After moving toSan Francisco in October 2007, roommates and former schoolmatesBrian Chesky andJoe Gebbia came up with an idea of putting anair mattress in their living room and turning it into abed and breakfast.[8] In February 2008,Nathan Blecharczyk, Chesky's former roommate, joined as the chief technology officer and the third co-founder of the new venture, which they named "AirBed & Breakfast".[8][9] They put together a website that offered short-term living quarters and breakfast for those who were unable to book a hotel in the saturated market.[8] The site Airbedandbreakfast.com was launched on August 11, 2008.[10][11] The founders had their first customers in the summer of 2008, during the Industrial Design Conference held byIndustrial Designers Society of America, where travelers had a hard time finding lodging in the city.[12]
After the founders raised $30,000 by selling cereal named after the two candidates of the2008 United States presidential election,Barack Obama andJohn McCain, mostly at the 2008Democratic National Convention,[13][14][15] computer programmerPaul Graham invited the founders to the January 2009 winter training session of his startup incubator,Y Combinator, which provided them with training and $20,000 in funding in exchange for a 6% interest in the company.[8][16][17] With the website already built, they used the Y Combinator investment to fly to New York to meet users and promote the site.[15] They returned to San Francisco with a profitable business model to present to West Coast investors. By March 2009, the site had 10,000 users and 2,500 listings.[18]
In March 2009, the name of the company was shortened to Airbnb.com to eliminate confusion over air mattresses.[8] At the March 2011South by Southwest conference, Airbnb won the "app" award.[19] In July 2014, Airbnb revealed design revisions to the site and mobile app and introduced a new logo.[20][21] It also announced a partnership with Concur, an expense reporting service for businesses.[22]
In 2014, linguistMark Liberman criticized the extreme length of the legal agreements that Airbnb members are required to accept, with the site'sterms of service,privacy policy, and other policies amounting to "55081 words, or about the size of a short novel, though much less readable".[23]
In April 2015, following the easing of restrictions on U.S. businesses to operate inCuba, Airbnb expanded to Cuba, making it one of the first U.S. companies to do so.[24][25] In July 2016, former Attorney GeneralEric Holder was hired to help craft ananti-discrimination policy for Airbnb after reports showed that hosts were refusing to accept lodging requests from guests whose names suggested that they were black.[26] As part of the reform, photos of prospective guests are hidden from hosts until requests for lodging are accepted.[27]
In November 2016, Airbnb launched "experiences", whereby users can use the platform to book activities.[28] In January 2017, along with serial entrepreneursGary Vaynerchuk, Ben Leventhal and Mike Montero, Airbnb led a $13 million investment inResy, a restaurant reservation-booking app.[29] In May 2017, the company launched Airbnbmag, a magazine co-published withHearst Communications.[30]
In February 2018, the company announced Airbnb Plus, a collection of homes vetted for quality of services, comfort and design,[33] as well as Beyond by Airbnb, which offers luxury vacation rentals.[34] By October 2019, two million people were staying with Airbnb each night.[35] In April 2019, Airbnb produced and financedGay Chorus Deep South, a documentary launched by its Rausch Street Films division. The rights were sold toMTV, which aired the program on its network.[36][37][38]
During theCOVID-19 pandemic, bookings dropped as much as 96% in some cities.[39] However, bookings rose in many rural areas.[40] The company pledged $250 million in payouts to hosts to compensate them for guest cancellations due to the pandemic.[41][42] The company alsolaid off approximately 1,900 employees, or about 25% of its workforce in the Americas, Europe, and Asia due to the pandemic.[43][44] On December 10, 2020, Airbnb became apublic company via aninitial public offering, raising $3.5 billion onNasdaq.[45] Shares valued at $238 million were offered to hosts on the platform at the price of $68 per share.[46]
In May 2022, Airbnb ceased operations inChina because of complicated and expensive laws and regulations that required Airbnb to send detailed information on guests to thegovernment of China, which can be used to track people, as well as a decline in business due toCOVID-19 lockdowns; China represented less than 1% of revenue for Airbnb.[53][54][55][56] Airbnb was accused of being too willing to provide information to Chinese authorities, which led to the resignation of an Airbnb executive, who was also a former deputy director of theFederal Bureau of Investigation, in 2019 after 6 months of working.[57][58] Airbnb had also been accused of allowing listings on land owned by theXinjiang Production and Construction Corps, a Chinese state-owned paramilitary entity sanctioned under theMagnitsky Act for involvement in thepersecution of Uyghurs in China.[59][60] In 2019, certain hosts in China were accused of discrimination by refusing to rent toUyghurs.[61]
After temporarily banning parties in homes rented on the platform in August 2020 due to theCOVID-19 pandemic,[62] in June 2022, Airbnb announced that it would permanently ban parties and events in homes on its platform, a position supported by hosts and their neighbors who complained of nuisances at Airbnb properties.[63] In August 2022, Airbnb rolled out technology to enforce this ban.[64]
In February 2025, Airbnb cofounder and board memberJoe Gebbia joined theDepartment of Government Efficiency (DOGE).[67] Concern that Gebbia's work for DOGE undermines U.S. democracy resulted in widespread calls to boycott Airbnb.[68]
