How Much Does it Cost To Develop an App Like Airbnb?

Over the past few years, the tourism and hospitality industry has grown significantly with an exploding social media influence and intense traveling activities across the world. Since 2021, the sector has witnessed a boost as it grows by 7%  to $4.7 trillion in 2023, and the pace is showing no sign of slowing down. Tapping into this evolving scenario, Airbnb, as one of the most popular booking services, has significantly contributed to this growth over the past decades. It has reshaped the way we travel by offering a combination of luxurious accommodation and guest experience at an affordable price. Its growth continues in 2023 as well, with 16.6% more listings on this platform. 

In 2023, Airbnb earned a net income of $4.4 billion, prompting many entrepreneurs to build a booking app like Airbnb. The strong revenue growth Airbnb has maintained in the past few years is nothing but phenomenal and tells us how rewarding its business model is. Undoubtedly, it is an exciting venture, and you may be wondering how to create an app like Airbnb and what its cost would be. If you’re a startup owner looking to build an app like this or an established business exploring new opportunities, this comprehensive article will help you get in-depth insights on building a booking platform like Airbnb. So, stay tuned till the end.  

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

The cost of making an app like Airbnb depends on various factors, and businesses often face hurdles in understanding and analyzing these factors. These factors include the complexities of the app’s features, technological requirements, UI/UX design components, and the location and operating area of your development team. 

Based on these factors, we can estimate the cost of building an app like Airbnb between $40,000 and $300,000. In addition, the development cost for a booking app depends on the development hours required to complete each portion of an app. Advanced and unique features like search and recommendation algorithms, AI chatbots, third-party integrations, etc., can also influence the cost of developing an app like Airbnb. Let’s break down the costs of developing an advanced booking app like Airbnb while comparing the development costs between European, Asian, and South American regions.

In addition, the cost of building an app like Airbnb can also be categorized by the different phases of the development process. An estimated cost breakdown in such cases can be something like this:

Pre-Development Costs

• Market Research & Requirement Analysis: Depending on the research depth and the tools used, many IT companies charge clients $5000-$8000 to analyze the market scenario and competition. They also charge around $5,000 – $10,000 to analyze the project complexities and the business potential for stakeholders.

Pro Tip: There are a few app development companies like Logic Square Technologies that perform market research and requirement analysis free of charge, saving startups and small businesses a lot of money. 

• Design Costs
  • Wireframing: $1,000 – $2,000 (Complexity of wireframes)
  • Prototyping: $3,000 – $8,000 (Level of interactivity and fidelity)

Development Costs

• Backend Development: $20,000 – $50,000 (Complexity of functionalities and chosen technologies)
• Frontend Development: $15,000 – $40,000 (Platform (iOS/Android) and design complexity)

Testing and Quality Assurance

• Manual Testing: $5,000 – $10,000 (Number of devices and testing scenarios)
• Automated Testing (Optional): $3,000 – $10,000 (Depending on chosen automation tools)

Launch Costs

• App Store Fees: $100 – $200 (Per platform – iOS App Store and Google Play Store)

Ongoing Costs

• Hosting: $500 – $2,000 per month (Scalability needs and server infrastructure)
• Support and Maintenance: $2,000 – $5,000 per month (Bug fixes, updates, and security patches)

Factors Influencing The Cost To Build An App Like Airbnb

The factors influencing the cost of developing property-listing apps like Airbnb play a pivotal role in determining the overall expenses of your property booking business model. Let’s explore the factors in detail.

#1 Complexities Of Features:

The complex features of your property listing app can significantly influence the development cost. If you have decided to build your app with essential features like user registration, property listings, search and filter options, booking systems, and payment integration, your app development cost will be reasonably low. However, if your app has advanced features such as dynamic pricing, advanced search filters, property management tools, and machine learning for personalized recommendations, the development cost can shoot up significantly.

#2 Platform Choice:

Another factor that can influence the cost of building an app like Airbnb is the choice of app platform. If you want to develop your property listing app for a single platform (iOS or Android), it will generally cost less than building a cross-platform app. However, in the long run, developing a cross-platform app can help you save precious time and money by maintaining a single codebase for both iOS and Android platforms.

#3 Design Requirements:

The UI-UX design complexity of a property listing app can influence the cost of developing an Airbnb-like app. Simple, clean designs are less expensive to develop than custom, vibrant, and highly interactive designs. However, high-quality user experiences often require more time and specialized design skills, thus increasing the development cost.

#4 Development Team Location:

Development costs vary significantly based on the geographic location of the development team. For instance, developers in North America and Western Europe generally charge higher rates compared to those in Eastern Europe, Asia, and other regions.

#5 Technology Stack:

The choice of technology stack impacts the overall cost, with some technologies requiring more specialized knowledge or longer development times. For instance, if you want a cost-effective solution to build your app’s backend framework, you should choose Node.js. On the other hand, if your choice is Django, the costs can be higher. In addition, Django requires developers to have expertise in Python, which can sometimes command higher rates.

