Accommodation provider Airbnb posted on its website this week a letter sent to hosts that extends through 31 May the time for which guests can cancel their reservations and receive a full refund, due to the coronavirus pandemic.
The previous date had been 14 April. The original decision had angered some hosts. To compensate them, the company also will pay US$250 million (£201 million) to help cover the costs of Covid-19 cancellations.
"[W]hile I believe we did the right thing in prioritising health and safety, I'm sorry that we communicated this decision to guests without consulting you—like partners should," co-founder and CEO Brian Chesky wrote. "We have heard from you and we know we could have been better partners."
The company will pay hosts 25 per cent of what they would normally receive through the policy for Covid-19-related cancellations with a check-in date between 14 March and 31 May. "This applies retroactively to all Covid-19 related cancellations during this period," the statement noted. "These payments will begin to be issued in April."
Airbnb also is creating a US$10 million Superhost Relief Fund for hosts who need help paying their rent or mortgage and for long-tenured Experience hosts trying to make ends meet. The letter said that employees started the fund with US$1 million in donations, and Chesky and others are "personally contributing the remaining US$9 million". Starting in April, hosts can apply for grants for up to US$5,000 that don't need to be paid back.
In addition, Reuters reported that Airbnb has suspended marketing in an effort to save US$800 million, and that for the next six months the company's founders will take no salary while top executives will take a 50 per cent pay cut.
Airbnb declined further comment.