Airbnb's New "VIP" Guest Promotion: A Bad Idea or a Profitable Lever for Hosts?

Airbnb is currently rolling out a new feature on many host dashboards: applying an automatic 15% to 20% discount targeted at the platform's highest-rated guests. In exchange, the algorithm promises to boost your listing's visibility in search results.

At first glance, it sounds like a win-win deal: attract top-tier guests while boosting your listing's reach. However, looking closely at the numbers, the financial reality is far less appealing. Here is an analysis of this new tool and its real impact on your profitability.

1. A Discount Fully Funded by the Host

This is the most critical point to understand: Airbnb does not contribute a single cent to the promotion.

When you enable this option:

  • The discount is entirely deducted from your payout.
  • Airbnb continues to collect its standard commission on the discounted price.

For hosts subject to VAT in France (and similar tax regimes in Europe), the effective rate of Airbnb service fees reaches 18.6% (15.5% base commission + 20% VAT on that commission). The platform keeps its full compensation while asking you to lower your prices.

2. Real Financial Impact: A Concrete Example

To understand what this means for your bottom line, let's compare a nightly rate with a base price of €100:

Standard Scenario (Without Discount)

  • Listed price: €100
  • Airbnb fees (18.6%): €18.60
  • Host net earnings: €81.40

Scenario with 15% Discount

  • Price paid by the guest: €85
  • Airbnb fees (18.6%): €15.81
  • Host net earnings: €69.19

The Bottom Line

On a single night, your net profit drops from €81.40 to €69.19, representing a direct loss of €12.21.

When combining the discount given (€15) and the platform fee (€15.81), the platform and guest together absorb €30.81 of your original price. In short, you forfeit nearly one-third of your nightly rental value.

3. Visibility Boost: A Promise Without Proof

Airbnb highlights algorithm visibility to justify this price sacrifice. However, no data or impact studies have been published by the platform to back up this claim.

A legitimate question arises: if your bookings increase after turning on the feature, is it really due to a secret "algorithmic boost," or simply because your listing is now cheaper than the neighboring competition?

Until proven otherwise, it is highly likely that the price drop alone drives guest interest.

4. Photo Quality: What Truly Makes the Difference

With equal discounts and visibility, what drives a guest to click on your listing rather than a competitor's? The answer is simple: the visual appeal.

Long before checking prices or active discounts, guests book with their eyes. Two properties offering the exact same 15% discount will yield vastly different conversion rates if one features dark, uninviting photos while the other displays bright, warm, and expertly framed visuals. To maximize your bookings without lowering your prices, enhancing your property photos with a specialized tool like SublimeIA highlights every space, creates emotional appeal, and sets your listing apart from surrounding properties.

5. The Trap of Cumulative Promotions

If you decide to enable this discount, review your pricing configuration carefully. Airbnb allows multiple discounts to stack:

  • Top-rated guest promo (15–20%)
  • Non-refundable rate (-10%)
  • Weekly or monthly discount
  • Last-minute deal

When combined inadvertently, your final rate can plummet, severely hurting your margins.

6. Is a Guest Rated 4.8 Really "Exceptional"?

The program aims to reward flawless travelers (rated 4.8/5 or higher).

In practice, because hosts rarely leave negative reviews unless major issues occur, the vast majority of guests on Airbnb carry a rating between 4.8 and 5 stars. A 4.8-rated traveler represents the platform's average user, not an exclusive demographic that justifies discounted rates.

7. When Can This Offer Be Useful?

Despite its financial drawbacks, this marketing tool can be strategic in specific situations:

  • Launching a new listing: To quickly secure your first reviews.
  • Low season and off-peak periods: To fill calendar gaps or boost midweek occupancy.
  • Isolated orphan nights: To maximize occupancy on dates that are traditionally hard to book.

Conversely, if your property already enjoys strong demand at normal rates, activating this promotion simply grants unnecessary discounts on bookings you would have secured anyway.

Conclusion: Aligning with Booking.com and the Importance of Direct Bookings

With this feature, Airbnb aligns itself with Booking.com's Genius loyalty scheme: having hosts fund user loyalty programs in exchange for promised visibility.

Our advice: Take marketing promises with a grain of salt. If you want to test the feature, do so during a targeted window (1 to 2 months during low season) and monitor your actual net revenue, not just total booking volume.

Finally, remember that the most profitable booking is always the one that bypasses third-party algorithms. Developing direct bookings (via your own custom website designed by a specialist agency like MyHostPack or through your direct network) remains the most effective strategy to safeguard your margins and secure your rental business independence.