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Airbnb

Airbnb, Inc. (pronounced /ˈɛərbiːɛnbiː/ AIR-bee-ehn-bee[6]


and stylized as airbnb) is an American vacation rental online
Airbnb, Inc.
marketplace company based in San Francisco, California, United
States. Airbnb offers arrangement for lodging, primarily
homestays, or tourism experiences. The company does not own
any of the real estate listings, nor does it host events; it acts as a
broker, receiving commissions from each booking.[7] Type of site Private

The company was conceived after its founders rented out an air Available in 53 languages
mattress in their living room, effectively turning their apartment List of languages
into a bed and breakfast, to offset the high cost of rent in San
Albanian, Arabic, Armenian, Azerbaijani,
Francisco. Airbnb is a shortened version of its original name,
Bosnian, Bulgarian, Catalan, Croatian,
AirBedandBreakfast.com.
Czech, Danish, Dutch, English, Estonian,
On August 19, 2020, Airbnb announced that it had filed for an Finnish, French, Georgian, German,
initial public offering. The company has been privately valued at Greek, Hebrew, Hindi, Hungarian,
$31 billion.[8] Icelandic, Indonesian, Irish, Italian,
Japanese, Korean, Latvian, Lithuanian,
Macedonian Malay, Maltese, Norwegian,
Contents Polish, Portuguese, Romanian, Russian,
Serbian, Simplified Chinese, Slovak,
History Slovenian, Spanish, Swahili, Swedish,
Funding Tagalog, Thai, Traditional Chinese,
Acquisitions Turkish, Ukrainian, Vietnamese, Xhosa
Overview and Zulu[1]

Terms of use and guest review system Founded August 2008 in San
Cancellations Francisco, California
Deposits Headquarters 888 Brannan Street,
Regulations San Francisco,
Europe California
United States Area served Worldwide
Japan
Founder(s) Brian Chesky
Controversies Joe Gebbia
Fair housing implications and discrimination Nathan Blecharczyk
Housing affordability Key people Brian Chesky (CEO)
Negative guest experiences
Joe Gebbia (CPO)
Bait-and-switch scams
Delisting of West Bank settlements Nathan Blecharczyk
(CSO[2])
Lawsuits
Philanthropy Industry Lodging

COVID-19 response Services Lodging


Hospitality
Other ventures Revenue $2.6 billion (2017)
Sponsorships Operating $450 million (2017)
References income

External links Net income $93 million (2017)


Employees 6,300 (2020)
Subsidiaries Luxury Retreats
History International Inc.
Crowdtilt
Shortly after moving to San Francisco in October 2007,
Accomable
roommates and former schoolmates Brian Chesky and Joe Gebbia
Aibiying
came up with the idea of putting an air mattress in their living
Trooly, Inc.
room and turning it into a bed and breakfast.[9] In February 2008,
Nathan Blecharczyk, Chesky's former roommate, joined as the Deco Software Inc.
Chief Technology Officer and the third co-founder of the new Trip4real Experiences,
venture, which they named AirBed & Breakfast.[9][10] They put S.L.
together a website that offered short-term living quarters, Lapka, Inc.
breakfast, and a business networking opportunity for those who Airbnb Uk Limited
were unable to book a hotel in the saturated market.[9] The site HotelTonight
Airbedandbreakfast.com officially launched on August 11,
URL airbnb.com (https://airb
2008.[11][12] The founders had their first customers in town in the
nb.com)
summer of 2008, during the Industrial Design Conference held by
Industrial Designers Society of America, where travelers had a Alexa rank 318 (April 2020)[3]
hard time finding lodging in the city.[13] [4][5]

Computer programmer Paul Graham invited the founders to the


January 2009 winter training session of his startup incubator, Y
Combinator, which provided them with training and funding in
exchange for a small interest in the company.[14][15][16] With the
website already built, they used the Y-Combinator investment to fly to
New York to meet users and promote the site. They returned to San Airbnb's headquarters at 888
Francisco with a profitable business model to present to West Coast Brannan Street, in San Francisco,
investors. By March 2009, the site had 10,000 users and 2,500 California
listings.[16]

