How to make an app like Airbnb (9 Important Steps)

Clearly articulate what problem you are trying to solve.

Then research existing companies, who are trying to solve the same problem. Analyze their strengths, weaknesses, pricing, features, and customer feedback. Here are some examples of the existing companies in the vacation home rental space: HomeToGo, FlipKey, OneFineStay and Vrbo.

Once you have analyzed all the competitors, determine your USP i.e what makes your solution unique compared to the existing alternatives.

Then, identify your target audience or ICP. This would be the set of people you believe need your solution the most.

Post figuring out the ICP, work on validating your idea. Verify if the problem you are trying to solve is ‘real’, for which people would happily pay money.

Conduct interviews and surveys among your target audience. Ask them open-ended questions to figure out how ‘painful’ the problem is to them and how effective your solution would be to solve their problem. 

Ask them questions such as:

• What challenges do you face when managing bookings and interacting with guests? (For hosts)
• What motivated you to start hosting your property?  (For hosts)
• What factors are most important to you when choosing a place to stay? (for guests)
• What challenges have you faced when booking accommodations for your trips? (for guests)
• How comfortable are you with using mobile apps and online platforms for booking or hosting?

Also, launch campaigns to see if users are willing to pay for your product before its full launch (via Pre-Orders or Crowdfunding), create a waitlist to gauge interest and build an initial user base.

Analyze the response from your target audience to check if the problem you are trying to solve is an urgent and important one.

Once you have conviction in your idea based on all the research and analysis, move to Step 2.

Tools and Resources required for the above:

• For crowdfunding campaigns: Kickstarter or Indiegogo
• For creating effective landing pages: Unbounce or Leadpages
• For managing email sign-ups: Mailchimp or Brevo
• For tracking user behavior: Mixpanel or Amplitude
• For heatmaps and user interaction insights: Hotjar 
• For Feedback Forms: Typeform

Coming up with an idea is not enough. You also need to figure out a way to make money through your business, to sustain it for the long term.

So you need to figure out a monetization strategy for your business from the start.

A monetization strategy would also help in giving a clear direction to the app development team, on which features to prioritize.

To figure out the right monetization strategy, conduct market research to understand what your users value most and how they are willing to pay for the features or services.

Analyze how competitors monetize their platforms to get an idea of the market prices and the different monetization models that already exist.

Here’s how you can use monetization strategies to generate revenue from an Airbnb like app.

Brainstorm and Identify Key Features
Gather your team to compile a comprehensive list of must-have and nice-to-have features that address the identified problem. The essential features required for an Airbnb-like app are outlined in the section "Important Features to Include in an App Like Airbnb."

Define Your Minimum Viable Product (MVP)
From your feature list, select only the core functionalities necessary for users to experience the core value of your solution. These essential features will be included in the initial version of your app, also known as the MVP (Minimum Viable Product).
The process of creating an MVP for an Airbnb-like app is covered in detail in the section "Create an MVP for an App Like Airbnb."

Prioritize Remaining Features
For the features not included in the MVP, prioritize them systematically based on:

• Impact on the app’s success (How crucial is the feature in achieving the business goal?)
• Feasibility of implementation (How complex and resource-intensive is the feature to develop?)

Develop a Clear Roadmap
Once feature prioritization is complete, create a structured roadmap. This should include:

• A Product Requirement Document (PRD) outlining each feature’s purpose and technical needs.
• A well-defined design and development timeline for each feature.
• Discussions with team leads to align timelines and responsibilities.

In the beginning, you should pick a platform, either iOS or Android, for which you wish to build the app.

Starting with one platform lets you reduce costs and ensure a high-quality user experience with the app specifically designed for the one platform. 

This approach provides the opportunity to validate your business idea, gather essential feedback, and refine your app before you commit to the extra investment required for multi-platform support. 

Once you have analyzed the target audience response for your product and you think expanding to the other platform would align with your business goals, you can build the app for other platforms as well.

To decide which platform to start with, identify where the major chunk of your ICP hangs out in the geography you are targeting. 

You can find the country-wise Android and iOS market share here:

At Tenet, we have successfully designed and developed Airbnb-like apps for businesses worldwide, helping them scale and achieve millions in bookings. We focus on essential features, seamless UX, and scalable architecture to bring your vision to life. 

