Airbnb’s Brian Chesky Apologizes For Impact On Cities, Rethinks Future Growth

“We grew so fast, we made mistakes,” Chesky told The Times. “We drifted. We really need to think through our impact on cities and communities. A reset for everything and everyone.” Airbnb does not normally do refunds, allowing hosts to set their own cancellation policies, but with borders closed and guests unable to travel, Chesky had to hand back guests’ deposits and so he had to raise funds — $2 billion from investors, including private-equity firms Silver Lake and Sixth Street Partners, at a hefty 10% interest rate.

Chesky as part of a “really serious audit” of who should — and should not — be on the platform has suggested prioritising small-scale, everyday hosts over larger commercial operators. “We stand for accommodation and services that are unique. Whether they are offered by a business or sole proprietor, they have to feel authentic.”

Chesky also gave an additional $250 million to cover one-quarter of the immediate losses of its estimated 700,000 hosts.

Chesky has axed 25% of his staff, almost 2,000 people, many of whom were working on new projects as he rethinks his decision to own the “whole travel experience”.

Chesky sees growth in the post-lockdown recession: “Our business for last month has been at or above last year’s levels from a gross booking value (standpoint).”

Chesky, who late last year was said to be worth more than $3 billion, is planning to forgo a salary for the next six months according to the Wall Street Journal.