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In March 2019, the company acquired [[HotelTonight]], a website for booking last-minute hotel rooms, for over $400 million.<ref>{{cite news | url=https://www.nytimes.com/2019/03/07/technology/airbnb-hotel-tonight.html | title=Airbnb Acquires HotelTonight to Expand Travel Portfolio | first=Erin | last=Griffith | work=[[The New York Times]] | date=March 7, 2019 | url-access=subscription}}</ref><ref>{{cite news | url=https://www.reuters.com/article/us-airbnb-m-a-hoteltonight/airbnb-buys-hoteltonight-in-deeper-expansion-into-hotel-booking-business-idUSKCN1QO2B4 | title=Airbnb buys HotelTonight in deeper expansion into hotel-booking business | first=Heather | last=Somerville | work=[[Reuters]] | date=March 7, 2019}}</ref>
In March 2019, the company acquired [[HotelTonight]], a website for booking last-minute hotel rooms, for over $400 million.<ref>{{cite news | url=https://www.nytimes.com/2019/03/07/technology/airbnb-hotel-tonight.html | title=Airbnb Acquires HotelTonight to Expand Travel Portfolio | first=Erin | last=Griffith | work=[[The New York Times]] | date=March 7, 2019 | url-access=subscription}}</ref><ref>{{cite news | url=https://www.reuters.com/article/us-airbnb-m-a-hoteltonight/airbnb-buys-hoteltonight-in-deeper-expansion-into-hotel-booking-business-idUSKCN1QO2B4 | title=Airbnb buys HotelTonight in deeper expansion into hotel-booking business | first=Heather | last=Somerville | work=[[Reuters]] | date=March 7, 2019}}</ref>

==Product overview==
[[File:Airbnb app screenshot.png|thumb|Airbnb iPhone app screenshot]]

===Guests===
Guests can search for lodging using filters such as lodging type, dates, location, and price. Before booking, users must provide personal and payment information. Some hosts also require guests to go through the "Verified ID" identity verification system, which requires three layers of customer identification: telephone, photo of ID (such as passport or driver's license), and verification of [[Facebook]], [[LinkedIn]] or [[Google+]] account.<ref>{{cite web | url=https://blog.atairbnb.com/introducing-airbnb-verified-id/ | title=Introducing Airbnb Verified ID | publisher=Airbnb}}</ref><ref>{{cite news | title=America's new business model: Sharing | url=http://usatoday30.usatoday.com/tech/news/story/2012-07-15/social-sharing-economy/56243142/1 | work=[[USA Today]] | last=Yu | first=Roger | date=6 July 2011}}</ref> The company also provides [[travel guide]]s, entitled "Neighborhoods", which provide details about staying in specific neighborhoods in various major cities.<ref>{{cite news | title=Airbnb Introduces Neighborhood-Centric Travel Guides | url=https://www.wired.com/gadgetlab/2012/11/airbnb-neighborhoods/ | publisher=[[Wired (magazine)|Wired]] | last=Baldwin | first=Roberto | date=13 November 2012}}</ref><ref>{{cite news | title=Airbnb Launches Neighborhoods, Providing The Definitive Travel Guide For Local Neighborhoods | url=https://techcrunch.com/2012/11/13/airbnb-launches-neighborhoods-providing-the-definitive-travel-guide-for-its-guests/ | publisher=[[TechCrunch]] | last=Lawler | first=Ryan | date=13 November 2012}}</ref>

