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Wikipedia

Airbnb

February 15, 2024

Airbnb, Inc. (/ˌɛərˌbiːɛnˈbiː/ AIR-BEE-en-BEE) is an American company operating an online marketplace for short- and long-term homestays and experiences. The company acts as a broker and charges a commission from each booking. The company was founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia. Airbnb is a shortened version of its original name, AirBedandBreakfast.com. Airbnb is the most well-known company for short-term housing rentals.[5][6]

Airbnb, Inc.
Headquarters at 888 Brannan Street, in San Francisco, California
Company typePublic
IndustryLodging
FoundedAugust 2008; 15 years ago (2008-08) in San Francisco, California, U.S.
Founders
HeadquartersSan Francisco, California, U.S.
Area served
Worldwide
Key people
  • Brian Chesky (CEO)
  • Nathan Blecharczyk (CSO)
Services
Revenue US$8.40 billion (2022)
US$1.89 billion (2022)
Total assets US$16.04 billion (2022)
Total equity US$5.56 billion (2022)
Owner
Number of employees
6,811 (December 2022)
Subsidiaries
  • Luxury Retreats International Inc.
  • Tilt.com
  • Accomable
  • Aibiying
  • Trooly, Inc.
  • Deco Software Inc.
  • Trip4real Experiences, S.L.
  • Larson8, Inc.
  • MarketLog, Randorphire Inc.
  • HotelTonight
Websiteairbnb.com
Footnotes / references
[1][2][3][4]
Airbnb in Toronto

History edit

For a chronological guide, see Timeline of Airbnb.

After moving to San Francisco in October 2007, roommates and former schoolmates Brian Chesky and Joe Gebbia came up with an idea of putting an air mattress in their living room and turning it into a bed and breakfast.[7] 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.[7][8] 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.[7] The site Airbedandbreakfast.com officially launched on August 11, 2008.[9][10] The founders had their first customers in the summer of 2008, during the Industrial Design Conference held by Industrial Designers Society of America, where travelers had a hard time finding lodging in the city.[11]

After the founders raised $30,000 by selling cereal named after the two candidates of the 2008 United States presidential election, Barack Obama and John McCain, mostly at the 2008 Democratic National Convention,[12][13][14][15] computer programmer Paul 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.[7][15][16][17][18] With the website already built, they used the Y Combinator investment to fly to New York to meet users and promote the site.[14] 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.[16]

In March 2009, the name of the company was shortened to Airbnb.com to eliminate confusion over air mattresses; by then listings included entire rooms and properties.[7]

By November 2010, out of 700,000 nights booked, 80% had occurred in the previous six months.[19]

At the March 2011 South by Southwest conference, Airbnb won the "app" award.[20]

In November 2012, Airbnb launched "Neighborhoods", a travel guide of 23 cities that helps travelers choose a neighborhood in which to stay based on certain criteria and personal preferences.[21]

By October 2013, Airbnb had served 9,000,000 guests since its founding in August 2008.[22] Nearly 250,000 listings were added in 2013.[23]

In July 2014, Airbnb revealed design revisions to the site and mobile app and introduced a new logo. The logo, called the Bélo, is intended to serve as a symbol of "belonging", and consists of four elements: a head which represents people, a location icon that represents place, a heart to symbolize love, and a letter "A" to stand for the company's name.[24][25] It also announced a partnership with Concur, an expense reporting service for businesses, to make it easier for business travelers to report Airbnb stays as business expenses.[26]

In April 2015, following the easing of restrictions on U.S. businesses to operate in Cuba, Airbnb expanded to Cuba, making it one of the first U.S. companies to do so.[27][28]

In July 2016, former Attorney General Eric Holder was hired to help craft an anti-discrimination policy for Airbnb after reports showed that hosts were refusing to accept lodging requests from guests whose names suggested that they were black.[29] As part of the reform, photos of prospective guests are hidden from hosts until requests for lodging are accepted.[30]

In November 2016, Airbnb launched "experiences", whereby users can use the platform to book activities.[31]

In January 2017, along with serial entrepreneurs Gary Vaynerchuk, Ben Leventhal and Mike Montero, Airbnb led a $13 million investment in Resy, a restaurant reservation-booking app.[32]

In May 2017, the company launched Airbnbmag, a magazine co-published with Hearst Communications.[33]

In February 2018, the company announced Airbnb Plus, a collection of homes that have been vetted for quality of services, comfort and design,[34] as well as Beyond by Airbnb, which offers luxury vacation rentals.[35] By October 2019, two million people were staying with Airbnb each night.[36]

In April 2019, Airbnb produced and financed Gay Chorus Deep South, a documentary launched by its Rausch Street Films division. The rights were sold to MTV, which aired the program on its network.[37][38][39]

On World Animal Day (October 4) in 2019, Airbnb launched a new standalone category of experiences focused on those involving animals, as well as an animal welfare policy created with and backed by World Animal Protection.[40]

During the COVID-19 pandemic, bookings dropped as much as 96% in some cities.[41] However, bookings rose in many rural areas.[42] The company pledged $250 million in payouts to hosts to compensate them for guest cancellations due to the pandemic.[43][44] The company also laid off approximately 1,900 employees, or about 25% of its workforce in the Americas, Europe, and Asia due to the COVID-19 pandemic.[45][46]

