The tourism industry has taken a huge hit due to the coronavirus pandemic, as it is estimated by experts that it will take years for the industry to bounce back to previous levels. Due to minimized traveling, Airbnb has been suffering heavily. Through the first week of March, bookings have gone down by about 80% in Europe, and as for the US, bookings have gone down by 50% from the beginning of 2020 to the middle of March, and possibly even more as the pandemic has progressively gotten worse since then.
What Airbnb has done is offer a full refund for all bookings made from now until May 31. To compensate all the hosts for their lost bookings, the company set up a $250 million fund to support the hosts. Between the lost bookings and the funds, this has set back Airbnb financially. This led to the company to put all of their marketing activities on hold, and cut their top executive salaries in half. In addition, Airbnb was planning to go public this year, but it is possible that it will be put on hold. In conclusion, this pandemic has set back Airbnb, mainly due to all of the lost bookings.