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Is Airbnb launching a loyalty program? ‘Something big is coming,’ CEO tells TPG
Airbnb doesn’t have a loyalty program, but that might soon change, according to the company’s founder and CEO, Brian Chesky. In an exclusive roundtable interview in Los Angeles, Chesky told TPG that “something big is coming.” Just don’t expect a traditional loyalty program. “I don’t know if we’ll ever do a traditional points program because …
Airbnb doesn’t have a loyalty program, but that might soon change, according to the company’s founder and CEO, Brian Chesky. In an exclusive roundtable interview in Los Angeles, Chesky told TPG that “something big is coming.”
Just don’t expect a traditional loyalty program.
“I don’t know if we’ll ever do a traditional points program because a traditional-approach program is kind of like a subsidy,” he said, adding that he likes to joke that “a loyalty program is what you create when you don’t have loyalty; in other words, you have to pay for people to come back.”
Chesky emphasized how things might look different for his company. “There’s a way to reward people [who] have used Airbnb, but without being like a ‘get 10 nights, get one free’ kind of thing,” he said. “I think there’s something maybe a little more interesting and a little more novel than that.”
What could work for Airbnb?
Instead of a points-based system, Airbnb is looking into different models, including paid membership programs.
“I’m not sure exactly [if] Amazon Prime’s the right analogy, but I do think there is maybe a paid subscription that we could look at that’s an elevated level of service that could be really interesting,” Chesky said.
Whereas traditional hotel loyalty programs require members to work hard for their earnings (by staying a minimum number of nights to work their way up the loyalty ladder, for example), paid subscription services offer more immediate rewards or instant gratification.
Amazon Prime members, for example, usually get some sort of free expedited shipping. On the hospitality front, Chesky might be leaning more toward examples like Dis-loyalty, the paid membership program from Ennismore, the lifestyle division of Accor that’s behind brands like Hoxton, Mondrian and SLS. Dis-loyalty, which starts at $18 a month, offers members a slew of perks like discounts on new hotel openings, first-time stays and return visits; savings on food and drinks; and even a free coffee every single day of the year.
A paid membership program would also make sense based on the nature of Airbnb’s business model.
Business travelers and road warriors who spend dozens and dozens of nights a year on the road can easily work their way up through the ranks of a loyalty program with one brand and earn top-tier status, like Hyatt’s coveted Globalist status. But for the average family just looking to save a little money on a few stays a year or have a fun perk here and there, a traditional loyalty program probably won’t offer too much value.
An all-new Airbnb
TPG’s interview with Chesky came following the announcement that Airbnb is now offering on-demand, hotel-like services, simply called “Airbnb Services,” through the newly redesigned Airbnb app. Guests can now book a private chef, order a massage or a facial, or have a private physical training session, right at their Airbnb property — or even at their own home.
The company also doubled down on Airbnb Experiences, which are activities that can be booked through Airbnb, ranging from photography workshops to cooking lessons and beyond.
If Airbnb does offer some sort of membership program, be it a traditional loyalty program or a paid subscription service, both Airbnb Services and Airbnb Experiences could easily be a factor in the brand’s larger approach to loyalty programming. Maybe a premium monthly membership would include a discount on rentals or a yearly credit to book an in-property Service or an Experience out on the town.
Or, Airbnb could go a completely different direction. Earlier this year, Airbnb-owned HotelTonight launched a new perk: 10% back on bookings in the form of Airbnb credits, proving that Airbnb and its affiliates know that instant gratification keeps people coming back for more.
Whatever program Airbnb is building, it’s not coming too soon.
“I think in the coming years we’ll do something really, really cool … something big is coming,” Chesky said. “I’m not going to say what it is ’cause I want to surprise you. We’re figuring it out and, you know, it’s like a journey … [and] we’re kind of in the middle of development right now.”
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