Core Features of an Airbnb-Like App

1: User Registration and Login

• • Email and password registration
  • Social media login (e.g., Facebook, Google)
  • Password recovery

2: User Profiles

• • User bio and photo
  • Contact information
  • Verification (ID, email, phone number)

3: Search and Filter Options

• • Search by location, date, and number of guests
  • Filters for price range, property type, amenities, etc.
  • Map view for property locations

4: Property Listings

• • Detailed property descriptions
  • Photo Galleries
  • List of amenities
  • Pricing information

5: Booking System

• • Availability calendar
  • Instant booking or request to book
  • Booking confirmation

6: Payment Integration

• • Secure payment gateways (credit/debit cards, PayPal, etc.)
  • Currency conversion
  • Payment receipts

7: Reviews and Ratings

• • Rating system for guests and hosts
  • Written reviews
  • Review moderation

8: Messaging System

• • In-app messaging between guests and hosts
  • Push notifications for new messages
  • Message history

9: Admin Panel

• • User management (guests and hosts)
  • Property management
  • Booking management
  • Payment and transaction management
  • Reporting and analytics

Advanced Features of an Airbnb-Like App

1: Advanced Search Filters

• • Search by neighborhood
  • Advanced amenities (e.g., pet-friendly, kid-friendly, wheelchair accessible)

2: Dynamic Pricing

• • Innovative pricing based on demand, season, and local events
  • Price suggestions for hosts

3: Property Management Tools

• • Multi-calendar for hosts managing multiple properties
  • Automated messaging templates
  • Task management for cleaning and maintenance

4: Machine Learning and AI

• • Personalized recommendations for guests
  • Fraud detection and prevention
  • AI-driven customer support

5: Integration with Third-Party Services

• • Integration with local services (e.g., car rentals, tour guides)
  • Home automation (smart locks, thermostats)

6: Loyalty Programs

• • Rewards and points system for frequent users
  • Referral programs

7: In-app guides and Local Experiences

• • Local guides and recommendations
  • Booking of local experiences and tours

8: Multilingual Support

• • Multiple language options for global accessibility
  • Localization of listings and user interface

9: Guest and Host Insurance

• • Built-in insurance options for bookings
  • Claim management system

10: Advanced Analytics for Hosts

• • Insights on property performance
  • Market trends and competitor analysis
  • Recommendations for improving listing visibility

11: Video Tours

• • Virtual tours of properties
  • Video walkthroughs for a more immersive experience

12: Social Media Integration

• • Share listings on social media platforms
  • Social media profile linking for verification

13: Calendar Syncing

• • Sync with external calendars (Google Calendar, iCal)
  • Avoid double bookings

14: Multi-Currency Support

• • Automatic currency conversion based on user location
  • Display prices in multiple currencies

15: 24/7 Customer Support

• • In-app chat support
  • Help center with FAQs and guides

Steps To Develop An App Like Airbnb:

Building an app like Airbnb is a daunting task that requires in-depth analysis and a strategic approach. You must hire an experienced development company that follows an innovative and agile methodology and blends it with extensive research and planning. Let’s explore the steps required to make an app like Airbnb.

1: Market Research and Planning

• • Identify target audience and competitors.
  • Define a unique selling proposition (USP).

2: Define Project Scope and Requirements

• • List core and advanced features.
  • Choose a technology stack (backend and frontend).
  • Decide on platforms (iOS, Android, or both).
  • Estimate budget and timeline.

3: Design Phase

• • Create wireframes and interactive prototypes.
  • Design user interface (UI) focusing on user experience (UX).

4: Backend Development

• • Design the database.
  • Develop APIs for frontend-backend communication.
  • Implement server-side logic (e.g., user authentication, payment processing).

5: Frontend Development

• • Implement user interface.
  • Integrate with backend APIs.
  • Ensure responsiveness across devices.

6: Testing and Quality Assurance

• • Conduct unit and integration testing.
  • Perform user acceptance testing (UAT).
  • Fix identified bugs.

7: Deployment and Launch

• • Set up servers and hosting.
  • Submit the app to app stores (Apple App Store, Google Play Store).
  • Execute a launch marketing strategy.

8: Post-Launch Activities

• • Monitor app performance and user feedback.
  • Provide customer support and regular updates.
  • Continuously enhance features based on feedback.

9: Scalability and Growth

• • Optimize performance.
  • Expand to new markets and regions.
  • Form partnerships and integrate additional services.

How To Monetize an App Like Airbnb?

To monetize a platform like Airbnb, you should consider generating revenues from both hosts and guests. You should implement a fair pricing technique and a compelling value proposition approach to stay competitive and perceived as fair by both guests and hosts. Here are a few primary methods of monetization applicable to both guests and hosts. 

Revenue Streams For Hosts:

• Service Fee: It is one of the most common monetizing methods for generating revenue from hosts, i.e., the properties listed on the booking app. You can ask them for a percentage of the booking price to list the properties on your platform.
• Featured Listings: You can provide hosts with premium options where hosts can pay fees to have their listings prominently showcased on your platform and increase the visibility of their businesses on your platform.
• Photography Services: Consider offering professional photography services to your hosts, enabling them to boost their properties through high-resolution images and allowing you to earn some additional money. 
• Host Guarantee: Offering your hosts enhanced and sophisticated security features can allow you to charge premium fees and ensure the highest protection for your clients. 

Revenue Streams From Guests:

• Service Fee: Similar to hosts, guests are charged a percentage of the booking price.
• Booking Fees: Additional fees can be applied for certain booking types (e.g., instant booking, same-day bookings).
• Additional Services: Offer value-added services like travel insurance, activity bookings, or rental car services.
• Premium Subscriptions: Provide exclusive benefits to guests for a subscription fee (e.g., priority customer support, discounts).

How Logic Square Technologies Can Help You Make An App Like Airbnb?

Do you want to develop an app like Airbnb in a budget-friendly way? Logic Square Technologies, a leading mobile app development company in the USA and India, might help you out. Here, we offer an effective development process that perfectly blends frugal engineering, a sharp talent pool, a lean MVP model, and innovative collaboration, ensuring you get the best value for your investment.

We work with you at the pre-development stage to help you bring your vision to life. With our expertise in identifying market opportunities and proven technical know-how, we turn your ideas into reality. Partner with us to create a standout app and succeed in the competitive market. Contact us today to make the next big sensation in this industry!