What is Airbnb and how does it work? + is it safe?

Last updated: 8 October 2026

What is Airbnb? It is one of the best-known names in travel, but how does Airbnb work, why is it so popular, what are its impacts and what alternatives are there? This article covers all of these questions.

What is Airbnb?

Airbnb is an innovative business that has grown faster than almost anyone could have imagined. It has shifted the travel paradigm in a new direction, satisfying consumer desires to take part in the sharing economy and to reduce travel costs. According to the company, Airbnb now has more than 5 million hosts and over 8 million active listings in almost every country in the world, and guests have made more than 2 billion arrivals at Airbnb listings since 2008. In 2024 it generated revenue of around $11.1 billion.

Whilst the concept of Airbnb is simple (you rent a place to stay from a home owner for a specified period of time), there is much more to Airbnb than meets the eye. This article explains what Airbnb is, how it works and what its wider impacts are.

What is Airbnb and what does it stand for?

Airbnb is an abbreviation for air mattress bed and breakfast.

Unlike traditional bed and breakfast accommodations, however, breakfast is not typically included in a stay.

The spelling of Airbnb is a tricky one and many people get it wrong. AirBNB, AirBnB and AirB’n’B are common mistakes.

What is Airbnb? The Airbnb logo

The Airbnb logo is called the Bélo, which is short for ‘Belong Anywhere’. The short form is easily pronounced by anyone on Earth, or so they say.

According to Brian Chesky, co-founder of the company, the Bélo is intended to be a symbol of ‘belonging’. The logo combines four simple symbols: a head which represents people, a location icon which represents place, a heart which represents love and then an A which represents Airbnb.

What is Airbnb?

Airbnb is essentially an online marketplace for renting property to travellers. Alongside accommodation, it also offers Airbnb Experiences (activities hosted by locals) and, since a major relaunch in May 2025, Airbnb Services such as private chefs, photographers and massages.

Airbnb does not own any of the properties. It simply provides a platform from which people can rent out their properties or spare rooms to guests. Prices are set by the property owners and monies are collected via the Airbnb app.

There are many different types of accommodation available on Airbnb. You can rent a room in someone’s house, a whole apartment, a treehouse, a castle or even a private island – and everything in between!

What is Airbnb? The history

When asking what is Airbnb, it is important to first understand a little bit of the history behind the business.

Airbnb was founded in August 2008 by Joe Gebbia, Brian Chesky, and Nathan Blecharczyk, with its headquarters in San Francisco, USA.

The idea came to Brian Chesky and Joe Gebbia in 2007 when they could not afford to pay the rent for their apartment. They transformed their living room into a bedroom in order to ‘share’ their home with three guests and provided them with homemade breakfast. This was the beginning of the Airbnb concept.

There was a big design conference in San Francisco and consequentially a number of hotels throughout the city were sold out. This gave Chesky and Gebbia the idea to rent out more rooms to guests on a ‘sharing’ basis. They had seen a potential market for the idea and thus developed a website called airbedandbreakfast.com.

To help fund their business, the founders sold breakfast cereals themed around the 2008 US presidential race (‘Obama O’s’ and ‘Cap’n McCain’s’); earning them around $30,000.

Contrary to what many people think, Airbnb was not an instant success.

Like many emerging businesses, Airbnb experienced several ups and downs, and it went through at least three separate launches. Whilst the founders managed to spark the interest of a number of investors, they didn’t take the Airbnb concept seriously. Eventually, after much hard work and perseverance, an investor was found. Paul Graham could see the potential in the Airbnb business model and decided to jump onboard.

Graham invited the founders to join a program called Y Combinator, which provides a startup business with money and training in exchange for a percentage of their company. In 2009, Air Bed & Breakfast became Airbnb, which was when the company really started to take off.

Airbnb went public on the Nasdaq stock exchange in December 2020. Despite the COVID-19 pandemic having severely disrupted travel that year, its shares more than doubled on the first day of trading, valuing the company at over $100 billion.

What is Airbnb? The Airbnb business model

To understand what Airbnb is, it is important to look at its business model.

The Airbnb business model is simple. It is a two-sided platform that facilitates the process of letting out and booking a property for travellers to stay in. It is based on the notion of sharing and is one of the most successful businesses in the sharing economy.

