Airbnb has been smashing goals since it’s founding in 2008! They have become the biggest hotel provider without owning any real estate. Millions of people around the world chose to use Airbnb for accommodation, and I’m sure many of you reading this have stayed in one.
Things were going great for the company and they were about to go public. Their IPO (Initial Public Offering) was set for sometime in 2020….then coronavirus hit and effectively put a stop to the travel industry.
Suddenly their business went to almost zero and now, they have revealed how they are handling the tough times.
Airbnb just released a letter from their CEO, sent to their world team discussing how their business is going to change. They expect this year’s revenue will be less than half of 2019.
One of the biggest changes includes dramatically reducing their workforce. Airbnb currently has about 7,500 employees. 1,900 of them are going to leave. That’s about a 25% reduction in their workforce! The employees who get the short straw aren’t going to be left high and dry.
According to the company, those leaving (in the US) will get 14 weeks pay and an extra week for every year they have stayed. They will also get 12 months of health care. Employees from other parts of the world will have their health insurance covered until the end of 2020.
The CEO, Brian Chesky provided these final words to employees leaving “I am truly sorry. Please know this is not your fault. The world will never stop seeking the qualities and talents that you brought to Airbnb … that helped make Airbnb. I want to thank you, from the bottom of my heart, for sharing them with us.”
The future of travel
Airbnb believes that travel will be different after Coronavirus. They believe that people will want safer options that are closer to home and more affordable. To respond to upcoming changes they are focusing on going back to basics.
They believe people will want a sense of belonging and human connection, so they going to focus on the roots of their business – Everyday people offering up their homes and providing experiences. To achieve this, they are pausing their operations in transportation and studios, they’re also scaling back their investments into big hotels.
What does this mean for all the readers looking forward to a holiday? Well, if Airbnb is anything to go by, there is going to be a big boost in local travel. International boarders might take longer to reopen, but in the meantime, it may open up a great opportunity to see Australia.