9/25/2017 Airbnb - Wikipedia

Airbnb
From Wikipedia, the free encyclopedia

Airbnb is an online marketplace and hospitality service,

enabling people to lease or rent short-term lodging including Airbnb, Inc.
vacation rentals, apartment rentals, homestays, 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.[4][5][6] It has over 3,000,000 lodging listings in
Screenshot
65,000 cities and 191 countries,[7] and the cost of lodging is set
by the host.

Contents
1 How it works
1.1 Offering lodging
1.2 Safety mechanisms
1.3 Wish list feature
1.4 Neighborhoods travel guide
2 History
3 Corporate information Type of site Privately held company[1]
3.1 Office locations
3.2 Funding Available in 26 languages
4 Sponsorships List of languages
5 Criticism
Bahasa Indonesia, Bahasa Melayu, Catal, Dansk,
5.1 Fair housing implications and
discrimination Deutsch, English, Espaol, E, Franais,
5.2 Crimes committed by users Italiano, Magyar, Nederlands, Norsk, Polski, Portugus,
5.3 Privacy and terms of use Suomi, Svenska, Trke, slenska, etina, ,
5.4 Pricing transparency , (), (), ,
5.5 Boycott over Israeli settlements
5.6 Housing affordability Founded January 24, 2006
5.7 Tax avoidance by Airbnb Headquarters San Francisco, California, U.S.
5.8 Tax avoidance by hosts
6 Awards and accolades Area served Global
7 See also Founder(s) Brian Chesky
8 References Joe Gebbia
9 External links
Nathan Blecharczyk
Key people Brian Chesky (CEO)
Joe Gebbia (CPO)
How it works Nathan Blecharczyk (CTO)
Laurence Tosi (CFO)[2]
Airbnb can be accessed via either the Airbnb websites or
mobile applications for iOS, Apple Watch, and Android.[8] Industry Travel, hospitality service
Registration and account creation is free.[9] On each booking, Services Homestay, vacation rental
the company charges guests a 6%-12% guest services fee and
Employees 3100[3]
charges hosts a 3%-5% host service fee.[10] Hosts can also
offer "experiences", such as excursions, to guests for an Website www.airbnb.com (https://www.airbn
additional charge, of which Airbnb takes 20% as a b.com)
commission.[10][11] Users 150,000,000

Users can search for lodging using a variety of filters including Native iOS, watchOS, tvOS, Android
lodging type, dates, location, and price.[12] Before booking, client(s) on
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.[13][14] Guests
also are required to agree to any house rules of the host.[13]

Offering lodging

Users can create a listing by selecting the "Host" menu after logging in.[15] A listing will not go live until the host
is ready to publish.[15] Pricing is determined by the host, with recommendations from Airbnb.[15] Hosts can charge
different prices for nightly, weekly, and monthly stays and can make adjustments for seasonal pricing.[15] Hosts
add descriptions of the residence, amenities, available dates, cancellation policies, and any house rules[16] and
hosts are advised to upload
https://en.wikipedia.org/wiki/Airbnb photos of the lodging that is offered.[17] For 1/12
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hosts are advised to upload photos of the lodging that is offered.[17] For
eligible hosts, Airbnb offers free professional photography.[18] Potential
guests are required to message the host directly through Airbnb to ask
questions regarding the property. Unless the host has enabled "instant
book", in which case requests for stays are accepted automatically, a host
has 24 hours to accept or decline a booking.[19][20] After the reservation,
hosts coordinate meeting times and contact information with guests.[15]

Legality of offering lodging

Some cities have restrictions on subletting for a short period of time.[21] In

some cities, collection of a transient occupancy tax by Airbnb is
required.[21] In many cities, hosts must register with the government and
obtain a permit or license.[21] Airbnb has published a list of regulations and
requirements by city; however, only cities in the United States are included.
In addition, many landlords or community associations also have
restrictions on short term sublets.[22] Hosts may be required to pay income
taxes on income received via Airbnb and, in the United States, Airbnb
sends tax forms to hosts that have earned over $20,000 in rents and
received over 200 reservations via Airbnb in a calendar year.[23]
Airbnb iPhone app screenshot
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".[24][25]

