Airbnb, formerly known as AirBed & Breakfast, is an online marketplace that connects guests with local hosts. The company’s founders began by hosting visitors on air mattresses in their living room, thereby converting their apartment into a bed and breakfast.
Airbnb is a well-known online marketplace where property owners may offer their homes, flats, or rooms for short-term rentals. The need for economical and pleasant housing is increasing in Nigeria, creating an excellent opportunity for entrepreneurs to launch an Airbnb business. In this article, we will take more time to explain all of its features.
What Is Airbnb?
Airbnb is a website where you may find cozy apartments for a long or short-term stay away from your house or area of residency while still feeling at home. More akin to what we commonly refer to as service apartments.
This service assists property owners in renting out a portion of their property, the complete property, or a small portion of their property to tourists. These tourists could be passing through, short-term guests, stranded visitors, vacationers, or even locals looking for a place to unwind away from home. In any case, the goal is to have a cool environment away from home.
Airbnb In Nigeria
Airbnb has become the widely accepted appellation for vacation or short-term rentals in today’s lodging rental sector. This Airbnb is mainly an uncharted area in Nigeria. Even though many individuals in Nigeria are unaware of what an Airbnb service is or how it works, many others are already using it to avoid paying high hotel bills.
Apart from providing housing at a lower cost than hotels, Airbnb services also provide a comfortable environment away from home. People who want to learn about the culture of a new place will benefit more from renting an Airbnb home than from staying in a standard hotel.
Prior to the arrival of Airbnb Homes in the Nigerian market, only the foreign-based Airbnb attempted to answer the problem of short-term vacation rentals in Nigeria. While the latter had the advantage of being in the market longer, the former had the advantage of being aimed primarily at Nigerians and allowing customers to pay in Naira rather than USD.
Aside from these two big competitors, there are several luxury apartment rental companies, such as Shortlet Homes and so on. While these property rental firms address short-term housing rental demands in Nigeria, they are mostly focused on luxury apartment rentals and do not respond to the needs of common people, who are generally interested in economical conventional apartment rents.
How Airbnb Services Operate
A peer-to-peer model is common in Airbnb services. This enables two types of users: hosts and guests. The hosts, who are also property owners, list their property on the Airbnb website, which may comprise communal space, individual rooms, or a full apartment. Guests who are also property tenants and maybe travellers book the hosts’ properties for a limited time.
#1. How Airbnb Works for Hosts
The process for hosts on Airbnb websites is relatively simple. It is frequently used in the following order:
- Property for rent on the host’s list
- Reservations are accepted by the host.
- The host sends an invoice for payment.
- The reservation has been confirmed by the hosts.
#2. How Airbnb Works for Visitors
The process of selecting and making an Airbnb reservation is significantly easier for visitors. It frequently occurs in the following order:
- Guests look for houses and select their favorites.
- A reservation is made by a guest.
- Payment is made by the guests.
- The guest is given the exact location and address of the property.
Why Should I Launch an Airbnb Company in Nigeria?
If you’re thinking about launching a business in Nigeria, you might be wondering why you should think about an Airbnb business.
Here are some compelling reasons why launching an Airbnb business in Nigeria would be a good idea for you.
#1. High demand for short-term rentals
Nigeria has a developing middle-class traveler population looking for economical and quality accommodations. With a scarcity of traditional hotel rooms, there is a high demand for short-term rentals, and Airbnb has emerged as a popular alternative.
This creates a fantastic opportunity for entrepreneurs to capitalize on this demand by offering their properties on Airbnb.
#2. Source of Revenue
Starting an Airbnb business can be an excellent way to supplement your income. If you have an extra room or a vacant property, you may post it on Airbnb and earn money by renting it out. Depending on your availability and preferences, you can rent out your room on a part-time or full-time basis.
#3. Work Hours that are Flexible
As an Airbnb host, you have the freedom to decide when and how frequently you wish to rent out your property. You have the flexibility to work around your schedule and rent out your space only when it is convenient for you. This makes it an excellent choice for folks who wish to supplement their income without committing to full-time work.
#4. Low Initial Investment
In comparison to traditional businesses, starting an Airbnb business has low initial costs.
You do not need to invest in a physical site or recruit staff. Instead, you may use Airbnb to sell your existing space and start making money immediately.
#5. Possibilities for Networking and Relationship Building
As an Airbnb host, you will have the opportunity to meet and establish relationships with individuals from all over the world.
This can be an excellent method to network and meet individuals from all origins and cultures.
#6. You Have an Interest in Real Estate
Real estate is one business that will endure as long as man’s civilization exists. You cannot exist without an interest in real estate; every human being on the planet requires shelter to survive.
Starting an Airbnb Business is a definite road to the real estate industry if real estate is one of your interests.
