Airbnb Responses in the Global Pandemic

AIRBNB RESPONSES IN
THE GLOBAL PANDEMIC

TABLE OF CONTENTS
AIRBNB RESPONSES IN THE GLOBAL PANDEMIC..............................................................1
INTRODUCTION...........................................................................................................................3
AIRBNB and the COVID-19 PANDEMIC.....................................................................................3
Impact of the Pandemic on Airbnb..............................................................................................3
Response of Airbnb to the pandemic...........................................................................................3
Suggestion (keeping myself in the place of the CEO).................................................................4
PESTLE analysis.........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Every type of businesses is greatly impacted by the pandemic of COVID-19 in terms of
customer base, revenue, profitability and many more. The businesses who were totally depended
on the tourists and the money generated from their travel and stay are highly hit hard especially
by this pandemic. Airbnb, Inc. which is situated in San Francisco, California, US is one of the
well-known multinational American rental online company in the markets of US which is having
a rapid growth since many years having large number of hosts and guests (Henama and Apleni,
2020).
The report below will discuss the impacts of this global Pandemic on the operations of Airbnb
Inc. and its responses to this. It will also evaluate that whether these responses were ethical or
not and if not how can the response be better by pretending to be the CEO of Airbnb. The report
will also evaluate the impact of the Pestle Factors on the company in this tough time. At the end,
it will also examine that there are some positive and negative impacts that must be addressed by
the stakeholders and the company.
AIRBNB and the COVID-19 PANDEMIC
Impact of the Pandemic on Airbnb
Airbnb was making a substantial growth since many years with 7 million listings
worldwide and its value was $31 billion in March 2017 but due to this pandemic by the end of
April 2020, its value decreased to $18 billion. It was also determined by seeing the condition that
the revenue of the company will be less than half of the revenue which was earned in 2019.
Earlier, it was giving a tough competition to its competitor VRBO which had only 14.7 million
visits on its official sites and Airbnb had more than 50.2 million visits on its sites. But this global
pandemic became a challenge which must be overcome in order to make the conditions normal.
Millions of tourists have cancelled their plans (about 64%) or trips for various purposes which
gave no revenue to the company (Xalilullaevna, 2020). Airbnb had lost many hosts because of
this as they too faced a great loss.
Response of Airbnb to the pandemic
As the company was facing a huge loss, it decided to hire its most of the employees (about
1900) who became unemployed suddenly. But the company planned to give some part of salaries
3