On certain of its websites, such as its mobile websites in the United States, Airbnb uses [[drip pricing]]; when customers search for lodging, Airbnb displays per-night prices that exclude its service fees and cleaning fees and the total charges are not revealed until later in the booking process.<ref>{{cite news | url=https://www.washingtonpost.com/lifestyle/travel/one-thing-the-sharing-economy-wont-share-transparent-pricing/2016/03/31/7080628a-df06-11e5-846c-10191d1fc4ec_story.html | title=One thing the sharing economy won’t share: Transparent pricing | first=Christopher | last=Elliott | work=[[The Washington Post]] | date=31 March 2016}}</ref> On some of its websites, such as its desktop websites and mobile websites in Australia and the European Union countries, Airbnb shows the total amount including all fees at every stage of the booking process.<ref>{{cite press release | title=Airbnb and eDreams give undertakings to ACCC for improved pricing practices | url=https://www.accc.gov.au/media-release/airbnb-and-edreams-give-undertakings-to-accc-for-improved-pricing-practices | publisher=[[Australian Competition and Consumer Commission]] | date=13 October 2015}}</ref><ref>{{cite news | last1=Han | first1=Esther | title=Airbnb and eDreams forced to declare mandatory fees after ACCC crackdown | url=https://www.smh.com.au/business/companies/airbnb-and-edreams-forced-to-declare-mandatory-fees-after-accc-crackdown-20151013-gk7i9o.html | work=[[Sydney Morning Herald]] | date=13 October 2015}}</ref>

===Hosts===
Hosts provide prices and other details for their rental or event listings. Pricing is determined by the host, with recommendations from Airbnb.<ref>{{cite journal | last1=Magno | first1=Francesca | last2=Cassia | first2=Fabio | last3=Ugolini | first3=Marta Maria | title=Accommodation prices on Airbnb: effects of host experience and market demand | journal=The TQM Journal | date=13 August 2018 | volume=30 | issue=5 | pages=608–620 | doi=10.1108/TQM-12-2017-0164}}</ref> Hosts may be required to report income and pay [[income tax]]es on income received via Airbnb. In the United States, homeowners who refinance their mortgages with some agencies are able to count income they earn from Airbnb rentals on their refinance loan applications.<ref>{{cite web | url=https://www.airbnb.com/help/article/2193/mortgage-refinancing | title=Mortgage refinancing | publisher=Airbnb}}</ref>

Despite having no explicit ban on hosts filming guests, Airbnb requires that hosts fully disclose the use of [[surveillance]] equipment and [[security camera]]s to guests.<ref>{{cite news | url=https://observer.com/2014/11/airbnb-finally-adds-a-dont-secretly-film-guests-policy/ | title=Airbnb Finally Adds a ‘Don’t Secretly Film Guests’ Policy | first=Jack | last=Smith IV | work=[[The Observer]] | date=6 November 2014}}</ref>

====Legality of hosting====
Some jurisdictions have restrictions on subletting for a short period of time and regulate lodging rental companies such as Airbnb. Airbnb has published a list of regulations and requirements for cities in the United States. For examples of such regulations by jurisdiction, see [[Lodging#Regulation of commercial lodging]]. The [[hotel industry]], particularly the [[American Hotel and Lodging Association]], has lobbied governments asserting that the hotel industry is subject to unfair competition from Airbnb. These lobbying efforts have resulted in additional regulations being imposed on the company and its hosts.<ref name=combat>{{cite news | url=https://www.nytimes.com/2017/04/16/technology/inside-the-hotel-industrys-plan-to-combat-airbnb.html | title=Inside the Hotel Industry’s Plan to Combat Airbnb | first=Katie | last=Benner | work=[[The New York Times]] | date=16 April 2017 | url-access=subscription}}</ref> In some cities, collection of a [[transient occupancy tax]] by Airbnb is required. In many cities, hosts must register with the government and obtain a permit or license.<ref name=legal>{{cite web | url=https://www.airbnb.com/help/article/376/what-legal-and-regulatory-issues-should-i-consider-before-hosting-on-airbnb | title=What legal and regulatory issues should I consider before hosting on Airbnb? | publisher=Airbnb}}</ref>

Landlords or community associations may have restrictions on short-term [[sublet]]s. In some jurisdictions, [[landlord–tenant law]] limits the rights of tenants who sublet in violation of their leases.<ref>{{cite news | url=https://montrealgazette.com/business/evicted-for-an-airbnb-landlords-fight-short-term-rentals-at-regie | title=Evicted for an Airbnb: Landlords fight short-term rentals at Régie | work=[[Montreal Gazette]] | date=1 October 2017}}</ref> To entice landlords and homeowners associations to be more accommodating in allowing their tenants and residents to sublet via Airbnb, Airbnb has a program in which landlords and homeowners associations can receive a portion of the profit generated from Airbnb.<ref>{{cite news | url=https://www.businessinsider.com/airbnb-landlords-short-term-rentals-friendly-building-program-2016-9 | title=Airbnb is giving landlords a piece of the pie | first=Bruce | last=Brown | work=[[Business Insider]] | date=September 15, 2016}}</ref><ref>{{cite web | url=https://www.airbnb.com/help/article/1195/what-s-the-airbnb-friendly-buildings-program | title=What's the Airbnb Friendly Buildings Program? | publisher=Airbnb}}</ref>

