Airbnb’s CEO has announced the company will pay $250 million to hosts to help them recoup money that was lost due to coronavirus-related cancellations.
In a letter to hosts, Chesky said that the decision — made without consulting hosts — “was not a business decision, but based on protecting public health” so guests would not feel pressured to check in when conditions might not be safe.
Airbnb will pay the host 25% of what they would normally receive through their cancellation policy. Airbnb says this policy will apply retroactively to all cancellations on check-in dates between March 14 and April 14.
Elsewhere, Airbnb is also creating a $10 million fund for its super hosts and experience hosts. Employees contributed the first $1 million and Airbnb co-founders Joe Gebbia, Brian Chesky and Nate Blecharczyk are personally providing the other $9 million.
Beginning in April, hosts can apply for grants up to $5,000 and for guests who want to show hosts their support during this time, they will soon be able to make payments directly to hosts.
“I’m sorry we didn’t consult with you as partners. We want to fix this,” Chesky said in a 15-minute video message that included more than 6,000 participants.
“We know that right now many of you are struggling, and what you need are actions from us to help – not just words.”
You can watch or read Chesky’s full policy here.