On the one side Airbnb provides the opportunity for home owners to list their accommodation on the Airbnb app, which yields a rental income. On the other side it provides travellers with easy access to a wide range of accommodation options.

In a recent campaign, Airbnb promoted the experience as not just visiting a destination, but ‘living’ there. Airbnb claims that you can ‘feel more at home’, mix with locals and gain a more authentic travel experience by staying in the homes of others instead of in a traditional hotel.

Airbnb is essentially just the facilitator of said transactions and the company does not own or manage any of the properties listed. Instead, it simply acts as the middle man, connecting the home owner with the traveller via the Airbnb app.

Airbnb provides AirCover, which includes damage protection and liability insurance for hosts and booking protection for guests. It also has a developed review and rating system, which allows both hosts and travellers to vet the people that they will be working with before agreeing to do so. This is common practice throughout the sharing economy and throughout the wider tourism industry, with most people being familiar with websites such as TripAdvisor.

Airbnb makes its money through service fees. Under its split-fee structure, hosts typically pay a service fee of around 3% and guests pay a service fee of around 14–16.5% of the booking subtotal. Under its host-only fee structure (which became mandatory for most hosts using property management software in late 2025), the host pays a single fee of around 15.5% and guests pay no separate service fee. Since 2025, Airbnb has also displayed the total price, including fees, in search results by default.

Video: How does Airbnb work? The Airbnb business model

What is Airbnb? How to use Airbnb as a guest

Using Airbnb as a guest is relatively easy. All you need to do is set up an account, search for an accommodation (or experience), read the reviews and click to book.

Some hosts allow immediate booking (known as Instant Book), whereas others will want to check out the guest’s profile first. For this reason, it is a good idea to add a short profile with a photo, as well as a short note when booking. This might explain who you are travelling with, the purpose of your trip and anything the host should know. For example:

‘Hi, we would love to come and stay at your place! We are a family of four (two adults and two young children) travelling through Europe on holiday. We are quiet, tidy guests and are looking forward to exploring the area.’

You can do all of this via the Airbnb app or on the website.

What is Airbnb? How to use Airbnb as a host

Many people earn a decent sized income from their Airbnb rentals and some have even managed to turn it into a full time job!

Being an Airbnb host is easy. You simply list your accommodation on the site, which is free. You then decide on the details of your rental such as prices, schedule, requirements for guests etc. Once your ad is live you can then welcome your first guests. Simple as one, two, three!

Although the act of advertising and securing rental income might be easy, however, there are also many things that you need to consider. These are listed below:

• Check local short-term rental rules – many cities now require hosts to register or hold a licence, limit the number of nights per year or ban short-term lets in some areas
• Have realistic expectations about how much of your time the rental will take up (many people underestimate)
• Make sure that you have adequate insurance
• Let your neighbours know that you will be renting out the property (to avoid any surprises or feeling of hardship)
• Research your competitors
• Set house rules, if appropriate
• Take measures to identify and prevent squatting
• Calculate income and expenditure
• Make sure all appliances are working correctly and have been serviced etc
• Make sure you have the appropriate facilities and amenities

There are many websites and books available to help guide anybody who is looking to rent out their property on Airbnb, and Airbnb’s own Resource Center for hosts is a good place to start.

What is Airbnb? Airbnb reviews

Airbnb operates on a review system.

Like many organisations nowadays, both hosts and guests will receive a request to add a review after their stay. This allows a person to build up a profile, which is publicly available to those who they may opt to do business with in the future.

This helps to uphold high standards and ensure consistency throughout the business.

A series of bad reviews can be devastating for a host (or for a guest), so it is in their interest to provide a satisfactory or more than satisfactory experience. Many hosts go above and beyond for their guests, and the review process is a big part of the reason why.

What is Airbnb? Positive impacts of Airbnb

Let’s dig a bit deeper in answering the question what is Airbnb and examine the positive impacts associated with this business…

Whilst there has been a growing body of public literature which views the use of Airbnb and the wider sharing economy as negative in terms of its impacts, particularly economically, there are also a number of positive impacts of Airbnb.

