13.05.21 11:21 AM By Lars Lin Villebaek

Airbnb: The Peer-To-Peer Travel Platform

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%. Due to the pandemic, Airbnb is stretching its business model and experimenting with new formats like online experiences to transition toward fully digital experiences. The digitalization that happened in the last two decades has facilitated the creation of peer to peer platforms in which business models disrupted the hospitality model that was created in the previous century by hotel chains like Marriott, Holiday Inn, and Hilton. Airbnb made $93 million in profits on $2.6 billion revenues. This means the company's net margin was 3.58%. That seems a low net margin compared to 9% from the hospitality industry.

However, Airbnb is a startup gaining traction and market share over traditional players. Also, its business model is based on the growth of its user base. 

How much Airbnb used to be worth?

In March 2017 the company was valued $31 billion. As of that date, the company had $5 billion at the bank, and it rejected an investment offer by SoftBank. Airbnb might be the biggest tech unicorn IPO in 2018.

How much is Airbnb worth today?

As the pandemic hit hard on the Airbnb business model, based on travel and short-term rentals, the company valuation plummeted. Airbnb, in 2019 was in the list to be among the most successful IPOs of the last decade, it eventually had to lay-off 25% of its employees by