How Much Does it Cost to Build an App Like Airbnb in 2024?

In this detailed guide, decipher the blueprint of success behind Airbnb and learn everything about developing a vacation rental app like Airbnb from scratch and how it works.

What app comes to mind when considering tourism and your next trip somewhere? Airbnb, right? This multi-million dollar app is one of the most popular booking portals, offering the best deals for rentals within your preferred budget. According to Statista, the annual revenue generated by Airbnb in 2023 is 9.92 billion U.S. dollars. These numbers speak volumes of the dominance this rental place app has created and why every hospitality business should learn from it. 

Are you a business owner looking to digitize your hospitality business with an app like Airbnb? Looking to acquire reliable mobile app development services to create the next vacation app hit? The article guides you through the entire process, explaining how to build an app, how much it would cost, and why you should opt for a mobile app development company.

What Makes Airbnb Successful?

Platforms such as Airbnb are growing in popularity, especially after the boom in the tourism industry following the gruesome pandemic. But what exactly has contributed to their sustained success over the years? Is it all about star-studded, multicultural marketing campaigns? Or is there more that goes on behind the scenes?

More importantly, if you are a hospitality business owner looking to establish a similar app, you will need more than understanding its basics, user journey, and development budget. Here’s a list of what has contributed to Airbnb’s long-term success and how an app like Airbnb can maximize its chances of success by following these as a blueprint. 

User-centric Experiences

One of Airbnb’s key successes was making its website simpler for consumers. They can find acceptable lodging by providing a direct user interface, a streamlined booking process, and a wide range of search choices. This encourages consumers to increase their confidence and keep coming back.

Embrace Advanced Technologies

Airbnb utilized advanced technologies like AI algorithms to improve user experience and optimize businesses. It makes it easy for hosts to list their properties and guests to book and find their accommodations. In this way, Airbnb automated various procedures to improve productivity and decrease friction.

Strong Brand Identity

Airbnb’s marketing strategy is a massive reason behind its success. It utilizes social media platforms, partnerships, and engaging content to build a strong brand that resonates with its target audience. Their “Belong Anywhere” campaign and focus on unique, local experiences have helped differentiate Airbnb from traditional hotel accommodations.

Prioritize Safety and Trust

Building trust and prioritizing safety are essential factors that help expand Airbnb’s business. To create a trustworthy and secure platform, Airbnb implements clear policies and procedures, verifies user profiles, establishes safe payment methods, and has a thorough review system for security precautions. 

Data-Driven Decision Making

Airbnd comprises data-driven improvements and a culture of experimentation that enables the rapid optimization of its services. This dynamic approach allows it to quickly adapt to changing market trends and customer preferences.

The Globe NewsWire states that the global online travel market will reach USD 1,835.6 Billion by 2030, with a CAGR of 14.8 %. Therefore, the final cost to build an app like Airbnb can be approximately $65,650 for a mobile app (one platform), and a web version can cost $92,350.

Cutting-Edge Features for Next-Gen Hospitality Apps

To compete with industry giants like Airbnb, new players in the vacation rental market cannot do without it unless they start leveraging cutting-edge technologies. The race for technology never ends, and it is the best way to beat today’s competition. By integrating innovative features, emerging platforms can enhance user experience, streamline operations, and potentially outpace established competitors. 

Here are key features that could give a new app the edge:

AI-Powered Personalization

While Airbnb offers basic personalization, next-gen hospitality apps can take it further. Advanced AI could analyze browsing history, social media activity, past travel patterns, and even weather preferences to offer hyper-personalized recommendations. For example, the app might suggest a secluded mountain cabin to a user who frequently posts nature photos or a bustling city apartment to someone who engages with urban culture content. 

Virtual Tours

Your Airbnb-like app could offer fully immersive 3D tours, elevating the virtual experience beyond Airbnb’s photo galleries. Users could wear VR headsets to “walk through” properties, open closets, check out the view from windows, and even simulate different times of day. For those without VR gear, interactive 360-degree videos could offer a taste of the immersive experience on any device. This feature could significantly reduce booking hesitation and set a new standard for property previews in the industry.

