Airbnb said Monday it is giving $250 million financial aid to hosts across the globe affected by the cancellations brought by the COVID-19 pandemic crisis. It announced earlier that guests could get full refunds for certain reservations.
The aid will pay hosts 25% of Airbnb’s standard cancellation fees. It is available globally except for China.
The payments to hosts cover reservations made from March 14 to May 31 only. Not all canceled bookings will be qualified for the payment since hosts chose different cancellation policies, such as requiring penalty payment.
Airbnb earlier announced guests who canceled their reservations on or before March 14 for check-in dates March 14 to April 14 could receive a full refund. It also said hosts could cancel reservations without a charge.
Airbnb allocates $250M for hosts affected by COVID-19 cancellations
It also said it would begin issuing payments for the hosts in April. Airbnb provided no details on whether the $250 million will be enough to cover fees to hosts for all eligible canceled reservations.
In 2019, the company’s revenue exceeded $4.8 billion, up 35% on the year, and it has $3 billion in cash, a source told Reuters last week.
Airbnb Chief Executive Brian Chesky also apologized for deciding to offer refunds to the guests without consulting their hosts.
Airbnb, Inc. is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; it acts as a broker, receiving commissions from each booking.