Airbnb vs. Booking.com for Owners: Which Is Better?

Becoming a homeowner is one of the most significant parts of an adult’s life. But owners of multiple homes, apartments, or leasable properties can find themselves in a financially precarious situation if they don’t have rent-paying tenants for those properties.

Fortunately, companies like Airbnb and Booking.com offer some unique solutions for turning your property into a cash generating asset. But which platform is better?

Airbnb is the better option in terms of financial gain and property owner protection. Booking.com is much larger and could help property owners reach a far broader audience, but it has certain drawbacks that are significant enough to avoid the platform altogether.

In this article, we’ll be comparing both companies to discover which is the better choice for property owners. This way, you can choose the option that best fits your specific needs and preferences.

Airbnb Overview

Airbnb has had its fair share of legal troubles, but it remains one of the most robust and competitive property-sharing services currently in existence. Vacationers hoping to avoid chain hotels or lackluster motels may choose Airbnb due to the variety of available properties and prices.

Property owners hoping to rent out their empty rooms or homes may be satisfied with Airbnb’s services. However, owners might also feel annoyed or short-changed after becoming a fully-fledged Airbnb host.

Reported experiences vary drastically, which is why we’ll need to take a closer look at Airbnb’s policies, fees, benefits, and drawbacks. To start things off, we’ll be examining the history of Airbnb.

History of Airbnb

Airbnb’s story is a fascinating one, and it’s somewhat comparable to many of the American legends surrounding successful entrepreneurs.

However, the founders of Airbnb didn’t monopolize railroads or the burgeoning steel industry. Instead, they bought three air mattresses and launched a website.

In 2007, two roommates in San Francisco, California, struggled to make ends meet. But while their bank accounts were empty, their creativity and craftiness were overflowing. Both realized that they could rent out their small loft to visiting tourists. At worst, it would net them a few extra bucks to help pay rent, buy more ramen, and keep the utilities working.

At best, it would become a $31 billion company. Brian Chesky and Joe Gebbia put down their air mattresses, welcomed their first guests, and then continued to struggle for several years. Though they felt that their idea for “Air Bed and Breakfast” was a winner, they failed to find many investors.

To help them secure some capital to develop their idea, they enlisted the help of their mutual buddy, Nathan Blecharczyk. Still, the determined trio would have to wait until the summer of 2009 to see the funds they needed to get to work. By 2011, Airbnb had become a worldwide phenomenon.

Hosting on Airbnb

Let’s examine Airbnb’s hosting policies, including the requirements, fees, screening tools, and payment options. We’ll also look at the listing process that hosts need to master when using Airbnb.

It’s crucial to remember that Airbnb’s policies and procedures occasionally change, so hosts should do their best to keep up with updates and changes as they arise. Fortunately, Airbnb provides a wealth of resources for hosts, ensuring that property owners are consistently aware of policy revisions and additions.

Requirements

The requirements for listing your property on Airbnb are relatively light. Property owners must be able to supply a clean space with a sleeping area. Guests must have access to an on-site restroom, preferably within the home, apartment, or living area.

Apart from that, restrictions are few and far between. Hosts must clean up after their guests, and due to fears concerning infection, hosts must also complete a specific series of cleaning and sanitizing tasks before re-letting their property.

Still, these requirements are straightforward. Most owners will be able to fulfill them without too much trouble. The major exception to this rule would be owners that live far from their Airbnb properties. In that case, hosts must invest in cleaning and maintenance services to act on their behalf.

However, property owners are still expected to fulfill other requirements after the initial sign-up and acceptance process. Some of these additional tasks include creating a House Rulebook, maintaining rapid communication with guests, and ensuring that properties are well-stocked with essential items like toilet paper.

Fees

Property owners aren’t expected to pay a monthly or annual subscription fee for becoming an Airbnb host. However, they will need to pay service fees.

Depending on where your properties are located (and whether you’re an Airbnb Plus host), these fees can range between 3% and 16% of the booking subtotal. Hosts that offer unique Airbnb experiences will also incur a 20% service fee.

