The sharing with the place has created a boom in the marketplace. Nowadays, it has been growing in different cities, as accommodation has now become a must. Everyone is willing to grab the fair share from renting their place by using this business model. Inspired by the idea of renting a place and earning from fare is a new way to make money online by connecting travelers and hosts on one platform. This category of business has a wide scope and hence is substantially a unique business idea for startups or entrepreneurs. Having a vacation rental business is a good startup business model.
“Vacation Rental Business: Marketplace Facilitating Accommodations”
One of the most popular examples of a successful vacation rental business is Airbnb. Herewith this business model, one can run their own property for rent and help others to find a better place for accomodation. For travellers it is one of the most convenient ways to book for an online accommodation with all the details of the place. This platform has made an ease for owners and travelers where everything goes on ethically. Hence it is one of the perfect examples for renting homes for other users and the transactions are also easily managed.
How Does a Rental Business for Startups and Entrepreneurs Help to Make Money?
Starting with any rental platform or rental business, it all depends upon the number of services being provided. In order to extend the revenue streams, different types of services are also taken into consideration. This gives entrepreneurs a number of services, in turn, giving additional ways to make money.
Commission:
With the help of this business platform, entrepreneurs can charge a commission. Users rent their stuff to travelers and can charge a commission on each transaction being done. Let’s consider if an owner rents his or her place for $100 to the traveler you can charge 20-30 % of the commission to each booking done from an individual traveler. This 20% is the earning received using this business model.
Transaction Fees:
The vacation rental software uses payment gateways, the transaction and payment been managed with the help of this payment gateway. Using the payment gateway the transaction fees are charged on every transaction done by the user. Hence, this is included in the profit margin on the platform where the payment gateway is used. Here the entrepreneur can also charge a little extra transaction fee, that could get extra earnings to the platform.
Value-Added Services
Some relevant value-added services are included for the service to earn money from the margins. This value-added service could be for anyone even if it is a new customer or an existing customer. For example, with your vacation rental software you can charge extra fees for pick and drop service for your users’ guests. You can provide something valuable or meaning services to your user can be counted as valuable added services. This can be done if you are having your own customizable vacation rental software.
Extra Charges
There are some charges that you can incur with your platform as miscellaneous costs. You can charge your user with extra charges, for example, last-minute booking fee, cancellation fee, property damage or penalty, surge fee, etc. all come under the category of extra charges.
Benefits of Stakeholders on Rental Business
There are three different stakeholders who are actively involved in your vacation rental software. The fair share is received by all of them and gets the right benefits accordingly.
Owner of the Property
The owner of the property has an opportunity to make money using this platform. Many of them have their ideal places for a long time and are just investing in maintaining the property. So they can give their property on rent to users or travelers and can earn by getting the fare of the rent. This could generate extra income for the owners.
To grab the attention of the users, owners can add their property pictures. It gives a more realistic idea to the travelers and can also help them to judge if it satisfies its requirement. This is like putting fuel into your tank to get more customers to the property.
Customers or Users
Herewith this platform, customers or users can use the best accomodation services for a limited time. Renting a place is cheaper than staying at a hotel. This can be better explained with the example of Airbnb. With Airbnb, one can get an affordable place to stay rather than hotels especially where there is a lack of hotels in a particular place.
Entrepreneur or Startup: As explained in the previous section, entrepreneurs or startups with their vacation rental software can facilitate the rental services and can earn money. It can be simply stated as connecting owners and travelers on one platform and making money in terms of commission. An entrepreneur can give the best service or functionalities to owners as well as travelers with their platform. Providing the best service is the backbone of any successful business or an entrepreneur. Get more positive reviews for your business, high search rankings and more booking from different users connecting worldwide.
Entrepreneurs Start Your Own Rental Business with Airbnb Clone Script
As a startup enabler, we at Ncrypted Technologies, offer customized scripts for creating a vacation rental marketplace and other scripts as well. Our Airbnb clone is a complete solution of startups or entrepreneurs with a wide range of features that creates a competent platform for rental business models. The model includes user authentication, secured payment methods and ready to use applications like Airbnb. It is a good idea for an entrepreneur to have their own affordable vacation rental business in quick time. Once from a start-up when it goes on connecting the owners and travelers globally it will connect a huge marketplace and create a large network. This will gain a successful business towards by using the idea of online vacation rental place