On December 10, 2020, the company became a public company via an initial public offering, raising $3.5 billion.[47] Shares valued at $238 million were offered to hosts on the platform at the price of $68 per share.[48]

In March 2022, Airbnb suspended business in Russia and Belarus due to the sanctions resulting from the Russian invasion of Ukraine.[49][50]

In May 2022, Airbnb ceased operations in China.[51] The decision was made primarily because of China's Zero-COVID policy, as well as complicated and expensive laws and regulations that required Airbnb to send detailed information on guests to the Government of China, which can be used to track people.[52][53][54] Airbnb was accused of being too willing to provide this information, which led to the resignation of an Airbnb executive, who was also a former deputy director of the Federal Bureau of Investigation, in 2019 after 6 months of working.[55][56] Airbnb had also been accused of allowing listings on land owned by the Xinjiang Production and Construction Corps, a Chinese state-owned paramilitary entity sanctioned under the Magnitsky Act for involvement in the Uyghur genocide.[57][58] In 2019, certain hosts in China were accused of discrimination by refusing to rent to Uyghurs.[59]

After temporarily banning parties in homes rented on the platform in August 2020 due to the COVID-19 pandemic,[60] in June 2022, Airbnb announced that it will 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.[61] In August 2022, Airbnb rolled out technology to enforce this ban.[62]

Acquisitions edit

# Date Company Notes Ref(s).
1 May 2011 Accoleo German competitor; launched the first international Airbnb office, in Hamburg

[63][64][65]

2 March 2012 CrashPadder Added 6,000 international listings to its existing inventory; made Airbnb the largest lodging website in the United Kingdom. [66][67][68]
3 November 2012 NabeWise Online city guide that aggregates curated information for specified locations; shifted the company's focus toward offering hyperlocal recommendations to travelers [69][70]
4 December 2012 Localmind a location-based question and answer platform [71]
5 September 2015 Vamo Immediately shut down the company, acquiring its employees [72][73]
6 September 2015 Lapka Sensor startup [74]
7 September 2016 Trip4real Travel activities marketplace [75]
8 February 2017 Luxury Retreats International Canadian-based villa rental company; price was $300 million in cash and stock [76][77]
9 February 2017 Tilt.com a social payment startup [63]
10 November 2017 Accomable Startup focused on travel accessibility [78][79]
11 November 2017 AdBasis Advertising technology platform built for A/B testing and multivariate ad testing [80]
12 January 2019 Gaest Based in Aarhus, Denmark; provides a platform for posting and booking venues for meetings and other events [81]
13 March 2019 HotelTonight Website for booking last-minute hotel rooms; price was $400 million [82][83]
14 August 2019 Urbandoor Global online marketplace that offers extended stays to corporate clients [84][85][63][86]
15 November 2023 GamePlanner.AI AI startup [87]

Corporate office history edit

In October 2011, Airbnb established an office in London, its first international office.[88]

In early 2012, Airbnb opened offices in Paris, Milan, Barcelona, Copenhagen, Moscow, and São Paulo.[89] These openings were in addition to existing offices in San Francisco, London, Hamburg, and Berlin.[90] In September 2013, the company announced that it would establish its European headquarters in Dublin.[91][92]

In November 2012, Airbnb opened an office in Sydney, its 11th office location, and announced plans to launch the service in Thailand and Indonesia.[93]

In December 2012, Airbnb opened an office in Singapore.[94]

In April 2022, Airbnb instituted a policy of unlimited remote working for almost all its employees[95]

Share sales, corporate borrowing and valuation history edit

In April 2009, the company received $600,000 in seed money from Sequoia Capital, with Youniversity Ventures partners Jawed Karim, Keith Rabois, and Kevin Hartz participating.[96] In November 2010, Greylock Partners and Sequoia Capital invested $7.2 million in a Series A round.

In July 2011, Andreessen Horowitz, Digital Sky Technologies, General Catalyst, and A Grade Investments partners Ashton Kutcher and Guy Oseary invested $112 million in the company.[97][17]

In June 2015, General Atlantic, Hillhouse Capital Group, Tiger Management, Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital, and Horizons Ventures invested $1.5 billion in the company.[98][99]

In April 2014, TPG Capital invested $450 million in the company at a valuation of $10 billion.[100] Additional funding was provided by Andreessen Horowitz, Sequoia Capital, Dragoneer Investment Group, T. Rowe Price, and Sherpa Capital.[101]

In September 2016, Google Capital and Technology Crossover Ventures invested $555.5 million in the company at a valuation of $30 billion.[102]

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.[103]

In April 2020, Silver Lake and Sixth Street Partners acquired $1 billion in shares in the company at an $18 billion valuation[104] and $1 billion in debt at interest rates of 9%-11.5%.[105]

Corporate affairs edit

The key trends for Airbnb are (as at the financial year ending December 31):[106]

Year Revenue
(US$ bn)		 Net income
(US$ m) 		Total assets
(US$ bn)[107]		 Employees[108] Sources
2014 0.4
2015 0.9
2016 1.7 [109][110]
2017 2.6 −70.5 6.0
2018 3.6 −16.8 6.6
2019 4.8 −674 8.3 5,465 [111]
2020 3.3 −4,584 10.4 5,597
2021 5.9 −352 13.7 6,132
2022 8.3 1,893 16.0 6,811 [112][113][114]