Online city guide that aggregates curated information for specified locations; shifted the company's focus toward offeringhyperlocal recommendations to travelers
In October 2011, Airbnb established an office inLondon, its first international office.[95] In early 2012, Airbnb opened offices inParis,Milan,Barcelona,Copenhagen,Moscow, andSão Paulo.[96] These openings were in addition to existing offices in San Francisco, London,Hamburg, andBerlin.[97] In September 2013, the company announced that it would establish its European headquarters inDublin.[98][99]
In November 2012, Airbnb opened an office inSydney, its 11th office location, and announced plans to launch the service inThailand andIndonesia.[100] In December 2012, Airbnb opened an office inSingapore.[101] In April 2022, Airbnb instituted a policy of unlimitedremote working for almost all its employees.[102]
Share sales, corporate borrowing and valuation history
In September 2016,Google Capital andTechnology Crossover Ventures invested $555.5 million in the company at a valuation of $30 billion.[109] In March 2017, Airbnb raised $1 billion in funding, bringing total funding raised to more than $3 billion and valuing the company at $31 billion.[110] In April 2020,Silver Lake andSixth Street Partners acquired $1 billion in shares in the company at an $18 billion valuation[111] and $1 billion in debt at interest rates of 9%–11.5%.[112]
Regulations have been imposed on short-term rental platforms after proponents argued that short-term rental has reducedhousing affordability and contributed to the increase of long-term rental prices due to changes in housingsupply and demand; short-term rentals can be more lucrative than long-term rentals for landlords and also attract investors who bid up housing prices.[113] Supporters of STRs argue that the impact on housing prices has been minimal and that the solution tohousing affordability is to increase housing supply.[114][115]
Landlords have even been accused of illegallyevicting tenants to convert properties into short-term rentals to obtain higher rents.[116]
The hotel industry has lobbied for additional regulations on STRs, which compete with hotels.[117] STR platforms also use lobbying to promote their interests.[118]
In addition to government-imposed restrictions, manyhomeowner associations also limit short-term rentals.[119] Neighborhood community groups have voiced concern that short-term residents can cause issues with congestion, noise, and safety.[114]
Regulation of short-term rentals can include requirements for hosts to have business licenses, payment ofhotel taxes, limitations on the number of days that a space is rented, requirements for hosts to occupy the space, and compliance with building, city and zoning standards.
Amsterdam: Hosts can rent their properties for up to 30 nights per year to a group of no more than four at a time.[120] Short-term rentals are banned in certain parts of the city.[121]
Barcelona: Vacation apartments are subject to the highest rate of property tax; platforms must share data with regulators.[122][123][124]
Berlin: Short-term rentals require permission from authorities. Hosts can rent individual rooms with the condition that they live in most of the property.[125]
Ireland: Short-term rentals are restricted to a maximum of 90 days per year for primary residences; registration is required with local authorities and planning permission is required where a property changes use from private residence to full-time short-term rental.[127][128][129]
London: Short-term rentals are limited to 90 days per year.[130][131]
Lucerne: Short-term apartment rentals are limited to 90 days per year.[132][133]
Madrid: Listings without private entrances are banned.[134]
Vienna: Short-term rentals are banned in specific "residential zones" within the city, with the exemption of apartments used primarily for the host's own residential needs.[141]
Phoenix, Arizona: Most regulations are not allowed since municipalities are prohibited from interfering in property rights.[142]
Boston, Massachusetts: The types of properties eligible for use as short-term rentals and the number of days per year a property may be rented are limited.[143][144][145][146]
Chicago, Illinois: Hosts are required to obtain a license. Single-night stays are prohibited.[147]
Los Angeles, California: Hosts must register with the city planning department and pay an $89 fee and cannot home-share for more than 120 days in a calendar year.[150][151]
Miami, Florida: Short-term rentals are banned in most neighborhoods, in part due to lobbying efforts of the hotel industry.[152][153]
New York City, New York: Rentals under 30 days are prohibited unless the host is present on the property. Hosts are required to obtain a license and relatively few licenses have been issued.[154]
Portland, Oregon: The number of bedrooms in a single unit that may be listed is limited.[155]
San Diego, California: Units for short-term rental are limited to 1% of the housing stock and licenses are required.[156]
Santa Cruz, California: LocalBoard of supervisors discussed parking restrictions in the areas where there are many short-term rentals, in order to discourage people from staying there, and prioritize the local residents' ability to park.[158]
Santa Monica, California: Hosts are required to register with the city and obtain a license and are also prohibited from listing multiple properties.[159]
Washington, D.C.: Hosts must obtain a short-term rental license, and, if the host is not present, those rentals are limited to a combined 90 days each year.[161]
Airbnb does not have aloyalty program, in part attributed to its lack of business customers.[182]
