Free AI web copilot to create summaries, insights and extended knowledge, download it at here

Abstract

ea18zhtl6s2u8jammft-wpengine.netdna-ssl.com/wp-content/uploads/2020/05/Aibnb-announcement.pdf">addressing the Airbnb staff</a> was published online, and it’s unclear what the future holds for the company’s employees. The <a href="https://skift.com/2019/03/07/airbnb-is-buying-hoteltonight-heres-what-that-means/">recently acquired</a> <a href="https://www.hoteltonight.com/">Hotel Tonight</a> project may also be placed on hold, as well as Airbnb’s plans <a href="https://techcrunch.com/2020/03/18/with-the-travel-market-in-tatters-when-can-airbnb-go-public-in-2020/">to go public</a>.</p><h1 id="2c15">Lifelines Extended to Airbnb</h1><p id="bd5a">The company has successfully <a href="https://news.airbnb.com/silver-lake-sixth-street-partners-invest-1-billion-in-airbnb/">raised $1 billion</a> in equity and debt on April 6, 2020. Silver Lake and Sixth Street Partners were the ones who chose to invest in the company to help it navigate through the pandemic. On April 14, 2020, they <a href="https://news.airbnb.com/airbnb-announces-1-billion-term-loan/">posted one more press-release</a> informing the public they raised another$ 1 billion in the form of a syndicated loan. CNBC <a href="https://www.cnbc.com/2020/04/14/airbnb-raises-another-1-billion-in-debt.html">reported</a> that Fidelity, T Rowe Price, Oaktree, Apollo, and Blackrock are among the investors.</p><h1 id="ec8a">Hosts Are the Ones Struggling the Most</h1><figure id="1488"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*NfwIkP-5SfAzIrhfG_hqzg.jpeg"><figcaption>Photo by <a href="https://www.pexels.com/@energepic-com-27411?utm_content=attributionCopyText&utm_medium=referral&utm_source=pexels"><b>energepic.com</b></a> from <a href="https://www.pexels.com/photo/design-desk-display-eyewear-313690/?utm_content=attributionCopyText&utm_medium=referral&utm_source=pexels"><b>Pexels</b></a></figcaption></figure><p id="dcdc">Hosts were arguably the ones hit the most in this situation. Once the quarantine was imposed, Airbnb announced it would provide a full refund or credit to guests who booked their stays with check-ins between March 14 and May 31 — as per <a href="https://www.theverge.com/2020/3/30/21200430/airbnb-cancellation-policy-coronavirus-covid-may-31-pay-hosts">TheVerge</a>. However, the company didn’t offer any assistance to the hosts, who <a href="https://www.cnbc.com/2020/03/19/coronavirus-airbnb-hosts-angry-at-refunds.html">became upset</a> very quickly, reports CNBC. While guests received refunds, the hosts faced almost zero bookings.</p><p id="2ced">In response to the backlash, Airbnb <a href="https://www.cnbc.com/2020/03/30/airbnb-extends-coronavirus-cancellation-window-to-may-31-due-to-coronavirus.html?__source=twitter%7Cmain">announced</a> a $250 million relief fund to help the hosts cover cancellations. On top of that, the company’s employees donated$ 10 million, which should be allocated to the SuperHosts and long-term Experience hosts. As of May 9, 2020, this figure increased to $17 million, according to the <a href="https://www.airbnb.ca/superhostrelief">Airbnb webpage</a>.</p><p id="4e5b">Unfortunately, as per <a href="https://www.cnbc.com/2020/04/22/airbnb-hosts-getting-almost-nothing-from-250-million-relief-fund.html">CNBC</a>, the hosts are not receiving much assistance. Some didn’t get any financial help, and the rest of the hosts only received 25% worth of what they would have gotten with the regular bookings.</p><h1 id="dfda">You are an Airbnb Host. This is What You Can Do to Survive This</h1><p id="3f72">If you are among hosts who are experiencing an influx of cash, here are the options you may want to consider:</p><ul><li>Wait for AirBnb to contact you regarding the relief assistance. Review your options and accept the