Regulations by jurisdiction edit

Regulation of short-term rentals can include requirements for hosts to have business licenses, payment of hotel taxes and compliance with building, city and zoning standards. The hotel industry has lobbied for stricter regulations on short-term home rental[115] and in addition to government-imposed restrictions, many homeowner associations also limit short term rentals.[116]

Europe edit

  • Amsterdam: Hosts can rent their properties for up to 30 nights per year to a group of no more than four at a time.[117] Short-term rentals are banned in certain parts of the city.[118]
  • Barcelona: Vacation apartments are subject to the highest rate of property tax; platforms must share data with regulators.[119][120][121]
  • Berlin: Short-term rentals require permission from authorities. Hosts can rent individual rooms with the condition that they live in most of the property.[122]
  • 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. However, compliance with these requirements is minimal, with one study finding only 38 listed properties had the required planning permission, out of 25,000.[123][124][125]
  • London: Short-term rentals are limited to 90 days per year.[126][127]
  • Madrid: Listings without private entrances are banned.[128]
  • Palma de Mallorca: Home-sharing sites are banned to contain tourism.[129]
  • Paris: Hosts can rent their homes for no more than 120 days a year[130] and must register their listing with the town hall.[131]
  • Rome: Short-term rental sites are required to withhold a 21% rental income tax.[132]
  • Venice: Hosts must collect and remit tourist taxes.[133][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.[135]

United States edit

Main articles: Hotel tax and User fee
  • Arizona: Most regulations are not allowed since municipalities are prohibited from interfering in property rights.[136]
  • Boston: 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.[137][138][139][140]
  • Chicago: Hosts are required to obtain a license. Single-night stays are prohibited.[141]
  • Jersey City, New Jersey: Hosts are only allowed to rent for 60 days per year.[142][143]
  • Los Angeles: 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.[144][145]
  • Miami: Short-term rentals are banned in most neighborhoods, in part due to lobbying efforts of the hotel industry.[146][147]
  • New York City: 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.[148]
  • Portland, Oregon: The number of bedrooms in a single unit that may be listed is limited.[149]
  • San Diego: Units for short-term rental are limited to 1% of the housing stock and licenses are required.[150]
  • San Francisco: Registration by hosts is required.[151]
  • Santa Monica, California: Hosts are required to register with the city and obtain a license and are also prohibited from listing multiple properties.[152]
  • Seattle: Hosts must obtain licenses and cannot rent more than two units.[153]
  • 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.[154]
  • West New York, New Jersey: Short-term rentals are banned.[155]

Canada edit

  • Toronto: Short-term rentals must be in a host's primary residence and hosts must obtain licenses.[156]
  • Vancouver: Short-term rentals must be in a host's primary residence and hosts must obtain licenses.[157][158]

Asia edit

  • Japan: Hosts are required to register their listing with the government; a home can be rented for a maximum of 180 days per year.[159]
  • Singapore: Short-term home rentals of less than three months are illegal.[160][161]

Criticism and controversies edit

The company has been criticized for possibly enabling increases in home rents,[162] refusing to provide sensitive customer data to governments, and allowing listings in West Bank settlements. Airbnb has been criticized by the hotel industry for not being subject to fair regulations.[163] Critics have also noted how Airbnb resists sharing its listing data with regulators, often citing privacy protections as its reason for not cooperating.[164]

Effects on housing affordability edit

Several studies have found that long-term rental prices in many areas have increased because landlords have kept properties off the longer-term rental market to instead get higher rental rates for short-term housing via Airbnb.[165][166][167][168][169][123][170][171] Inside Airbnb, a watchdog journalism website, has accused the company of manipulating its data to portray a different result.[172] Landlords have also been accused of illegally evicting tenants to convert properties into higher-rent Airbnb listings.[173]

Concerns on the effect of Airbnb on housing affordability has resulted in increased lodging regulations and restrictions, which have generally been opposed by Airbnb via lobbying efforts.[174]

Inclusion of listings in Israeli settlements edit

See also: List of companies operating in West Bank settlements

In November 2018, Airbnb announced that it would remove the approximately 200 "listings in Israeli settlements in the occupied West 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 to humanitarian aid.[175][176][177]

According to 2020 and 2023 reports by the United Nations, the company continues to violate International Human Rights, profiting from illegal Israeli settlements in Occupied Palestinian Territories.[178][179] On February 12, 2020, Airbnb was included on a list of companies operating in West Bank settlements involved in activities that "raised particular human rights concerns" published by the United Nations Human Rights Council. The company was categorized under "the provision of services and utilities supporting the maintenance and existence of settlements".[180][181]

Criticism by the hotel industry edit

Airbnb has been criticized by the hotel industry due to its competitive effects and its different regulations. This has led to a decline in hotel revenue in some markets and an increase in lobbying by the hotel industry.[182][183][184]

Lack of loyalty program edit

Airbnb is one of the few major travel companies without a loyalty program, which has led to criticism by many customers. This is in part attributed to its lack of business customers.[185]

