As competition intensifies across the short-term rental industry, professional property managers are increasingly turning to innovative solutions to stay ahead of the curve. One strategy making waves is the rise of guest referral networks—platforms that allow property managers to refer guests to other trusted managers when their own properties are unavailable. By tapping into these networks, managers can reduce guest churn, increase bookings, and even monetize referrals in new and creative ways.

This article explores three key case studies showcasing how guest referral networks are emerging as powerful tools for property managers in Europe and the U.S. We’ll dive into the collaborative strategies that have made Location Lac Annecy a success, Flataway’s bold move to transition into a referral-based platform, and the launch of Deborah Labi’s guest referral platform, Have You Got. Together, these stories highlight the opportunities and challenges of this fast-growing trend, offering valuable insights for property managers eager to implement referral networks in their own operations.

What Are Guest Referral Networks?  

Guest referral networks are platforms that allow property managers to refer guests to other trusted managers when their own properties are unavailable, creating a collaborative ecosystem. These networks aim to transform the short-term rental industry by keeping guests within a trusted circle, reducing the reliance on major OTAs like Airbnb and Booking.com. 

Deborah Labi, founder of *Have You Got*, describes it as “guest sharing, not guest ownership.” The idea is to help property managers keep guests within a secure, trusted network, even when they can’t accommodate them themselves. This is a shift from competing for every booking to collaborating to ensure every guest stays within the community.

How Can Property Managers Benefit from Guest Referral Networks?

Guest referral networks offer numerous advantages for professional managers, from increasing occupancy rates to generating additional revenue streams. Sophie Desmoulez, CEO of Location Lac Annecy, leveraged Avantio’s cross-selling module to collaborate with competitors and expand her inventory. As a result, Sophie turned competitors into allies, boosting both her bookings and commissions. 

“For returning guests, it’s like a direct booking website but easier,” said Boris Pavlov, CEO of Flataway, which allows property managers to retain guest relationships while earning commissions on referrals. This dual benefit of keeping existing guests and earning from new referrals creates a win-win for managers, even in saturated markets.

Tapping Into New Markets and Guest Segments  

One of the most exciting opportunities offered by guest referral networks is the ability to tap into new markets and guest segments that may be hard to reach independently. Labi highlighted the potential for *Have You Got* to address niche markets like accessible travel, an area often overlooked by property managers. “There are huge niches out there that property managers haven’t even begun to tap into—like preparing a property for an autistic guest,” she noted. 

By collaborating with other property managers through a referral network, managers can expand their reach, offering options to guests they might otherwise have to turn away. Flataway, for instance, uses a global members-only platform where referred guests can book properties across borders, creating opportunities to access new international markets.

Trust and Reputation: What About Ensuring Consistent Quality and Service Standards?

A key concern for property managers when referring guests is ensuring consistent service standards, as any negative experience can reflect poorly on the referring manager. Both *Have You Got* and Flataway have implemented strict quality control measures to address this.

Labi’s *Have You Got* requires ID verification for all property managers, ensuring that only verified professionals can participate in the network. “We’re building a safe, secure network where both managers and guests know they’re dealing with verified, professional operators,” she explained. Similarly, Sophie from Location Lac Annecy was careful to only partner with competitors who shared her high standards for guest service, understanding that reviews would still reflect on her business.

How Are Referral Fees and Commissions Structured?  

The commission or referral fee system varies between platforms but is generally structured to incentivize collaboration while ensuring fairness. In *Have You Got*, property managers earn a flat 5% of the total stay for any guest they refer, regardless of where the booking occurs. “Anyone who refers a guest into the network will earn 5% of the total stay. It’s fair and the same for everyone,” Labi shared.

Flataway’s model offers a different approach: if a referred guest books with the referring manager again, the booking is commission-free, while bookings with other managers generate a 5% commission. Pavlov summed it up: “You make money whether the guest books with you or another manager. Either way, you win.”

Moving from Competition to Collaboration  

One of the most significant shifts introduced by guest referral networks is the move from competition to collaboration. Sophie’s experience with Location Lac Annecy is a perfect example of how collaboration can enhance business performance. “Instead of viewing her competitors as enemies, she decided to turn them into allies,” noted Paul Castro from Avantio, explaining how Sophie’s partnerships allowed her to expand her inventory and grow her revenue.

Labi also advocates for collaboration, particularly for smaller property managers: “If you don’t share the guest, you’ve already lost them.” In a referral network, managers can keep guests within their circle, creating value for everyone involved rather than losing business to OTAs.

Handling Conflicts Between Collaborating Managers  

A common concern for managers considering a referral network is how conflicts might be handled, particularly if issues arise with referred guests. To mitigate these concerns, platforms like *Have You Got* have designed their systems to avoid direct partnerships between managers. “There’s no partnership. When you refer a guest, you hand them over to the network, and that’s it,” Labi explained. This structure ensures that responsibility for guest satisfaction lies with the receiving manager, reducing the likelihood of disputes.

In Flataway’s case, the platform takes over much of the operational complexity, with Pavlov emphasizing that the system is designed to be as hands-off as possible for property managers. This helps avoid potential conflicts while ensuring a smooth guest experience.

Guest Referral Networks in Saturated Markets  

In highly saturated markets with overlapping territories, guest referral networks can actually provide an advantage rather than a challenge. Sophie’s experience in Annecy, a highly competitive market, shows how referral networks allow managers to keep guests within their ecosystem, ensuring that no potential booking is lost. By working together, Sophie and her competitors were able to share guests and increase their collective market share without undercutting each other.

Boris Pavlov of Flataway echoed this sentiment, noting that collaboration in such markets can create a “decentralized loyalty program” for property managers, where even small, local players can benefit from a larger pool of guests without losing control over their bookings.

Differences Between Guest Referral Platforms: A Look at the Market  

Not all guest referral platforms are created equal. *Have You Got* differentiates itself by emphasizing a secure, verified network of property managers, with a focus on trust and personalized service. “The guest is shared, but they’re within a secure, scam-free network,” Labi explained, underscoring the platform’s commitment to quality and security.

Flataway, on the other hand, aims to decentralize control from OTAs and provide property managers with an easy-to-use platform that integrates directly with their PMS systems. Pavlov describes it as “a platform built by property managers, for property managers,” where the goal is to give managers more control over their guest relationships while still benefiting from a referral network.

Meanwhile, Avantio’s cross-selling module, as used by Sophie at Location Lac Annecy, offers a more modular and customizable solution. As part of a property management software, the cross-selling module allows managers to build referral partnerships with complete control over who is included in their network. This flexibility enables managers to handpick trusted partners while strategically increasing their inventory. However, the responsibility for setup remains on the managers, giving them autonomy but requiring more effort in curating their referral partnerships.

Conclusion

The rise of guest referral networks signals a new chapter for the short-term rental industry, where collaboration can replace cutthroat competition. Platforms like Have You Got, Flataway, and tools such as Avantio’s cross-selling module offer professional rental managers a chance to diversify their revenue streams, enhance guest experiences, and expand into new markets. These networks open up opportunities to retain guests, even when managers are fully booked, while simultaneously boosting revenue through referral commissions.

However, as with any innovation, there are challenges to consider. Managers need to ensure consistent quality across their networks to protect their reputations, and moving from competition to collaboration requires a mindset shift that may take time. Yet, the benefits—greater control, expanded reach, and a more secure guest pipeline—offer compelling reasons to explore these referral systems.