What is Airbnb?

Airbnb is an online marketplace that allows travelers to rent unused rooms from local residents. Airbnb is marketed primarily to budget-conscious tourists and travelers who wish to avoid traditional hotels.

The website offers several types of accommodations, such as single rooms, entire homes, apartments and even boats. Each host independently decides how much to charge. Airbnb charges a 6 to 12 percent service fee from guests and a 3 percent service fee from hosts.

Because Airbnb is an alternative form of finding lodging, the system carries some risk on both sides. Guests may experience false advertising from hosts, and hosts sometimes have to deal with damages caused by guests.