In March 2009, the name of the company was shortened to Airbnb.com, and
the site's content had expanded from air beds and shared spaces to a variety of
properties including entire homes and apartments, private rooms, and other
properties.[17]

In April 2009, the company received seed money from Sequoia Capital. In
November 2010, they raised financing from Greylock Partners and Sequoia
Capital in a Series A round, and announced that out of 700,000 nights
booked, 80% had occurred in the previous six months.[18]

In June 2012, Airbnb announced its 10,000,000th night booked, doubling


business in the previous five months.

At the 2011, South by Southwest conference, Airbnb won the "app"


award.[19] In October 2011, Airbnb established an office in London, its first Joe Gebbia, Airbnb founder
international office.[20] (right)
Due to the growth of international end-users, in early 2012, Airbnb opened offices in Paris, Milan, Barcelona,
Copenhagen, Moscow, and São Paulo.[21] These openings were in addition to existing offices in San
Francisco, London, Hamburg, and Berlin.[22] In September 2013, the company announced that it would
establish its European headquarters in Dublin.[23][24]

In November 2012, Airbnb opened an office in Sydney, Australia, its 11th office location, and announced
plans to launch the service in Thailand and Indonesia.[25][26] In December 2012, Airbnb announced its
strategy to move more aggressively into the Asian market with the launch of an office in Singapore.[27]

In November 2012, Airbnb launched "Neighborhoods", a travel guide of 23 cities that helps travelers choose a
neighborhood in which to stay based on certain criteria and personal preferences.[28][29][30][31]

By October 2013, Airbnb had served 9,000,000 guests since its founding in August 2008.[32] Nearly 250,000
properties were added in 2013.[33]

In July 2014, Airbnb revealed design revisions to the site and mobile app and introduced a new logo. The
logo, called the, Bélo, is intended to serve as a symbol of "belonging", and consists of four elements: a head
which represents people, a location icon that represents place, a heart to symbolize love, and a letter "A" to
stand for the company's name.[34][35] In April 2015, following the Obama administration's easing of
restrictions on U.S. businesses to operate in Cuba, Airbnb expanded to Cuba, making it one of the first U.S.
companies to do so.[36][37]

In the summer of 2016, at the request of three members of the United States Senate, the Federal Trade
Commission began investigating how Airbnb affected housing costs. In October 2016, New York Governor
Andrew Cuomo signed a bill charging Airbnb fines for violations of local housing laws. The New York Times
reported that these events were related and part of a "plan that the hotel association started in early 2016 to
thwart Airbnb".[38]

In January 2017, Airbnb led a $13 million investment in restaurant reservation-booking app, Resy, along with
serial entrepreneurs Gary Vaynerchuk, Ben Leventhal and Mike Montero.[39]

Airbnb first became profitable during the second half of 2016. Airbnb's revenue grew more than 80% from
2015 to 2016.[40][41] After a $200 million profit in 2018, Airbnb posted a loss of $322 million in 2019.[42]

In February 2018, the company announced Airbnb Plus, a collection of homes that have been vetted for
quality of services, comfort and design,[43] as well as Beyond by Airbnb, which offers luxury vacation
rentals.[44] By October 2019, two million people were staying with Airbnb each night.[45]

During the COVID-19 pandemic, Airbnb suffered a significant drop in bookings, estimated at between 41%
and 96%.[46][47] In response, the company lowered its internal valuation from $31 billion to $26 billion, and
has considered delaying plans for an IPO.[48] On March 30, CEO and Head of Community Brian Chesky
penned a letter to hosts, pledging $250 million for widespread guest cancellations.[49][50]