References and reviews

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.[26][27][28][29]

Insurance

Airbnb recommends that hosts obtain insurance which covers damages caused by guests.[30] Airbnb offers
secondary insurance, called its "host guarantee".[31] The guarantee covers property loss and damage due to
vandalism and theft. When first launched in August 2011, the program covered up to US$50,000.[32] However, the
maximum was later increased to US$1,000,000.[33][34] The company also has a 24-hour customer service hotline
and a task force to review suspicious activity.[35]

Logged private messaging system

The site provides a private messaging system as a channel for users to message one another privately before
booking and accepting reservations.[36]

Decline or cancellation of reservations

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.[37][38]

Secure payments

Airbnb facilitates online payments from guest to host through its Security Payments feature, which processes
payment transactions 24 hours after check-in.[39]

Security deposits and cleaning fees

At the option of the host, Airbnb facilitates security deposits and mandatory non-refundable cleaning fees, the
former of which is held until the property is vacated.[40]

Verification of identity

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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.[41]

Linking to social network accounts

An Airbnb account can be linked to accounts on social networking services such as Facebook, thus providing the
host with data on common friends and interests.[42][43][44]

Wish list feature

In June 2012, Airbnb launched a wish list feature, offering users the ability to create a curated catalog of desired
lodgings that they would like to visit.[45] Co-Founder and Chief Product Officer, Joe Gebbia and his team
conceived the idea of changing the website from an online marketplace to a source for inspiration. Users can
organise their favorite destinations into organized lists and share these lists with other users.[46]

Neighborhoods travel guide

"Neighborhoods" is a travel guide that provides in-depth information for selected neighborhoods in 23 major cities
through photos, essays, maps, tags from locals, and assessments of various criteria that would be of interest to
guests such as public transportation, dining, peace & quiet, nightlife, tourist attractions, and shopping, thereby
helping travelers choose the ideal neighborhood to stay in via collaborative filtering.[47][48][49][50] The Airbnb
product team hand-mapped hundreds of neighborhoods within these 23 cities and had local editors curate content
for each neighborhood. Airbnb also added 70 street photographers who generated 40,000 photographs for the
project.[51]

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.[52][53][54] The goal at first
was just "to make a few bucks".[55][56] 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.[54][57] 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.[58] The site Airbedandbreakfast.com officially launched on
August 11, 2008.[59][60] 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.[54][61]
Airbnb founder Joe Gebbia
To help fund the site, the founders created special edition breakfast cereals, with (right)
presidential candidates Barack Obama and John McCain as the inspiration for
"Obama O's" and "Cap'n McCains".[62] In two months, 800 boxes of cereal were
sold at $40 each, which generated more than $30,000 for the company's incubation.[63][64] 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.[55][65][66] 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.[67] 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.[66]

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, tipis, igloos, private islands and other properties.[68]

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,[69][55] and in April 2009, the company received
$600,000 in seed money from Sequoia Capital.[55] In November 2010, the company raised $7.2 million in
financing from Greylock Partners and again from Sequoia Capital in a Series A round and announced that out of
700,000 nights booked, 80% had occurred in the past six months.[70]

In February 2011, Airbnb

https://en.wikipedia.org/wiki/Airbnb announced its 1 millionth booking since its inception in August 2008.[71][72] In January3/12
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In February 2011, Airbnb announced its 1 millionth booking since its inception in August 2008.[71][72] In January
2012, the company announced its 5 millionth night booked internationally. In June 2012, Airbnb announced 10
million nights booked, doubling business in the previous 5 months.[73][74] Of these bookings, 75% of the business
came from markets outside of the continental United States.

