Airbnb, Inc. (pronounced // EHR-bee-ehn-bee) is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; it acts as a broker, receiving commissions from each booking. The company is based in San Francisco, California, United States.
Airbnb's headquarters at 888 Brannan Street, in San Francisco, California.
|Privately held company|
|Founded||August 2008 in San Francisco, California|
|Headquarters||888 Brannan Street, |
San Francisco, California
Number of employees
|Subsidiaries||Luxury Retreats International Inc.|
Deco Software Inc.
Trip4real Experiences, S.L.
Airbnb Uk Limited
|Footnotes / references|
The company was conceived after its founders put an air mattress in their living room, effectively turning their apartment into a bed and breakfast, in order to offset the high cost of rent in San Francisco; Airbnb is a shortened version of its original name, AirBedandBreakfast.com.
Shortly after moving to San Francisco in October 2007, roommates and former schoolmates Brian Chesky and Joe Gebbia could not afford the rent for their loft apartment. Chesky and Gebbia came up with the idea of putting an air mattress in their living room and turning it into a bed and breakfast. The goal at first was just "to make a few bucks". In February 2008, Nathan Blecharczyk, Chesky's former roommate, joined as the Chief Technology Officer and the third co-founder of the new venture, which they named AirBed & Breakfast. They put together a website that offered short-term living quarters, breakfast, and a unique business networking opportunity for those who were unable to book a hotel in the saturated market. The site Airbedandbreakfast.com officially launched on August 11, 2008. The founders had their first customers in town in the summer of 2008, during the Industrial Design Conference held by Industrial Designers Society of America, where travelers had a hard time finding lodging in the city.
Computer programmer Paul Graham invited the founders to the January 2009 winter training session of his startup incubator, Y Combinator, which provided them with training and $20,000 in funding in exchange for a small interest in the company. With the website already built, they used the Y-Combinator investment to fly to New York to meet users and promote the site. They returned to San Francisco with a profitable business model to present to West Coast investors. By March 2009, the site had 10,000 users and 2,500 listings.
In March 2009, the name of the company was shortened to Airbnb.com, and the site's content had expanded from air beds and shared spaces to a variety of properties including entire homes and apartments, private rooms, and other properties.
In April 2009, the company received seed money from Sequoia Capital, and in November 2010, raised financing from Greylock Partners and Sequoia Capital in a Series A round, and announced that out of 700,000 nights booked, 80% had occurred in the previous six months.
In February 2011, Airbnb announced its 1,000,000th night booked. In January 2012, the company announced its 5,000,000th night booked. In June 2012, Airbnb announced its 10,000,000th night booked, doubling business in the previous five months. Of these bookings, 75% of the business came from markets outside of the continental United States.
At the 2011 South by Southwest conference, Airbnb won the "app" award.
In October 2011, Airbnb established an office in London, its second international office.
Due to the growth of international end-users, in early 2012, Airbnb opened offices in Paris, Milan, Barcelona, Copenhagen, Moscow, and São Paulo. These openings were in addition to existing offices in San Francisco, London, Hamburg, and Berlin. In September 2013, the company announced that it would establish its European headquarters in Dublin.
In November 2012, Airbnb opened an office in Sydney, Australia, its 11th office location, and announced plans to launch the service in Thailand and Indonesia. In December 2012, Airbnb announced its strategy to move more aggressively into the Asian market with the launch of an office in Singapore.
In November 2012, Airbnb launched "Neighborhoods", a travel guide of 23 cities that provides in-depth information via collaborative filtering to help travelers choose a neighborhood in which to stay based on criteria such as public transportation, dining, peace & quiet, nightlife, tourist attractions, and shopping.
By October 2013, Airbnb had served 9,000,000 guests since its founding in August 2008, and in December 2013, the company reported it had over 6,000,000 new guests in 2013, and nearly 250,000 properties were added in 2013.
In April 2015, following the Obama administration's easing of restrictions on U.S. businesses to operate in Cuba, Airbnb expanded to Cuba, making it one of the first U.S. companies to do so.
In the summer of 2016, at the request of three members of the United States Senate, the Federal Trade Commission began investigating how Airbnb affected housing costs. In October 2016, New York Governor Andrew Cuomo signed a bill charging Airbnb fines for violations of local housing laws. The New York Times reported that these events were related and part of a "plan that the hotel association started in early 2016 to thwart Airbnb".
In January 2017, Airbnb led a $13 million investment in restaurant reservation-booking app, Resy, along with serial entrepreneurs Gary Vaynerchuk, Ben Leventhal and Mike Montero.
In February 2018, the company announced Airbnb Plus, a collection of homes that have been vetted for quality of services, comfort and design, as well as Beyond by Airbnb, which offers luxury vacation rentals.
In July 2011, it raised $112 million in financing led by Andreessen Horowitz. Other early investors included Digital Sky Technologies, General Catalyst Partners, and A Grade Investments partners Ashton Kutcher and Guy Oseary.
