How Much Does It Cost to Build an App Like Airbnb?

Over the past decade, Airbnb has reshaped the way we travel, offering unique accommodations and experiences in every corner of the globe. What began as a simple idea to rent out air mattresses in San Francisco has blossomed into a global phenomenon, with millions of listings spanning over 220 countries and regions.

As per the report by Statista, since its inception in 2008, Airbnb has emerged as a worldwide sensation. As of April 2023, the market capitalization of Airbnb stands at $73.34 billion, showing a significant increase from the previous year’s valuation of $54.13 billion.

Crafting an app like Airbnb requires a strategic approach, encompassing market research, planning, and technological investment. Typically, the cost to build an app like Airbnb ranges from $40,000 to $300,000, depending on diverse factors like the UI/UX design, location of the hired development team, features to be integrated, etc.

As the demand for travel app services continues to grow (evident with the growing revenue in the travel apps market), it is vital for businesses to understand the intricacies of developing an app like Airbnb as well as the costs to be incurred for the same.

This blog will assist you in understanding key factors that impact airbnb like App development cost, and other essential aspects that can help you launch a successful app. Let’s dive right in the details!

How Much Does It Cost to Build an App Like Airbnb?

Businesses frequently face cost-related hurdles when venturing into the development of Airbnb-like mobile apps. The expense of creating an app similar to Airbnb hinges on several factors, including the complexity of features, technological advancements, UI/UX design intricacies, the geographical location of the development team, and more.

As emphasized above, providing a ballpark estimate for crafting a bespoke accommodation-sharing platform akin to Airbnb typically falls within the range of $40,000 to $300,000.

Let’s investigate the myriad of factors that shape the cost of crafting a hospitality app akin to Airbnb!

Factors Influencing the Cost to Build an App Like Airbnb

The costs associated with developing a travel app like Airbnb can fluctuate based on a multitude of factors, with each factor playing a pivotal role in determining the overall expenses. Let’s delve into each of these factors to gain a comprehensive understanding of how they influence the development costs.

Advanced Search and Recommendation Algorithms

Implementing cutting-edge search and recommendation algorithms can enhance user experience by providing personalized recommendations based on preferences, location, budget, and past interactions. However, developing and integrating these algorithms increases the cost to make an app like Airbnb.

Augmented Reality (AR) and Virtual Reality (VR) Features

Integrating AR and VR features can revolutionize how users explore accommodations and destinations. For example, offering virtual tours of properties or using AR to visualize rental spaces in real-world environments are innovative features that can elevate user engagement but may incur cost to make an app like Airbnb due to their complexity of implementation.

Artificial Intelligence Chatbots

Integrating AI-powered chatbots can provide instant assistance to users, address inquiries, provide recommendations, and facilitate bookings. These chatbots can offer personalized assistance 24/7, enhancing user satisfaction and retention.

However, developing and training AI chatbots involves investment in AI technologies and natural language processing capabilities, which can impact the overall cost to build an app like Airbnb.

User-Generated Content and Social Features

Incorporating features that enable users to share their experiences, reviews, and recommendations can foster a sense of community within the app. Integrating social sharing functionalities, user-generated content feeds, and interactive forums can enrich user engagement and retention.

However, implementing robust social features may require additional development and ongoing maintenance, which consequently augments cost to make an app like Airbnb.

Integration with IoT Devices

Integrating the app with Internet of Things (IoT) devices such as smart locks, thermostats, and home automation systems can offer unique experiences for guests and hosts. For example, guests can unlock doors or adjust room settings using their smartphones. Integrating IoT functionalities requires investment in development and testing.

Third-Party Integrations

Integrating third-party services such as mapping APIs, payment gateways, and social media platforms can enhance the functionality and user experience of the app. However, each integration adds complexity to the development process and may require licensing fees or subscription costs.

Additionally, ensuring seamless integration with third-party services may entail additional development and testing efforts, impacting Airbnb like app development costs.

Compliance and Security Standards

Adhering to industry regulations and security standards is crucial for safeguarding user data and maintaining user trust. Implementing robust security measures like encryption, authentication, and data protection protocols incurs additional development costs.

Moreover, obtaining compliance certifications or undergoing security audits to meet regulatory requirements and compliances may enhance Airbnb-like app development cost.

Development Team Location

The overall cost to develop an app like Airbnb can also vary as per the hourly development rates across various regions of the globe. For instance, the hourly development rates across countries like the UK or the UK are way higher as per other regions.