In January 2018, a federal court in the United States ruled that Airbnb is not responsible for illegal sublets by tenants. The court defended Airbnb under [[Section 230 of the Communications Decency Act]] which does not hold Internet based services liable for the actions of their users.<ref>{{cite news | url=https://www.engadget.com/2018/01/02/airbnb-prevails-against-aimco-lawsuit/ | title=Judge sides with Airbnb in lawsuit from US apartment landlord | first=Jon | last=Fingas | work=[[Engadget]] | date=January 2, 2018}}</ref><ref>{{cite news | url=https://www.bloomberg.com/news/articles/2018-01-02/airbnb-defeats-aimco-lawsuit-over-unauthorized-rentals | title=Airbnb Defeats Aimco Lawsuit Over Unauthorized Subleases | first=Edvard | last=Pettersson | work=[[Bloomberg News]] | date=January 2, 2018 | url-access=subscription}}</ref>

===Safety mechanisms===
Founder Joe Gebbia has said that Airbnb is specifically "designed for trust" and provides a variety of safety mechanisms,<ref>{{cite web | url=https://www.ted.com/talks/joe_gebbia_how_airbnb_designs_for_trust | title=How Airbnb designs for trust | publisher=[[TED (conference)|TED]] | date=February 2016}}</ref> including US$1,000,000 of ''secondary'' insurance, which covers [[property damage]] by guests due to [[vandalism]] and/or [[theft]],<ref>{{cite web | url=https://www.nytimes.com/2014/12/06/your-money/airbnb-offers-homeowner-liability-coverage-but-hosts-still-have-risks.html | title=A Liability Risk for Airbnb Hosts | first=Ron | last=Lieber | work=[[The New York Times]] | date=6 December 2014 | url-access=subscription}}</ref><ref>{{cite news | title=Airbnb offers $50,000 insurance policy after user's 'nightmare' | url=https://latimesblogs.latimes.com/technology/2011/08/airbnb-insurance-guarantee.html | work=[[Los Angeles Times]] | last=Olivarez-Giles | first=Nathan | date=1 August 2011}}</ref> and connection to multiple [[social media]] channels such as [[Facebook]], which allows hosts and guests to see if they have common friends.<ref>{{cite news | title=How to Use Airbnb Like a Pro | url=https://lifehacker.com/how-to-use-airbnb-like-a-pro-5796854 | work=[[Lifehacker]] | last=Porges | first=Seth | date=29 April 2011}}</ref><ref name=coziesfacebook>{{cite news | title=Airbnb Cozies Up To Facebook To Help You Feel More At Home When Away From Home | url=https://techcrunch.com/2011/05/09/airbnb-social-connections/ | first=MG | last=Siegler | work=[[TechCrunch]] | date=9 May 2011}}</ref><ref name="auto3">{{cite news | title=Airbnb Taps Facebook, Lets You Crash With Friends Of Friends | url=https://mashable.com/2011/05/10/airbnb-social-connections/ | work=[[Mashable]] | last=Van Grove | first=Jennifer | date=10 May 2011}}</ref>



==References==
==References==

Revision as of 20:48, 10 May 2019

History

Airbnb founder Joe Gebbia (right)

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.[1][2] The goal at first was just "to make a few bucks".[3][4] 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.[2][5] 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.[6] The site Airbedandbreakfast.com officially launched on August 11, 2008.[7][8] 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.[2][9]