With a 98% client satisfaction rate and over 50+ successful marketplace launches, we specialize in seamless UI/UX, robust backend development, and secure payment integrations. 

Whether you're building an MVP or expanding an existing platform, our expert team ensures a smooth and scalable solution. 

Let’s build your rental marketplace today:

• Our Android app development service
• iOS app development service
• SaaS development solution

Get detailed PRDs (Product Requirement Documents) written by the product managers, for all the required features and flows for the MVP version of the app, and then for the subsequent versions.

PRD is a document written by product managers, where they lay out every detail about the respective feature and flow that needs to be built by the engineers.

Make sure that PRDs are easy to understand, cover every use case and specify all the details of the features that the designers and engineers would need to know for developing the design and the software.

For UI/UX designing, designers refer to the PRDs and collaborate with product managers to design the prototypes for the flows.

Designers should make sure that the design language is consistent for all the features, UI is visually appealing and navigation is simple and intuitive.

Referring to the PRDs and designs, and coordinating with the product managers, the front-end, back-end and infra developers start with the development process.

• Backend engineers finalize the architecture and database for the app, set up the development environment(s), develop the required API endpoints, implement business logic,and  implement third-party integrations.
• Front-end engineers set up the development environment(s), develop core UI components, implement navigation and routing, integrate with Backend APIs and add interactivity and animations.
• Infra developers develop a robust hosting and infrastructure setup on an appropriate cloud service provider. They set up security mechanisms, implement CI/CD pipelines, monitoring and logging, ensure scalability and high availability and work on optimizing the cloud provider costs.

As each feature gets built, QAs are responsible to test each use case and ensure that the flows are working as expected.

Once the QA and the product team give the sign-off, features are deployed in the production environment.

Before deploying, make sure that the new features are compatible with the older version of the app to prevent disruptions for users who haven’t updated. 

Have a clear rollback strategy in place in case the new feature causes

critical issues. This could involve reverting to the previous stable version or

disabling the feature via feature flags.

Ensure that any data changes introduced by the new feature can be safely rolled back without causing data corruption or loss.

Utilize Git, BitBucket or similar version control systems to manage and track code changes in the development environments(s) and facilitate collaboration among team members.

Apart from this, every time a new production build is released for your app, you need to get it listed on your preferred marketplace (Google Play Store or Apple App Store), for your users to download it.

As your app goes live, users are bound to face issues. 

So, have communication channels in place for them to raise those issues. 

The channels can be a Slack channel, email id or a phone helpline. And on the other end of the communication channel, you should have a prompt customer support team, which addresses customer support issues at lightning-fast speed.

In addition, it’s also important that you keep your users informed about updates, bug fixes, and new features through release notes, newsletters, or in-app notifications. This builds trust in your users and enhances their app experience.

Lastly, record user activity on the app using tools such as Mixpanel, Amplitude etc, and collect user feedback through interviews, surveys, raised issues and app reviews and ratings on the Play Store. 

Analyze the user data and feedback, and based on your analysis keep introducing new features in the app to enhance user experience.

Here’s an explanation of the above Airbnb like app workflow:

For guests, the journey begins with property search, followed by sending a booking request. If the host approves, the guest makes payment and proceeds to stay at the property, concluding with leaving a review.

For hosts, the process starts with listing their property. They receive booking requests, which they can either accept or reject. Upon acceptance and guest payment, hosts provide accommodation and receive feedback through reviews.

This two-sided marketplace connects guests and hosts through a simple yet effective workflow, ensuring smooth transactions and experiences for both parties.

• Focus on core functionalities first: property listing, search, booking, and payments
• Choose a scalable tech stack: React Native for mobile, Node.js for backend
• Integrate essential third-party services: payment gateway, maps, and notifications
• Implement basic security measures
• Plan for a 3-4 month development cycle
• Start with essential features and expand based on user feedback

1. The user goes to the web or mobile applications and signs up (or registers) as a guest.

2. Next, they complete their profiles by adding all the personal details such as name, ID number, profile picture and more.

3. The user can then search for an appropriate place for their vacation, based on their location, budget, amenities they need etc.