Objectivity of guest reviews edit

Airbnb features a review system in which guests and hosts can rate and review each other after a stay. Hosts and guests are unable to see reviews until both have submitted a review 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 of future stays because prospective hosts may refuse to host a user who generally leaves negative reviews. The company's policy requires users to forego anonymity, which may also detract from users' willingness to leave negative reviews. These factors may damage the objectivity of the review system.[186][187][188]

Response to activities of far-right extremists edit

In August 2017, Airbnb cancelled numerous bookings and closed accounts belonging to attendees of the white nationalist Unite the Right rally in Charlottesville, Virginia, citing its terms of service in which members must "accept people regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity, sexual orientation, or age."[189] The move was criticized by Jason Kessler, organizer of the rally.[190]

In January 2021, Airbnb was criticized for allowing participants in the January 6 attack on the United States Capitol to book units on the platform in the Washington metropolitan area, despite most hotels in the vicinity of Capitol Hill banning far-right extremists.[191] After the possibility of further violence during the Inauguration of Joe Biden, Airbnb announced the day after the Capitol raid that it was banning all bookings in the region prior to the inauguration.[192]

Sponsorship of 2022 Winter Olympics edit

Airbnb was one of the 15 leading sponsors of the 2022 Winter Olympics, held in Beijing, and was asked by human rights activists and groups to drop its sponsorship in March 2021 as part of diplomatic and activist boycotts over alleged human rights violations by the Chinese Communist Party, in particular the Uyghur genocide. These requests were ignored by the company.[193][194][195][196]

Length of terms of service agreements edit

In 2014, linguist Mark Liberman criticized the extreme length of the legal agreements that Airbnb members are required to accept, with the site's terms of service, privacy policy, and other policies amounting to "55081 words, or about the size of a short novel, though much less readable".[197]

Illegal behavior by hosts edit

Hosts have been accused of circumventing tax regulations,[198] 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,[199][200][201][202] as well as bait-and-switch scams in which the guest does not receive the promised accommodation.[203][204] Airbnb has noted that the number of these incidents is not statistically significant and has banned violators and associated accounts.[205]

Legal disputes edit

Failure to provide required information to governments edit

Many governments have passed laws requiring that Airbnb provide guest information so that local regulations can be enforced and hotel taxes are collected. Airbnb contested one such law in New York.[206][207] 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.[208] Similar cases were settled in Boston and Miami.[209]

Airbnb refused to provide required information to the Belgian government, claiming the obligation to provide the information was not compatible with European Union law. The Belgian Constitutional Court referred the dispute to the European 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.[210]

Legality of service fees in the Netherlands edit

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.[211]

Airbnb.org edit

The company finances airbnb.org, a separate 501(c)(3) nonprofit organization founded by Joe Gebbia, that facilitates free housing for people affected by natural disasters, including hurricanes and floods, and other emergencies such as the 2022 Russian invasion of Ukraine and the 2021 Taliban offensive. The organization was launched in 2012 after hosts offered free housing to people displaced by Hurricane Sandy.[212]

See also edit

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Further reading edit

  • 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. ISBN 978-0-316-38839-9. OCLC 953598607.

External links edit

 
Wikimedia Commons has media related to Airbnb.
  • Official website  
  • Business data for Airbnb, Inc.:
    • Bloomberg
    • Google
    • Reuters
    • SEC filings
    • Yahoo!
  • Airbnb companies grouped at OpenCorporates