On May 25, 2011, actor and partner at A-Grade Investments Ashton Kutcher announced a significant investment in
the company and his role as a strategic brand advisor for the company.[75]

In May 2011, Airbnb acquired a German competitor, Accoleo. This takeover, as well as other similar acquisitions,
launched the first international Airbnb office, in Hamburg.[76] In October 2011, Airbnb established its second
international office in London.[77][78] Due to the growth of international users, in early 2012, Airbnb opened
offices in Paris, Milan, Barcelona, Copenhagen, Moscow, and So Paulo.[79] These openings were in addition to
existing offices in San Francisco, London, Hamburg, and Berlin.[80] Airbnb announced in September 2013 that its
European headquarters would be located in Dublin.[81] 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.[82]

In November 2012, in the aftermath of Hurricane Sandy, Airbnb partnered with New York City Mayor Michael
Bloomberg to offer free housing for persons displaced by the storm.[83] Airbnb built a microsite for this effort
alone where victims register for housing and meet property owners with free housing.[84] Additionally, Airbnb
waived all service fees associated with these listings while maintaining the Host Guarantee for all properties
listed.[85]

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,[86] At that time, Australian consumers accounted for 10% of the
Airbnb user base.[87] and in December that same year, Airbnb announced its strategy to move more aggressively
into the Asian market with the launch of an office in Singapore.[88]

In November 2012, Airbnb acquired NabeWise, a city guide that aggregates curated information for specified
locations.[89] The acquisition shifted the company focus toward offering hyperlocal recommendations to
travelers.[90] In December 2012, Airbnb announced the acquisition of Localmind.[91] 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.[92]

By October 2013, Airbnb had served 9 million guests since its founding in August 2008,[93] and in December
2013, the company reported it had over 6 million new guests in 2013, and nearly 250,000 properties were added in
2013.[94]

In July 2014, Airbnb revealed design revisions to the site and mobile app and introduced a new logo.[95] Some
considered the new logo to be visually similar to genitalia,[55][96] but a consumer survey by Survata showed only a
minority of respondents thought this was the case.[97]

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.[98][99]

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.[100]

In August 2015, Airbnb partnered with Tesla Motors to provide chargers at certain host houses.[101]

In the summer of 2016, the Federal Trade Commission started investigating how Airbnb affected housing costs per
the request from three US senators. In October that same year, New York Gov. 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".[102]

In January 2017, Brian Chesky, CEO of Airbnb, tweeted that the company will give free housing to refugees and
any others not allowed into the United States as a result of Donald Trumps Executive Order 13769, which
temporarily banned refugees from the United States.[103][104] Airbnb also led an investment in reservation-booking
app, Resy, along with serial entrepreneurs Gary Vaynerchuk, Ben Leventhal and Mike Montero.[105]

Airbnb first became profitable during the second half of 2016. Airbnb's revenue grew more than 80% from 2015 to
2016.[106]

In February 2017, Airbnb acquired Luxury Retreats International, a Canadian-based villa rental company, in its
largest acquisition to date.[107]

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Corporate information
Office locations

Airbnb has 20 offices in:

Amsterdam (Netherlands)
Barcelona (Spain)
Berlin (Germany)
Beijing (China)
Copenhagen (Denmark)
Dublin (Ireland) Airbnb office in Toronto, Ontario,
London (UK) Canada
Miami (Florida, USA)
Milan (Italy)
Montreal (Canada)
New Delhi (India)
Paris (France)
Portland (Oregon, USA)
San Francisco (California, USA)
So Paulo (Brazil) Airbnb North American headquarters at
Seoul (South Korea) 888 Brannan St, San Francisco, CA.
Singapore
Sydney (Australia)
Tokyo (Japan)
Toronto (Canada).[108]

Funding

Through July 2011, the company had raised US$119.8 million in venture funding from Y Combinator, Greylock
Partners, Sequoia Capital, Andreessen Horowitz, Digital Sky Technologies, General Catalyst Partners[109][110] and
undisclosed amounts from Youniversity Ventures partners Jawed Karim, Keith Rabois, and Kevin Hartz,[111] and
from 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.[112] Additional funding was provided by Andreessen Horowitz, Sequoia Capital,
Dragoneer Investment Group, T. Rowe Price and Sherpa Capital.[113][114][115]