4. Once they have made their decision on which property to book, the users raise a booking request which is approved/rejected by the host.

5. Once the request is approved, users pay the amount to reserve the place for them.

6. The final step is to enjoy the stay.

1. The users are required to register on the app as a hosts. To register, they should meet all the required criteria.

2. Then the user can add the property on Airbnb. They can add details about the accommodation like the amenities available, location, capacity, who can accommodate etc.

3. The host users also need to upload real pictures of the apartment and also fill in the pricing.

4. When the guest requests a stay, the host does the screening of the guest. If everything is fine, the host approves the request. 

5. The host receives the payment based on the pre-defined timelines limit, eg: within 24 hours after the check-in by guests.

So you need to build features to cater to the requirements of both of these types of users.

👉 Related resources

• How much does mobile app development cost?
• How to make an app like Uber?

Below is a list of important features that would be required in an app like Airbnb:

Through this feature, users will be able to create their accounts in your app. The basic account registration flow requires users to provide their email IDs and set their account passwords, or provide their mobile numbers and OTP.

Accounts allow apps to remember user preferences, settings, and behaviours, enabling them to provide users with a customized experience. For example, Airbnb personalizes property recommendations based on your past searches and bookings.

Accounts ensure that users can access their data across multiple devices seamlessly.

They provide a secure way to verify user identities, protecting both users and service providers from fraud and unauthorized access.

Accounts also facilitate direct communication between guests and hosts, through chats, enabling efficient coordination and support.

Check out the screenshot of the account registration (or sign-up) page of the Airbnb app, below. Users can sign up by providing their email id.

If you have an account registration feature for users, you must have a Login/Logout feature as well.

Through this feature, users will be able to login to their account on any device of their choice, and then perform the required actions. Also, when needed, they should be able to log out of their account, hence there should be a Logout flow as well.

You can also provide advanced login options such as login via Google account and Social Media accounts.

In addition, make sure you provide a “Forgot Password” so that users are able to retrieve their login passwords in case they forget.

Check out the screenshot of the login page of the Airbnb app, below. Users can log in by providing their email id or mobile number. They can also log in via their Gmail or Apple account.

The search feature allows users to search for rental properties in the desired location for their preferred check-in and check-out dates. 

In this search, you can provide filtering options on price range, rating, amenities etc.

You can also provide some sorting options on the basis of price and rating.

Through this search, users will be able to find the rental property of their choice in the desired location in just a few minutes, that too while sitting on a cosy, comfortable couch at their homes.

Check out the screenshot of the search page of the Airbnb app, below. Users can search for the properties by setting the location, check-in/check-out dates, number of guests etc.

The Favorites feature allows users to save the properties that they’re interested in for later reference. 

They can revisit these selected properties in the future and book the desired one for their stay.

This feature also makes the decision-making of the travellers easier, since they now only have to choose from the few ‘favourites’.

In addition, frequent users can keep saving the properties of their choice and can access this list when the need arises.

Check out the screenshot of the wishlist (or favourites) page of the Airbnb app, below.

The Profile feature serves as the central hub for users to add and manage their personal information such as name, age, sex, contact details, personal picture, location etc.

This facilitates trust building between the guests and the hosts, which is crucial for the hosts to rent out the property to ‘strangers’ and for the guests to sleep in a ‘stranger’s’ house.

Having the personal details of the user also enables the company to provide personalized experiences to users based on their gender, age, location etc.

Check out the screenshot of the profile page of the Airbnb app, below. In this section, users can set their personal information, login and security settings etc.

The chat feature in Airbnb facilitates smooth communication between guests and hosts before, during, and after a stay.

With chat features, guests and hosts can discuss things like location, after requesting a stay. Guests can ask for photos of the property before visiting the place, request for early check-ins and clarify any other doubts that they might have about the property.

With this feature, the hosts and guests can screen each other, before finalizing the booking.

Check out the screenshot of the chat (or notification) page in the Airbnb app, below. 

The payment feature enables seamless and secure transactions between the guests’ and the hosts’ accounts. 

