When it comes to filling your Airbnb calendar, nothing beats a happy guest telling their friends about their stay. Word-of-mouth is powerful because it’s built on trust, especially when someone’s vouching for a place they’ve actually stayed at. Guests are far more likely to book when the recommendation comes from someone they know.
That’s where a referral program comes in. Instead of spending big on ads, you can reward past guests for sending new ones your way. It’s a win-win that keeps your property top of mind and gives people a reason to spread the word.
Below, we’ll walk through how to set up a simple, effective referral program that fits your style and helps you bring in more bookings without the marketing headache.
Why Launch a Guest Referral Program
Running an Airbnb comes with plenty of expenses, but getting new guests doesn’t have to break the bank. A referral program gives you a low-cost way to market your space compared to paid ads or listing boosts. Instead of spending money upfront, you reward guests after they bring in a booking.
It also helps build loyalty. Guests who know there’s a perk waiting if they refer a friend are more likely to stay engaged with your place and maybe even come back themselves.
Most importantly, referrals come with built-in trust. When someone hears about your Airbnb from a friend or family member, it feels more reliable than a random search result. You're tapping into a personal network where people already trust the source.
It’s smart marketing that feels personal, and that’s what makes it work.
1. Define Clear Objectives
Before you launch your referral program, it helps to know exactly what you’re trying to achieve. Are you looking to fill more bookings during your off-season? Hoping to bring back guests who’ve stayed before? Or maybe you want to reach new types of travelers who wouldn’t find your listing otherwise. Whatever your goal is, get specific.
Once you’ve nailed down your objective, connect it to something you can measure. That could be the number of referrals sent, how many turn into actual bookings, or how often referred guests become repeat visitors themselves. These numbers will help you track what’s working and where you might need to tweak things later on.
2. Choose the Right Incentives
Not all rewards are created equal, and the right incentive can make or break your referral program. The key is offering something your guests will actually care about. For some, a discount on their next stay (think 10 to 20 percent off) is a great motivator. Others might appreciate a small cash reward, a gift card, or even a donation made in their name.
You could also go the personal route with perks like a welcome basket, a bottle of wine, or a free late checkout. These little touches can feel more thoughtful than money alone.
Whatever you choose, make sure it feels like a genuine thank-you—but still fits within your hosting budget. The goal is to give guests a reason to share without overextending yourself. A good referral incentive should feel like a treat, not a transaction.
3. Set Program Rules
Before launching your referral program, you’ll want to set some simple ground rules. Start by deciding who can participate. Will it be just for past guests? Can anyone they refer qualify, or does it need to be friends or family only? You might also set limits based on how long someone stayed or how recently.
Next, think about what makes a referral “count.” Does the new guest need to stay a certain number of nights? Should the booking meet a minimum value? Most hosts require the stay to be completed (and not canceled) before any reward is handed out.
Finally, make it clear when and how rewards are given. Do you send a discount code after checkout? Offer a gift card the following week? The key is keeping it fair, transparent, and easy to follow for everyone involved.
4. Track Your Referrals
Tracking referrals doesn’t have to be complicated, especially when you’re just starting out. If you’re keeping things simple, you can ask guests to provide the name or email of the person they referred. A quick message through Airbnb or a note in your welcome book can do the trick.
For a more streamlined setup, consider using referral codes or unique links that guests can share with friends. These can be sent through Airbnb messages or generated using basic third-party tools.
As your referral program grows, you might want to switch to software that can handle the tracking for you. There are platforms designed for small business referrals that make it easy to monitor who’s sending guests your way and when rewards should be given. Whatever method you choose, the key is to keep it organized and make it easy for both you and your guests to follow.
5. Promote the Program
Once your referral program is ready, the next step is getting the word out. Start by emailing your past guests with a quick message that explains the program and how they can benefit. Keep it friendly and simple. No one wants to read a long pitch.
If you use a digital welcome guide or send pre-checkout messages, that’s a great place to drop a reminder. A short line like “Enjoyed your stay? Invite a friend and get rewarded” can go a long way.
You can also promote the program on your social media, especially if you’ve built a bit of a brand or following around your Airbnb. Even a small post or story can spark interest. If you have a website or listing page with extra info, be sure to add the referral offer there too. The easier it is to find, the more likely guests are to share.
6. Monitor, Evaluate, and Adjust
Once your referral program is up and running, don’t just set it and forget it. Keep an eye on how it’s performing. Are guests actually making referrals? Is the cost of the rewards worth the bookings you're getting in return?
If things seem slow, it might be time to tweak a few things. Try offering a better reward, making the steps clearer, or testing out different messages to see what gets people excited to share.
Also, don’t be afraid to ask your guests what they think. A quick message asking if the referral process was easy can give you valuable insights. The more you fine-tune the experience, the better results you'll see over time.
Best Practices & Lessons from Airbnb’s Model
If you want your referral program to actually get used, it helps to borrow a few strategies from how Airbnb ran theirs. Here are some tips based on what worked:
- Offer double-sided rewards: People are more likely to share when both sides benefit. Give your past guest a small perk and offer something to the new guest too. It feels more fair and makes the invitation easier to say yes to.
- Keep the message friendly and helpful: Avoid sounding like a sales pitch. A simple “Help a friend get $25 off their stay and enjoy a thank-you gift when they book” works better than anything pushy.
- Make it personal: If you're reaching out directly, include the guest’s name or mention a detail from their stay. Personal touches feel more genuine and get better responses.
- Keep it mobile and email-friendly: Most guests browse and book on their phones, so your referral message should be easy to read, click, and share in just a few taps.
Wrap-Up
Running a referral program doesn’t have to be complicated. Keep it simple, clear, and focused on your guests. Let them know exactly how it works, when they’ll get their reward, and what counts as a successful referral.
Keep an eye on what’s working, and don’t be afraid to tweak things as you go. The goal isn’t just to get one referral, it’s to turn happy guests into long-term advocates for your property.
If you’re looking for help managing your Airbnb and scaling your bookings with smart marketing strategies like this, RedAwning’s property management services can take it off your plate. Let us handle the details while you enjoy more referrals and more revenue.
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