#1 Airbnb encourages economic activity in communities that wouldn’t normally benefit from tourism

Many Airbnb accommodations are located away from the usual tourist hot spots – in rural areas, suburbs and residential city neighbourhoods.

This can help to bring much needed income to areas that otherwise would not benefit from tourism. Whether its from buying your tea at the local supermarket or going out for dinner in a restaurant round the corner, tourists typically spend money in the vicinity of their accommodation location.

#2 Airbnb saves the traveller money

Most people know that Airbnb can save the traveller money, which is one of the biggest motivating factors for opting to use the company when choosing their accommodation options.

Airbnb accommodations can cost a fraction of the price of a traditional hotel or other accommodation option serviced by the tourism industry.

#3 Airbnb allows travellers to learn about the local communities

As noted earlier in this article, Airbnb provides travellers with a more authentic and local experience because they are living with locals or staying in local communities.

#4 Airbnb provides an income to people who need it

Airbnb has welcomed many entrepreneurs and businessmen and women into the sharing economy industry. It has allowed people to make an income when they may have previously been unable to. This can provide economic benefits to marginalised communities, impoverished areas and people experiencing economic hardship, which is particularly prevalent in developing countries.

What is Airbnb? Negative impacts of Airbnb

In order to sufficiently answer the question what is Airbnb we also need to understand the negative aspects associated with this business.

Unfortunately, there are also many negative impacts of Airbnb, namely economic impacts. According to the Economic Policy Institute, the costs of Airbnb businesses are likely to outweigh the benefits. Here are some of the negative impacts that have been noted:

#1 Airbnb causes increases in housing costs

Airbnb can be a big revenue earner. Once home owners begin to realise this, they are likely to snap up further properties in the same, or alternative, locations. The increases in demand for properties raises the prices, it’s simple supply and demand theory. Many cities have responded with regulation. For example, New York City’s Local Law 18 (enforced from September 2023) effectively banned most short-term rentals of under 30 days where the host is not present, Barcelona has announced that it will phase out all of its roughly 10,000 tourist apartment licences by 2028, and the EU’s Short-Term Rental Regulation, which applies from May 2026, requires host registration and data sharing between platforms and public authorities.

#2 Airbnb enhances likelihood of gentrification

Because the price of property goes up, many local people begin to be pushed out. People can no longer afford the accommodation available to them in the area that they live and are therefore forced to relocate to cheaper areas. There are many examples of this throughout the world, which is explained at length in this academic article.

#3 It is more difficult to collect taxes from Airbnb stays than from traditional hotel transactions

Another economic impact of Airbnb is the difficulty in collecting taxes. Traditional tourism accommodation providers are subject to a range of tax laws, from employment taxes on cleaners and cooks to city taxes.

It is a lot more difficult to collect taxes from Airbnb providers. This loss in revenue means that there is less money in the pot for community investments in areas such as healthcare or education, therefore having a knock-on effect on the overall welfare of the community. That said, Airbnb now automatically collects and remits occupancy and tourist taxes on hosts’ behalf in many jurisdictions around the world.

#4 Airbnb guests may be unwanted in local communities

Some local communities may not welcome Airbnb guests.

Tourists may be ignorant to local customs, for example by wearing revealing clothing in a Muslim country or by swearing in the street. Tourists may be inconsiderate to neighbours by playing loud music or by littering. Tourists may flaunt expensive gadgets and jewellery that the locals cannot afford, therefore encouraging feelings of resentment and perhaps even rises in crime.

In fact, many of the wider negative social impacts of tourism in general, can be applied to smaller communities that house Airbnb properties.

#5 There are privacy and safety concerns with Airbnb

Lastly, there have been a number of concerns over the privacy and safety of Airbnb.

From hidden cameras to doors which don’t lock properly, there have been many reported complaints from Airbnb guests throughout the world.

Although the review system should help to reduce such incidents, unfortunately this does not always seem to be the case.

What is Airbnb? Is Airbnb safe?

Unfortunately there are some bad apples in the Airbnb industry, both hosts and guests.

From hosts placing meth pipes in their accommodation and watching guests on hidden cameras, to guests using the accommodation as a brothel and having huge parties, Airbnb is not without its fair share of dramas.