To help fund the site, the founders created special edition breakfast cereals, with presidential candidates Barack Obama and John McCain as the inspiration for "Obama O's" and "Cap'n McCains".[10] In two months, 800 boxes of cereal were sold at $40 each, which generated more than $30,000 for the company's incubation.[11][12] It also got the company noticed by computer programmer Paul Graham, who 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.[3][13][14] With the website already built, they used the $20,000 Y-Combinator investment to fly to New York City to meet users and promote the site.[15] 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.[14]

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, castles, boats, manors, tree houses, tipis, igloos, private islands and other properties.[16]

One year later, there were 15 people working from Chesky and Gebbia's loft apartment on Rausch Street in San Francisco. To make room for employees, Brian Chesky gave up his bedroom and lived at lodging booked via the Airbnb service until the company moved into its first office space.[17][3] In April 2009, the company received $600,000 in seed money from Sequoia Capital[3] and, in November 2010, raised $7.2 million in financing from Greylock Partners and, again, from Sequoia Capital, in a Series A round, then announcing that out of 700,000 nights booked, 80% had occurred in the previous six months.[18]

In February 2011, Airbnb announced its 1,000,000th night booked.[19][20] In January 2012, the company announced its 5,000,000th night booked.[21] In June 2012, Airbnb announced its 10,000,000th night booked, doubling business in the previous five months.[22][23] Of these bookings, 75% of the business came from markets outside of the continental United States.

In mid-2011, Airbnb began offering US$50,000 of secondary insurance, called its "host guarantee", which covers property damage due to vandalism and theft. In May 2012, the company increased the amount to US$1,000,000.[24]

On May 9, 2011, Airbnb added a feature called "Social Connections" that allows users to see if they have common friends with hosts or guests via Facebook.[25][26]

On May 25, 2011, Ashton Kutcher, an actor and partner at A-Grade Investments, announced a significant investment in the company and his role as a strategic brand advisor for the company.[27]

At the 2011 South by Southwest conference, Airbnb won the "app" award.[28]

In October 2011, Airbnb established an office in London, its second international office.[29][30]

Due to the growth of international end-users, in early 2012, Airbnb opened offices in Paris, Milan, Barcelona, Copenhagen, Moscow, and São Paulo.[21] These openings were in addition to existing offices in San Francisco, London, Hamburg, and Berlin.[31] In September 2013, the company announced that it would establish its European headquarters in Dublin.[32][33]

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.[34][35] In December 2012, Airbnb announced its strategy to move more aggressively into the Asian market with the launch of an office in Singapore.[36]

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.[37][38][39][40][41]

By October 2013, Airbnb had served 9,000,000 guests since its founding in August 2008,[42] 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.[43]

In July 2014, Airbnb revealed design revisions to the site and mobile app and introduced a new logo.[44] Some considered the new logo to be visually similar to genitalia,[3][45] but a consumer survey by Survata showed only a minority of respondents thought this was the case.[46]

In July 2014, Airbnb became the official jersey sponsor for the Australia men's national basketball team at the 2014 Basketball World Cup.[47]

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.[48][49]

In June 2015, Airbnb sponsored the Manor F1 Team and the Airbnb logo appeared on the front nose of the cars and on team wear including the drivers' overalls.[50]

In August 2015, Airbnb partnered with Tesla Motors to provide chargers at certain host houses.[51][52]

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".[53]

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.[54]

Airbnb first became profitable during the second half of 2016. Airbnb's revenue grew more than 80% from 2015 to 2016.[55][56]

In February 2018, Brian Chesky said that the company is considering launching an airline.[57]

In February 2018, the company announced Airbnb Plus, a collection of homes that have been vetted for quality of services, comfort and design,[58] as well as Beyond by Airbnb, which offers luxury vacation rentals.[59]

Acquisitions

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.[60][61] Prior to 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.[62][63] In November 2012, Airbnb acquired NabeWise, a city guide that aggregates curated information for specified locations.[64] The acquisition shifted the company focus toward offering hyperlocal recommendations to travelers.[65] In December 2012, Airbnb announced the acquisition of Localmind.[66] 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.[67]

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.[68][69] In February 2017, Airbnb acquired Tilt.com, a social payment startup. On November 28, 2017, Airbnb began allowing users to split payments with up to 16 other travelers.[70] On November 16, 2017, the company acquired Accomable, a startup focused on travel accessibility.[71][72]

