Brian Page is an entrepreneur, online educator, and passive income pioneer who is best known as the creator of the BNB Formula, the world’s #1 bestselling Airbnb™ coaching program with over 25,000 students in 47 countries.
What Makes Airbnb Economics A Revolution?
Airbnb economy has redefined the 1300+-year-old hotel industry in less than seven years by introducing a “collaborative travel revolution”- a strategy where everyone finds value.
Get the Official “Free Book Reveals How To Start Your Own Airbnb™ Business Without Owning Any Property” by Brian Page by Clicking Here!
The Airbnb business model appeals to avid travelers who want unique experiences and entrepreneurs who want to secure a healthy revenue stream. How?
That’s a secret we’ll unveil in this blog. Read on to discover how Airbnb relates to the sharing economy and plays a critical role in the Fourth Industrial Revolution:
Why Airbnb?
In 2019, Airbnb hosted over 272 million bookings worldwide. In 2020, despite a global pandemic, travel restrictions, and a volatile economy, Airbnb experienced a minimal loss of 22%.
The question is how? But before we dive into the Airbnb business model, let’s look at a few facts:
- Airbnb is bigger than the world’s top five hotel brands put together! It has over 4 million listings worldwide
- The online marketplace operates in 191 countries and boasts listings in approximately 81,000 cities
- Airbnb has over 400 million guest arrivals and 2 million people staying every night
- 1.4 million people sign up every week to book on Airbnb for the first time
But that’s not what makes Airbnb stand out. Instead, this hotel service is unique because it doesn’t care who owns the property. Whether you have real estate experience or own real estate, you can become a financially independent investor by renting a property and listing it on the platform.
Airbnb and the Sharing Economy: What Makes the Company Standout?
Airbnb is a revolutionary online marketplace that facilitates the exchange between a traveler and a real estate investor by providing an online reservation system.
For travelers, Airbnb offers endless options they can filter by price, range, size, luxury level, neighborhood, etc. Investors can unlock a revenue stream by renting a property and revamping it.
But how does this unique renting and selling opportunity work? Let’s take a closer look at Airbnb’s business model to understand better how it works:
What is the Sharing Economy and How Is Airbnb Leveraging It To Inspire an Economic Revolution?
The processing and working of local and international transactions have changed drastically in the previous few years. As a result, new terms and phrases like “sharing economy” and “collaborative consumption” have become popular.
Sharing economy refers to an industry that uses a digital platform to tap into the value of underutilized assets. And Airbnb’s model is the perfect example of the sharing economy.
This online marketplace connects travelers with hosts renting space on a short-term basis. While renting assets is a tradition as old as time, the rise of digital platforms has made connecting significantly easier for people. In simpler words, two-sided platforms like Airbnb connect owners and consumers by following the Peer-to-Peer business model.
The sharing economy has quickly become the driving force inspiring innovation in numerous new business models. Furthermore, experts nominated this business model in “10 ideas that will change the world.”
An Overview of the Potential Economic Benefits of Airbnb
Here’s the thing: anyone can become a millionaire on Airbnb by investing a little time, energy, and money. Forbes’s report reveals that 75 people in the US made $1 million+ annually on the online rental income marketplace.
How? The truth is that experiencing a cash flow stream on Airbnb is all too easy. Don’t believe us yet? Let’s discuss its potential economic benefit:
Diversifying Your Potential Streams of Revenue
The key economic benefit of Airbnb is that property investors can diversify their revenue streams by owning multiple homes.
For instance, if a real estate investor faced high transaction costs while setting up residential properties, they might focus on securing only long-term leases. But by using Airbnb, property owners can make short-term rentals and reduce transaction costs while boosting revenue.
Variety of Rentals
Another benefit of using Airbnb is that property owners can enjoy an increasing supply of short-term rentals. Moreover, it allows investors to diversify in short-term and long-term rentals.
That way, by enjoying an increasing supply of travelers seeking their property, you can enjoy increased revenue without making traveling expensive.
Improved Economic Activity
Airbnb also provides the opportunity for extra economic activity driven by increased travelers to a city or town. Consequently, Airbnb property owners will enjoy increased income and the company from the visitors spending money at the restaurant or other activities.
What’s Next: How Can Hoteliers Take Advantage of Airbnb’s Economic Revolution?
Airbnb allows anybody ready to put in the effort to rent a property and start earning. Here are simple ways you can start taking advantage of this platform:
Realize How Airbnb Simplifies the Process
Here’s the thing:
- Airbnb handles your customer credit card payments
- It takes care of ID verification
- It even insures your property
Start by revamping the hotel and then enlist it to get started!
Expand your customer base
It isn’t easy to win over new clients. There is a free opportunity for hoteliers to draw in more guests. If the next guest is a family on vacation or one of the parents is visiting the city on business, you may, for instance, provide breakfast, spa, and concierge services in addition to hotel rooms.
Organize vacation rentals for local homeowners
The ability to rent out flats or rooms professionally has not been available to anybody up until now who wants to make money doing so. They frequently exclusively advertise their houses on one or two websites, which explains why.
Most short-term rental websites don’t give property owners access to either revenue management technology, which would change prices in response to market demand, or sales personnel, who would promote their units to nearby businesses. However, hoteliers have the local expertise, computer systems, and staffing levels required for revenue and sales management to provide these services.
The Bottom Line: Using Airbnb’s Growth Strategy to Deliver Value and Secure Growth
After initially concentrating on consumers, the Airbnb business model gradually expands into business listings. The direction and approach Airbnb will take in using its platform to grow in the future will become more precise with the IPO and any upcoming acquisitions.
Get the Official “Free Book Reveals How To Start Your Own Airbnb™ Business Without Owning Any Property” by Brian Page by Clicking Here!
Brian Page is an entrepreneur, online educator, and passive income pioneer who is best known as the creator of the BNB Formula, the world’s #1 bestselling Airbnb™ coaching program with over 25,000 students in 47 countries.
