Online booking platform Airbnb will pay compensation to millions of hosts around the world due to coronavirus lockdown and cancellations, CEO Brian Chesky said in a message on Tuesday. Airbnb will pay the compensation because of a wrong decision to allow guests who have canceled to get refund.
The compensation is for hosts to cover cancellation refunds after the World Health Organization declared a pandemic on March 11, 2020.
“We will pay $250 million to hosts to help cover the cost of COVID-19 cancellations.
When a guest cancels an accommodation reservation due to a COVID-19 related circumstance, with a check-in between March 14 and May 31, we will pay you 25% of what you would normally receive through your cancellation policy. This applies retroactively to all COVID-19 related cancellations during this period. This cost will be covered entirely by Airbnb. These payments will begin to be issued in April. Guests with reservations booked on or before March 14 will still be able to cancel and receive a standard refund or travel credit equivalent for 100% of what they paid. You can go to airbnb.com/250Msupport for more details.
We are creating a $10 million Superhost Relief Fund.
This is designed for Superhosts who rent out their own home and need help paying their rent or mortgage, plus long-tenured Experience hosts trying to make ends meet. Our employees started this fund with $1 million in donations out of their own pockets, and Joe, Nate and I are personally contributing the remaining $9 million. Starting in April, hosts can apply for grants for up to $5,000 that don’t need to be paid back. You can go to airbnb.com/superhostrelief for more details.”
Previous guests will be able to donate in a platform that will go live in April.
In his message to hosts, CEO Brian Chesky calls also on hosts to join efforts and offer housing for medical staff and health workers on the front line.
“Together we are helping to house over 100,000 healthcare providers, relief workers, and first responders by providing housing to them for free or with a subsidy. Over 40,000 of you have already raised your hands to help. Visit airbnb.com/covid19relief to join them.”
The platform will soon provide details on cleanliness standards and other issues to help rebuild hosting businesses.
