Since its introduction in the Kenyan market, the Airbnb business currently has thousands of business people offering hosting services. Some of the most common hosting properties in Kenya include apartments and homes. Hence, his article will focus on how to start Airbnb business in Kenya.
What is Airbnb?
Airbnb is a technology company that allows business people to offer their properties for hosting purposes. In the process, they make an income by charging hosting fees. Airbnb came about to fill the gaps in traditional hosting service providers such as hotels. It was also driven by the need to offer home-like accommodation services across the world.
How does Airbnb work?
Airbnb offers a platform that connects both property owners and hosting service seekers. To ensure this happens, it all starts with adding the property details on the Airbnb portal. Some of the details available on the portal include the size of the house, amenities in place, and price.
After adding this information, interested customers are then able to visit the portal and select the property that suits their needs in form of location, size, and price. If the customer is interested, they make a booking by paying the hosting fees
In the process, Airbnb benefits by charging a commission from this transaction of 3%.
Benefits of starting Airbnb business in Kenya
It is a great source of passive income– As long as you have the property listed on Airbnb, you don’t have to do much but wait for bookings. This type of job doesn’t consume much time or effort but the income keeps coming.
Ability to set your rates– The platform allows you to set the hosting fees. This flexibility is key to matching changing business needs and opportunities.
Low business risk– The details of both the business owner and customer are well known and online helping to minimize potential risks such as theft and lack of payments. If they do happen, it Is easier to identify those responsible.
Insurance cover– Airbnb offers insurance cover for your property in case of damages by the customers. This makes it possible to do repairs without extra costs on your end.
How much does Airbnb business make in Kenya?
The amount of money you can make from the Airbnb business is dependent on several factors such as price per night, Airbnb commission, and government tax. The demand level is also key as you could have some days without a customer resulting in a reduction in income. On average, the business in Kenya records 60% of bookings per month.
The price per night is the amount you charge the customers. However, the rest are costs including maintenance and utility charges.
For a standard room, the average income is 30,000 to 50,000 shillings. However, this could go up to 1 million shillings depending on demand and the size of the house.
How to start Airbnb business in Kenya
Step 1: Own a hosting property. This could inform of an apartment, house, or cabin.
Step 2: Register with Airbnb to become a hosting portal. You will need your phone number, date of birth, and email address to create an account.
Step 3: Select the type and location of the property you are planning to use in hosting. This could be either a house, apartment, or bed and breakfast.
Step 4: Upload the property photos. Airbnb requires you to upload at least 5 photos of the property on the platform. This enables them to review if it is as per the specifications.
Step 5: Payment of License fees to the Kenya Tourism Regulation Authority (KTRA). This is the body that regulates this business and fees are both one-off and annual.
Step 6: Setting fees and activation. This process involves setting your hosting fees as per the business status. Once complete, Airbnb activates you to start receiving customer requests.
Step 7: Marketing. Just like all businesses, marketing is a key business strategy to grow your customer base. Some of the best ways to do so are through use of social media platforms to market.