In March 2015, Airbnb raised funding at a $20 billion company valuation.[116]

In 2015, Airbnb raised $1.5 billion in funding led by growth equity firm General Atlantic, and joined by Hillhouse
Capital Group, Tiger Management, Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital,
and Horizons Ventures.[117]

In September 2016, Airbnb raised at least $555 million in new funding from Google Capital and Technology
Crossover Ventures, valuing the company at $30 billion.[118]

In March 2017, Airbnb raised $1 billion in additional funding, bringing their total funding raised to date to more
than $3 billion and valuing the company at $31 billion.[119]

Sponsorships
In 2014, Airbnb was the official jersey sponsor for the Australia men's national basketball team at the 2014
Basketball World Cup.[120]

Airbnb has sponsored the New York City Marathon since 2014.[121]

Criticism
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.[122]

Crimes committed by users

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There have been crimes committed by users, ranging from vandalism by guests to sexual assault by
hosts.[123][124][125]

Privacy and terms of use

Airbnb's identity verification system "Verified ID"[126] has been perceived by many customers as excessively
intrusive.[127][128][129] It 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.

Linguist Mark Liberman has criticized the extreme length of the legal agreements that Airbnb members are
required to accept, with the site's terms of service, privacy policy, and other policies amounting to "55081 words,
or about the size of a short novel, though much less readable".[130]

Despite having no explicit ban on hosts filming guests, Airbnb updated its terms of use in November 2014 to
require that hosts fully disclose the use of surveillance equipment and security cameras to guests.[131] Previously,
no such disclosure was required.[132]

Pricing transparency

When customers search for lodging, Airbnb displays per-night prices that exclude its own per-night service charges
as well as possible additional costs such as cleaning fees. The total price is not revealed until the customer selects
an individual property and is ready to book.[133]

In late 2015, the Australian Competition and Consumer Commission took action against Airbnb for this form of
drip pricing. Consequently, users of Airbnb's Australian web site now see the total price of a stay including all
unavoidable charges at every stage of the booking process.[134][135]

Boycott over Israeli settlements

Airbnb is on the Boycott, Divestment and Sanctions list of companies.[136] The company was added following
media reports that lodging listings included settlements in the occupied Palestinian territories that are advertised as
being in Israel or in Israeli neighborhoods.[137][138]

Housing affordability

In San Francisco, protesters accused Airbnb of contributing to rising rental rates, as landlords keep properties off
the longer term rental market and instead get higher rental rates for short term housing via Airbnb.[139] Similar
problems have been raised in other parts of the world, such as Scotland. [140] In 2017, San Francisco passed a law
requiring Airbnb hosts to register with the city before they can rent units; units can't be rented for more than 90
days a year.[141]

Tax avoidance by Airbnb

The company has been accused of avoiding taxes by setting up a double Irish arrangement through subsidiaries in
Ireland and Jersey.[142][143]

Tax avoidance by hosts

In 2016, the Spanish treasury department sent letters to property owners that have not declared income associated
with Airbnb,[144] and in Australia, insiders said in 2016 that the hosts of the 75,000 properties listed on Airbnb
would likely face increased chances of being audited.[145]

Awards and accolades

Airbnb won the "app" award at the 2011 South by Southwest conference.[146]

Airbnb has been deemed the "best place to work" by the 8th annual Glassdoor 2016 Employees Choice Awards.
[147]

See also
Collaborative consumption Hospitality service
Emergencybnb Lodging
Homestay Online platforms for collaborative consumption

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Sharing

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Glassdoor Blog" (https://www.glassdoor.com/blog/airbnb-best-place-to-work/). Glassdoor Blog. 2015-12-08.
Retrieved 2017-09-21.

External links
Official website (https://www.airbnb.com/)
Airbnb companies (https://opencorporates.com/corporate_groupings/Airbnb) grouped at OpenCorporates
How to Book a Space on Airbnb, a how-to article from wikiHow
How to List an a Apartment on Airbnb, a how-to article from wikiHow

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