February 15, 2024
airbnb, ɛər, american, company, operating, online, marketplace, short, long, term, homestays, experiences, company, acts, broker, charges, commission, from, each, booking, company, founded, 2008, brian, chesky, nathan, blecharczyk, gebbia, shortened, version, . Airbnb Inc ˌ ɛer ˌ b iː ɛ n ˈ b iː AIR BEE en BEE is an American company operating an online marketplace for short and long term homestays and experiences The company acts as a broker and charges a commission from each booking The company was founded in 2008 by Brian Chesky Nathan Blecharczyk and Joe Gebbia Airbnb is a shortened version of its original name AirBedandBreakfast com Airbnb is the most well known company for short term housing rentals 5 6 Airbnb Inc Headquarters at 888 Brannan Street in San Francisco CaliforniaCompany typePublicTraded asNasdaq ABNB Class A Nasdaq 100 componentS amp P 500 componentIndustryLodgingFoundedAugust 2008 15 years ago 2008 08 in San Francisco California U S FoundersBrian CheskyJoe GebbiaNathan BlecharczykHeadquartersSan Francisco California U S Area servedWorldwideKey peopleBrian Chesky CEO Nathan Blecharczyk CSO ServicesLodgingHospitalityHomestayRevenueUS 8 40 billion 2022 Net incomeUS 1 89 billion 2022 Total assetsUS 16 04 billion 2022 Total equityUS 5 56 billion 2022 OwnerBrian Chesky 12 Joe Gebbia 8 Nathan Blecharczyk 10 Number of employees6 811 December 2022 SubsidiariesLuxury Retreats International Inc Tilt com Accomable Aibiying Trooly Inc Deco Software Inc Trip4real Experiences S L Larson8 Inc MarketLog Randorphire Inc HotelTonightWebsiteairbnb wbr comFootnotes references 1 2 3 4 Airbnb in Toronto Contents 1 History 1 1 Acquisitions 1 2 Corporate office history 1 3 Share sales corporate borrowing and valuation history 2 Corporate affairs 3 Regulations by jurisdiction 3 1 Europe 3 2 United States 3 3 Canada 3 4 Asia 4 Criticism and controversies 4 1 Effects on housing affordability 4 2 Inclusion of listings in Israeli settlements 4 3 Criticism by the hotel industry 4 4 Lack of loyalty program 4 5 Objectivity of guest reviews 4 6 Response to activities of far right extremists 4 7 Sponsorship of 2022 Winter Olympics 4 8 Length of terms of service agreements 4 9 Illegal behavior by hosts 4 10 Legal disputes 4 10 1 Failure to provide required information to governments 4 10 2 Legality of service fees in the Netherlands 5 Airbnb org 6 See also 7 References 8 Further reading 9 External linksHistory editFor a chronological guide see Timeline of Airbnb After moving to San Francisco in October 2007 roommates and former schoolmates Brian Chesky and Joe Gebbia came up with an idea of putting an air mattress in their living room and turning it into a bed and breakfast 7 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 amp Breakfast 7 8 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 7 The site Airbedandbreakfast com officially launched on August 11 2008 9 10 The founders had their first customers in the summer of 2008 during the Industrial Design Conference held by Industrial Designers Society of America where travelers had a hard time finding lodging in the city 11 After the founders raised 30 000 by selling cereal named after the two candidates of the 2008 United States presidential election Barack Obama and John McCain mostly at the 2008 Democratic National Convention 12 13 14 15 computer programmer Paul 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 7 15 16 17 18 With the website already built they used the Y Combinator investment to fly to New York to meet users and promote the site 14 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 16 In March 2009 the name of the company was shortened to Airbnb com to eliminate confusion over air mattresses by then listings included entire rooms and properties 7 By November 2010 out of 700 000 nights booked 80 had occurred in the previous six months 19 At the March 2011 South by Southwest conference Airbnb won the app award 20 In November 2012 Airbnb launched Neighborhoods a travel guide of 23 cities that helps travelers choose a neighborhood in which to stay based on certain criteria and personal preferences 21 By October 2013 Airbnb had served 9 000 000 guests since its founding in August 2008 22 Nearly 250 000 listings were added in 2013 23 In July 2014 Airbnb revealed design revisions to the site and mobile app and introduced a new logo The logo called the Belo is intended to serve as a symbol of belonging and consists of four elements a head which represents people a location icon that represents place a heart to symbolize love and a letter A to stand for the company s name 24 25 It also announced a partnership with Concur an expense reporting service for businesses to make it easier for business travelers to report Airbnb stays as business expenses 26 In April 2015 following the easing of restrictions on U S businesses to operate in Cuba Airbnb expanded to Cuba making it one of the first U S companies to do so 27 28 In July 2016 former Attorney General Eric Holder was hired to help craft an anti discrimination policy for Airbnb after reports showed that hosts were refusing to accept lodging requests from guests whose names suggested that they were black 29 As part of the reform photos of prospective guests are hidden from hosts until requests for lodging are accepted 30 In November 2016 Airbnb launched experiences whereby users can use the platform to book activities 31 In January 2017 along with serial entrepreneurs Gary Vaynerchuk Ben Leventhal and Mike Montero Airbnb led a 13 million investment in Resy a restaurant reservation booking app 32 In May 2017 the company launched Airbnbmag a magazine co published with Hearst Communications 33 In February 2018 the company announced Airbnb Plus a collection of homes that have been vetted for quality of services comfort and design 34 as well as Beyond by Airbnb which offers luxury vacation rentals 35 By October 2019 two million people were staying with Airbnb each night 36 In April 2019 Airbnb produced and financed Gay Chorus Deep South a documentary launched by its Rausch Street Films division The rights were sold to MTV which aired the program on its network 37 38 39 On World Animal Day October 4 in 2019 Airbnb launched a new standalone category of experiences focused on those involving animals as well as an animal welfare policy created with and backed by World Animal Protection 40 During the COVID 19 pandemic bookings dropped as much as 96 in some cities 41 