>Does anyone really believe that this model has a future? Are we in that much of a bubble?
Sure it has a future. There are always problems to be solved with an original business model, but they will be (or at least continuously mitigated as a proportion of the overall business). Some examples:
1. AirBnB already ties into your FB network so you can see and rent to and from friends and friends of friends. I've found this very useful, though ABB should make it a more prominent feature of the site.
2. Now they've got insurance. If I were them I'd find some intrepid banker or actuary to figure out additional optional insurance they can sell to both hosts and renters. $50k is a good start, but I bet many places will want more. If a bunch of meth addicts trashed the country of Lichenstein, $50k sure wouldn't cover it. I also bet the risk model is relatively stable and they could turn that into a secondary cash flow.
3. I was actually surprised people rent their apartment/house to strangers without being there. That was definitely a little nuts, no idea what EJ was thinking there. But who knows, maybe it's another opportunity. For example, someone with strong online rep and thousands of FB friends, or real-life security or military professional, might start up a gig where they rent themselves out to any AirBnB host in their city to stay in their apartment while the host is gone. For, say 30% of the rental, they'll be a trusted caretaker. AirBnBouncers.com.
On a side note, why are we hearing about these problems with AirBnB when Couchsurfing has been doing basically the same but free for longer? What's the difference? Has CS created a stronger, more connected/verified community, or do CS hosts never offer their couches without being there themselves?
I am not saying that there is not a future for regular people renting out their excess accommodation capicity.
I am saying that the $1.3bn valuation is based upon a serious misconception of the viability of the market and the extent to which Airbnb can build an unsullied brand.
In short, this is not the clean, scalable industry they are trying to tell you it is, they are pulling a bait and switch, please see my other answers for a fuller explanation.
Sure it has a future. There are always problems to be solved with an original business model, but they will be (or at least continuously mitigated as a proportion of the overall business). Some examples:
1. AirBnB already ties into your FB network so you can see and rent to and from friends and friends of friends. I've found this very useful, though ABB should make it a more prominent feature of the site.
2. Now they've got insurance. If I were them I'd find some intrepid banker or actuary to figure out additional optional insurance they can sell to both hosts and renters. $50k is a good start, but I bet many places will want more. If a bunch of meth addicts trashed the country of Lichenstein, $50k sure wouldn't cover it. I also bet the risk model is relatively stable and they could turn that into a secondary cash flow.
3. I was actually surprised people rent their apartment/house to strangers without being there. That was definitely a little nuts, no idea what EJ was thinking there. But who knows, maybe it's another opportunity. For example, someone with strong online rep and thousands of FB friends, or real-life security or military professional, might start up a gig where they rent themselves out to any AirBnB host in their city to stay in their apartment while the host is gone. For, say 30% of the rental, they'll be a trusted caretaker. AirBnBouncers.com.
On a side note, why are we hearing about these problems with AirBnB when Couchsurfing has been doing basically the same but free for longer? What's the difference? Has CS created a stronger, more connected/verified community, or do CS hosts never offer their couches without being there themselves?