If you were to list your property for $50 per night, you could expect to pay between $1.50 and $8 in service fees per booking. Property owners with a handful of properties could manage these costs without too much difficulty.

Hosts that have distinguished themselves by taking exemplary care of their properties, maintaining a near-perfect guest rating, and avoiding cancellations may be eligible to join Airbnb Plus. This program may make it easier for property owners to secure consistent bookings.

However, eligible candidates must pay a non-refundable $149 fee to opt into Airbnb Plus, with some drawbacks (our post on Superhost vs. Plus).

As such, Airbnb may invite some property owners into the program, but these owners may choose not to participate. Still, the average Airbnb Plus listing goes for $250, which is far more impressive than the average price for an Airbnb room ($165 per night).

Guest Screening Tools

Hosts have complete control over guest reservations. However, hosts can be penalized for rejecting bookings or canceling reservations. Slow rejections or multiple cancellations will lower a host’s Airbnb rating, which could hinder future reservations and exposure via the algorithm.

When you decide to list your property on Airbnb, you have two options for accepting or rejecting reservation requests. Firstly, you could do things manually. This option requires hosts to check their Airbnb app or host profile several times throughout the day. However, it also ensures complete control over which guests are accepted and which aren’t.

Airbnb hosts could also choose to use Instant Book, an in-site application that automates the booking process. Many hosts find this option far more convenient, primarily due to the filter options available. Property owners could limit bookings to high-rated guests, ensuring a pleasant experience for all parties.

You might also want to read guest reviews before accepting or rejecting a reservation, though this can be quite time-consuming. Hosts can also request a valid government-issued ID from their guests. Those that fail to provide photo evidence confirming their identity can be denied a reservation, and Airbnb typically doesn’t punish hosts who opt for this protection.

Payment Options

While the variety of payment options is often seen as a guest concern, hosts should also be aware of the different payment methods available. This way, Airbnb hosts receive their funds in a timely and expected manner.

Currently, Airbnb accepts several different forms of payment. These include:

• Credit Cards
• Debit Cards
• PayPal
• Google Pay
• Apple Pay

Airbnb also accepts site-specific credits as a form of payment. These credits are typically earned through referrals. Consequently, Airbnb credits may be the least-used payment form, while more traditional payment options continue to reign.

Property Listings

How easy is it to list your property on Airbnb? This question is common, and nearly every prospective Airbnb host asks at some point.

After all, a hosting service could be ideal in every way imaginable, but if the listing process is convoluted and challenging, it might be better to take your business elsewhere.

Creating and posting a listing is a straightforward process. Firstly, hosts will need to snap pictures of their property. Images that show clean, tidy spaces tend to attract the most guests. Secondly, hosts must create their virtual listing, uploading their photos, and writing a description of their property.

Finally, hosts are encouraged to create a set of House Rules for their listing. This rulebook should be a physical item that guests can access upon arrival. It may also be worthwhile to create a digital version to share online.

This rulebook should contain your desired behaviors and express any expectations you may have about the rented space. Smoking, pets, parties, cleaning, all of these issues can be addressed within this book.

Additionally, once a host has created a clear set of rules regarding their property, they can reuse these rules for all of their Airbnb properties.

As such, Airbnb hosts will likely spend the majority of the listing process taking pictures, uploading those pictures, and writing descriptions. Each property should only take about a half-hour or so to list, less time if you’ve already snapped some great shots of the space.

Profits

Lastly, it’s crucial to consider potential profits. One of the primary reasons property owners enroll with Airbnb as a host is they’d like to earn money from their uninhabited properties. If those earnings don’t outweigh the service fees and time costs, property owners may not opt to become an Airbnb host.

The average monthly earnings for a hobbyist Airbnb host are just under $1,000. That number rises dramatically for owners with multiple properties, hosts who treat their properties like a business, or hosts enrolled in the Airbnb Plus program.

Because guests are more likely to book with hosts with excellent ratings, property owners need to provide exceptional experiences and lodgings to earn more substantial profits. Still, this system rewards hard work and due diligence, with the most involved hosts often achieving the highest profits.