You need to provide multiple payment methods such as Credit/Debit cards, PayPal, Google Pay, Apple Pay, and local payment options (varies by region), for a seamless experience

For international transactions provide guests the option to pay in their local currency, with exchange rates applied transparently.

Automate the host payouts, by defining a fixed timeline such as: ‘Payouts will be initiated within 24 hours after a guest's check-in.’

Define the refund and cancellation guidelines, and build flows to process refunds for the eligible cases.

This feature serves as the backbone of the property rental marketplace. Bookings can only happen when users feel confident to make payments on your platform, and payments are processed successfully.

The 'Order' feature in an Airbnb-like app, often referred to as the 'Booking' feature, is crucial to the platform, allowing users to reserve properties or services seamlessly.

Users search for properties or experiences for their preferred location, dates, price, and amenities. Once they make their decision on the property, they proceed to confirm their choice i.e. they raise a request to ‘book’ the property. 

Once the host approves the request, the property gets booked. A property once ‘booked’ or reserved then cannot be reserved by any other guest user. Guests can view, modify, or cancel the booking.

This feature ensures a seamless ‘reserving’ experience for both the guests and the hosts and minimizes the potential conflicts around reservation dates, proof of booking etc.

The Listing Property feature allows hosts to create and manage their property listings on the platform. 

While creating the listing, the hosts are required to describe all the details such as the number of guests, the apartment type, amenities available, house rules and more. Additionally, they are required to upload photos and videos of the property and set the price of the listed property on a per-night basis.

This feature is essential for enabling property owners to showcase their accommodations, attract guests, and facilitate bookings seamlessly.

It’s these listed properties that the travellers (or guests) see in their search results and then book based on their preferences.

Check out the screenshot of the listing page in the Airbnb app, below. This is the page that displays the properties as search results when you search on the app.

Through the ‘Booking Request’ feature, the guests raise a booking request for their preferred property. This request is then approved by the host. Only after the approval of the host, the booking is confirmed.

This feature allows hosts to do the screening of the ‘stranger’ guest before renting out their property.

The Notifications feature in the Airbnb app serves to keep users informed and engaged by delivering timely updates, alerts, and reminders, related to the important events on the platform.

This feature can be used to notify guests when their booking is confirmed, cancelled, or modified. 

It can be used to notify the host when a booking request is raised.

It can be used to alert users to new messages from hosts or guests, ensuring prompt communication. 

It can also be used to notify users when payments are processed, or refunded, or if there are any issues with transactions.

Also, you can alert guests when there are price reductions on their favourite listings or saved searches.

This feature reduces the need for manual tracking of bookings and important events by guests and hosts.

Here’s a screenshot of the chat page in the Airbnb app:

To find app developers for your Airbnb-like app, follow these steps:

Clearly outline the project scope, features, technology stack (e.g., Node.js/Ruby on Rails, PostgreSQL/MongoDB), budget, and timeline.

Decide between in-house teams, freelancers, and development agencies based on your needs and resources.

• For early-stage startups with limited resources Freelancers or Development Agencies can provide the necessary expertise without the long-term commitment.
• For established companies with ongoing projects, building an In-House Team ensures dedicated resources and better integration with existing operations.

• Job Boards & Platforms: Use LinkedIn, Indeed, AngelList.
• Freelance Marketplaces: Explore Upwork, Toptal, Freelancer.
• Developer Communities: Engage on GitHub, Stack Overflow, Dev.to.
• Recruitment Agencies & Referrals: Utilize specialized tech recruiters and seek referrals from your network.

• Review Portfolios: Check past projects and code quality. Prefer candidates who have experience in building marketplace apps such as Airbnb and have experience with the chosen tech stack.
• Technical Assessments: Conduct coding tests and technical interviews to test their skills for the chosen tech stack.
• Assess Soft Skills: Ensure good communication, problem-solving, and cultural fit.

Provide attractive salaries or rates, benefits, and clear contracts to attract top talent.

Use project management tools (e.g., Slack, Jira), maintain clear documentation, and hold regular check-ins to ensure smooth collaboration.

At Tenet, we provide end-to-end e-commerce app/website development services. We have worked with multiple international brands such as Angles store (Kuwait), Mybabybabbels (India), Lazada (SE Asia), Momondo(Europe) and many more.

