FILE - The Airbnb app icon is displayed on an iPad screen in Washington, D.C., on May 8, 2021. Airbnb reports earnings on Wednesday, Nov. 1, 2023. (AP Photo/Patrick Semansky, File)


November 9, 2023

Airbnb is set to introduce a new feature called "Guest Favorites" this week, aiming to enhance the reliability of bookings by highlighting rental listings that have garnered top scores from previous guests. Approximately 2 million out of the platform's 7 million listings will receive this designation, a move that could potentially impact hosts without the favored badge, possibly leading to a decline in bookings or the need to reduce prices to remain competitive. Brian Chesky, CEO of Airbnb, anticipates that favored listings may charge higher prices compared to non-favored ones.

Chesky acknowledges the inherent uncertainty among renters due to the diverse range of properties on Airbnb, identifying unpredictability as a key factor leading some individuals to choose hotel rooms over Airbnb accommodations. He emphasizes the company's goal to eliminate the "moment of truth" experienced by guests upon check-in, ensuring they know exactly what to expect before making a booking.

To qualify as a "Guest Favorite," listings must maintain guest ratings averaging at least 4.9 out of 5.0, coupled with cancellation rates and customer-service incidents of 1% or lower. These favored listings will be visibly marked with a badge, allowing users to filter their search specifically for these options. Despite this, Airbnb refrains from providing guarantees regarding the performance of guest favorite listings.

In addition to the introduction of "Guest Favorites," Airbnb is encouraging hosts to create photo tours of their properties, utilizing artificial intelligence (AI) to organize photos by room. The company is also implementing behind-the-scenes changes to assist hosts in adjusting prices based on demand, with a focus on daily adjustments.

Earlier this year, Airbnb addressed user concerns by discouraging hosts from imposing excessive cleaning fees, a common complaint among users. An analysis in 2022 by personal-finance site NerdWallet revealed a median cleaning fee of $75 for a one-night stay, constituting approximately 25% of the total bill. Airbnb now allows visitors to filter searches by all-in pricing, including fees, although this feature is not the default setting and requires users to use a toggle switch on the home page. The company reports that around 260,000 listings have reduced their cleaning fees in response to these changes.

Chesky expresses satisfaction with the progress made in pricing adjustments, signaling Airbnb's commitment to enhancing transparency and user experience on the platform.

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