Airbnb CEO Brian Chesky apologised in an email to hosts impacted by Airbnb’s coronavirus cancelation policy, stating that Airbnb is putting aside millions to help offset the cancelation costs. Airbnb extended its extenuating circumstances policy earlier this month, granting full refund to guests who have cancelled reservations made from March 14 and April 14.
Airbnb will pay $250 million to the hosts who lost money from the Coronavirus cancelations. According to Chesky’s note, should visitors cancel their lodging due to coronavirus-related conditions, Airbnb must pay hosts 25% of what they usually earn from their cancelation program.
Payments will be made starting in April. In turn, Airbnb is establishing a $10 million support fund for superhosts who share their own house and need assistance with their mortgage or rent. Chesky’s email also provides an alteration to the extenuating situations clause, expanding the cancelation period to reservations made between March 14 and May 31.
For a reservation to be valid for our extenuating circumstances scheme, it must have been for accommodation and must have been booked on or before 14 March for a check-in between 14 March and 31 May 2020. If a reservation is made:
- Guests should be entitled to claim a full refund under the conditions of COVID-19.
- Airbnb will pay 25% of what you should have paid for cancelation on the basis of your cancelation agreement. For eg, if you usually get $400 USD from your cancelation program, Airbnb will give you 25 percent of that — or $100 USD.
- In early April, we’ll send an email with more information to hosts who are receiving a payout. Future contributions from the Fund may be made on a monthly basis to hosts with valid cancellations.
- The strategy would still extend retroactively, to all cancelations that could have happened since March 14.
According to Airbnb’s announcement, the policy is being updated on a daily basis, citing guidelines from the World Health Organisation as well as government and health authorities.