Airbnb

(NASDAQ: ABNB · $163.50 ▼ 1.4%) Airbnb is an online marketplace that connects guests with hosts who offer stays, experiences and services. It operates in the peer-to-peer accommodation category, in which platforms act as intermediaries between private individuals who have space to rent and travelers looking for somewhere to stay. The company presents what its hosts offer as a means for guests to connect with communities in a more authentic way.

Accommodation listed on Airbnb includes vacation rentals such as cabins, beach houses and other homes. Property types like these point to a focus on leisure travel, and rentals of this kind generally appeal to families and groups that want more space than a hotel room offers or prefer a residential setting. Offering experiences and services alongside accommodation also means travelers can plan more of a trip, from where to stay to what to do, through the same marketplace.

Airbnb began in 2007, when two hosts welcomed three guests into their San Francisco home. It has since grown to more than 5 million hosts, who have together welcomed over 2 billion guest arrivals in almost every country. That growth from a single home to a global network illustrates how marketplace platforms tend to scale: each new host adds supply without the platform having to build or buy property, and a wider choice of listings in turn attracts more guests.