3 Important Lessons From Airbnb’s Pandemic Pivot

When the pandemic brought the world to a standstill, most people put their travel plans on ice. Nobody could have predicted that would happen, least of all Brian Chesky, the co-founder and CEO of Airbnb: “I did not know that I would make 10 years’ worth of decisions in 10 weeks,” Chesky said in a recent interview with The Wall Street Journal.

What the company did in that short time span was impressive–at least according to Michael Seibel, the chief executive officer of Y Combinator, when talking to the WSJ about Chesky’s pandemic response.

Though Airbnb let thousands of workers go in its marketing department, it also retooled and retrained its focus in a way that Chesky says the founders hadn’t done since the company launched. Here are three key takeaways from the story of Airbnb’s turnaround:

When Airbnb decided to refund guests for cancellations, the company faced backlash from angry property owners. Chesky tried to soften the blow by refunding hosts for a third of canceled stays with funds loaned by Silver Lake and Sixth Street Partners. 

“We are nothing without you hosts. You are our lifeblood,” said Chesky in an interview with the Wall Street Journal. It’s a reminder to take care of the people who–literally–keep your doors open.

As states eased travel restrictions Airbnb saw an uptick in reservations in local areas. Over half of Airbnb’s August bookings were within driving distance–300 miles–of the guest’s location. So Airbnb adjusted its recommendation algorithm to show more local stays. By leveraging industry trends and data from their consumers, companies can make better-informed decisions and stay aligned with what customers want and need.