Airbnb features a review system in which guests and hosts can rate and review each other after a stay; reviews are not visible until both host and guest have submitted reviews or until the time period to review has closed, a system that aims to improve accuracy and objectivity by removing fears that users will receive a negative review in retaliation if they write one. However, the truthfulness and impartiality of reviews may be adversely affected by concerns that the reviews are not anonymous and prospective hosts may refuse to host a user who generally leaves negative reviews.[183][184][185]
Hosts have been accused of circumventing tax regulations,[186] circumventing Airbnb's background checks and subjecting guests to last-minute cancellations, moldy or rodent-infested lodging, theft, invasion of privacy, and even rape and murder,[187][188][189][190] as well asbait-and-switch scams in which the guest does not receive the promised accommodation.[191][192] Airbnb has noted that the number of these incidents is not statistically significant and has banned violators and associated accounts.[193]
In July 2024,CNN noted that Airbnb includes significant disclaimers on some of its policies, such as notifying users that its background checks should not be relied on to identify "all past criminal convictions orsex offender registrations … or other red flags" and that convictions for "murder, terrorism, rape or child molestation" are not automatic disqualifiers for a host.[194]
There have been incidents of hosts secretly recording their guests usinghidden cameras, including in areas such as bedrooms and bathrooms.[195][196][197] Publications such asThe Washington Post[198] andFast Company[199] have published guides on how to find hidden cameras in an Airbnb rental.[196] In a 2023deposition, an Airbnb employee testified that the company does not notify law enforcement as a matter of practice when a complaint of a hidden camera is raised, but may contact hosts about complaints for its internal inquiries. Law enforcement experts said the company's practice could hinder criminal investigations due to suspects having time to destroy evidence.[194]
In March 2024, Airbnb announced a ban on indoor cameras for properties listed on the site, scheduled to take effect on April 30. The changes also involve a requirement for hosts to disclose the use of noise-decibel monitoring equipment.[200][196] ACNN investigation published in July 2024 found that Airbnb "consistently fails to protect its guests despite knowing hidden cameras are a persistent concern within its industry" and that the strategies it relies on "have been aimed at preventing regulation of the short-term rental market to allow the company to distance itself from responsibility for guest safety and privacy."[194]
Failure to provide required information to governments
Many governments have passed laws requiring that Airbnb provide guest information so that local regulations can be enforced andhotel taxes are collected. Airbnb contested one such law in New York.[201][202] However, in May 2019, Airbnb agreed to turn over some anonymized information for approximately 17,000 listings so that the city could pursue illegal rentals.[203] Similar cases were settled in Boston and Miami.[204]
Airbnb refused to provide required information to the Belgian government, claiming the obligation to provide the information was not compatible withEuropean Union law. TheBelgian Constitutional Court referred the dispute to theEuropean Court of Justice, which in April 2022 ruled that the requirement to transmit to tax authorities certain particulars of tourist transactions was not contrary to European Union law and referred the case back to the Belgian Constitutional Court.[205]
In March 2020, a subdistrict court ruling in the Netherlands found that Airbnb charging service fees to both the host and the guest was illegal and that the 30,000 people who had rented as guests have a right for reimbursement if they file claims. Airbnb filed countersuits in an attempt to gain clarity on the ruling.[206]
In May 2024, a former Airbnb contractor alleged in awhistleblower complaint filed with theUS Securities and Exchange Commission andFederal Trade Commission that the company had weakened its policies against extremists and dissolved its team that handled such issues. Airbnb denied the allegations.[207][208] Examples include the removal of the parents of Canadianfar-right activistLauren Southern from its platform; a decision that was reversed after complaints by conservative media outlets.[208]
Proposed removal of listings in Israeli settlements
In November 2018, Airbnb announced that it would remove the approximately 200 "listings inIsraeli settlements in the occupiedWest Bank that are at the core of the dispute between Israelis and Palestinians". However, after affected property owners filed lawsuits against Airbnb in both Israel and the United States alleging discrimination based on place of residence, in April 2019, the company reversed its plans to remove listings in the West Bank and instead promised to donate any profits from these listings to non-profit organizations dedicated tohumanitarian aid.[209][210][211]
Through Airbnb.org, the company facilitates and provides free and discounted stays to people impacted by emergencies such as natural disasters, theCOVID-19 pandemic, and theRusso-Ukrainian war in partnership with theInternational Organization for Migration. It was founded in 2012 with $6 million and 400,000 shares of Airbnb stock from the co-founders of Airbnb.[214]
Stone, Brad (2017).The Upstarts: How Uber, Airbnb, and the Killer Companies of the New Silicon Valley Are Changing the World (1st ed.). New York: Little, Brown and Company.ISBN978-0-316-38839-9.OCLC953598607.
US$11.1 billion (2024)
US$2.65 billion (2024)
