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 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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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.