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Letter to Airbnb CEO  Brian Chesky

Dear Brian

I wanted to ask those things in person when I saw on the news Airbnb CEO Brian Chesky lists his spare room on the rental site, but there’s a catch. I just could not find any date available in the next years. Therefore I will take a virtual meeting. So, I wanted to take care of some issues.

First, I offer you my sympathies as you navigate AirBnB through these unprecedented waters. You have an immense challenge. 

As many others who own or manage a space to rent on Airbnb, Covid has been a killer factor in the industry.

In A Letter to Hosts you wrote on Mar 30, 2020 your decision to cancel all reservations and give a full refund or a travel credit to guests impacted by COVID-19 put many hosts out of business.

I read some hosts started to sue , hate or leave Airbnb. You said — I am truly sorry. Please know this is not your fault. 

And I read on Nov 16, 2022 Airbnb to Ease Host Sign-Up Process, Add More Search …
— Airbnb took several steps to ease the onboarding new hosts.

Now I write you some of my questions with a possible answer. I would appreciate if you could have answer instead.

How AirBnB Might Fail?

Like said from an article By Pipedreamer in Harvard website; AirBnB is one of the most successful companies growing a two sided market. Founded a decade ago, they now boast over 1.5 Million listings in 34,000 cities and 190 countries. Early this year, AirBed and Breakfast was valued at 25.5 Billion.

Airbnb has no value, since they relies on a commission system that adds costs to the users to access their platform. This means that the more you are making, the more you are paying.  An AirBnB host will try to contact the guest directly to save money.

But why AirBnB might risk to fail?

Its’ because the users can leave just as quickly as they’ve came. And when new renters (host like Airbnb called them) join the platform, it becomes harder to ensure quality. 

And so hosts are leaving the platform once they realize they can cut the middleman and advertise directly to consumers. 

What is the biggest threat to Airbnb?

Lack Of Quality Controls For Hosts: Airbnb is almost everywhere but there is no standard of quality control which creates problems such as less comfort and cleanliness. Poor hosts can damage a company’s reputation. If in any case, any host does not comply with Airbnb guidelines, they can face the consequences.

What is the problem with Airbnb company?

The biggest problems Airbnb Hosts deal with are regulations, local laws, parties, excessive turnovers, unmanageable guests, not knowing your market and finding better guests.

What will be the future of Airbnb?

For the first quarter of 2022, Airbnb expects its revenue to rise 59%-67% year over year. Analysts expect its revenue to rise 32% for the full year.

Airbnb can ideally growth in the current market. Its profitability is improving, it’s resistant to inflation, it benefits from relaxed lockdown measures, and its valuations are fairly reasonable. The unpredictable macro and geopolitical headwinds might limit its near-term gains, but I believe can be a long-term winner.

Airbnb surged through 2021, but it’s stumbled in 2022 even as the company has reported strong growth on the top and bottom lines. Year to date, the stock is down 42% as investors seem to be betting that the recovery in the travel market will soon fade as fears of a global recession rise.

Has AirBnB become absolute garbage?

Most hosts are lazy, greedy or some combination of both. If you want to charge a huge daily rate, your property better be impeccable. The reality is that the majority of hosts want a money printer as opposed to a hospitality job, forgetting what they signed up for.

The only scenario that still makes sense for STRs is large parties. That’s it. I could never recommend an Airbnb to a family of say 2-4 because the service will likely be shit and it’ll be as expensive as a hotel with 20% the convenience.

Is Airbnb losing popularity?

Shares of Airbnb have declined nearly 30% year to date, while the S&P 500 index SPX, has fallen about 23% so far this year.

While Airbnb has reported in Q3 2022 its strongest quarter ever in terms of revenues, with demand up 25% compared with Summer 2021, individual hosts have complained about getting fewer bookings since July. Meanwhile, Airbnb wants to add millions more new hosts to its platform.

Like written in this article by Marketwatch: Airbnb hosts Bookings ‘fell off a cliff’ because of competition and higher prices.

Why are people not using Airbnb?

A 2021 study of more than 125,000 Airbnb complaints on Twitter found that 72% of the issues were related to poor customer service and 22% were related to scams.

One response to “Letter to Airbnb CEO  Brian Chesky”

  1. […] keep up with the competition, Airbnb could incorporate 360-degree virtual tours for prospective guests. Also they could introduce a 24/7 […]

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