Program Cost Structure

Discounted Host Fees: If hosts offer exclusive discounts to loyalty members, Airbnb could offset this by offering them a slight reduction in the host service fee. The reduction could incentivize hosts to engage without fully bearing the costs themselves.

Marketing and Onboarding: Airbnb and participating hosts could split costs for loyalty program marketing campaigns, with Airbnb bearing the majority of digital marketing expenses and hosts possibly contributing in-kind (like offering property upgrades or enhanced services) for loyalty members.

Small Service Fee Increase: Airbnb could slightly increase the booking service fee for non-loyalty bookings to help fund the loyalty program. so it can generate incremental revenue for loyalty incentives without directly charging loyal members.

Reinvestment of Saved Acquisition Costs: With retention improvements from the loyalty program, Airbnb could allocate part of the acquisition cost savings into funding the program. Retaining high-value customers reduces the reliance on paid advertising, and these reduced CPA costs could directly fund loyalty perks like booking discounts or VIP experiences for frequent travelers.

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