#7. Airbnb is More Profitable than Traditional Rental
Rent is collected annually in Nigeria, and it may be tough to renew because most people cannot renew the rent, which generally results in a court case or having to evict them manually. Because you charge per day, a fully booked Airbnb rental may be more profitable than renting the same house to a long-term single tenant.
#8. Low Initial Startup Costs
Starting an Airbnb business has low startup costs. Unlike typical hospitality businesses, which involve substantial expenditures in property, equipment, and personnel, an Airbnb business can be launched with little more than a spare room and some basic amenities.
How do I Start an Airbnb business in Nigeria?
Starting an Airbnb business in Nigeria might be a terrific way to earn money by renting out your property to tourists.
As Nigeria’s travel and tourism industries expand, there is an increasing demand for economical and quality housing choices. This post will walk you through the process of starting an Airbnb business in Nigeria.
#1. Understand the Real Estate Industry
A real estate business is a company that deals with the purchasing, selling, and investing in real estate.
Starting a real estate investment firm will not be easy, but with proper planning, it will be well worth the effort.
Airbnb operates in proximity to a city’s central business district. You can’t build a property in a rural region and expect Airbnb to succeed.
#2. Register your Home
Before you can offer your house on Airbnb in Nigeria, you must first register it with the necessary authorities.
This includes getting a Certificate of Occupancy (C of O) as well as any permits or licences required. You should also make certain that your property fulfils all safety and health standards.
#3. Identify your Property
The first step in launching an Airbnb business is deciding what type of property you will rent out. This could be a spare room in your home, an apartment, or even the full property. Consider your property’s location, features, and size to decide the type of traveller you can serve.
#4. Find a Place to Live
After you’ve decided on the type of property you’ll be renting out, the next step is to get it ready for guests. It takes a lot of effort to find an apartment in Nigeria. To start an Airbnb business, your flat must be close to the city, airports, or a commercial site.
You should also ensure that your flats are well-equipped with amenities such as the Internet, a refrigerator, power, and running and clean water.
#5. Create an Airbnb Account and List your Property
Signing up on Airbnb is free, as is listing your property. Only once you obtain a booking will you be required to pay Airbnb hosting costs, which are typically 3% of the listing price. To list your property on Airbnb, you must first set up an account. You will be able to establish a listing for your home, handle bookings, and connect with visitors using this tool. You will also need to supply information about your property, such as its location, capacity for guests, and pricing.
#6. Market Your Company
It’s time to start notifying people about your new business now that you’ve posted it on Airbnb.
This information is optional because Airbnb has an algorithm that promotes your listing to potential purchasers on the marketplace.
To attract guests to your Airbnb property, you must successfully market it. Creating a detailed listing with high-quality photographs and descriptions, reacting quickly to visitor inquiries, and keeping great guest ratings are all part of this.
#7. Greet Your Visitors
It is critical to be a good host once you have guests scheduled. This includes giving your guests clear check-in and check-out instructions, being ready to answer questions or resolve issues, and offering a clean and comfortable environment.
#8. Manage Your Company
It is critical to efficiently manage your business if you want to establish a profitable Airbnb business. This includes keeping accurate records of your income and spending, managing your calendar to ensure that your property is available for bookings, and providing a high level of customer service to ensure a great experience for your guests.
#9. Provide a Pleasant Guest Experience
To ensure a great experience for your guests, provide clear directions to your home, be ready to answer any questions or concerns they may have, and provide a clean and comfortable area. You should also be ready to deal with any problems that may develop throughout your stay.
What is the Price of Airbnb in Nigeria?
One Airbnb listing can cost up to $45 per night, which is around N16,200. Not only is that excessive but there are additional fees involved. There are less expensive hotel rooms available that are nonetheless comfortable.
Is Airbnb Available in Nigeria?
Airbnb services in Nigeria are a solution designed to address the needs of ordinary people looking for comfortable lodging away from home.
Is it Possible for Anyone to Launch an Airbnb?
While practically anybody may become an Airbnb host, there are a number of conditions and expectations that must be met in order to maintain a high level of quality.
How Do I Get Paid on Airbnb in Nigeria?
To make money on Airbnb, you can use these two methods:
- PayPal: By linking your PayPal account to your Airbnb account, you will be able to receive payments directly to your PayPal account.
- Bank transfer: You can link your bank account to your Airbnb account and receive money directly from it.
Is Airbnb a Viable Business?
Yes, AirBnB remains lucrative. The tourist industry is massive, and there is surely room for you to profit from it.
Conclusion
AirBnB is a well-known vacation rental business that is gaining traction in Nigeria. It offers both advantages and disadvantages for the local tourism business. On the one hand, it allows homeowners to generate extra money while also providing travelers with more cheap and interesting lodging options. On the other hand, it may pose a threat to traditional hotels and have a negative impact on the local economy.
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