Airbnb to pay hosts $250 million for COVID-19 cancellations

Airbnb on Monday said it is devoting 250 million U.S. dollars to help would-be hosts survive financial losses from refunds given to guests who cancelled travel plans due to the coronavirus pandemic.

The move came as an olive branch of sorts extended to Airbnb hosts blindsided by a the home-sharing platform's decision several weeks ago to give full refunds to guests who cancelled reservations in order to stay home, as health officials and governments have urged.

"Please know this decision was not a business decision, but based on protecting public health," said Airbnb co-founder and chief Brian Chesky.

Airbnb will pay hosts 25 percent of what they would typically be due if someone booked between March 14 and May 31 cancels the stay due to COVID-19.

Travelers who cancel Airbnb reservations made for that period are promised complete refunds or credit for future stays.

Airbnb also created a relief fund worth 10 million U.S. dollars for experienced and highly rated "superhosts" who need help paying their mortgage or rent due to the coronavirus's devastating effect on the travel industry.

Airbnb employees started the fund with a million dollars, and the two co-founders contributed the remaining nine million U.S. dollars, according to the company.

Airbnb is also adding a feature to its platform that will let people send money to support hosts they bonded with during stays.

"This storm, no matter how bad it is, it is going to end," Chesky said.

About 50,000 Airbnb hosts have volunteered to make their homes available to healthcare workers, relief providers and first responders combating the coronavirus pandemic, according to Chesky.

This is a dramatic turn for Airbnb, which was expected to be one of the hottest technology IPOs or direct listed companies this year before the novel coronavirus crisis hit the U.S. last month. However, the company told its employees last week that it would freeze hiring, suspend marketing and advertising, cut executive pay and expect no bonuses in 2020.

Airbnb hosts in China positive about market recovery

Travel providers in China are weighing measures to get business back on track. This includes hosts of Airbnb who feel positive about the future of the tourism and service sector, according to a recent survey from Airbnb.

About 99 percent of Airbnb hosts in China say they feel positively or neutral about engaging in the short-term rental market following the outbreak, while one percent say they will "definitely not" participate once the crisis subsides.

Of the hosts with positive sentiments, 72 percent say they plan to maintain or increase their Airbnb hosting activity.

As guests grow confident with traveling again, 97 percent or prospective travelers surveyed by Airbnb China say cleanliness is a top concern when looking for listings, while about 84 percent look at hosts' steps to sanitize and 53 percent want hosts to provide disinfectants.

To that end, Airbnb China is launching a "Rest Assured Stays" program that highlights listings with a high level of cleanliness and high sanitization standards. The program will also offer guidelines for home cleaning and sanitation for hosts.

As travel resumes, short-haul driving trips will likely be the first to recover, with Airbnb users searching for trips from Beijing to Tianjin and Qinhuangdao; from Chengdu to Chongqing; from Guangzhou to Shenzhen; and from Shanghai to Hangzhou, Nanjing, Ningbo and Suzhou.

With input from AFP

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