However bookings rose in many rural areas 42 The company pledged 250 million in payouts to hosts to compensate them for guest cancellations due to the pandemic 43 44 The company also laid off approximately 1 900 employees or about 25 of its workforce in the Americas Europe and Asia due to the COVID 19 pandemic 45 46 On December 10 2020 the company became a public company via an initial public offering raising 3 5 billion 47 Shares valued at 238 million were offered to hosts on the platform at the price of 68 per share 48 In March 2022 Airbnb suspended business in Russia and Belarus due to the sanctions resulting from the Russian invasion of Ukraine 49 50 In May 2022 Airbnb ceased operations in China 51 The decision was made primarily because of China s Zero COVID policy as well as complicated and expensive laws and regulations that required Airbnb to send detailed information on guests to the Government of China which can be used to track people 52 53 54 Airbnb was accused of being too willing to provide this information which led to the resignation of an Airbnb executive who was also a former deputy director of the Federal Bureau of Investigation in 2019 after 6 months of working 55 56 Airbnb had also been accused of allowing listings on land owned by the Xinjiang Production and Construction Corps a Chinese state owned paramilitary entity sanctioned under the Magnitsky Act for involvement in the Uyghur genocide 57 58 In 2019 certain hosts in China were accused of discrimination by refusing to rent to Uyghurs 59 After temporarily banning parties in homes rented on the platform in August 2020 due to the COVID 19 pandemic 60 in June 2022 Airbnb announced that it will 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 61 In August 2022 Airbnb rolled out technology to enforce this ban 62 Acquisitions edit Date Company Notes Ref s 1 May 2011 Accoleo German competitor launched the first international Airbnb office in Hamburg 63 64 65 2 March 2012 CrashPadder Added 6 000 international listings to its existing inventory made Airbnb the largest lodging website in the United Kingdom 66 67 68 3 November 2012 NabeWise Online city guide that aggregates curated information for specified locations shifted the company s focus toward offering hyperlocal recommendations to travelers 69 70 4 December 2012 Localmind a location based question and answer platform 71 5 September 2015 Vamo Immediately shut down the company acquiring its employees 72 73 6 September 2015 Lapka Sensor startup 74 7 September 2016 Trip4real Travel activities marketplace 75 8 February 2017 Luxury Retreats International Canadian based villa rental company price was 300 million in cash and stock 76 77 9 February 2017 Tilt com a social payment startup 63 10 November 2017 Accomable Startup focused on travel accessibility 78 79 11 November 2017 AdBasis Advertising technology platform built for A B testing and multivariate ad testing 80 12 January 2019 Gaest Based in Aarhus Denmark provides a platform for posting and booking venues for meetings and other events 81 13 March 2019 HotelTonight Website for booking last minute hotel rooms price was 400 million 82 83 14 August 2019 Urbandoor Global online marketplace that offers extended stays to corporate clients 84 85 63 86 15 November 2023 GamePlanner AI AI startup 87 Corporate office history edit In October 2011 Airbnb established an office in London its first international office 88 In early 2012 Airbnb opened offices in Paris Milan Barcelona Copenhagen Moscow and Sao Paulo 89 These openings were in addition to existing offices in San Francisco London Hamburg and Berlin 90 In September 2013 the company announced that it would establish its European headquarters in Dublin 91 92 In November 2012 Airbnb opened an office in Sydney its 11th office location and announced plans to launch the service in Thailand and Indonesia 93 In December 2012 Airbnb opened an office in Singapore 94 In April 2022 Airbnb instituted a policy of unlimited remote working for almost all its employees 95 Share sales corporate borrowing and valuation history edit In April 2009 the company received 600 000 in seed money from Sequoia Capital with Youniversity Ventures partners Jawed Karim Keith Rabois and Kevin Hartz participating 96 In November 2010 Greylock Partners and Sequoia Capital invested 7 2 million in a Series A round In July 2011 Andreessen Horowitz Digital Sky Technologies General Catalyst and A Grade Investments partners Ashton Kutcher and Guy Oseary invested 112 million in the company 97 17 In June 2015 General Atlantic Hillhouse Capital Group Tiger Management Kleiner Perkins Caufield amp Byers GGV Capital China Broadband Capital and Horizons Ventures invested 1 5 billion in the company 98 99 In April 2014 TPG Capital invested 450 million in the company at a valuation of 10 billion 100 Additional funding was provided by Andreessen Horowitz Sequoia Capital Dragoneer Investment Group T Rowe Price and Sherpa Capital 101 In September 2016 Google Capital and Technology Crossover Ventures invested 555 5 million in the company at a valuation of 30 billion 102 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 103 In April 2020 Silver Lake and Sixth Street Partners acquired 1 billion in shares in the company at an 18 billion valuation 104 and 1 billion in debt at interest rates of 9 11 5 105 Corporate affairs editThe key trends for Airbnb are as at the financial year ending December 31 106 Year Revenue US bn Net income US m Total assets US bn 107 Employees 108 Sources2014 0 42015 0 92016 1 7 109 110 2017 2 6 70 5 6 02018 3 6 16 8 6 62019 4 8 674 8 3 5 465 111 2020 3 3 4 584 10 4 5 5972021 5 9 352 13 7 6 1322022 8 3 1 893 16 0 6 811 112 113 114 Regulations by jurisdiction editRegulation of short term rentals can include requirements for hosts to have business licenses payment of hotel taxes and compliance with building city and zoning standards The hotel industry has lobbied for stricter regulations on short term home rental 115 and in addition to government imposed restrictions many homeowner associations also limit short term rentals 116 Europe edit Amsterdam Hosts can rent their properties for up to 30 nights per year to a group of no more than four at a time 117 Short term rentals are banned in certain parts of the city 118 Barcelona Vacation apartments are subject to the highest rate of property tax platforms must share data with regulators 119 120 121 Berlin Short term rentals require permission