One way to optimize the budget is by outsourcing to Asian regions like India, where highly skilled development teams offer solutions without compromising quality. Leveraging these regions’ expertise, resources, and technologies can significantly enhance efficiency while allowing you to optimize the overall costs effectively.

With the increasing trend of global talent acquisition, development teams in Asian countries provide comprehensive solutions while adhering to international and local compliance standards. Partnering with a development team in such locations can effectively address complex development challenges. Here are the estimated hourly development rates as per various regions:

App Platform

Choosing the appropriate platform(s) for app development, such as iOS, Android, or cross-platform frameworks, can influence development costs. Developing separate native apps for multiple platforms typically requires more resources and time compared to using cross-platform development tools. Additionally, ongoing platform updates and compatibility testing may incur maintenance costs post-launch.

Quality Assurance

Ensuring the app’s quality and reliability through comprehensive testing and quality assurance processes is essential for delivering a seamless user experience. Investing in thorough testing across various devices, operating systems, and network conditions helps identify and address any bugs or performance issues early in the development cycle. However, extensive testing efforts and automated testing tools may increase Airbnb-like app development cost

Maintenance

Post-launch maintenance and support are essential for running the app smoothly and addressing any issues or bugs arising over time. Budgeting for ongoing maintenance tasks, such as software updates, bug fixes, security patches, and feature enhancements, is crucial for the app’s long-term success. Additionally, providing customer support and addressing user feedback may require dedicated resources, impacting Airbnb-like app development cost.

Tech Stack Used

Technological advancement is a pivotal aspect in crafting an app akin to Airbnb. Let’s delve into the sophisticated technologies that underpin the development of such an innovative platform.

Features to Develop an App Like Airbnb

The Airbnb app development incorporates features tailored to meet the distinct needs of both hosts and users, playing a crucial role in the platform’s success. Let’s explore these essential features that enrich the Airbnb experience for all involved.

Host-side Panel

Listing Creation: Hosts can create and publish property listings by uploading photos, writing descriptions, specifying amenities, setting house rules, and pricing their accommodations.

Availability Management: Hosts can manage their properties’ availability by updating calendars, blocking off dates when the property is unavailable, and adjusting pricing based on demand or seasonal factors.

Reservation Requests: Hosts receive notifications and can review and respond to guest reservation requests, including accepting, declining, or negotiating booking terms.

Guest Communication: Hosts can communicate with guests, respond to inquiries, provide additional information about the property, and offer recommendations for local attractions and activities.

Check-in Instructions: Hosts can provide detailed check-in instructions and directions to the property, ensuring a smooth arrival experience for guests.

Cleaning and Maintenance: Hosts can schedule cleaning services, manage maintenance tasks, and ensure that the property is clean and well-maintained for incoming guests.

Financial Management: To monitor the performance of their listings, hosts can track earnings, view payment transactions, manage payouts, and access financial reports within the app.

User Side Panel

Registration: Registration is the foremost feature to consider in the case of Airbnb-like app development.

Now, while it is quite common to ask users to enter all the information on their own, it is profitable to give them the facility to sign up/log in via social media credentials.

Profiles: When you invest in the process of building an app like Airbnb, you don’t invest in one but three versions of the application – host, guest, and admin.

Now, profile-wise, although all three versions will have them, the Host and Guest versions will have the most extensive profiles. At the profile creation stage, you will have to fetch answers regarding users’ names, email IDs, dates of birth, phone numbers, payment modes, etc. and then connect them to your robust backend structure so that the information is all safe.

Wide Filter Options: One of the best features of the Airbnb app is its filtration facility. The app gives users a very wide variety of filtering options, ranging from property type and cost range to date and exactness of the location. It even gives users an opportunity to put in their specific interests and then finalize based on that.

Room Details: Users decide on a room based on several factors. They might look at the uploaded images, the view visible from the room reviews and ratings, room description, location of the property, room rent, TnCs, etc. They also often make the decision based on the host reviews, along with several other factors like the period of stay, type of services offered, and the facility to pay at the property.

And thus, it is of absolute importance that you have a room detail interface ready.

Translation: With the help of Google Translate, users can translate all the descriptions in the property listing in their mother language. With this apt use of localization, your Airbnb-like app can reach more local language users and increase engagement levels by manifold.

So, remember to consider app localization techniques and associated challenges when deciding the cost of developing accommodation booking apps like Airbnb.

Map Incorporation: Another feature that you must not overlook while calculating the development cost of an app like Airbnb is Maps. The facility is the only way to enable users to choose the exact location where they wish to spend their vacation. The idea is to have the map integration so strong that even the remotest locations get fetched in the application.