Owner Protections

Even with careful vetting, hosts may occasionally get poorly behaved guests.

Such individuals may cause substantial property damage. Flooded bathtubs, smashed furniture, and stolen electronics are only a few of the potential issues hosts may encounter.

Fortunately, Airbnb offers a Host Guarantee that helps discourage such activities and protect hosts. Still, who is liable if a guest becomes injured while on your property? According to the Airbnb Terms of Service, the company is not at fault for such incidences.

That’s why Airbnb also provides Host Protection Insurance. This extra coverage can help keep hosts protected against criminal negligence charges or full liability for the injuries, though not all situations qualify under this coverage.

The bottom line here is that hosts should have some kind of supplemental insurance and protection outside of what Airbnb offers. Otherwise, a singularly awful guest experience or mishap could devolve into a months-long small claims court battle.

Airbnb Guests

You may feel tempted to consider host-related material and ignore guest-related info. But it’s crucial to take the time to think about the ways the potential guests perceive your chosen service or company.

After all, a property-sharing service could offer tremendous benefits for hosts, but hosts aren’t likely to enjoy a profitable or satisfying experience if guests aren’t impressed. That’s why we’re going to take a quick look at how the Airbnb process affects guests.

Ease of Use

Airbnb has a handy smartphone app that makes it easier than ever to book a room, apartment, or home.

Guests can quickly and easily search through listings based on location, star rating, and amenities. Prospective travelers can also read reviews that previous guests have written about specific lodgings and hosts.

Thanks to Airbnb’s streamlined search engine function and voluminous amount of data (property pictures, reviews, host pictures, rulebooks, unique experiences, etc.), it is one of the easiest-to-use rental marketplaces.

Even those without a smartphone can book a room using their desktop or laptop browser.

Lodging Variety

Travelers looking to book a room with Airbnb have several lodging options.

They could choose a single private room, an entire house, or even a shared space. Airbnb also uses unique classification categories for some of its properties.

For example, guests looking for a taste of luxury can choose to search for an Airbnb Luxe property. These are all opulent, immaculately-designed homes fit for royalty. Alternatively, travelers could opt for an unforgettable experience that cannot be found elsewhere. These properties are called Unique Stays.

Indeed, part of the charm of this service is the variety of potential accommodations. However, if those spaces and properties aren’t kept spotlessly clean, the unique experiences and sumptuous amenities aren’t going to keep guests coming back.

Accommodation Cleanliness

The cleanliness of any given Airbnb property varies depending on the host’s proclivities. If they’re doing a supremely excellent job, guests won’t be able to find a speck of dust in their rented space. If they’re slacking off, the property may be filthy.

Still, the majority of Airbnb properties are kept fastidiously clean and neat. Properties that fail to meet these essential hygiene criteria tend to disappear from Airbnb after getting destroyed in the reviews.

As such, the average level of cleanliness for Airbnb properties is moderately high.

Still, guests must peruse the available materials and media before placing a reservation. Otherwise, they may be surprised at the state of their room or housing upon arrival, resulting in a negative experience for the guests and hosts.

Price

The average Airbnb property lists for anywhere between $20 and $3,000 per night. Naturally, pricier options tend to be the most palatial, well-kept, and majestic properties. Budget-friendly spaces may be simple, with a window overlooking an alley and only enough room for a small bed and bathroom.

This price variation allows for far more flexibility. Travelers that would have otherwise spent $100+ per night to reside in a hotel could save a ton of money by opting for an affordable Airbnb that has laundry and a kitchen.

This range in price is one of the most attractive features, and it also helps to ensure that Airbnb remains accessible to individuals of all economic backgrounds.

Location

Airbnb exists in nearly every country across the world. There are millions of listings from which to choose, and travelers can likely find some type of Airbnb accommodation upon arriving at their destination.

In many cases, properties that sport exceptional views or are near to popular attractions fetch higher rates than those in rural areas, unaesthetic areas. Still, guests are more than willing to pay the extra money for a stunning apartment or a conveniently-located bungalow.