from authorities Hosts can rent individual rooms with the condition that they live in most of the property 122 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 However compliance with these requirements is minimal with one study finding only 38 listed properties had the required planning permission out of 25 000 123 124 125 London Short term rentals are limited to 90 days per year 126 127 Madrid Listings without private entrances are banned 128 Palma de Mallorca Home sharing sites are banned to contain tourism 129 Paris Hosts can rent their homes for no more than 120 days a year 130 and must register their listing with the town hall 131 Rome Short term rental sites are required to withhold a 21 rental income tax 132 Venice Hosts must collect and remit tourist taxes 133 134 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 135 United States edit Main articles Hotel tax and User fee Arizona Most regulations are not allowed since municipalities are prohibited from interfering in property rights 136 Boston 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 137 138 139 140 Chicago Hosts are required to obtain a license Single night stays are prohibited 141 Jersey City New Jersey Hosts are only allowed to rent for 60 days per year 142 143 Los Angeles 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 144 145 Miami Short term rentals are banned in most neighborhoods in part due to lobbying efforts of the hotel industry 146 147 New York City 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 148 Portland Oregon The number of bedrooms in a single unit that may be listed is limited 149 San Diego Units for short term rental are limited to 1 of the housing stock and licenses are required 150 San Francisco Registration by hosts is required 151 Santa Monica California Hosts are required to register with the city and obtain a license and are also prohibited from listing multiple properties 152 Seattle Hosts must obtain licenses and cannot rent more than two units 153 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 154 West New York New Jersey Short term rentals are banned 155 Canada edit Toronto Short term rentals must be in a host s primary residence and hosts must obtain licenses 156 Vancouver Short term rentals must be in a host s primary residence and hosts must obtain licenses 157 158 Asia edit Japan Hosts are required to register their listing with the government a home can be rented for a maximum of 180 days per year 159 Singapore Short term home rentals of less than three months are illegal 160 161 Criticism and controversies editThe company has been criticized for possibly enabling increases in home rents 162 refusing to provide sensitive customer data to governments and allowing listings in West Bank settlements Airbnb has been criticized by the hotel industry for not being subject to fair regulations 163 Critics have also noted how Airbnb resists sharing its listing data with regulators often citing privacy protections as its reason for not cooperating 164 Effects on housing affordability edit Several studies have found that long term rental prices in many areas have increased because landlords have kept properties off the longer term rental market to instead get higher rental rates for short term housing via Airbnb 165 166 167 168 169 123 170 171 Inside Airbnb a watchdog journalism website has accused the company of manipulating its data to portray a different result 172 Landlords have also been accused of illegally evicting tenants to convert properties into higher rent Airbnb listings 173 Concerns on the effect of Airbnb on housing affordability has resulted in increased lodging regulations and restrictions which have generally been opposed by Airbnb via lobbying efforts 174 Inclusion of listings in Israeli settlements edit See also List of companies operating in West Bank settlements In November 2018 Airbnb announced that it would remove the approximately 200 listings in Israeli settlements in the occupied West 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 to humanitarian aid 175 176 177 According to 2020 and 2023 reports by the United Nations the company continues to violate International Human Rights profiting from illegal Israeli settlements in Occupied Palestinian Territories 178 179 On February 12 2020 Airbnb was included on a list of companies operating in West Bank settlements involved in activities that raised particular human rights concerns published by the United Nations Human Rights Council The company was categorized under the provision of services and utilities supporting the maintenance and existence of settlements 180 181 Criticism by the hotel industry edit Airbnb has been criticized by the hotel industry due to its competitive effects and its different regulations This has led to a decline in hotel revenue in some markets and an increase in lobbying by the hotel industry 182 183 184 Lack of loyalty program edit Airbnb is one of the few major travel companies without a loyalty program which has led to criticism by many customers This is in part attributed to its lack of business customers 185 Objectivity of guest reviews edit Airbnb features a review system in which guests and hosts can rate and review each other after a stay Hosts and guests are unable to see reviews until both have submitted a review 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 of future stays because prospective hosts may refuse to host a user who generally leaves negative reviews The company s policy requires users to forego anonymity which may also detract from users willingness to leave negative reviews These factors may damage the objectivity of the review system 186 187 188 Response to activities of far right extremists edit In August 2017 Airbnb cancelled numerous bookings and closed accounts belonging to attendees of the white nationalist Unite the Right rally in Charlottesville Virginia citing its terms of service in which members must accept people regardless of their race religion national origin ethnicity disability sex gender identity sexual orientation or age 189 The move was criticized by Jason Kessler organizer of the rally 190 In January 2021 Airbnb was criticized for allowing participants in the January 6 attack on the United States Capitol to book units on the platform in the Washington metropolitan area despite most hotels in the vicinity of Capitol Hill banning far right extremists 191 After the possibility of further violence during the