Why Non-Travel Giants Are Giving 10% Back on Hotels
Explore how Uber, Robinhood, and Airbnb use 10% hotel rewards to lock in users, backed by insights from industry leaders at Skift Global Forum.
Stock photo for illustration only, not from the actual event
- Ten percent cash back on hotels has become a standard reward offered by non-travel companies in the U.S.
- Robinhood partnered with Duffel to offer 10% back on hotels and car rentals for Platinum cardholders.
- Uber funds its 10% hotel credits to retain subscribers without paying Google for customer acquisition.
- Different companies assign vastly different values to the exact same hotel booking transaction.
Ten percent back has transformed into a common reward offering for hotel bookings across the United States. What a company can afford to pay customers depends heavily on the long-term value that a consumer brings after checkout. Most companies driving these generous promotions do not earn their primary revenue from hospitality, instead relying on core services like ride-hailing, financial technology, or alternative lodging platforms.
The latest market shift emerged when Robinhood announced a partnership with Duffel, a London-based travel-technology company. Duffel powers flight, hotel, and car rental bookings directly inside the Robinhood app for Platinum and Gold credit card holders. Under this integration, Platinum cardholders earn 10% back on hotels and car rentals alongside 5% back on flights, while Gold cardholders receive 3% back.
Stock photo for illustration only, not from the actual event
Historically, a 10% return on hotel stays was exclusive to dedicated travel companies. Hotels.com previously rewarded users with a free night after ten paid stays, averaging roughly a 10% return. However, Expedia Group replaced that legacy program in July 2023 with OneKey in the U.S., where members on the free Blue tier earn only 1% back on hotels as of July 28, 2026.
Meanwhile, Uber One members receive 10% back in Uber credits on hotels supplied by Expedia—utilizing the exact same inventory that returns a mere 1% to a free-tier Expedia OneKey member. Speaking at the Skift Global Forum, Uber CEO Dara Khosrowshahi stated that Uber's hotel business is intentionally designed to run at break-even. He explained that Uber funds the reward entirely out of pocket because it reaches Uber One members directly without purchasing those customers through Google ads. Additionally, Airbnb offers up to 15% back in credits on featured properties.
The underlying strategy behind non-travel tech companies funding steep 10% to 15% rewards lies in customer lifetime value rather than per-transaction margins. By absorbing the cost of hotel rewards, companies like Uber secure subscriber retention, Robinhood drives credit card spending volume, and Airbnb converts hotel bookers into home-sharing guests. This dynamic shifts hotel bookings from a standalone retail product into a strategic retention tool.
Booking Holdings is also experimenting with a travel-company model through Lola, an AI assistant created by Kayak co-founders Steve Hafner and Paul English. Lola charges monthly subscription fees of $5 and $25, passing commissions directly back to users as lower room rates. Hafner noted that if members pay subscription fees, Lola does not need transaction profits, though he expects roughly 90% of active users to remain on the free tier without discounts.
Source: Skift
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