Backend Implementation: Server-side part of the application is one of the most difficult to develop, especially when the application deals with multiple users interacting and making payments in a real-time note. The backend app development, on this note, has to be extremely rigorous and proper to ensure that the Airbnb clone app works exactly as it is supposed to.

Messaging: Sending and receiving messages is a very important element of apps similar to Airbnb. In addition to giving the hosts and visitors an option to remain connected through messages, you will also have to give a push notification functionality to update the hosts and visitors/guests of the reply to their messages.

Add to Favorites: Another feature to watch out for while estimating the creation cost of Airbnb-like apps on iOS or Android is the introduction of the option to add favorites. This feature allows the guests to save the property for later bookings or simply to shortlist from all the different options.

Invitation to Friends: Airbnb-like apps allow users to send invitations to their friends, which can be a profitable mode of promoting your mobile app. You should use this facility to invite your friends via social media, messages, and email.

Multiple Settings Option: The settings option you offer users should have multiple options: profile edit, acceptance of whether or not to send push notifications, the chosen payment methods, and the facility to modify the wishlist. The more options you give your end-users, the more they feel at home when working with your application. However, at the same time, more features will also increase the average cost of building an Airbnb clone app.

While these are the features most commonly present in all clone apps and play a role in deciding the Airbnb-like app development cost breakdown, the technology stack is also more or less the same in all varieties of Airbnb clone apps, and so is their contribution to the final Airbnb app development cost.

Admin Side Panel

User Management: This feature encompasses streamlined user management, providing comprehensive access to user profiles and offering intuitive control over platform access.

Listing Management: This feature aids the Admin in streamlining listing management by swiftly approving or declining new listings, modifying existing ones, and regulating their visibility across the platform.

Payment Management: This feature gives Admins full control over the platform’s financial transactions. Admin can manage payments, view transactions, and control the payment methods available to users, ensuring a secure and transparent payment process.

Analytics and Reporting: By leveraging analytics and reporting features, Admin can gain invaluable insights through comprehensive analytics and reporting, enabling data-driven decision-making and strategic planning to optimize business performance.

How to Develop an App Like Airbnb?

Developing an app like Airbnb demands a meticulous approach, blending innovative methodologies with exhaustive research and strategic planning. From crafting a seamless booking experience to fostering trust through robust security measures, every aspect contributes to creating a compelling and impactful application. Let’s explore in detail the essential steps to make an app like Airbnb!

Define Goals and Features

The first step in building an app like Airbnb is defining clear goals and outlining key features. Goals might include:

• Facilitating seamless property booking
• Fostering a sense of community among users
• Ensuring trust and safety in transactions

Features could encompass user authentication, property listings with detailed descriptions and images, secure payment processing, real-time messaging between hosts and guests, and a robust review system to build user trust.

Build a Team

Embarking on the journey of building an app like Airbnb necessitates the hiring of a dedicated team comprising developers, designers, testers, legal experts, and potentially domain specialists in hospitality, travel or real estate. This dedicated team is essential for ensuring the successful execution of the project, with each member bringing their unique expertise to the table. Effective communication and close collaboration among team members are paramount to aligning project goals and timelines and delivering a high-quality product.

Design and Develop

User-centric design is crucial for creating an intuitive and visually appealing user experience but it is vital to keep in mind that it also affects the overall cost to build an app like Airbnb. Focus on creating a seamless booking flow, visually engaging property listings, and intuitive navigation. Develop a scalable backend infrastructure and responsive frontend components to ensure optimal performance across various devices and platforms.

Adhere to Regulations and Compliance

Compliance with regulations is crucial for an app like Airbnb, given its handling of sensitive user data and financial transactions. Ensure compliance with data protection laws such as GDPR and CCPA, as well as payment industry standards like PCI DSS. Draft comprehensive user agreements, privacy policies, and service terms to protect your business and users’ rights while maintaining transparency and trust.

Secure Data and Communication

Data security is paramount for an app handling sensitive user information and financial transactions. Implement robust security measures such as encryption, secure authentication mechanisms, and regular security audits. Prioritize the security of user data both at rest and in transit, safeguarding against potential breaches and ensuring user trust and confidence.

Test and Refine

Thorough testing is essential to identify and address any issues or discrepancies in the app. Conduct rigorous testing across multiple scenarios, including functionality, usability, security, and performance. Gather feedback from beta testers and real users to refine the app iteratively, addressing pain points and improving user experience.

