Course Code: AS 301 A

Course Title: Ancillary Hospitality Services

Course Leader: Viswanath Srivaths Krishnan

srivaths@msrchm.edu
viswanath.fo.hc@msruas.ac.in

1
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Lecture No. 18
AIRBNB
At the end of this lecture, the student will be able
to:
Describe the AIRBNB model of homestays
List the destinations covered by AIRBNB
Explain the history of AIRBNB

2
Faculty
M. S. of Hospitality
Ramaiah Management
University andSciences
of Applied Catering Technology Ramaiah University of Applied Sciences
 Content

History of AIR BNB

AIR BNB Model
Benefits of AIR BNB
Safety Mechanisms

3
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Airbnb is an online marketplace and hospitality service,
enabling people to lease or rent short-
term lodging including vacation
rentals, apartment rentals, home stays, hostel beds,
or hotel rooms.
The company does not own any lodging; it is merely
a broker and receives percentage service fees (commissions)
from both guests and hosts in conjunction with every
booking.It has over 3,000,000 lodging listings in 65,000 cities
and 191 countries,and the cost of lodging is set by the host.

4
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 History
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, called AirBed &
Breakfast.

5
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 History
They put together a website which 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

6
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 History
In March 2009, the name of the company was changed 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, castles, boats,
manors, tree houses, teepes, igloos, private islands and other
properties in the city.

7
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Locations of AIR BNB

Airbnb has 20 offices in: New Delhi (India)

Amsterdam (Netherlands) Paris (France)
Barcelona (Spain) Portland (Oregon, USA)
Berlin (Germany) San Francisco (California,
Beijing (China) USA)
Copenhagen (Denmark) So Paulo (Brazil)
Dublin (Ireland) Seoul (South Korea)
London (UK) Singapore
Miami (Florida, USA) Sydney (Australia)
Milan (Italy) Tokyo (Japan)
Montreal (Canada) Toronto (Canada)
8
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 The AIR BNB Model

Airbnb can be accessed via either the Airbnb websites

or mobile applications for iOS, Apple Watch, and Android.
Registration and account creation is free.
On each booking, the company charges guests a 6%-12%
guest services fee and charges hosts a 3%-5% host service fee.
Hosts can also offer "experiences", such as excursions, to
guests for an additional charge, of which Airbnb takes 20% as
a commission.

9
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 The AIR BNB Model

Users can search for lodging using a variety of filters including

lodging type, dates, location, and price.
Before booking, users must provide a valid
name, email address, telephone number, photo, payment
information, and, if required by the host, a scan of a
government-issued ID.
Guests also are required to agree to any house rules of the
host

10
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Safety Mechanisms

Airbnb had to overcome the obstacle of "stranger danger" to

build a level of trust between hosts and guests and instill
confidence in its platform.
Airbnb did this by requiring user profiles so that members can
learn about their hosts and guests ahead of time and by
establishing a rating and review system.
Founder Joe Gebbia has said that Airbnb is specifically
"designed for trust".

11
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Benefits of the AIR BNB Model
After the guest completes a stay, the host and guest have the
option of leaving references for each other and reviews of
their stay, which are posted publicly, providing for an online
reputation
Airbnb facilitates online payments from guest to host through
its Security Payments feature, which processes payment
transactions 24 hours after check-in
Hosts are able to decline reservations if they are not
comfortable with the guest, based on online correspondence,
and cancel reservations, albeit with a penalty
Any Airbnb host can require their prospective guests to obtain
"Verified IDs" before booking, meaning that they are required
to scan a government-issued ID to verify their identity.
12
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences
 Summary

Many people who were on the brink of losing their homes

through foreclosure due to financial hardship, have come to
depend on Airbnb for additional income.
Airbnb is an online marketplace and hospitality service used for
booking Home stays safely without the risk of any fraud

13
13
Faculty
M. S. of Hospitality
Ramaiah Management
University andSciences
of Applied Catering Technology Ramaiah University of Applied Sciences
 Disclaimer

All data and content provided in this presentation are taken

from the reference books, internet websites and links, for
informational purposes only.

14
Faculty of Hospitality Management and Catering Technology Ramaiah University of Applied Sciences