Fortunately, horror stories are not common, and most people have a perfectly pleasant and safe stay in their Airbnb accommodation!

In fact, Airbnb have several measures in place to ensure safety for their guests. This includes risk scoring, background and watchlist checks, handing out free carbon monoxide and smoke detectors to hosts, having a secure payment platform and a multi-layer defence strategy to prevent scams. Airbnb has also operated a global ban on parties since 2020 (made permanent in 2022), and since April 2024 it has banned the use of indoor security cameras in listings worldwide.

What is Airbnb? Airbnb competitors

The question of what Airbnb is can be better understood by also looking at similar businesses.

Whilst Airbnb is most certainly the biggest name in the game, there are also a number of companies with a similar business approach and offering on the market.

• Vrbo (formerly HomeAway, owned by Expedia Group)
• Booking.com (which offers apartments and holiday homes alongside hotels)
• Agoda Homes
• Plum Guide
• onefinestay
• Homestay
• Outdoorsy (campervan and RV rentals)
• Hipcamp (campsites and glamping)
• Third Home

What is Airbnb? The most unusual examples!

To help further answer the question ‘what is Airbnb’, below are some examples of the unusual and unique properties that have been listed on Airbnb around the world. Listings and availability change regularly, so always check the platform for current details.

#1 The Bridge House, Scotland

Located in Ballintuim, this is a two bedroom home built on a bridge that spans the River Ardle. It was built in 1881, and there are plenty of original features. These include walls clad with traditional Scottish timber, original flooring and more. You enter the Bridge House by a private spiral stone staircase and head straight into the cosy dining area.

This accommodation boasts a sauna/steam room, an outdoor seating area/walkway and of course, incredible views both up and down river.

There is a detached stable apartment next door which is also available to book on Airbnb. There is a garden below and plenty of places to walk and hike nearby.

This is a great option if you’re looking at unique Airbnb stays in Scotland – the country of haggis, fresh air and whisky!

#2 Castle near Wroclaw, Poland

Poland is one of Europe’s gems, and is becoming more and more popular for city breaks.

Wroclaw is one city that people are starting to flock to, especially those looking for a boozy weekend. But if you want something more serene in the area, this castle in Warmatowice Sienkiewiczowskie is just over an hour’s drive away from the city.

This unique Airbnb stay has five bedrooms and sleeps up to ten guests. Each bedroom has a private bathroom, and there is plenty of living space too.

The grounds of the castle are absolutely breathtaking, and it is the perfect location for a group trip to Poland. There is on-site parking should you need it, too. So, what is Airbnb? A castle, it seems!

#3 Playful stylish apartment, Hungary

In the country’s capital, Budapest, there are plenty of unique Airbnb stays. One of the most unusual is this modern apartment with a slide inside it – a big hit with families travelling with children.

The bright, spacious rooms and comfortable furniture are one thing – but the slide down from the mezzanine bedroom area is something else entirely!

Accommodating up to four guests, this central apartment is just a stone’s throw away from museums, bars, shops, restaurants and the historic architecture the city is famous for. Plus, it has a slide.

#4 The Carolina Treehouse, USA

In Charlotte, North Carolina, you’ll find one of the most beautiful and unique Airbnb stays – a stunning treehouse, complete with a peaceful outdoor shower, comfortable outdoor seating, a fire pit, private pond, swing bed and so much more.

The owners say it was designed with a slow pace in mind, and it’s not hard to see why. Everything just looks completely zen. From the colour palette to the little touches such as a record player and indoor plants, it really is a beautiful place.

It accommodates two guests, includes WiFi and parking, and has incredible reviews. 

#5 JR’s Ecohut, Australia 

Eco-friendly travel is growing in popularity- and this unique Airbnb stay fits the bill perfectly.

This tiny house on the Kimo Estate in Nangus, New South Wales, offers 360 degree views of the Murrumbidgee River flats and Kimo Valley – and it’s completely off grid.

It is one of the best unique Airbnb stays in terms of being sustainable. It uses solar power for hot water and lighting, and there is a small log burner for heating.

The glass front means the views are spectacular inside and out, and there are no neighbours for miles meaning it’s completely peaceful. If you’re looking for somewhere to come and switch off, this is absolutely ideal.