Advanced Search and Filtering

Modern apps need sophisticated search capabilities. Natural language processing allows conversational queries, like “Find me a pet-friendly cabin near a lake.” AR/VR previews offer immersive property tours. Semantic search understanding goes beyond keyword matching, interpreting the context and intent behind user queries to deliver more accurate and relevant results. This ultimately improves user satisfaction and reduces the time spent searching for the perfect accommodation.

Intelligent Customer Service

Like everything else, Artificial intelligence can also transform customer experiences in hospitality apps. Intelligent customer service enhances user experience and cuts costs. AI chatbots provide round-the-clock support for routine inquiries. Automated translation facilitates communication between hosts and international guests. Predictive issue resolution anticipates problems, improving satisfaction and minimizing negative reviews.

Enhanced Security Measures

Robust security builds trust in your audience, and this is something you cannot compromise in the long run. Biometric authentication, such as fingerprint scans, adds account protection. AI-driven fraud detection identifies suspicious activities in real time. Blockchain-based transactions create unalterable booking and payment records, reducing disputes and increasing platform trust.

Smart Property Management

IoT integration enables keyless entry and smart home controls, enhancing guest experiences. Automated cleaning scheduling ensures properties are always guest-ready. Real-time occupancy and revenue tools help hosts optimize pricing based on market demand and competitor analysis.

Community and Social Features

Social elements foster user engagement. AI-curated user content provides authentic insights. Gamification, like awarding badges to frequent travelers, encourages participation. Virtual events create a sense of community, potentially boosting platform loyalty and word-of-mouth promotion.

These innovative features cater to hosts and guests, streamlining operations and enhancing the overall travel experience in the evolving hospitality landscape.

Core Features & Cost Estimation

While developing a platform like Airbnb, various advanced features that affect the app’s functionality must be prioritized while finalizing the app’s development costs. This integration enhances the hospitality application’s functionality and user experience by making it intuitive, secure, and personalized for travelers and hosts. Below, we have discussed the features with you. 

• Registration: This is the most basic yet one of the fundamental features of any hospitality app. To begin, the consumer must sign up by providing an email and password registration. Registering yourself for future notifications can help you find your dream destination.
• Login: After registration, the consumers have to log in to the app, with several options mentioned accordingly, including email, Google account, and Facebook. In addition, the app development company adds functions like ‘Logout’ and ‘Forgot password’ to make apps like Airbnb more engaging and easy for consumers to use.
• Search: The advanced search system allows consumers to set the dates and number of guests for their trips. Renters can select accommodation, check availability, and send a booking request. Features like advanced search and filtering conveniently assist users in their stay based on specific criteria such as location, amenities, and pricing.
• In-app Chats: After requesting a stay, the guest and the host can discuss the details. This chat option enables the user to send pictures or videos. That can provide an honest view for consumers to check the condition of the place. The integration of community and social features will enhance app functionality and foster communication between guests and hosts with real-time interactions and visual previews. 
• Tenant/Property Owner Profile: Apps like Airbnb have two options: guests and hosts. Both can edit and add the data required for the profile, including full name, age, sex, etc., to ensure their apartment security. Smart property management empowers the hosts to direct their asset profiles with accurate and upgraded information for potential guests.
• Payment Gateway: These applications provide consumers with various payment options and opportunities to add and remove credit cards. Consumers can make online and offline payments according to their needs and feasibility. Security measures give the user peace of mind as their payment transactions and personal data are secured. 
• Order: The booking service app, which integrates AI features, allows you to provide personalized recommendations based on user preferences. Whether the consumer selects a flat or house, they can book if the accommodation is available on the chosen date.

While the exact cost of developing an Airbnb-like app can vary, here’s an updated estimate for core features:

Feature	Web Dev Hours	iOS Dev Hours	Android Dev Hours	Estimated Cost Range
User Registration/Login	60-70h	45-55h	45-55h	$7,500 – $9,000
Property Search & Filters	180-220h	150-180h	150-180h	$24,000 – $29,000
Booking Management	100-120h	80-100h	80-100h	$13,000 – $16,000
User Profiles	40-50h	30-40h	30-40h	$5,000 – $6,500
Messaging System	180-220h	140-170h	140-170h	$23,000 – $28,000
Review & Rating System	70-90h	60-80h	60-80h	$9,500 – $12,500
Admin Panel	150-180h	N/A	N/A	$7,500 – $9,000

Note: These estimates are for basic versions of each feature. With cutting-edge AI capabilities, costs may increase by 20-40%, but they can provide significant long-term value and competitive advantage.

