3 ms·

yeah, was confused by that part a bit, since their website mentions 3%. perhaps that's just the listing fee vs. how much they make for each night someone stays

• richiezc 14y ago
  disclosure: ex-Airbnb employee here The total airbnb fee on a stay is about 12% (lets assume 9% avg guest fee and 3% host fee). But roughly 3% goes to credit card processing fees and then you have to deal with paying out in countries like Brazil where paypal and ACH aren't viable options. Lets just net it out to 9% for discussion purposes. Average price per booked night when I worked there was $100+. If you do the same math as the post above then revenue would hypothetically be $270MM, as a revenue multiplier the range we're talking about begins to seem possible for a company on this trajectory with organic growth. I have a vested interest in a high valuation, but having seen the growth from when I first joined (feb 2011, celebrated 1MM nights booked the first week I was there) to now its really unbelievable - true hockeystick growth.
  • vikramhaer 14y ago
    That makes a lot more sense. I realized my mistake after going back to the site and noticing that guests are charged a fee as well. It's still pretty crazy on a rev multiple basis but the company's growth is ridiculous as well. Thanks for the insight.
    • richiezc 14y ago
      http://abovethecrowd.com/2011/05/24/all-revenue-is-not-created-equal-the-keys-to-the-10x-revenue-club/ http://abovethecrowd.com/2011/05/24/all-revenue-is-not-creat... see: (1) network effects (2) organic demand