Airbnb to pay $250m to hosts losing out to coronavirus cancellations
Airbnb will pay $250m to hosts for two and a half months of reservations that have been cancelled in the wake of the coronavirus.
In a letter to hosts, chief executive Brian Chesky said hosts would receive 25 per cent of their normal cancellation fee for stays booked between 14 March and 31 May, if the booking was made on or before 14 March.
Airbnb is also created a $10m “Superhost relief fund”, designed for so-called superhosts who rent out their own home and need help paying their rent or mortgage. The firm’s employees started the fund with $1m in donations and Airbnb’s founders have contributed the remaining $9m.
The letter comes after the firm provoked a backlash from hosts for fully refunding guests who cancelled bookings in the wake of the pandemic.
Chesky said Airbnb had been faced with a dilemma: “If we allowed guests to cancel and receive a refund, we knew it could have significant consequences on your livelihood. But, we couldn’t have guests and hosts feel pressured to put themselves into unsafe situations and create an additional public health hazard.”
“We determined that we had to allow your guests to cancel and receive a full refund—including all our fees. Please know this decision was not a business decision, but based on protecting public health.”
Airbnb and other companies like Uber have been seen business wane since the outbreak of coronavirus because of hygiene fears as well as government mandated travel restrictions.