In April 2014, the company closed on an investment of $450 million by TPG Capital at a company valuation of approximately $10 billion. Additional funding was provided by Andreessen Horowitz, Sequoia Capital, Dragoneer Investment Group, T. Rowe Price and Sherpa Capital.
In June 2015, Airbnb raised $1.5 billion in a Series E funding led by General Atlantic, and joined by Hillhouse Capital Group, Tiger Management, Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital, and Horizons Ventures.
In September 2016, Airbnb raised $555.5 million in funding from Google Capital and Technology Crossover Ventures, valuing the company at $30 billion.
On May 31, 2011, Airbnb acquired a German competitor, Accoleo. This takeover, as well as other similar acquisitions, launched the first international Airbnb office, in Hamburg. Before the 2012 Summer Olympics, Airbnb acquired London-based rival CrashPadder, subsequently adding 6,000 international listings to its existing inventory. This acquisition made Airbnb the largest lodging website in the United Kingdom. In November 2012, Airbnb acquired NabeWise, a city guide that aggregates curated information for specified locations. The acquisition shifted the company's focus toward offering hyperlocal recommendations to travelers. In December 2012, Airbnb announced the acquisition of Localmind. Localmind is a location-based question and answer platform that allows users to post questions about specific locations online. These questions are then answered in real-time by experts on the specified territories.
In February 2017, the company acquired Luxury Retreats International, a Canadian-based villa rental company, for approximately $300 million in cash and stock, its largest acquisition to date. In February 2017, Airbnb acquired Tilt.com, a social payment startup.
On November 16, 2017, the company acquired Accomable, a startup focused on travel accessibility. In March 2019, the company acquired HotelTonight, a website for booking last-minute hotel rooms, for over $400 million.
Airbnb provides a platform for hosts to accommodate guests with short-term lodging and tourism-related activities. Guests can search for lodging using filters such as lodging type, dates, location, and price. Guests have the ability to search for specific types of homes, such as bed and breakfasts, unique homes, and vacation homes. Before booking, users must provide personal and payment information. Some hosts also require a scan of government-issued identification before accepting a reservation. Guests have the ability to chat with hosts through a secure messaging system. Hosts provide prices and other details for their rental or event listings, such as the allowed number of guests, home type, rules, and amenities. Pricing is determined by the host, with recommendations from Airbnb. Hosts and guests have the ability to leave reviews about the experience.
In addition to lodging, Airbnb provides the following services:
- Experiences. Guests may book activities with local guides, including cooking classes, guided tours, and meetups.
- Airbnb Plus. Hosts that provide a verified level of conditions including a clean refrigerator, full cooking equipment, stocked toiletries, fast Wi-Fi, and strong water pressure. Airbnb Plus listings are marked with a badge to differentiate from standard listings.
- Airbnb Collections: Options include Airbnb for Families, Airbnb for Work, as well as homes for weddings, dinner parties, and other gatherings.
- Niido. A brand of apartment communities designed for tenants to rent out their units for up to 180 days per year on Airbnb, in which profits are shared with the landlord. Each Niido-branded property features a "master host" that oversees guest check-ins and cleaning services, while hosts can receive on-site help with setting up their profiles, apply for permits, and paying local occupancy taxes. Niido currently has two buildings in Nashville, Tennessee and Kissimmee, Florida.
- Natiivo. A brand of condo hotels designed to encourage home-sharing. Natiivo buildings, which carry hotel licenses, feature amenities such as 24-hour concierge, valet parking, co-working spaces, and other amenities. Homeowners can choose to list their units on Airbnb independently, or allow Natiivo to manage their listings for an additional fee.
Airbnb features a review system in which guests and hosts can rate each other after a stay. Hosts and guests are unable to see reviews until both have submitted a review or until the window to review has closed, a system which aims to improve accuracy and objectivity by removing fears that users will receive a negative review in retaliation if they write one. However, the truthfulness and impartiality of reviews may be adversely affected by concerns of future stays because prospective hosts may refuse to host a user who generally leaves negative reviews. In addition, the company's policy requires users to forego anonymity, which may also detract from users' willingness to leave negative reviews. These factors may damage the objectivity of the review system.
In August 2017, Airbnb cancelled numerous bookings and closed accounts belonging to attendees of the white nationalist Unite the Right rally in Charlottesville, Virginia, citing its terms of service in which members must "accept people regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity, sexual orientation, or age." The move was criticized by Jason Kessler, organizer of the rally.
A guest can request a full refund within 24 hours before the check-in time. If so, a guest will be refunded with a full amount of the accommodation fees.
This type of cancellation policy is stricter yet lets guests get a refund. A guest can apply a cancellation for 5 days before check-in to be fully refunded the accommodation fees. The cancellation must be initiated by the guest.
Using Strict cancellation policy, a guest can get a full refund if canceling the booking at least 2 weeks before the check-in time. Guests will get a 50% refund if the cancellation is made at least 7 days before the check-in time.
Also, there's no refund if the guest requests cancellation after the check-in.
