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In Brief: The study by Kim, Wang, and Montauti explores the unexpected risks associated with Airbnb Plus, a program that uses trust signals to assure quality, and how these signals may inadvertently create new vulnerabilities for the platform and its users.
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When Trust Signals Create New Risks: The Unintended Consequences of Airbnb Plus – Image Credit Unsplash+
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 revenue even 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.
Click here to download the complete article from the Cornell Center For Hospitality Research.