If you are looking to hire a reliable development agency, hit us up! 

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Airbnb operates as a two-sided marketplace, connecting hosts who offer accommodations with guests seeking places to stay.

Value Proposition:

Airbnb offers diverse, often more affordable lodging options ranging from single rooms to unique properties like treehouses and villas. Additionally, Airbnb offers local, personalized stays that allow guests to immerse themselves in the culture and lifestyle of their chosen destinations.  

Airbnb enables property owners to monetize unused spaces, reaching a global audience. It provides user-friendly tools for listing management, pricing, and communication with guests.

• Service Fees: Airbnb charges guests a service fee, typically 5-15% of the booking amount, and they charge around 3% commission from hosts for each booking.
• Airbnb Experiences: Generates additional revenue by offering curated local activities and tours.
• Advertising and Partnerships: Collaborates with brands and local businesses for promotions.
• Airbnb operates in over 220 countries, ensuring extensive market coverage. It keeps expanding its services to diversify offerings and stay competitive.

Airbnb generates revenue primarily through service fees, charging guests ~14% and hosts 3% per booking. 

Additionally, it earns from Airbnb Experiences by taking a 20% fee on curated activities. 

Advertising and partnerships with brands and local businesses also contribute to income. 

Offering ‘premium packages’ to the hosts, providing options for long-term stays and corporate bookings, selling data and insights from the data, and providing cleaning and property management services further add to their revenue. This diversified approach ensures multiple avenues for Airbnb to make money and keep growing.

Airbnb continues to be the global leader in the hospitality space, clocking in $9.92 billion of revenue in 2023.

Developing an app like Airbnb is a significant investment, typically ranging from $50,000 for a basic MVP to $300,000+ for a fully-featured platform. The final cost depends on factors such as feature complexity, platform choice, design quality, team location, and ongoing maintenance requirements. 

To manage costs effectively, consider starting with an MVP and outsourcing development. Additionally, focusing on scalability and user experience from the outset can help reduce the ‘tech debt’ and set you up for success in the long term.

If you need more guidance on specific aspects of app development, feel free to reach out to us!

How Tenet can assist you in developing online marketplace apps like Airbnb

At Tenet, we excel in developing complex e-commerce marketplace ecosystems from end to end, including building feature roadmaps, creating UI/UX design prototypes and doing software development to bring those e-commerce apps and websites to reality.

We have done this for many international brands such as Angles store (Kuwait), Mybabybabbels (India), Lazada (SE Asia), Momondo(Europe) and many more. 

In addition, we also provide marketing and CRO services for such e-commerce marketplaces, generating over $100M+ in incremental revenue through conversion optimization and running targeted ads for them.

Airbnb was initially developed using Ruby on Rails for its backend, which provided a robust framework for building scalable web applications quickly.

For the front end, they utilized JavaScript along with frameworks like React to create dynamic and responsive user interfaces. 

On the mobile side, Airbnb’s iOS app is built with Swift, while the Android app uses Kotlin. 

Over time, Airbnb has enhanced its technology stack with microservices, cloud infrastructure (such as AWS and Kubernetes), big data tools (such as Hadoop and Airflow) and CI/CD pipelines to boost performance.

Developing an app like Airbnb is highly complex and technically challenging. It requires integrating numerous complicated features described above, into your app or website. 

Additionally, ensuring the platform can scale to handle millions of users, maintaining data security, and providing an unhindered, seamless experience across both web and mobile platforms demands significant expertise. 

A digital ecosystem at this scale requires continuous maintenance, updates, and optimization efforts to stay competitive and meet user expectations.

To build an Airbnb-like app from scratch, consider using Node.js or Ruby on Rails for the backend, as they offer flexibility and scalability. 

For the database, PostgreSQL is excellent for handling complex queries and relational data, while MongoDB is great for more flexible, document-oriented storage. 

Deploying on cloud platforms like AWS or Google Cloud ensures reliable and scalable infrastructure. 

Incorporate APIs for payments (such as Stripe), maps (Google Maps API), and notifications (Firebase). 

Additionally, using Docker for containerization and Kubernetes for orchestration can help manage deployments and maintain scalability as your user base grows.