Airbnb doesn't charge for the deposit immediately after the reservation is being created. To charge the guest the host claims on the deposit. Also, there's a 14 day period after guest check-out for a host to make a claim on the security deposit in cases of damaging the property by guests.
If the host makes a claim, the security deposit isn’t collected immediately. The host has to collect pieces of evidence of the damage being occurred and to reach Airbnb's Resolution Center providing them. The host has to upload both receipts for repairs and photos.
Several European cities such as Barcelona, Amsterdam, Paris, and Venice have enhanced regulations for short-term rentals such as Airbnb to address the increase in the cost of living for locals, as well as the disturbances caused by tourism
In the United States, Washington, D.C., Los Angeles, Santa Monica, San Francisco, Charleston, and New York have imposed restrictions. Jersey City, New Jersey has the most listings in the state and the number one destination for Airbnb and is also considered part of the New York City Airbnb market. A November 2019 referendum (originally supported by Airbnb) approved regulations for short-term rentals which are considered the most stringent in United States., allowing for only 60 rental days per year.
Fair housing implications and discrimination
In July 2016, former Attorney General Eric Holder was hired to help craft an anti-discrimination policy for Airbnb after the company faced many complaints related to racism, including a study by Harvard Business School that showed widespread discrimination by hosts against guests whose names suggested that they were black. Airbnb has also faced complaints of racial discrimination in China.
Airbnb has been criticized for allegedly resulting in increased housing prices. Since the company's globalization, many governments have passed various regulations limiting operations of short-term housing rental companies, such as Airbnb.
In San Francisco, the issue led to protests in November 2015.
Several studies found that rental prices in many areas increased due to Airbnb, as landlords kept properties off the longer-term rental market and instead get higher rental rates for short-term housing via Airbnb. Landlords have been accused of illegally evicting tenants in order to convert properties into Airbnb listings.
A study found that on Manhattan's Lower East Side, full-time listings earned hosts an average of two to three times the median average rent.
Similar concerns have been raised in other parts of the world such as Scotland, where, in 2017, an increase in Airbnb listings alarmed the local community. Airbnb has carried out extensive lobbying of Scottish politicians to oppose a law which would restrict short-term lettings.
Negative guest experiences
In 2017, travel blogger Asher Fergusson analyzed 1,021 incidents of negative experiences reported by guests. He found that there are ways for hosts to use fake information to circumvent Airbnb's background checks. He noted several reported incidents including last-minute cancellations, moldy or rodent-infested lodging, theft, invasion of privacy, and even rape and murder. Airbnb responded that the 1,021 incidents are statistically insignificant compared to 260 million check-ins at the time and that the company tries to remedy any problems.
A Vice News journalist reported in October 2019 on a bait-and-switch scam in which a network of fake accounts advertised stays at dozens of properties across eight US cities that once booked was said to be unavailable at the last minute. Substandard alternatives were offered in their place, including to the journalist, refunds were refused, fake positive reviews were left for the fake properties, and negative retaliatory reviews were left for customers who complained. Airbnb closed some of the accounts and the FBI began an investigation in response to the report.
Delisting of West Bank settlements
In 2018, Airbnb announced that it will remove the approximately 200 "listings in Israeli settlements in the occupied West Bank that are at the core of the dispute between Israelis and Palestinians". Listings in Israeli settlements in East Jerusalem or the Golan Heights were not affected. The move was praised by the Boycott, Divestment and Sanctions movement, Palestinians, Human Rights Watch, and Amnesty International. The move was criticized by the Israeli Tourism Minister and the Simon Wiesenthal Center, which decried the move as antisemitism. A class action suit in the Jerusalem district court alleging discrimination based on place of residence was filed against Airbnb by affected property owners. In April 2019 the company has announced that it "will not move forward with implementing the removal of listings in the West Bank from the platform" and that "Any profits generated for Airbnb … will be donated to non-profit organizations dedicated to humanitarian aid that serve people in different parts of the world".
In New York State it is illegal to rent out an apartment for less than thirty days unless the registered tenant is at home. In 2018, New York City passed legislation requiring Airbnb and other short-term rental/home sharing services to submit monthly reports to the city. Airbnb contested the law and in January it was blocked from taking effect pending further litigation. In May 2019, Airbnb agreed to turn over some anonymized information for approximately 17,000 listings so that the city could pursue illegal rentals.
In November 2012, Airbnb partnered with New York City Mayor Michael Bloomberg to offer free housing for people displaced by Hurricane Sandy. Airbnb built a microsite, where victims registered for housing and property owners offered free housing. Service fees were waived, while the host guarantee was maintained.
In January 2017, the company offered free housing to refugees and any others not allowed into the United States as a result of Donald Trump’s Executive Order 13769, which temporarily banned refugees from the United States.
In 2018, Airbnb employees provided "11,000 hours of service to 250 projects worldwide", according to the company, as a result of its policy to provide employees with paid time off to be used for volunteering.
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- Official website
- Airbnb companies grouped at OpenCorporates
- Inside Airbnb
- Brian Chesky - Startup School 2010 on YouTube