Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com -- Airbnb has launched its first-ever self-funded promotion, offering a 10% credit toward future stays or experiences on its platform when users book through HotelTonight, its last-minute hotel booking subsidiary.
“This will be the first time Airbnb have offered a self-funded discount, with no loyalty scheme, unlike OTA peers Genius and OneKey programs,” said the firm. "The promotion is a clear sign of Airbnb’s cross-vertical ambitions."
They added that the initiative showcases the company’s push beyond its core vacation rental business.
While HotelTonight remains a small part of Airbnb’s overall business—less than 1% of nights booked, according to Bernstein estimates—this move suggests the company is serious about driving cross-platform spend.
Airbnb’s foray into discounting comes as the company explores ways to expand its reach beyond vacation rentals.
"Growth and product innovation will not be free—Airbnb will need to invest in its cross-vertical credential, whether that be through marketing dollars or, in the case of the HotelTonight promotion, by investing take rate," analysts said.
Bernstein believes this strategy could help raise the profile of HotelTonight, which has struggled to gain traction since its acquisition in 2019.
However, analysts caution that if this move signals the start of a larger discounting or merchandising strategy, it could impact Airbnb’s profitability.
"As long as this is not the beginning of a larger-scale discounting strategy, we would expect some targeted take rate flexibility to be a useful tool to drive volume growth," they wrote.