Airbnb Promises to Pay $250 Million to Hosts for Cancellation Policies amid Coronavirus Outbreak

Airbnb’s CEO has recently published a letter to the networks of hosts of the company. In the memo, the executive has addressed the company’s reaction towards ongoing coronavirus epidemic across the world. The statement particularly talks about Airbnb’s decision, which allows guests to cancel their bookings and get a complete refund. Brian Chesky, Airbnb’s CEO, and co-founder has confirmed the news in the letter. In it, he states the company has decided to allow total refunds is not a business move. Brian noted they have had taken the decision to defend public health.

The Airbnb executive also said they hope the company has taken the right decision in prioritizing public safety and health. The statement from Airbnb arrives after various nations impose travel bans and soaring cancellation requests. For now, Airbnb, the short-term rental platform, is offering the first-time facility to cancel bookings, that too, without any penalties. The letter continues to announce that Airbnb will pay out hosts 25% of what they could have gained via the cancellation policy when a customer cancels booking because of a COVID-19 condition. The letter also details that only those hosts are eligible for the refund who have had check-ins slated between the period of May 14 to May 31. As per the document, the full amount of these payments could be $250 million.

So, Airbnb is promising $250 million to place toward hosts who have been affected by a coronavirus. Airbnb has also announced that the cancellation policy applies retroactively to all cancellations, which took place between the period mentioned above. Apart from this, Airbnb is crafting a $10 million fund for its experience hosts and superhosts. Employees have contributed the first a million dollars, and co-founders of Airbnb Brian Chesky, Joe Gebbia, and Nate Blecharczyk are contributing an amount of $9 million. Even more, starting from April, hosts can request for allowances up to $5,000.