Potential solution for Brian: Preferred Stock for Hosts as compensation?

[John-and-Heather0]

Here's a thought just trying to be constructive. Like many of you, I was taught long ago by a business mentor, "Pay people what they are worth, or they will take it from you."  The recent cancellation policy changes (against our will), value all of us who comprise the true assets of Airbnb at $0.  Or maybe, .125% of what was just taken from us when Airbnb unilaterally violated our cancellation policies.

So here's a solution: since Chesky is trying so hard to save his company and his IPO, what about a play to compensate hosts 100% for coronavirus cancellations by structuring preferred stock, available only to hosts, if or when the IPO happens? 

We just got the stick big time. We need a carrot. Otherwise, the company will just implode in the lack of trust.

[Ana20850]

Great post. Great idea

[Kristopher-and-Jennifer0]

Excellent plan! It'll pay for itself several times over!

[Catherine2252]

@John-and-Heather0 @Ana20850 @Kristopher-and-Jennifer0 

You can also join the petition:

https://www.change.org/p/airbnb-airbnb-breach-of-contract-class-action-lawsuit-violate-cancellation-...

[Kris-And-Jennifer0]

Done!

[Denice0]

It is a great idea - but not only as compensation for C-19 losses - but because we built this company and he's nothing without us!

[Melodie-And-John0]

@John-and-Heather0 , What an awesome idea, If we were actually possible benefactors of the company other than just a sub contractor to it, our POV and theirs would be very different I suspect.  I've heard folks comment that Airbnb owes us Hosts" and  "Were all in this together" or  "Hosts are part of the Airbnb Family", to be perfectly frank, while all of that sounds good if you say it fast enough, none of its true or a reasonable expectation at this point because were not truly vested or invested in AIrbnb.  If we were truly partial owners, we might be more understanding of the draconian yet necessary measures that Airbnb's management had to undertake in the face of hopefully once in a lifetime extreme event to retain a customer base on the other side of this.

Because I've always had the most liberal cancellation policy, the substantial loses I have experienced recently can only be associate with the virus not Airbnb, customers could always cancel me up to 24 hours prior and I would lose my payout.  Unfortunately, too many hosts believed a cancellation policy was as secure as an insurance policy.  Sadly its not, they are not the same and wont carry the same weight in a court of law.

All of us Superhosts are  just as likely to care more for our customers first than any other persons or businesses associated with our small businesses.  Thats  just like Brian chose to do for his very large global company because the customer is #1 and neither Airbnb or its Hosts can make a living without them.  Thats the type of business we run and probably should expect our Scheduling/ Advertising/ Communications/ financial transaction Platform provider to do the same (maybe communicate change a little better before they do something!!!!).  I wonder what customers that didn't get their refunds from other services will do the next time they want to book via one of them, hopefully they will choose Airbnb because they put customers first, maybe just wishful thinking but I guess I will find out cause I am sticking with them.   BTW, I do really hope your wish for some free AIrbnb stock for all hosts that lost money due to Covid 19  comes true, it would be a great move for them and us!  Stay well, JR

[Sharon1014]

@Melodie-And-John0 

@John-and-Heather0  are not talking about FREE stock but PREFERRED stock, which means providing hosts with an option to BUY stock ahead of other competitors when the IPO launches, i.e. first bite of the cherry.  Airbnb stock won't be free but it is a good / great idea to make a special offer for preferred stock.  Preferred stock can also carry with it voting rights that other types stock holders may not have, e.g. 2 votes instead of 1 vote per share.  There can also be other benefits to preferred stock, like higher dividends (quarterly payouts to shareholders).  

IPO's (Initial Public Offerings.... which is what it is called when a company first lists on the stock exchange) typically go one of 2 ways, rapidly up or rapidly down after the initial offering.  The market price action (buying and selling) eventually settles (maybe days or weeks) and that's when you know what the company is actually worth.

[Melodie-And-John0]

@Sharon1014 , Thank you for that response, I think it would be a good investment in the long run.  stay well, JR

[Sharon1014]

@Melodie-And-John0  I think you would need to look over the prospectus very carefully. I'll be interested to see what Airbnb intend to use the new capital for.  I hope it might be to professionalize the platform, have more integrated and consistent communication with hosts (and guests) and not have all the fresh money being swallowed up by litigation fees or higher payouts to the board or principals, or because they are looking to dump the company.

There are numerous risks in an IPO, delivering returns to shareholders being the primary concern for hosts, e.g. will a publicly listed company put profits before people, will they increase their guest and host fees, will the company get some sound management on board ? (because atm, it seems a bit more like an evolving but somewhat dysfunctional circus, under-resourced in terms of effective risk management in numerous areas).

[Melodie-And-John0]

@Sharon1014 , To be honest, I think most private, public companies and governments are being tested very hard right now and most are ill prepared to deal with it out of the box, some are doing better on day 2, I hope .  From what I've read, Airbnb doesn't actually need the money for working capital (that was before the pandemic), I as well would also like to see where they are investing that flush of cash.  It would be good to build up the communications and helpline staffing to deal with all levels of traffic including pandemics, travel is an immediate needs business, later is too late for guests and hosts.

I wouldn't look at anything but medical companies to have any great potential growth anytime soon but long-term, I feel Airbnb still has their eye on the brass ring.  They cared for their customers when it mattered most and that will solidify their base over companies that were more concerned with The CODB (cost of doing business).  It probably wont make too many Hosts happy that have lost so much in the short term but those that survive and stay will probably be much happier to see the returning guests and new ones that trust Airbnb over other booking services that made them pay for a place they couldn't even go to by law.  Stay well, JR

[Louise0]

Presumably Airbnb are using the capital raised from the share placement to retire debt and finally give a return to the venture capitalists who provided funding over the years. 

In many (most, were it not for COVID-19?) it's probably just going to be a straight debt for equity swap, so there isn't really going to be much in the way of 'fresh money' flowing in.  In short, their capital structure will change, but the size of the balance sheet won't.

[Sharon1014]

@Louise0  Who knows?  Wouldn't mind seeing their annual reports.  What does concern me as a host quite a lot, is the potential for large scale multi-national hotel chains to buy up big with the deliberate intention of putting Airbnb style accommodation in the ground (aka kill the competition, hostile takeovers etc).  Wouldn't be the first time the corporate big boys played nasty.

[Susan17]

@Sharon1014 @Louise0 @Melodie-And-John0

They've just raised another $1 billion in the latest funding round, combination of debt and equity. (Silver Lake and Sixth Street Partners) Valuation not disclosed but Airbnb's own internal valuation was revised downwards to $26 billion some weeks ago. Terms also not disclosed. 

[Sharon1014]

@Susan17  Do you know why they raised that capital, as in for what purpose?