Expense Estimation for Crafting an App Similar to Airbnb: Insight into Development Costs
Travel app development takes off as online travel sales boom
buying travel tickets, booking lodgings or comparing costs has never been easier, thanks to a plethora of travel apps such as Airbnb. The increasing popularity of these digital platforms is reflected in the staggering figure of $755.94 billion USD in global internet travel sales recorded in 2022 (Statista).
With the rise in demand for travel-related services, the tourism industry is seeing an influx of entrepreneurs looking to capitalize on this opportunity. If you're interested in developing a travel app like Airbnb, read on to learn more about how it operates and the factors to consider in the development process.
In the crowded travel app market, Airbnb stands out as a leader. To unpack its success, it's worthwhile to take a closer look at how Airbnb operates.
Before we dive into the nitty-gritty of the costs involved in creating an Airbnb-style app, let's first focus on some key factors that will aid in a successful evaluation.
Business Model of Airbnb
Airbnb facilitates individuals with extra living space to generate additional income by renting it out. Through the platform, users can book any type of accommodation anywhere in the world.
Airbnb offers apps for both iOS and Android, as well as web applications, and is compatible with smartwatches. Users can receive instant notifications and stay updated on any changes through their smartwatch. Airbnb's revenue model is based on service fees.
- Visitors pay a 6-12% booking fee, depending on the size of the reservation.
- Airbnb takes a 3% commission from each transaction made by hosts.
By adopting this model, apps like Airbnb earn money by charging a commission of between 6-12% for visitors, depending on the booking amount, and also taking a 3% commission from every reservation made by hosts for Visa processing.
How Does Airbnb Work?
For travelers, Airbnb operates through two panels: hosts and guests. The platform offers a range of functions for its users. Here, we explain how it works.
To begin, visit the Airbnb website or app and register or sign in using your email address or social media profiles. Create a profile by providing essential details such as your name, profile picture, ID number, current address, and more.
Then, use various parameters like location, room type, price, etc., to search for and select the accommodation you prefer. Once you've chosen a location, submit a booking request. SMS alerts and push notifications will be used to confirm the reservation. Several payment gateways are available, including credit cards, debit cards, PayPal, Apple Pay, Google Pay, and more.
Key Factors in App Development Cost
Data-based analytical applications like Airbnb tend to cost more than simple, convenient apps. Several factors from Airbnb's tech stack to the location of developers will help estimate the cost. Here are some crucial factors to consider:
App Design
A visually appealing and intuitive design is vital for attracting and retaining users. Choosing top mobile app UI design trends can help create a standout app at a reasonable cost.
App Size
Application size refers to the number of features and functionalities to be incorporated besides Airbnb app features. Consider focusing on only essential features to keep costs down.
App Platform
Choosing the app development platform is relatively straightforward, as you already know your target audience. While applications on Android cost more than on iOS, considering cross-platform app development can help reduce long-term maintenance costs.
App Development Team
The development cost will vary depending on the team's location. If you're planning to build an Android or iOS app, ensure you work with developers who can deliver a high-quality, user-friendly application at a reasonable cost.
App Development Tech Stack
Several modern technologies can be used for building apps like Airbnb. For mobile app development, developers often use Swift for iOS and Kotlin for Android. For web app development, JavaScript is commonly used. With numerous options, the cost of purchasing resources for utilizing these tools can impact the overall cost. Choose the platform and app size wisely.
Must-have Airbnb App Features & Their Costs
Crucial features and functionalities set an app apart from its competitors. To build an Airbnb Android app or iOS app development, you'll need to create a list of essential features.
For Guests
- Registration: To use apps like Airbnb, users need to create an account. It's important to include a 'Terms and Policy' along with mobile app onboarding, as users must agree to the platform's terms of use.
- Login: After enrollment, users can log in to the application seamlessly. Providing options like login with email, Google account, and Facebook can streamline the process.
- Search: This feature is essential for any booking solution. Users should be able to set dates for their trip and select the number of guests. Returning a list of suitable accommodations with all details like photos, descriptions, and ratings is crucial.
- Favorites: This feature allows users to save their preferred accommodations for easier access in the future.
