While AirBnB's marketing spend may be lower, their operating margin is still much lower than Booking's. What are the other costs that lead to AirBnB lose the operating margin?
Great question! Airbnb's model involves managing a vast network of individual hosts and properties, leading to higher costs associated with customer support and trust and safety measures. They are also reinvesting in the product (Experiences, new markets, mobile app features, and so on).
The fees are based on a percentage of bookings (the money spent by guests on the platform). So, it applies to all bookings (which include all nights booked). I hope this makes sense!
