Airbnb rental model became one of the victims of the coronavirus pandemic. This year was supposed to be a big year for the company. Airbnb had planned to go public but the pandemic destroyed everything that it had built in the last 12 years, in a period of four to six weeks, said their CEO, Brian Chesky, in an interview with CNBC.
Chesky also mentioned that Airbnb faces an uncertain future due to the outbreak, experienced in almost all parts of the world. He mentioned that the tourism industry will never be the same and a return of their rental model will be difficult, post COVID-19.
Post COVID-19 Travel
With this ongoing pandemic, businesses and convention travel are not expected to restart soon since companies have started to operate online. Also, people now do not need to get on a plane to attend a meeting, which can be done online.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Following the recent trends, Airbnb has observed that people are opting to travel by car to small communities 200 miles away or less rather than getting on a plane, for cross border travel. People will tend to visit national parks, closer to their homes, leading to a more “intimate, local travel.”
Slow Recovery for Airbnb
The CEO noted that at least in the United States Airbnb is recovering since within countries they are still operating, but the same has not been true for international travel. The decline in international travel has had a severe impact on the firm.
In the month of May, Airbnb let go of 25% of its workforce and raised $2 billion both in equity and debt to support its balance sheet.
With travel and tourism being more localized, Airbnb is evaluating its plans for the next year ahead and beyond, with its IPO most likely being postponed to the end of 2020.