Airbnb Estimated Revenue
Thinking of getting a property and getting your share of the growing Airbnb estimated revenue?
The seven-year-old company seems to be telling investors that it is on track to pay $ 900 million in revenues this year.
Articles related to Airbnb estimated revenue:
Compared to the $ 850 million expected in recent months (Wall Street Journal).
In 2013, Airbnb’s revenues were $ 250 million, approximately one-third of that amount.
In addition, the company is saying that its annual income will grow to $ 10 billion by 2020 and that it will be profitable at that time.
Currently, the company is burning cash to expand, with an expected operating loss of approximately $ 150 million in 2015, The Journal noted.
How Do They Earn Money?
If you’re thinking of starting up your own Airbnb business this information can help you understand how it works.
Travellers pay a guest service fee of 6 to 12% in addition to the reservation to cover services such as customer service and the Host Guarantee.
Airbnb supports several methods of payment, including credit cards (Visa, MasterCard, AMEX, Discover and JCB), PayPal, Google Wallet (only in the Airbnb application of Android for the US).
And some debit cards that can be processed half up front and guests do not pay the rest until the reservation is confirmed by the host.
When a traveller pays and the host confirms the reservation, Airbnb pays the payment instantly 24 hours after check-in before the funds are delivered to the host.
I have used Airbnb for properties and it is true that they always pay on time.
The payment methods and the available currencies are different according to the country, but the hosts are paid by automated clearing house (ACH), direct deposit, bank transfer, international transfer, PayPal, Western Union, paper checks (in the States) and Payoneer.
Airbnb takes a 3% service fee from the host for each reservation to cover the cost of processing the transaction.
This rate is additional to 6-12% paid for guest service fees.
Another fee that can be incurred is the value-added tax (VAT) (applicable to hosts and guests from the European Union, Switzerland and Norway).
In addition, if you pay a reservation in a currency other than the one chosen by the host on the list, you will be subject to different types of Airbnb exchange.
What Does Airbnb Estimated Revenue Mean For You?
The Airbnb of 2017 was very good and continues on the upward trend.
It surpassed its own internal forecasts to generate $ 93 million earnings of $ 2.6 billion in revenues, reports Olivia Zaleski Bloomberg.
But the internal war between CEO, Brian Chesky, and CFO Laurence Tosi, the former CEO of Blackstone Group, means that the company will not be public soon, reports Zaleski.
When Tosi started working with Airbnb in 2015, Airbnb seemed to be showing that he was preparing his IPO.
But Tosi left the company and Chesky explained the departure to some media outlets: “I know people will ask what these changes mean for a possible IPO. Let me do that, make decisions about the public on our own schedule”.
Tosi appeared to be creating an investment fund for the Airbnb hedge fund with stocks, currencies and other investments that contributed up to 30% of the company’s cash flow, reports Bloomberg.
But the background of the company is different.
Tosi comes from the classic Wall Street banker background. Chesky lives in a fuzzy world of Silicon Valley. He wrote a recent blog post when he talked about Airbnb being “values-led, and it led to it being heavy and unfortunate”.
However, as a profitable business, Airbnb does not seem to have to raise more money.
It raised $4.4 billion in business funds, including a round that valued the company at $ 31 billion.
There is $ 5 billion in the bank at Airbnb.
In closing, the Airbnb estimated revenue gives self-employed business owners great confidence in starting their own self employed business based on Airbnb rentals.
However, it does depend on where you are located.
Despite that, the future looks secure and bright for receiving frequent bookings via Airbnb from travellers around the world.
Because it provides affordable and comforting home-from-home accommodation options that hotels do not offer.
Are you interested to learn more?
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