booking total) and the host (a smaller percentage of their payout) for each completed reservation made through its platform.

What is an Airbnb Superhost?+

A Superhost is a designation awarded by Airbnb to experienced hosts who consistently provide outstanding hospitality. To qualify, hosts must maintain a high overall rating, a high response rate, a low cancellation rate, and meet a minimum number of stays or nights hosted per year.

Can I list my property on Airbnb and other sites at the same time?+

Yes, hosts can list their property on multiple platforms, a practice known as multi-channel distribution. To avoid double-bookings, it is crucial to use a channel manager to synchronize calendars and availability across all sites in real-time.

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Online Travel Agency (OTA)

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