Home sharing service Airbnb Inc. disclosed it would send $250 million to hosts on its website who have lost money at their properties from coronavirus-related cancellations.
Alternatively, the company, whose intentions to go public this year have been questioned, has faced criticism from visitors and hosts over its global pandemic-related reimbursement policies.
With coronavirus spreading across the globe, thousands of travelers have called off holiday plans, work trips and family visits.
The short-term rental website Airbnb provides unparalleled flexibility to revoke bookings without fines, in response to travel bans and a surge in cancelation requests.
Some owners of short-term rentals had their holiday-rental calendars washed clean when the policy was revealed. "I think we got about four cancelations per day," says Richard White, who owns four condominium units North Carolina, which he rents out using Airbnb and other short-term rental sites.
Chesky said Airbnb would start issuing the refunds in April, and that guests who booked trips on or before March 14 could still cancel and receive a normal refund or travel credit equivalent for 100 percent of what they paid.
With few people traveling or planning trips at all at the moment, it's unclear how many cancellations hosts may see during the period the policy is in place, but an Airbnb spokeswoman said the company hopes that $250 million would be sufficient to cover everything that is created.
Airbnb is now developing a $10-million fund for its superhosts and host experiences. Employees contributed the first $1 million and the remaining $9 million were directly supported by Airbnb co-founders Joe Gebbia, Brian Chesky and Nate Blecharczyk.
Hosts may apply for grants of up to $5,000, beginning in April. And visitors wishing to express their support during this period will soon be able to make direct payments.
Airbnb initially opposed reimbursement of U.S. guests for cancelations associated with coronavirus, relenting only after the epidemic was declared a global pandemic by the World Health Organization on 11 March.
Meanwhile, in an effort to save $800 million this year, Airbnb has suspended all of its ads. There will also be no compensation for its creators for the next six months, and top executives will take a 50 percent pay cut, according to Reuters. The organization has also stopped recruiting, except for a few main positions.
Airbnb had a conference call with bankers on Wednesday to negotiate the extension of a $1 billion debt facility as it faces the economic downturn caused by the coronavirus pandemic, and the organization has told workers that they are unlikely to earn a bonus this year. Layoffs may also be a possibility.