Thanks to the plethora of potential lodgings, guests can book with Airbnb wherever they go, and at a moments notice.

Booking.com Overview

Now that we’ve delved into Airbnb and discussed the process of becoming an Airbnb host, it’s time to turn our attention to Booking.com. This lodging marketplace shares several things in common with Airbnb, though it does tend to offer far more hotel options than its competitor.

Still, you’ll need to familiarize yourself with these similarities to choose between Booking.com and Airbnb. You’ll also need to understand how these two lodging giants are different. Without further ado, let’s begin with a brief history of Booking.com.

History of Booking.com

Airbnb is less than two decades old, but Booking.com has been around since 1996. However, it didn’t start as Booking.com. Instead, this vacation rentals marketplace began its life as bookings.nl.

Back in 1996, a Dutchman named Geert-Jan Bruinsma constructed the rudimentary bookings site. Four years later, he’d merge his creation with another, Booking.org. From this unexpected combination was born Booking.com.

By the early 2000s, the improved site had a worldwide visitor base and audience, but larger companies like Expedia hadn’t picked it up.

That ended up working in Booking.com’s favor, as Priceline Group snapped up the site in 2005. Since that time, Booking.com has grown into a massive service. Notably, the site has gotten so popular that Priceline Group decided to rename itself to Booking Holdings.

Expedia, a travel service that was once the most popular option among web users, now takes second place to Booking.com. It’s not a stretch to say that Booking.com is the most popular and influential travel agency in the world.

So, how does it compare to Airbnb? Let’s find out!

Hosting on Booking.com

Booking.com seems to have added hosting capabilities somewhat recently. For several years, visitors could peruse flights, hotels, car rentals, and attractions, but they could not view private listings. Nowadays, Booking.com’s homepage has a new menu button, simply labeled “Stays.”

Travelers interested in eschewing the chain hotels and standard commodities can explore this new section to find available homes and properties.

Booking.com Requirements

Virtually anyone can list their property on Booking.com, which is undoubtedly one of its most outstanding features. The only thing you need to do to get started is to register as a host with Booking.com.

You’ll then create your listing or listings and press a select button to open your property to guests. Booking.com may or may not ask to verify your identity and location.

Booking.com Fees

Unlike Airbnb hosts, Booking.com hosts don’t pay service fees. But they do, of course, pay commission fees. On average, this fee is about 15% of the listing price. As such, a room rented out at $50 may incur a $7.50 fee. This is moderately higher than the service fees Airbnb charges.

Guest Screening Tools

Booking.com does not offer any guest screening tools.

After a property owner has listed their space, any guest can reserve a room. This process does not require host approval or review, which may come back to bite you. More on that later.

Payment Options

In the past, hosts had to set up their own payment processing system in order to take payments, but that may have changed recently.

Guests that decide to reserve a room through Booking.com can pay for their lodging with a debit card, credit card, PayPal, Alipay, and much more. As the property owner, you’ll need to decide whether you would like your guests to pay through Booking.com or pay you directly.

While it may be tempting to opt for direct payment, international travelers may have fewer difficulties if paying through Booking.com. As such, hosts will need to weigh their options before choosing a payment route.

Listings

Creating a listing is a straightforward process that typically occurs immediately after registration. Property owners will describe their space, take a few pictures, upload those images, and give themselves a pat on the back.

Profits

As with Airbnb, the average profits made with Booking.com often depend on the property, the upkeep, and the set lodging price. However, Booking.com may charge higher commissions and fees, resulting in a lower overall profit.

Owner Protections

If a guest doesn’t show up for their reservation, Booking.com won’t lobby to have any commission fees your way. Your Booking.com host reputation will remain unpenalized, which is a comforting bonus.

Should you begin to grow concerned about potential damages caused by guests, you could choose to implement a damage deposit scheme.

This requires guests to make a hefty safety deposit before booking with you. It may deter some travelers, but it will help you keep your belongings safe from harm or easily replaceable.

However, if guests suffer an injury while on the property, they may file a lawsuit against the host. It’s unclear if Booking.com would be liable, though previous litigation favors the property owner over the company in terms of liability.