Steps to Develop a Next-Gen Hospitality App

There is no alternative to a quality user experience, and Airbnb has successfully achieved this. For anyone diving into the hospitality/tourism business today, Airbnb could serve as a blueprint for success. Developing an app like Airbnb includes planning, design, development, and application. These steps can help business owners build a property rental app reminiscent of Airbnb.

Step 1. Conceptualize and Strategize

The first step in developing an application from scratch is having a strong vision. Define your unique value proposition to the app development company’s professionals. To compete and outperform Airbnb, you must have some solid, unique selling prepositions (USPs) for your ideal customers. You can seek help from any top-rated mobile app development company like Cubix, which has a proven track record in this niche. They will help you devise a business plan for working out booking services, unique AI features, or targeting an underserved market segment. 

Step 2. Platform Selection and Monetization Strategy

Secondly, Android and iOS are the safest platforms for making apps like Airbnb. Therefore, it is best to choose the better device environment for your application at the beginning. The development experts will conduct thorough market research and competitor analysis to understand your target audience. They will outline the business model and monetization strategy to determine how you’ll generate revenue and achieve profitability.

Step 3. Design UI\UX

Once the idea and platform are set for operating goals, consider hiring specialized UI/UX designers with experience in travel apps. Remember, your app’s journey will affect your user’s overall experience more than anything else. Once you have an expert UI/UX team at your back, proceed with the sub-steps, including sketches, wireframes, mockups, and prototypes. Create intuitive UI/UX designs, develop user personas, and create journey maps to map users’ interactions with your app. 

Step 4. Features Integration

After that step, start with the Airbnb feature list for the app’s functionality. That includes host, admin, and guest features. Choose the technology stack, including frameworks for mobile and web. Determine AI and ML tools and platforms to plan for scalable infrastructure. Implement basic AI capabilities, including simple recommendation systems, and then gradually introduce more advanced AI features.

Step 5. MVP Development and Testing

Prioritize core features for the initial launch by focusing on functionalities like search, booking, and basic user profiles. Then, thorough testing will be conducted across various devices, operating systems, and network conditions. Hire external security experts to perform security audits and penetration testing. 

Step 6. Launch and Iterate

Gather beta data user feedback for refinement and then launch your app to the market. Monitor the performance and user feedback via analytics tools to track key metrics and user behaviors. The experts will enhance and add features based on user demands and business impact.

Monetization Strategies for Hospitality Apps

Hospitality apps are not just for travelers but also for seasoned entrepreneurs and businesses. Yet, developing a long-term and successful hospitality app requires an effective monetization strategy. These strategies should align with the hospitality app’s value proposition, target audience, and market trends. 

• Transaction Fees: This is the most preferred monetization strategy in vacation apps. Charge a percentage on each booking, typically ranging from 3% to 15%.
• Premium Listings: Provide hosts with paid options to boost visibility, such as featured listings or professional photography services.
• Subscription Model: Offer exclusive benefits to monthly or yearly subscribers, such as discounts on bookings or priority customer support.
• Add-on Services: Collaborate with local businesses for tours, dining, etc., to earn a commission on additional bookings.
• Data Monetization: Provide valuable, anonymized insights to partners in the travel industry or local governments for urban planning and development.
• Advertising Opportunities: Implement a targeted advertising platform for relevant businesses, such as local restaurants or activity providers, to reach app users.

Ready to Develop an Airbnb-like App with Cubix?

Starting on a journey to develop an application akin to Airbnb is undoubtedly a formidable task. The success of such platforms depends on meticulous planning and execution that ensures every essential feature is seamlessly integrated. Airbnb’s global impact and resonance didn’t emerge overnight; rather, it evolved through strategic messaging and adept timing. 

For those venturing into creating their tailored vacation rental app, partnering with Cubix is a go-to choice. With our seasoned team of 350+ artists, architects, designers, developers, and engineers, Cubix is not just building next-gen technological solutions but also creating an end-to-end strategy to transform your customer experiences and make your app idea the next big hit. Our industry-proven expertise combined with top-tier mobile app development services ensures that your vision of a robust, user-centric platform akin to Airbnb can become a reality, resonating with users worldwide.

Ready to bring your vacation app idea to life? Contact us and create something great together.