So far 2020 has not been a good year for Airbnb. The company has missed its chance for an initial public offering (IPO) and racked up millions in losses – including a $250m payout to landlords for reservations cancelled due to the coronavirus pandemic.
In a bid to save $800m, the company has suspended all its marketing activity for 2020 and given executives a 50% pay cut. After a spectacular rise, things now look uncertain for Airbnb and its global dominance over short-term rentals. Landlords are leaving it in droves following the “Airbnb Apocalypse” and are putting their houses back in the long-term rental market to salvage their losses.
The entire industry faces a devastating impact from the coronavirus pandemic due to knock-on effects of cancelled travel, events and conferences. Airbnb will eventually re-emerge, but it will no doubt be rattled by this experience and see a significant amount knocked off its market value.
