Airbnb announced that it will allocate a total of $250 million in an effort to support its hosts around the world whose guests have canceled their reservations due to the COVID-19 coronavirus pandemic . This means that if a guest cancels a reservation between March 14 and May 31 citing a reason related to COVID-19, Airbnb will pay the host 25% of the amount they would normally receive under the cancellation policy. Airbnb says that this policy will apply to all cancellations that occur during this period. In this way, the company is compensating its hosts, who may feel “unprotected” by its policy that allows guests to cancel their reservations and receive a full refund. Specifically, this policy allows guests who booked on or before March 14 to cancel any time before May 31 and receive a refund or travel credit.
Airbnb CEO Brian Chesky said in a letter that the company felt it was appropriate to allow guests to cancel their reservations and receive a full refund, including fees, stressing that this was not a business decision, but a move aimed at protecting public health. Chesky also noted that while the company did the right thing by prioritizing health and safety , it is in an awkward position, given that it made this move without consulting guests. He also noted that the company takes guest feedback into account and is constantly trying to improve its service.
In addition, Airbnb is creating a $10 million fund for its hosts. employees contributed the first $1 million, and Airbnb founders Joe Gebbia, Brian Chesky, and Nate Blecharczyk are personally providing the other $9 million. Starting in April, hosts can apply for grants of up to $5,000. Finally, guests who want to show their support during this time will soon be able to make payments directly to hosts.