In March 2019, the company acquired HotelTonight, a website for booking last-minute hotel rooms, for over $400 million.[73][74]

Product overview

File:Airbnb app screenshot.png
Airbnb iPhone app screenshot

Guests

Guests can search for lodging using filters such as lodging type, dates, location, and price. Before booking, users must provide personal and payment information. Some hosts also require guests to go through the "Verified ID" identity verification system, which requires three layers of customer identification: telephone, photo of ID (such as passport or driver's license), and verification of Facebook, LinkedIn or Google+ account.[75][76] The company also provides travel guides, entitled "Neighborhoods", which provide details about staying in specific neighborhoods in various major cities.[77][78]

On certain of its websites, such as its mobile websites in the United States, Airbnb uses drip pricing; when customers search for lodging, Airbnb displays per-night prices that exclude its service fees and cleaning fees and the total charges are not revealed until later in the booking process.[79] On some of its websites, such as its desktop websites and mobile websites in Australia and the European Union countries, Airbnb shows the total amount including all fees at every stage of the booking process.[80][81]

Hosts

Hosts provide prices and other details for their rental or event listings. Pricing is determined by the host, with recommendations from Airbnb.[82] Hosts may be required to report income and pay income taxes on income received via Airbnb. In the United States, homeowners who refinance their mortgages with some agencies are able to count income they earn from Airbnb rentals on their refinance loan applications.[83]

Despite having no explicit ban on hosts filming guests, Airbnb requires that hosts fully disclose the use of surveillance equipment and security cameras to guests.[84]

Legality of hosting

Some jurisdictions have restrictions on subletting for a short period of time and regulate lodging rental companies such as Airbnb. Airbnb has published a list of regulations and requirements for cities in the United States. For examples of such regulations by jurisdiction, see Lodging#Regulation of commercial lodging. The hotel industry, particularly the American Hotel and Lodging Association, has lobbied governments asserting that the hotel industry is subject to unfair competition from Airbnb. These lobbying efforts have resulted in additional regulations being imposed on the company and its hosts.[53] In some cities, collection of a transient occupancy tax by Airbnb is required. In many cities, hosts must register with the government and obtain a permit or license.[85]

Landlords or community associations may have restrictions on short-term sublets. In some jurisdictions, landlord–tenant law limits the rights of tenants who sublet in violation of their leases.[86] To entice landlords and homeowners associations to be more accommodating in allowing their tenants and residents to sublet via Airbnb, Airbnb has a program in which landlords and homeowners associations can receive a portion of the profit generated from Airbnb.[87][88]

In January 2018, a federal court in the United States ruled that Airbnb is not responsible for illegal sublets by tenants. The court defended Airbnb under Section 230 of the Communications Decency Act which does not hold Internet based services liable for the actions of their users.[89][90]

Safety mechanisms

Founder Joe Gebbia has said that Airbnb is specifically "designed for trust" and provides a variety of safety mechanisms,[91] including US$1,000,000 of secondary insurance, which covers property damage by guests due to vandalism and/or theft,[92][93] and connection to multiple social media channels such as Facebook, which allows hosts and guests to see if they have common friends.[94][25][26]


References

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  2. ^ a b c McCann, Chris (20 November 2015). "Scaling Airbnb with Brian Chesky – Class 18 Notes of Stanford University's CS183C". Medium.
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  4. ^ Geron, Tomio (14 February 2011). "Airbnb Goes Through "Pivots" Aplenty Before Finding Its Space". The Wall Street Journal.
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  6. ^ Botsman, Rachel; Rogers, Roo (14 September 2010). What's Mine Is Yours: The Rise of Collaborative Consumption. HarperCollins.
  7. ^ Schonfeld, Erik (11 August 2008). "AirBed And Breakfast Takes Pad Crashing To A Whole New Level". TechCrunch.
  8. ^ Geron, Tomio (10 June 2009). "From Crash Pad To Pizza Profitable, Start-Up Eyes Budget Travel Market". The Wall Street Journal.
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