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Starting an Airbnb business is one of the most exciting opportunities in today’s rental market. With the short-term rental industry growing exponentially, Airbnb has emerged as a global leader, boasting a commanding 20% market share in the vacation rental sector.
In 2021, Airbnb generated $48.9 billion in gross revenue, up significantly from $27.69 billion in 2020, reflecting a 76.62% growth. This surge demonstrates Airbnb’s dominance, particularly in North America, which contributed nearly $22.94 billion to its revenue that year.
Globally, the short-term vacation rental market is projected to grow at a CAGR of 11.4% from 2025 to 2030, further solidifying Airbnb’s position as a key player.
Whether you're exploring arbitrage, owning property, or subletting, Airbnb offers a lucrative pathway for entrepreneurs. This guide will walk you through every step to start a thriving Airbnb business—no matter your level of experience.
Table of Contents
What Is an Airbnb Business?
Airbnb as a business model has revolutionized the short-term rental market by providing a flexible, scalable, and profitable way to engage in the vacation rental industry. At its core, an Airbnb business involves listing properties—whether owned or managed—on Airbnb to generate income from short-term stays.
What Does Running an Airbnb Business Involve?
Short-term rentals via Airbnb allow hosts to profit from a wide variety of accommodations, ranging from entire homes and apartments to unique stays like treehouses or yurts. The platform caters to diverse demographics, including tourists, business travelers, and remote workers, by offering accommodations that meet a wide range of preferences and budgets.
Why Airbnb Is the Go-To Platform for Hosts
Airbnb has established itself as a market leader, commanding 20% of the vacation rental sector. This dominance is underscored by its continued growth:
- In 2021, Airbnb generated $48.9 billion in gross revenue, a 76.62% increase from 2020.
- The global short-term rental market is projected to grow at a CAGR of 11.4% from 2025 to 2030, cementing Airbnb’s position as a key player.
Additionally, Airbnb’s adaptability fuels its appeal. Take the example of Houst’s partnership program, which enabled two entrepreneurs to launch and scale a thriving Airbnb business in Dublin. Starting with six properties, they now manage an impressive portfolio of 65. By leveraging the platform's tools and the expertise of an established partner like Houst, they turned their business ambitions into reality. (Full details later in this article.)The platform’s ability to meet evolving traveler demands is also reflected in its listing growth. In 2022, Airbnb added 900,000 new listings, with total active listings reaching 7.7 million by the end of 2023.
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