The accommodation sleeps two; it is basic but comfortable, and the scenery speaks for itself…

#6 The Beehive, England

What is Airbnb? It’s a boat! Located in Manchester (famous for its connection to the worker bee), this is a stunning narrowboat which sleeps up to four.

Gloriously modernised with a brilliant kitchen area, bee mural on the outside, comfortable seating and quite a fancy bathroom, the boat has everything you’ll need.

There is full central heating and power to charge devices, and it’s great place to just chill out and relax for a couple of nights. It is definitely something a bit different, and perfect for a trip to one of England’s most interesting cities.

#7 Windmill, the Netherlands

The Netherlands is famous for many things – its lax laws surrounding cannabis and sex tourism, clogs, bicycles… and windmills.

You can stay in one of these windmills in Abcoude, a 20 minute drive from the exciting capital city of Amsterdam. It sleeps six across three bedrooms with two bathrooms, and comes with WiFi and free parking.

If you’ve hired a car on your trip to Amsterdam or live locally, this is an amazing place to stay. It’s novel and atmospheric, there are goats nearby and the decor inside is absolutely beautiful.

#8 Seashell House, Mexico

What started as just another of the unique Airbnb stays available, has turned into a bit of a world-famous phenomenon that has had a big impact on what is Airbnb. Located in Isla Mujeres, Mexico, this seashell-shaped house is called Casa Caracol.

A two bedroom villa with a pool, kitchen and BBQ area as well as free parking and WiFi, it is an amazing place to stay when visiting this part of Mexico – with the added bonus of being shaped like a seashell, of course.

It’s something a bit funky and makes for some amazing photos of your summer holiday! The house is also a great base for exploring the rest of the island. Plus, it feels just a *tiny* bit like being in Spongebob Squarepants…

#9 St. Ann’s Lighthouse, Canada

In terms of unique Airbnb stays, there are few places more quirky than a lighthouse.

This one was built in 1905 and was a working lighthouse until 1962 – it has been modernised and makes for a great place to stay when exploring Cape Breton.

The views across St. Ann’s Bay are something special, and you’ll be able to see plenty of stars at night. The rural area allows for plenty of nature-spotting, and the seclusion means it is perfect for a relaxing, romantic weekend away in this stunning part of Canada.

With hiking trails and local restaurants nearby, it is an all-round great place to stay!

#10 Hello Kitty Fun House, Malaysia 

What is Airbnb? Well, a lot of fun it seems! Located in Kuala Lumpur, this fun and funky Hello Kitty-themed apartment sleeps up to 6.

There is not one aspect of this accommodation that hasn’t been decorated with a nod to the famous cartoon feline – from the crockery to the bedding to the murals on the wall, this is a dream come true for any Sanrio fan. Even the kettle has Hello Kitty on it!

The building has a pool, gym and sauna as well as a kids’ play area, 24-hour shop and a laundrette.

If you love all things girly and pink, and of course HK herself, then this is an amazing (and definitely unique) place to stay in Malaysia.

What is Airbnb: FAQs

Below are answers to some of the most common questions about Airbnb.

What is Airbnb? Conclusion

What is Airbnb? As this article has shown, Airbnb is a ground breaking company that has seen incredible growth in a short period of time. A prominent name in the sharing economy, Airbnb has become a household name.

Despite being remarkably popular with travellers and hosts alike, however, it has not been without its critics. Many academics and industry professionals have raised concerns over the sustainability of Airbnb, with negative economic impacts demonstrated the world over. Despite this, the company and its competitors continue to grow and to increase their share of the accommodation market.

What is Airbnb? Now you know!

If you found this article explaining what Airbnb is useful, these articles may also be of interest:

• Workation- the newest trend in travel?
• What is ethical tourism and why is it important?
• What is Insta tourism and how is it impacting travel?
• The fascinating story of the first commercial flight
• The sharing economy and the tourism industry
• Types of accommodation in tourism
• How to become an independent travel agent
• What is orphanage tourism and why is it BAD?

About the author

Dr Hayley Stainton is a tourism academic, examiner and the founder of Tourism Teacher. She has a PhD in tourism and more than 20 years’ experience teaching travel and tourism at school and university level. Read more about Hayley