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AIRBNB BY THE NUMBERS:
100s of thousands of guests use Airbnb every single day. In fact, on an average night, 2 million guests stay in Airbnb rentals around the world.
Let’s consider the above information in light of the COVID pandemic and the brewing Airbnb refund scandal
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100s of thousands of guests use Airbnb every single day. In fact, on an average night, 2 million guests stay in Airbnb rentals around the world.
Let’s consider the above information in light of the COVID pandemic and the brewing Airbnb refund scandal
1
Assume for a moment that the average nightly stay is a conservative US $120.
Because COVID arrived at the most inconvenient time possible (peak Airbnb months), let’s multiple 2 million nightly stays by $120. That’s $240 million per night in Airbnb bookings worldwide.
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Because COVID arrived at the most inconvenient time possible (peak Airbnb months), let’s multiple 2 million nightly stays by $120. That’s $240 million per night in Airbnb bookings worldwide.
2
Let’s cut above number in half, since, worldwide, 2 million “guests” stay per night in Airbnbs. It’s likely multiple people tend to stay in a single Airbnb together. So let’s use a metric of 2 guests per Airbnb per night.
That results in $120 million in daily worldwide stays.
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That results in $120 million in daily worldwide stays.
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Now, let’s consider pandemic’s impact on Airbnb’s cashflow.
Let’s assume guests worldwide cancel Airbnb stays btw March 20 & May 31. Further assume these bookings were made pre-pandemic (so fall within Airbnb’s extenuating circumstances policy, qualifying for 100% refund).
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Let’s assume guests worldwide cancel Airbnb stays btw March 20 & May 31. Further assume these bookings were made pre-pandemic (so fall within Airbnb’s extenuating circumstances policy, qualifying for 100% refund).
4
That’s 71 nights. Airbnb charges guest’s credit card as soon as host accepts stay, in other words fully upfront. 71 nights x $120 million is a staggering $8.5 billion in gross rental revenue collected by Airbnb for stays that were supposed to happen during pandemic.
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$8.5 billion of revenue collected from which Airbnb expected to generate fees. Let’s assume avrg of 4% in Airbnb fees. That’s $340 million. Not only is Airbnb in potential problems b/c money collected is trust money held for benefit of hosts, it now loses $340 million in fees.
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$340 million based on which Airbnb made decisions, including hiring, operations, & marketing. Assume avrg cost of skilled Airbnb employee is $100k annually. That’s 3,400 employees.
In summary, this pandemic will be devastating to Airbnb. That’s why it’s refusing to refund
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In summary, this pandemic will be devastating to Airbnb. That’s why it’s refusing to refund
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