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  7. When Trust Signals Create New Risks: The Unintended Consequences of Airbnb Plus

When Trust Signals Create New Risks: The Unintended Consequences of Airbnb Plus

File(s)
Unintended Consequences of Airbnb Plus_rev.pdf (516.94 KB)
Permanent Link(s)
https://hdl.handle.net/1813/124083
Collections
Center for Hospitality Research Research Briefs
Center for Hospitality Research Publications
Author
Kim, Heeyon
Wang, Qian
Montauti, Martina
Abstract

Certification programs are typically designed to reduce uncertainty and help customers identify high-quality offerings but new research on Airbnb Plus shows that certification can also create unintended negative consequences for offerings that do not receive the credential. After Airbnb introduced its "verified" Airbnb Plus program in Los Angeles, noncertified listings experienced roughly a 10% decline in revenueeven though their actual quality did not measurably change.

The study suggests that certification changes how customers interpret the marketplace. Once guests began seeing "verified" listings alongside standard listings, uncertified properties appeared riskier or less reliable by comparison. For hospitality leaders, the findings highlight an important strategic lesson: trust-building systems do not simply elevate an entire marketplace equally. They can also reshape competition by changing how customers evaluate uncertainty, legitimacy, and quality.

Date Issued
2026-06-17
Keywords
Certification
•
Negative spillovers
•
Airbnb
•
Digital platforms
•
Verified
Type
article

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