Options

help if you believe it to benefit you.</li><li>Reach out to Airbnb yourself and ask what options they have for you. Describe your situation and see what they can do.</li><li>Scour the Airbnb <a href="https://community.withairbnb.com/t5/Community-Center/ct-p/community-center">Community Center</a> and look for the discussions that might help you. Start a new one if you need to.</li><li>Apply for a small business loan under the CARES Act. See the <a href="https://www.vox.com/2020/4/3/21196191/cares-act-apply-small-business-loans-grants-ppp-eidl">article from Vox</a> highlighting the PPP and EIDL application details.</li><li>Check out the <a href="https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses">Treasury’s website</a> and review the resources related to the small business relief under the CARES Act.</li><li>If the funding mentioned above is exhausted or you were not approved, check out the <a href="https://www.sba.gov/local-assistance/find/?type=Small%20Business%20Development%20Center&pageNumber=1">Small Business Administration’s (SBA) website</a> to search for the local non-profits and other organizations which may be able to help.</li><li>For women: look for a non-profit business center in your state using <a href="https://www.awbc.org/search/custom.asp?id=5914">this directory</a>.</li><li>Review the resources from <a href="https://www.score.org/coronavirus">Score.org</a> and find help or mentorship to assist your business through this challenging time.</li><li>Consider applying for a private loan from a financial institution. It would be a good idea to discuss your options with the financial planner / financial advisor before going through with the application.</li><li>Search for social programs online — either for your small business or for yourself. If you’re currently in need of financial help as an individual or a family, there might be programs available to you. Examples of websites you may use <a href="https://evidencebasedprograms.org/programs/">EvidenceBasedPrograms.org</a>, <a href="https://www.ssa.gov/policy/docs/progdesc/sspus/index.html">Social Security</a>, and <a href="https://www.usa.gov/benefits">Usa.gov</a>.</li><li>Consider reaching out to friends and family in case of financial hardship. Search for the local shelters, food banks, and other organizations offering help with housing and basic needs. Apply for the <a href="https://www.mass.gov/how-to/apply-for-snap-benefits-food-stamps">SNAP program</a> if you need to.</li><li>In case of an emergency or health-related emergency — call 911.</li></ul><h1 id="bdcc">Author’s Input. What Does the Future Hold for Airbnb and Its Global Users?</h1><p id="2f53">I am a long-term client and a massive supporter of Airbnb, and I think they are doing their best. They have decided to take care of their customers and to treat them fairly by providing refunds. As for the hosts, it might be challenging for Airbnb to pay them out of pocket, since the company isn’t making any money right now.</p><p id="abf3">Airbnb seems to be strategizing long-term. They know the clients will come back to them once the crisis is over. Customers tend to go back to organizations that treated them with humanity. If they have to choose between AirBnb who refunded their money, and some other website that didn’t — they will select Airbnb. The company’s CEO probably understands that, and I think it might be the reason why he made this decision. It increases the chances of Airbnb hosts getting their business back once the lockdown ends, as opposed to losing many angry clients who didn’t get their money back.</p><p id="2d24">It’s unclear how the travel industry will look later this year or in a few years. All we can do is take it one day at a time.</p></article></body>

Airbnb Host: How to Survive Coronavirus as a Small Business?

Navigating through the pandemic crisis

Photo by **John Tekeridis** from **Pexels**

Airbnb is a Silicon Valley’s “unicorn company” known all around the world for offering an alternative to the traditional hotels. Since the company launched in 2008, it has hosted over 400 million guests in 191 countries, according to MuchNeeded.com. It proved to be exceptionally profitable: AirBnb reported having more than $1 billion worth of profit in the second quarter of 2019, and $1.1 billion in the fourth quarter.

But everything changed when the pandemic hit in 2020, with most countries enforcing lockdowns and closing their borders. In a matter of a day, hosts became unable to host their guests, and guests had to cancel their travel plans. So, how do you survive this crisis

Table on Contents:

1. May 2020: Current state of affairs.

2. Lifelines extended to Airbnb.

3. Hosts are the ones struggling the most.

4. You are an Airbnb host. This is what you can do to survive this.

5. Author’s input. What does the future hold for Airbnb and its global users?

May 2020: Current State of Affairs

COVID-19 significantly changed the reality and plans for many companies, and Airbnb is no exception. It signified a loss of income for the website, which makes money by charging fees from both hosts and guests. If no one is booking stays, the company isn’t collecting those fees.

