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The Daily Mag -->


Thursday, April 23, 2020

How is Airbnb going to bounce back?

Now that going places has become very ill-advised at best and contagiously fatal at worst, travelers are staying at home. That’s meant the businesses that make up the travel-industrial complex — from hotels to airlines — are cratering. Airbnb, the short-term rental behemoth, had even planned to go public this year. Now that those plans have been foiled and its business is in trouble, the question of what the company needs to do to simply survive the pandemic is increasing

Airbnb - Apps on Google Play

Airbnb CEO, Brian Chesky said, The mood seems grim. “I’m not sure if there’s a more difficult thing that a CEO of a travel company could ever do than go through this,” Chesky told the magazine. “You feel like you were T-boned, or like a torpedo has just hit the ship.”

To calm the hosts, Chesky started a quarter of a billion-dollar fund to reimburse them — though it will only cover a fraction of what those hosts had expected to make from their bookings.
The raise has its own problems, too. Taking $1 billion from Silver Lake Partners has revised the company’s valuation downward by 40 percent, which, according to Businessweek, “wipe[s] out billions of dollars in paper gains for Airbnb’s early employees and venture capitalist backers, including Sequoia and Andreessen Horowitz.”
In response, Chesky cut ad purchases and canceled a full $800 million in marketing spend. The CEO, however, is optimistic.

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