U.S. hotel firms are requesting $150 billion in direct assistance for their employees, despite what they believe is an unprecedented decrease in demand due to the ongoing pandemic.
Airbnb asked the US House of Representatives to provide assistance to property managers described on their platform as part of the committee's attempt to normalize the economy during the crisis.
Marriott, Hilton, Hyatt and other chain top executives met with US President Donald Trump on Tuesday to explain the effects and seek support.
In a document to US House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy on Tuesday, the online travel agency proposed that the legislation adopts tax breaks and loan policies that would directly support its host network.
The initiatives will offer both short-term assistance to property management companies and ultimately make the short-term rental sector more beneficial to them in the longer term.
Christopher Nassetta, chief executive officer of Hilton, told Trump that the hotel chain had never closed a hotel in its one-century history that was not meant for remodeling or demolition.
Today, most Hilton hotels are closed in major U.S. cities and around the world, their businesses are occupied by just 10 percent to 15 percent.
The average occupancy rate in the US was 67 percent in 2019. "I have been into this business for more than three decades and I have never witnessed anything like this," Nassetta told Trump.
According to Airbnb senior vice president for policy Chris Lehane, the company is mainly worried about the everyday people who rely on travel and tourism for their means of income.
Airbnb, Lehane pointed out, welcomes "conversation during your work to ensure any economic easing offering includes these or other efforts to financially support US short-term rental operators and travel industry single-entrepreneurs and small businesses in this time of crisis."
Marriott disclosed it was cutting the hours of employees and beginning to reduce what might potentially turn into tens of thousands of jobs. Staff will continue to enjoy their medical benefits, the firm stated.
Chip Rogers, chief executive officer of the American Hotel and Lodging Association, an advocacy organization, said the pandemic has already had a greater effect on the U.S. hotel business compared to the combined terrorist attacks of September 11, 2001, and 2008 financial turmoil.
Airbnb usually allowed property managers to set their own rules before the transition, and many had specific terms that prevented last-minute cancellations. The actions of the organization disrupted those policies, forcing hosts to lose income, sometimes without an opportunity to recover it.