Inauguration of Joe Biden Airbnb announced the day after the Capitol raid that it was banning all bookings in the region prior to the inauguration 192 Sponsorship of 2022 Winter Olympics edit Airbnb was one of the 15 leading sponsors of the 2022 Winter Olympics held in Beijing and was asked by human rights activists and groups to drop its sponsorship in March 2021 as part of diplomatic and activist boycotts over alleged human rights violations by the Chinese Communist Party in particular the Uyghur genocide These requests were ignored by the company 193 194 195 196 Length of terms of service agreements edit In 2014 linguist Mark Liberman criticized the extreme length of the legal agreements that Airbnb members are required to accept with the site s terms of service privacy policy and other policies amounting to 55081 words or about the size of a short novel though much less readable 197 Illegal behavior by hosts edit Hosts have been accused of circumventing tax regulations 198 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 199 200 201 202 as well as bait and switch scams in which the guest does not receive the promised accommodation 203 204 Airbnb has noted that the number of these incidents is not statistically significant and has banned violators and associated accounts 205 Legal disputes edit Failure to provide required information to governments edit Many governments have passed laws requiring that Airbnb provide guest information so that local regulations can be enforced and hotel taxes are collected Airbnb contested one such law in New York 206 207 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 208 Similar cases were settled in Boston and Miami 209 Airbnb refused to provide required information to the Belgian government claiming the obligation to provide the information was not compatible with European Union law The Belgian Constitutional Court referred the dispute to the European 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 210 Legality of service fees in the Netherlands edit 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 211 Airbnb org editThe company finances airbnb org a separate 501 c 3 nonprofit organization founded by Joe Gebbia that facilitates free housing for people affected by natural disasters including hurricanes and floods and other emergencies such as the 2022 Russian invasion of Ukraine and the 2021 Taliban offensive The organization was launched in 2012 after hosts offered free housing to people displaced by Hurricane Sandy 212 See also editHoliday cottage Vacation rentalReferences edit Company Overview of Airbnb Inc Bloomberg L P Archived from the original on January 8 2018 Nathan Blecharczyk Forbes Archived from the original on April 13 2019 Retrieved April 11 2019 Airbnb Inc 2022 Form 10 K Annual Report U S Securities and Exchange Commission February 17 2023 Archived from the original on February 18 2023 Retrieved February 18 2023 Airbnb Inc 2022 Form 14 A Proxy Statement U S Securities and Exchange Commission April 21 2023 Cadwalladr Carole September 16 2013 Airbnb the 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September 26 2021 Barcelona Takes on Airbnb The New York Times Oltermann Philip June 8 2016 Berlin ban on Airbnb short term rentals upheld by city court The Guardian a b The vast majority of Irish Airbnbs are illegal Two law students are going after them On The Ditch April 6 2023 Retrieved April 20 2023 Byrne Louise June 28 2019 No extra Dublin City Council staff hired so far to enforce new letting laws RTE Thomas Conal July 1 2019 Explainer The new rules on Airbnb hosting come into effect today here s what you need to know TheJournal ie TEMPERTON JAMES February 13 2020 Airbnb has devoured London and here s the data that proves it Wired What s the 90 day rule and how does it impact my Airbnb in London GuestReady July 11 2022 O Sullivan Feargus April 3 2019 Madrid Bans Airbnb Apartments That Don t Have Private Entrances Bloomberg News Minder Raphael June 23 2018 To Contain Tourism One Spanish City Strikes a Ban on Airbnb The New York Times Carey Meredith April 12 2018 Paris Could Pull 43 000 Airbnb Listings by This June Conde Nast Traveller Vidalon Dominique July 5 2017 Hoteliers welcome Paris decision forcing Airbnb hosts to register rentals Reuters QUELL MOLLY July 7 2022 EU court adviser rejects Airbnb challenge to Italy short term rental tax Courthouse News Service Fox Kara June 15 2019 The race to stop the death of Venice CNN EXPLAINED What are Italy s rules and taxes for Airbnb rentals The Local March 14 2022 Vermieten von Wohnungen fur touristische Zwecke City of Vienna Kerr Dara January 4 2017 Airbnb gets free rein in Arizona thanks to new law CNET SOROKIN Leo T AIRBNB INC v CITY OF Boston 386 F Supp 3d 113 2019 Leagle City of Boston Airbnb reach agreement to strengthen short term rental registry remove illegal units Press release Boston August 29 2019 Feuer Will December 3 2019 Airbnb has removed thousands of listings in Boston as new rule takes effect ahead of the company s presumed IPO next year CNBC Logan Tim November 28 2019 Boston s tough rules 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Retrieved December 6 2019 Martineau Paris May 24 2019 Airbnb and New York City Reach a Truce on Home Sharing Data Wired Archived from the original on November 10 2019 Retrieved December 6 2019 Martineau Paris August 31 2019 Airbnb Starts to Play Nice With Cities Wired Archived from the original on December 7 2019 Retrieved December 7 2019 Chalmers John April 27 2022 EU court rejects Airbnb plea on Belgian information for tax authorities Reuters Archived from the original on September 23 2022 Retrieved September 23 2022 Airbnb makes power play in Dutch high court to retain right to double fees The Guardian September 14 2020 Archived from the original on April 1 2021 Retrieved April 4 2021 AIRBNB ORG AND ALIGHT ARE OPENING DOORS TO HOUSING SOLUTIONS FOR REFUGEES FLEEING UKRAINE Press release PR Newswire May 3 2022 Further reading editStone 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 ISBN 978 0 316 38839 9 OCLC 953598607 External links edit nbsp Wikimedia Commons has media related to Airbnb Official website nbsp Business data for Airbnb Inc BloombergGoogleReutersSEC filingsYahoo Airbnb companies grouped at OpenCorporates Retrieved from https en wikipedia org w index php title Airbnb amp oldid 1205482580, wikipedia, wiki, book, books, library,

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