- Chats: Post booking, guests and hosts can engage in discussions to clarify any details.
- Profile: Users, both hosts and guests, should be able to customize their profiles and add personal information like name, age, gender, etc.
- Payments: Offering various payment options simplifies the payment process. Utilize the latest digital wallet trends where possible.
- Order: Users can reserve accommodations based on availability and make payments.
For Hosts
- Accommodations: Proprietors can use this feature to provide details of their properties like room type, number of guests, and cost per night. Sharing photos and other media, as well as setting the price, is essential.
- Requests: Hosts can view all requests made by guests and accept or reject these requests.
- Notifications: This feature keeps hosts informed of any updates, such as a booking request, check-ins, or booking changes.
- GPS: This feature enables users to browse for accommodations or discover local attractions, restaurants, and more.
Further factors such as app size, design, platform, and location can have a significant impact on the app's overall cost.
Leading Competitors of Airbnb Vacation Rental App
HomeToGo
Similar to Airbnb, this app is a holiday aggregator with 17 million vacation rentals available across Europe's major cities. The platform supports eight different languages, including English, Russian, Polish, Italian, Spanish, French, Dutch, and German.
FlipKey
More than 300,000 property owners worldwide use this well-known vacation home rental website. Features include check-in and check-out, property profiles, data storage, lookup & filter, free listing options, instant booking, and various payment gateways.
OneFineStay
This luxury hotel chain offers the finest accommodations to visitors who appreciate high-quality homes and unique experiences. OneFineStay caters to travelers seeking 5000 distinctive properties, including chalets, villas, and apartments across 50 locations worldwide.
Vrbo
Similar to Airbnb, Vrbo allows both hosts and guests to search for and book lodgings from over 2 million exclusive properties in 191 countries, spanning 65,000 cities. The platform offers a variety of features, including a search filter, browse and search capabilities, user profile information, virtual assistant, photos and reviews, property descriptions, book and pay, 24-hour service, in-app payment methods, in-app messaging, and sharing tips with friends. Vrbo has over a million downloads.
How Much Does it Cost to Develop an App Like Airbnb?
We've covered the factors that play a role in the price of developing an Airbnb-like app. Here's a summary based on the essential components:
Size of the Development Team
The team should consist of a project manager, developers (both front-end and back-end), UX/UI designers, and Quality Assurance experts.
The Number of Platforms
Developing for both iOS and Android increases costs compared to a single-platform app. However, utilizing cross-platform technologies like Flutter can reduce long-term maintenance costs.
Complexity
The costs depend on the complexity of the features included in the app. More complex features can take more time to implement, directly impacting the final cost.
App Design
If unique visuals and tools are used for the Airbnb-style app design, the cost may increase.
For a single-platform app with limited features, the Airbnb app cost can range from $25,000 to $30,000. If you plan to target both iOS and Android, the cost can rise to $600,000.
The booming online travel market presents an attractive opportunity for entrepreneurs. Building a travel app like Airbnb could be a profitable venture, so seize the opportunity and embark on your app development journey.
Our website offers resources and expertise to help you create a successful Airbnb-like app. As a leading on-demand app development company, we have the expertise to assist you with every step of the process, from conceptualization to launch.
Frequently Asked Questions
Q. How long does it take to build an app like Airbnb?
Estimates for an Android MVP of an Airbnb-like app can take approximately 1150 hours. Additional time must be allocated for backend development (approximately 300 hours).
Q. What kind of platform is Airbnb?
Airbnb is a community-based online marketplace for listing and renting out local properties without owning any actual rooms. Airbnb facilitates the rental process by connecting hosts and guests and encourages sharing in the community.
Q. Is there an Airbnb host app?
The Airbnb app allows hosts and guests to communicate easily, share updates on their stays, and maximize their travel experience by learning about local secrets from knowledgeable hosts.
- In the realm of finance, developing a travel app like Airbnb could prove to be a lucrative investment, considering the burgeoning online travel market.
- Apart from transforming the lifestyle of travelers, such apps also tap into the benefits of technology, making travel planning more convenient and efficient.