Booking.com does not offer any host guarantee or insurance like Airbnb.

To make matters worse, Booking.com has a sneaky double-booking policy where, in the event your calendar isn’t synced in time and someone books your property, you have to pay the relocation costs for that guest.

For a hotel this isn’t a big deal, because they likely have other rooms. But for a homeowner, this can be a big deterrent.

Guests

Just as we took the time to analyze Airbnb’s guest experience, we’ll be discussing how visitors and travelers feel about Booking.com.

To achieve this feat, we’ll examine how easy it is to book with Booking.com, how many accommodation types are available via this site, and how expensive the average room is.

We’ll also touch on cleanliness and location, as both aspects can influence a guest’s perception. Finally, we’ll go ahead and make a final comparison between the more novel Airbnb and its predecessor, Booking.com.

Ease of Use

Reserving a room with Booking.com is an effortless thing to do. In addition to the website, there’s also a downloadable app that travelers can access for convenient booking.

Lodging Variety

Sadly, there’s not much to say here. Booking.com does allow guests to filter through accommodation types when searching for lodging at their destination, but it primarily offers two types of places: Chain hotels and private apartments.

That’s not a ton of variety. And to be honest, isn’t a very attractive place to list your unique property and have it stand out.

Accommodation Cleanliness

Most of the properties listed on Booking.com are hotels, inns, and bed and breakfasts. While they offer travelers the opportunity to browse private rooms and apartments offered by property owners, pickings are relatively slim for many destinations.

Consequently, most Booking.com lodgings feature an average level of cleanliness that is standard across most hotel chains. Privately-owned spaces may be less tidy. While Booking.com does encourage its hosts to clean properties before and after guests arrive, their cleaning policies are less strict than Airbnb’s.

Price

Rooms on Booking.com vary in price depending on the time of year and location. Still, hotels range in price from $40 to $500 per night. Private homes and apartments are equally priced, though the average cost for such property is slightly higher.

For example, you could find a room at one of San Francisco’s many hotels or inns for an average of $100 per night, or you could stay in an associated property for about $300 per night. Guests that are determined to enjoy an authentic experience free of chain hotels may be willing to split the price difference.

Location

There’s a reason why Booking.com is one of the most massively popular travel sites on the planet. Not only is it available in tons of languages, but there are Booking.com accommodations nearly everywhere.

Essentially, if there’s a hotel at your destination, Booking.com has a profile ready and waiting for that hotel. As property owners continue to participate, shared and private rooms and homes will make a more substantial appearance on Booking.com.

Still, many of the locations offered on Booking.com are hotels, so travelers seeking well-verified privately-owned properties may not be satisfied with the current offerings. Only time will tell if this trend changes.

Which Is Better Between Airbnb vs. Booking.com for Owners?

Choosing between Airbnb and Booking.com can be challenging. The better option for you depends on your preferences, the number of properties you own, and your desire for fast profits.

If you own a couple of properties, or just one, Airbnb might be the better choice. Service fees are generally low, and there’s little competition from hotels. Still, you cannot beat the visibility you could experience on Booking.com.

Sadly, Booking.com hasn’t made as much headway into the private rental market, preferring instead to primarily focus on hotels, motels, and bed and breakfast places.

However, property owners could enjoy a similar success level with Booking.com, especially if they’re providing properties with exceptional amenities or unique features.

At this point, Booking.com is doing everything it can to extend further into Airbnb’s marketplace territory.

Thanks to a slew of court cases, the Airbnb company may be too preoccupied to notice Booking.com’s policy and operations changes. But the future of the virtual vacation rental marketplace could go either way.

Conclusion

Airbnb and Booking.com are both travel and vacation websites that offer users the opportunity to reserve accommodations worldwide. Airbnb primarily provides properties that are privately owned by Airbnb hosts.

Booking.com still features a social bias toward chain hotels, but it is the most popular travel reservation website and is more popular than Expedia.

This could be a good opportunity for the intelligent marketer. The best option for property owners hoping to earn some money from their uninhabited digs, at this point, remains Airbnb.