Airbnb loyalty program

Airbnb do not need a loyalty program !

Following the WSJ article on Airbnb and a loyalty program (link in comment), I believe AirBnb do not need a loyalty program! or at least not one in the traditional sense of the hotel industry (points, tiers, etc.).

Why?

♦ Loyalty program is for and foremost a cost… it s a great asset for a brand but still represent an important operational expenditure. In the hotel industry, it is typically transferred to the hotel owners by the brand or OTA, although not entirely. For Airbnb, it would be difficult to share it with home owner.

♦ Loyalty program goal is to reduce cost of acquisition. It is particularly true when you operate in a very competitive market, which is not really the case for Airbnb, at least in Europe. 90% of their traffic is already organic, and as Sebastien Bazin said “Airbnb is not an hotel competitor, we don’t serve the same users”. The share of users who decide to stay in an hotels instead of an airbnb to collect points is probably very slim…

♦ Loyalty program enhances brand belonging. Airbnb faces difficulties in ensuring consistent loyalty due to its limited control over the guest experience, which largely depends on individual homeowners. Guests rarely revisit the same Airbnb place, and their experiences can vary significantly. As a result, it’s less likely for any negative feedback to be solely attributed to Airbnb (at most, they ll post a bad review on the website, but to do it they would still need to come back to the website).

♦ While loyalty programs can effectively maximize customer lifetime value, this strategy is more suitable for frequent travelers with numerous stays annually. In contrast, Airbnb’s typical user base often consists of leisure guests or those seeking extended stays, making their booking decisions less influenced by traditional loyalty rewards and more driven by specific property characteristics and overall experience.

Of course I trust Brian Chesky to not follow the rules and if Airbnb would need to create a loyalty program it will not probably be as basic as points and tiers. I would bet that Airbnb would probably lean toward building a community of likeminded traveler and make sure the community redefine Travel. Then users would book on Airbnb because they want to be part of the community more than just getting rewards and discount.