Anytime Airbnb enters into a new market, it has to grow both sides, but the supply, or host side, is inevitably harder to grow. This is why almost all of the fee structure lies on the guest side. The 3 percent host-booking fee basically covers payment processing only; if anything, Airbnb subsidizes hosts with not just the fee but also its free-professional-photography policy and many other forms of coddling, from mailing out free mugs to featuring stories about some of the hosts on its website to flying certain hosts to its occasional launch events and annual conventions.

