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Apps like Airbnb are preferable to hotels: Know the workflow involved in Airbnb like App development

Apps like Airbnb are preferable to hotels: Know the workflow involved in Airbnb like App development

Tuesday April 21, 2020,

5 min Read

Travel makes one modest. You see what a tiny space you occupy in the world.”, says Gustave Flaubert. Traveling has become integral to people’s lives nowadays. The travel and hospitality industry has been gradually increasing by the years. People demand comfort when they travel. There has been a major shift in the industry with the advent of on-demand apps. People needn’t wait for hotel accommodation nowadays. They needn’t worry if there are rooms available in a particular hotel. With on-demand apps like Airbnb, they can enjoy their holidays jubilantly without any disruption. In this blog, you’ll get to why people prefer these online marketplaces over traditional hotels. Moreover, you’ll get to know the workflow to be considered during Airbnb App development. 

The rise of the hospitality industry :

Let’s take a look at the facts that signifies the rise of the hospitality industry. 

  • The global hotel market generated a whopping value of $148 billion in 2018. 
  • Current trends signify that the market is expected to grow at a CAGR of 4.6% between 2019 and 2026. 
  • Moreover, on the whole, the entire hospitality market is expected to generate $6 trillion by 2022. 
  • The CAGR for the hospitality market is expected to grow by 8% between 2019 and 2026. 
  • The standard type of metric in the hotel industry is the RevPAR (Revenue per Available Room). RevPAR of hotels in the US amounts to $86.76 as of 2019. 
  • Airbnb, the most popular online marketplace for hospitality, has hosted over 400 million guests since 2008. 
  • Airbnb operates in more than 81,000 cities and 191 countries across the world. 

All these facts signify that the market for on-demand apps like Airbnb is flourishing. 

People prefer Airbnb hosts over hotels:

Various reasons attribute to the success of Airbnb. Here are some reasons why people prefer Airbnb hosts over hotels. 

  • The price factor: Hotels, nowadays, have stringent price factors that annoy tourists and travelers. They cannot have any means of negotiation. However, with Airbnb like apps, users can select accommodations from various hosts according to their needs.

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According to Morgan Stanley, 53% of people prefer Airbnb because of the price. 

  • Flexibility and Easy communication: One major matter of concern for tourists and travelers is coping up with the check-in and check-out times of hotels. They find it difficult and annoying. However, the hosts of these online accommodation apps are flexible. Moreover, they can be easily communicated via the app. Users can clearly state their demands and instructions to the hosts beforehand. 

According to Morgan Stanley, 93% of users were satisfied with the service provided by Airbnb.

  • Privacy and Atmosphere: People on family visits, prefer a lovely atmosphere. By preferring online hosts over hotels, people get to interact with the cultures and traditions of the society. Moreover, they enjoy privacy in these hosts’ sites. Some hosts also provide swimming pools, yards, dining rooms, boats, etc. 

According to Morgan Stanley, almost 54% of the bookings were made by female users. This can be due to the privacy factor, as well. 

The workflow to consider during development: 

It is an ideal choice for any business owner to venture into Airbnb like App development. However, as a business owner, you are entitled to know the workflow of both hosts app as well as travelers (users) app. 

The workflow of hosts app: 

A host is a user or an owner who decides to rent his house or a room in an online marketplace. Let’s discuss the workflow of the Hosts app. 

  • Initially, hosts register in the app by providing their basic details. They can specify their accommodation types like area, number of rooms, etc., and outline their specifications in the app. 
  • A verification process must be done by the admin of the app. This is highly important because it eliminates fake profiles from entering the app. The hosts must adhere to the city’s rules and regulations before applying them to the app. This is because some cities impose restrictions on travelers’ accommodations. 
  • Once the verification is over, hosts will be allowed for listing in the app. Their listings will be visible to users searching for the specified locality. 
  • If a user opts for the host’s listings, they will be notified immediately. Users can communicate with hosts anytime with the app. The hosts receive the payment after the business owner receives a part of it as commission. 

The workflow of users’ app: 

Users are travelers and tourists accessing the app for accommodations. The workflow includes, 

  • Users register in the app via different social media handles. They can browse a variety of listings available in the app. They can filter accommodations based on locality, pricing, etc. 
  • Once users find their necessary listing, they can either book them immediately or communicate with hosts for doubts and queries. 
  • Upon booking, users can make payment via different payment gateways, including credit, debit cards, digital wallets, etc. 
  • After the payment, they get access to keys or passcodes from the hosts through the app. 

Bottom line :

Apps like Airbnb are the need of the market. Tourists and travelers need a hassle-free journey to a particular destination. If you can provide them that, your app can be the talk of the town. Now that you know the basics of an Airbnb like app development, start to develop an app, and thrive in the growing market.