Deploy

Prepare the app for deployment to App store and Google Play store, adhering to the guidelines and requirements of each platform. Ensure that the app meets the necessary criteria for publication, including security standards and user experience guidelines. Follow the prescribed submission process to make the app available to users, leveraging app store optimization techniques to enhance discoverability.

Maintain

App deployment marks the beginning of continuing maintenance and support. Continuously monitor the app for performance issues, bugs, and security vulnerabilities, addressing them promptly to maintain a seamless user experience. Regularly update the app with new features, enhancements, and optimizations based on user feedback and market trends. Provide responsive customer support to address user inquiries and issues, fostering long-term user satisfaction and loyalty.

How to Monetize Apps like Airbnb?

Airbnb app business model involves implementing various revenue streams that capitalize on the platform’s services and user base. Here are several revenue models that you can consider for your app:

Transaction Fees

Charge the hosts a percentage of each booking as a transaction fee. This fee can vary based on factors such as booking value, location, and property type. Additionally, consider charging guests a service fee for using the platform.

Subscription Model

Offer the hosts premium subscription plans with enhanced features and visibility for their listings. These plans could include perks like priority placement in search results, advanced analytics, and marketing tools to attract more guests.

Advertising and Sponsorships

Partner with relevant brands and businesses to display targeted advertisements or sponsored listings on the platform. For example, local businesses, travel agencies, or property management companies may pay to promote their services to app users.

Property Management Services

Provide additional services to hosts, such as professional photography, cleaning, and maintenance, for a fee. This generates revenue and enhances the quality of listings on the platform.

Experiences and Activities

Offer curated experiences, tours, and activities for guests to book alongside their accommodations. Take a commission from each booking or charge a listing fee to experience providers.

Affiliate Partnerships

Partner with travel-related companies, such as airlines, car rental agencies, and travel insurance providers, and earn commissions for referrals made through the platform.

Data Monetization

Analyze user data to identify trends, preferences, and insights that can be valuable to third-party businesses, such as tourism boards, real estate developers, or market researchers. Offer subscription-based access to this data or monetize it through targeted advertising.

Loyalty Programs

Introduce a customer loyalty program where guests earn points or rewards for each booking made through the platform. Partner with businesses to offer discounts, upgrades, or exclusive deals to loyal users in exchange for points.

Membership Programs

Offer premium membership tiers with exclusive benefits, such as discounted booking fees, early access to new listings, and personalized recommendations. Charge a recurring subscription fee for access to these perks.

How Appinventiv Can Help You Build a Top-Notch Airbnb-Like App

As a premier travel app development company specializing in creating innovative solutions, Appinventiv offers a comprehensive approach to building apps like Airbnb, enriched with cutting-edge technology solutions. Our dedicated team excels in meticulous project planning, in-depth research analysis, and implementing state-of-the-art technologies.

With our extensive experience in developing apps for the hospitality industry, we tailor our services to meet the unique needs of each project. Our team of experts combines exceptional service with deep expertise in app development, ensuring a tailored experience for seasoned and new clients.

Drawing on our proficiency in creating user-centric solutions, we design and implement custom features and functionalities tailored to the specific requirements of Airbnb-like apps.

Contact us today to embark on a journey of creating cutting-edge apps like Airbnb, transforming how users experience accommodation booking and hospitality services.

FAQs

Q. How to make an app like Airbnb?

A. To make an app like Airbnb, businesses need to start with market research, design intuitive user interfaces, develop robust backend infrastructure, integrate essential features like property listings and booking systems, and ensure scalability and security.

Q. How much does it cost to develop an app like Airbnb?

A. The cost to build an app like Airbnb can vary significantly based on factors such as the complexity of features, platform (iOS, Android, web), technology stack, design requirements, and team composition. Generally, it can range from tens of thousands to hundreds of thousands of dollars. Typically, the costs range from $40,000 to $300,000.

Q. How long does it take to build an app like Airbnb?

A. The time to build an app like Airbnb depends on various factors, including project scope, complexity of features, team size, and development approach. Typically, it can take anywhere from six months to over a year or more to develop a fully functional app like Airbnb.

Q. How can I ensure the success of my Airbnb-like app business model?

A. To ensure success, implement clear cancellation policies, incentivize hosts, and establish fixed cancellation charges based on property types. Utilize a robust currency exchange system with automatic conversion and fixed transactional fees. Maintain transparency in setting property prices, including all applicable fees in the booking process. In addition, also consider forming strategic partnerships to boost revenue opportunities.

THE AUTHOR

Prateek Saxena

DIRECTOR & CO-FOUNDER