What Airbnb Does
Airbnb is a marketplace that connects people who have spare rooms or properties with people looking for short-term lodging. The platform does not own the properties or employ the hosts — it operates the website and app where listings appear, handles the booking and payment system, and provides customer support to both sides. Hosts set their own prices and house rules. Guests search by location and dates, read reviews from previous visitors, and book directly through the platform.
The company takes a cut from each booking: typically 3 percent from the host and 14 to 16 percent from the guest, though these rates vary by country and booking type. Airbnb holds the guest's payment temporarily, releases it to the host after check-in (or after a dispute is resolved), and keeps its commission. The platform does not inspect properties, verify that hosts own what they claim to rent, or may provide the condition of any listing.
Key Takeaways
- Airbnb is a booking site where private hosts list rooms or whole properties; the company does not own the properties or manage them day-to-day.
- Hosts set their own prices, house rules, and cancellation policies, and Airbnb takes a percentage of each booking as its fee.
- Guests pay through the platform, which holds the money until after check-in, and can read reviews from previous guests before booking.
- The platform offers some protections — a host damage may provide for guests and a guest cancellation policy — but does not inspect properties or verify listings.
- Disputes between hosts and guests go through Airbnb's resolution center, where the company decides who gets refunded or paid.
How Hosts List and Earn Money
A host creates a listing by uploading photos, writing a description, setting a nightly price, and choosing house rules and a cancellation policy. Airbnb does not review the listing for accuracy or safety before it goes live. The host decides whether to rent a whole property, a private room, or a shared room, and can block dates when the property is not available.
When a guest books, Airbnb collects the payment and holds it. The host receives the money after the guest checks in, minus Airbnb's commission and any cleaning fees the host has set. If a guest cancels, the refund depends on the cancellation policy the host chose — strict policies refund little or nothing, while flexible policies refund most of the booking cost. Hosts can also offer discounts for longer stays or last-minute bookings.
Hosts are responsible for cleaning, maintenance, and responding to guest messages. They can see guest reviews and ratings before accepting a booking (if they have turned on that feature), and guests can see the host's rating and past reviews. Hosts with consistently high ratings and fast response times appear higher in search results.
How Guests Search, Book, and Pay
A guest enters a location and dates into the Airbnb app or website, and the platform shows available listings sorted by price, rating, or other filters. Each listing displays the host's name and rating, the property type, the nightly price, and photos and reviews from past guests. The guest can message the host before booking to ask questions.
When the guest books, they pay the nightly rate plus Airbnb's service fee (usually 14 to 16 percent of the nightly cost), any cleaning fee the host has set, and local taxes if applicable. Airbnb holds this payment and does not release it to the host until after check-in. If the guest cancels before the cancellation important date, they receive a refund according to the host's policy. If they cancel after the important date, they lose the money.
Guests receive a confirmation with the host's address and check-in instructions. Most hosts provide a door code, lockbox, or meet the guest in person. After checkout, guests can leave a review and rating of the host and property, which becomes visible to future guests.
What Protections Airbnb Offers
Airbnb offers a Host Damage may provide that covers up to $3,000 (in the United States) if a guest damages the property. The host must report the damage within 14 days and provide photos or receipts. Airbnb investigates and decides whether to pay the claim. This may provide does not cover normal wear and tear or damage the host caused.
The platform also enforces its Rebooking may provide: if a host cancels a reservation within 30 days of check-in without a valid reason (like an emergency or illness), Airbnb will rebook the guest in a comparable property at the same price or refund them. Guests can also dispute charges or request a refund through the Resolution Center if they believe the host misrepresented the property or failed to provide what was promised.
Airbnb's cancellation policies are set by the host, not the platform. Guests should read the policy before booking — some hosts offer full refunds up to 30 days before arrival, while others offer no refund at all. Airbnb does not force hosts to offer flexible cancellation.
What Airbnb Does Not Do
Airbnb does not inspect properties before they are listed, so there is no may provide that a property matches its photos or description. The company does not verify that hosts actually own or have permission to rent the properties they list. It does not provide cleaning, maintenance, or guest services — those are entirely the host's responsibility.
The platform does not may provide the safety or legality of a listing. In many cities, short-term rentals are restricted or banned, and hosts may be breaking local law. Airbnb does not check zoning laws or rental permits. If a guest or host has a serious problem — theft, injury, discrimination — Airbnb's support team handles it, but the company is not liable for what happens inside the property.
Airbnb also does not hold itself responsible for disputes over the condition of a property, missing amenities, or poor service unless the guest files a claim in the Resolution Center within a specific timeframe. The company makes the final decision on refunds and disputes.
How Airbnb Makes Money
Airbnb's revenue comes from the fees it charges on each booking. The guest typically pays 14 to 16 percent of the nightly rate as a service fee, and the host pays 3 percent. These percentages vary by country and booking type — monthly stays may have lower fees, and some regions have different rates.
The company also earns money from Airbnb Plus, a premium tier where hosts pay extra to have their properties vetted and listed as higher-quality, and from Experiences, where local guides offer activities and tours. Airbnb takes a cut from those bookings as well.
Disputes and How Airbnb Resolves Them
If a guest and host disagree about a booking — for example, the guest says the property did not match the listing, or the host says the guest damaged something — either party can open a case in the Resolution Center. Both sides submit their version of events, photos, messages, and any other evidence.
Airbnb's support team reviews the case and makes a decision. They may refund the guest, pay the host a damage claim, or deny both requests. The company's decision is final and binding. Guests and hosts cannot sue Airbnb over a booking dispute — the terms of service require arbitration instead.
Most disputes are resolved within a few days, though complex cases can take longer. Airbnb prioritizes cases where money is at stake or where a guest claims the property was unsafe or misrepresented.
Frequently Asked Questions
Is Airbnb legal where I live?
That depends on your city or country. Many places allow short-term rentals, but some restrict them to whole properties only, require hosts to register with the city, or ban them entirely in certain neighborhoods. Check your local housing authority or city website to learn the rules where you are. Airbnb does not verify that listings are legal.
What happens if a host cancels my reservation?
If a host cancels within 30 days of your check-in date without a valid reason, Airbnb will rebook you in a comparable property at the same price or refund you in full. If they cancel more than 30 days in advance, you receive a full refund but no rebooking. If the cancellation is due to an emergency or safety issue, the host can cancel without penalty.
Can I get a refund if the property does not match the listing?
You can request a refund through the Resolution Center if the property significantly differs from the photos or description. You must report the issue within a certain timeframe (usually before checkout or shortly after). Airbnb will review your photos and messages with the host and decide whether to refund you. Minor differences may not may have access to.
How does Airbnb handle discrimination or safety concerns?
Airbnb has policies against discrimination based on race, religion, gender, or other protected characteristics. If a host refuses to rent to you or treats you unfairly because of who you are, you can report it to Airbnb's support team. The company investigates and can remove hosts who violate this policy. For safety concerns like theft or assault, contact local police and then Airbnb support.
What if I damage the property — will I have to pay?
The host can file a damage claim against you through Airbnb's Host Damage may provide, up to $3,000 in the United States. The host must provide photos or receipts and file within 14 days. Airbnb investigates and decides whether you owe money. You can dispute the claim if you believe it is unfair or the damage was pre-existing.