May 5th: A company update from Airbnb

[Airbnb]

COVID-19 has fundamentally changed the travel industry, and today we shared the difficult news that we’re reducing the size of the Airbnb workforce. This week we’re focused on taking care of our employees, and we’d like to ask for your understanding and patience as we spend time supporting them. Here’s what you can expect in the next week:

• We’ll continue to respond on our social channels, in the Community Center, and through our community support team
• We will reach out to partner with a small group of community leaders from around the world to gather feedback and common questions 
• Brian Chesky, our CEO, will hold a live Host Update on May 13 to answer top questions and address what matters to you most

Brian shared this note with the team today, which is a summary of what’s happening. 

We remain committed to supporting you and your guests and to rebuilding our businesses together. We’ll be in touch again soon.

[Yiwei3]

This was super surprising when I read this on the news!  I do think that the decision to go back to roots is correct.  All the other "initiatives" with Hotel Tonight, Studios are way out.  With all $2 billion funds raised, I hope Airbnb keeps all their employees employed after this round of layoffs.

[Frederic54]

The Hospitality industry, and Gig Economy are bound to change dramatically. Airbnb's hosts and "exchange platforms' operators", who once thought they were part of a genuine partnership, are awakening to the cold reality that they were merely pawns to corporations willing to dismiss them in a blink of an eye, overriding policies, and ignoring their commitments. This pandemic has shed a laser beam light on decaying models and forces governing the majority of these multi-billions $ organizations.
- Fees, specifically platform fees (15% paid by guests, up to 10% paid by hosts), and payment transaction fees (up to 5%) must disappear!
- For consumers, real actual benefits and added values are born from a purely organic, self-policing, highly distributed, open source and frictionless transparent ecosystem. Think of Blockchain transforming financial services!
- The hospitality war between traditional hotels and Gig economy platforms needs a truce. Most guests enjoy both the predictable hotel, and the personalized experiences. If they are to survive, they'll need to join forces.

www.gigoyu.com has appeared as a real alternative to a broken model, for guests, hosts and hotel managers looking to fill bookings without any kind of fees other than the actual night cost. 

[Fred13]

I believe the top rate paid by hosts is 5%; one example are those on SuperStrict 60, which few hosts are and the option has been now eliminated (March 2020), but those on it will remain on it because they are grandfathered.   

[Cormac0]

Microsoft had its Steve Ballimer and Airbnb has its Brian Chesky, its time for a change at the top, BS will get you some where apparently when things are going well, but when a crisis comes, to quote Warren Buffet "Only when the tide goes out you discover who's been swimming naked" 

Airbnb systems and processes have been a Dogs Dinner for a long long time, its time for a change at the top and a complete stream lining of Airbnb business processes.

[Hello6]

Having seen Canada's public revenue streams disappear to private pockets and now living in Spain - catching up on their history of redirected public money - to private pockets... Maybe its time for Tech industry and possibly Airbnb as a lead to help refill public coffers.  The simplest of even applied tax to all bookings that is remitted to local, provincial & federal government where a rental exists would go a long way to meet Airbnb's goals as a community supporter and aid all of us towards a legality most of us precariously sit on. Further, our voice at the table is heard louder as we are seen to contribute - via direct funding.  Happily we would remit tax as required and have it taken directly off the booking and deposited to the tax man if it was  simple, equal for all.  3% split 1% to each level of government under agreement hosts pay no more for income received would greatly expand local spending.  Hosts are protected from hidden bills and protected further from a multinational clout Airbnb has.  Tack on another 1% for insurance.  Putting equal tax remittances to all hosts geographical tax men and having the hosts pay this would free both guests and hosts from hidden fees.  It would also incentive governments to allow hosting as revenue is seen directly real time.  Think of the free press of announcements that small town government A made more money then photo radar this year from Airbnb etc.  This would also equal the cancellation debate as no one pays or needs to if a guest cancels.  This keeps the fire under hosts to produce the best experience for price to be competitive.  Food for thought.  In regards to the layoffs.  Lucky.  Seriously.  In a world where government and corporations don't have to care - a buyout and continued support measures is a welcome gift to a slammed door.  A better standard from most is demonstrated here.  If every company gave as generous a walk-away package people around the world would have more opportunities and time to choose a new path.  Having experienced layoffs in Canada most of our life it was nice to finally escape to Spain - granted this lockdown is killing our business here - if it were not for Airbnb we wouldn't have been able to get off the ground so quickly and pay for as many reforms as we have had already.  Thank you Airbnb, to your team, and to those leaving as well.  Great work so far.  If we can get some savings back when Spain opens again expect us to invest of you do IPO.  To any of your employees past or present,  hosts and guests too we welcome you to come to Gran Canaria Spain and any of the Canary islands.  Join the many digital nomads and folks escaping most of the worlds grinds to a more relaxed, safer and cheaper place in the sun 🙂 Maybe book and come visit us at our Hello House Hostel too on Airbnb :). We can sit on the terrace, enjoy a few drinks and talk 🙂

[Sally221]

Warren Buffet has dumped all of his airline stock, just saying.