Go read this story on Airbnb’s plans to bounce back after the pandemic
The travel industry is in shambles. 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 paramount.
Yesterday, Bloomberg Businessweek spoke to Airbnb CEO Brian Chesky and published an inside look at what the company is doing to weather the storm. 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.”
That torpedo has forced Chesky to make two tough decisions: first, refunding guests whose trips are now canceled at the personal expense of Airbnb’s hosts, and second, raising billions in capital at perilously high interest rates. 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. The common wisdom among travel industry vets is that travel will bounce back, plague or no plague. “We are prepared to go public, and we will be ready when the storm clears,” Chesky told Businessweek. That may be true! But until this virus clears, business is at the mercy of nature.
The travel industry is in shambles. 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…
Recent Posts
- Mobile industry is quietly preparing for the biggest change to your smartphone in a decade — iSIM will hasten the end of SIM cards and allow networks to preload plans on devices
- Replacing the OLED iPad Pro’s battery is easier than ever
- Ecobee’s Smart Thermostat Premium is nearly matching its all-time low
- The 9 best early Memorial Day TV deals: up to $1,000 off 4K, QLED and OLED TVs
- iPad Pro 2024 teardown video reveals some of Apple’s internal design changes
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011