Airbnb had to make a few difficult decisions. On May 5, the co-founder and CEO Brian Chesky announced a lay-off of 25% of the company’s workforce, as per Skift.com. His letter addressing the Airbnb staff was published online, and it’s unclear what the future holds for the company’s employees. The recently acquired Hotel Tonight project may also be placed on hold, as well as Airbnb’s plans to go public.

Lifelines Extended to Airbnb

The company has successfully raised $1 billion in equity and debt on April 6, 2020. Silver Lake and Sixth Street Partners were the ones who chose to invest in the company to help it navigate through the pandemic. On April 14, 2020, they posted one more press-release informing the public they raised another $1 billion in the form of a syndicated loan. CNBC reported that Fidelity, T Rowe Price, Oaktree, Apollo, and Blackrock are among the investors.

Hosts Are the Ones Struggling the Most

Photo by **energepic.com** from **Pexels**

Hosts were arguably the ones hit the most in this situation. Once the quarantine was imposed, Airbnb announced it would provide a full refund or credit to guests who booked their stays with check-ins between March 14 and May 31 — as per TheVerge. However, the company didn’t offer any assistance to the hosts, who became upset very quickly, reports CNBC. While guests received refunds, the hosts faced almost zero bookings.

In response to the backlash, Airbnb announced a $250 million relief fund to help the hosts cover cancellations. On top of that, the company’s employees donated $10 million, which should be allocated to the SuperHosts and long-term Experience hosts. As of May 9, 2020, this figure increased to $17 million, according to the Airbnb webpage.

Unfortunately, as per CNBC, the hosts are not receiving much assistance. Some didn’t get any financial help, and the rest of the hosts only received 25% worth of what they would have gotten with the regular bookings.

You are an Airbnb Host. This is What You Can Do to Survive This

If you are among hosts who are experiencing an influx of cash, here are the options you may want to consider:

Wait for AirBnb to contact you regarding the relief assistance. Review your options and accept the help if you believe it to benefit you.
Reach out to Airbnb yourself and ask what options they have for you. Describe your situation and see what they can do.
Scour the Airbnb Community Center and look for the discussions that might help you. Start a new one if you need to.
Apply for a small business loan under the CARES Act. See the article from Vox highlighting the PPP and EIDL application details.
Check out the Treasury’s website and review the resources related to the small business relief under the CARES Act.
If the funding mentioned above is exhausted or you were not approved, check out the Small Business Administration’s (SBA) website to search for the local non-profits and other organizations which may be able to help.
For women: look for a non-profit business center in your state using this directory.
Review the resources from Score.org and find help or mentorship to assist your business through this challenging time.
Consider applying for a private loan from a financial institution. It would be a good idea to discuss your options with the financial planner / financial advisor before going through with the application.
Search for social programs online — either for your small business or for yourself. If you’re currently in need of financial help as an individual or a family, there might be programs available to you. Examples of websites you may use EvidenceBasedPrograms.org, Social Security, and Usa.gov.
Consider reaching out to friends and family in case of financial hardship. Search for the local shelters, food banks, and other organizations offering help with housing and basic needs. Apply for the SNAP program if you need to.
In case of an emergency or health-related emergency — call 911.

Author’s Input. What Does the Future Hold for Airbnb and Its Global Users?

I am a long-term client and a massive supporter of Airbnb, and I think they are doing their best. They have decided to take care of their customers and to treat them fairly by providing refunds. As for the hosts, it might be challenging for Airbnb to pay them out of pocket, since the company isn’t making any money right now.

Airbnb seems to be strategizing long-term. They know the clients will come back to them once the crisis is over. Customers tend to go back to organizations that treated them with humanity. If they have to choose between AirBnb who refunded their money, and some other website that didn’t — they will select Airbnb. The company’s CEO probably understands that, and I think it might be the reason why he made this decision. It increases the chances of Airbnb hosts getting their business back once the lockdown ends, as opposed to losing many angry clients who didn’t get their money back.

It’s unclear how the travel industry will look later this year or in a few years. All we can do is take it one day at a time.