On May 5, 2020, Brian Chesky sent a memo to all employees announcing the company would be laying off
approximately 1,900 employees, or about 25% of its workforce in the Americas, Europe, and Asia due to the
COVID-19 pandemic.[51]

On August 19, 2020, the company announced that it had filed for an initial public offering.[8]

Funding

In January 2009, the company received $20,000 in venture funding from Y Combinator.[52]
In April 2009, the company raised $600,000 from Sequoia Capital, with Youniversity Ventures partners Jawed
Karim, Keith Rabois, and Kevin Hartz participating.[53][54]

In November 2010, it raised $7.2 million in a Series A round of funding led by Greylock Partners and Sequoia
Capital.[18]

In July 2011, it raised $112 million in financing led by Andreessen Horowitz. Other early investors included
Digital Sky Technologies, General Catalyst Partners, and A Grade Investments partners Ashton Kutcher and
Guy Oseary.[55][56][57]

In April 2014, the company closed on an investment of $450 million by TPG Capital, with the company value
estimated to be approximately $10 billion.[58] Additional funding was provided by Andreessen Horowitz,
Sequoia Capital, Dragoneer Investment Group, T. Rowe Price and Sherpa Capital.[59]

In June 2015, Airbnb raised $1.5 billion in Series E funding led by General Atlantic, and joined by Hillhouse
Capital Group, Tiger Management, Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband
Capital, and Horizons Ventures.[60][61]

In September 2016, Airbnb raised $555.5 million in funding from Google Capital and Technology Crossover
Ventures, valuing the company at $30 billion.[62] In March 2017, Airbnb raised $1 billion in funding, bringing
total funding raised to more than $3 billion and valuing the company at $31 billion.[63]

In April 2020, Airbnb raised $1 billion in another round of funding from private equity firms Silver Lake and
Sixth Street Partners.[64]

Acquisitions

On May 31, 2011, Airbnb acquired a German competitor, Accoleo.[65] This takeover, as well as other similar
acquisitions, launched the first international Airbnb office, in Hamburg.[66][67] Before the 2012 Summer
Olympics, Airbnb acquired London-based rival CrashPadder,[68] subsequently adding 6,000 international
listings to its existing inventory. This acquisition made Airbnb the largest lodging website in the United
Kingdom.[69][70] In November 2012, Airbnb acquired NabeWise, an online city guide that aggregates curated
information for specified locations.[71] The acquisition shifted the company's focus toward offering hyperlocal
recommendations to travelers.[72] In December 2012, Airbnb announced the acquisition of Localmind, a
location-based question and answer platform.[73]

In February 2017, the company acquired Luxury Retreats International, a Canadian-based villa rental
company, for approximately $300 million in cash and stock.[74][75] In February 2017, Airbnb acquired
Tilt.com, a social payment startup.[65]

On November 16, 2017, the company acquired Accomable, a startup focused on travel accessibility.[76][77] In
March 2019, the company acquired HotelTonight, a website for booking last-minute hotel rooms, for over
$400 million.[78][79]

In August 2019, Airbnb acquired Urbandoor,[80] a global online marketplace[81] that offers extended stays to
corporate clients. The terms of this deal were not disclosed.[82][65]

Overview
Airbnb provides a platform for hosts to accommodate guests with short-term lodging and tourism-related
activities.[83] Guests can search for lodging using filters such as lodging type, dates, location, and price, and
can search for specific types of homes, such as bed and breakfasts, unique homes, and vacation
homes.[83][84][85] Before booking, users must provide personal and payment information.[83] Some hosts also
require a scan of government-issued identification before accepting a reservation.[86] Guests can chat with
hosts through a secure messaging system.[84] Hosts provide prices and other details for their rental or event
listings, such as the allowed number of guests, home type, rules, and amenities.[83][84] Hosts and guests have
the ability to leave reviews about the experience.[83]

Airbnb Plus designates hosts who provide a verified level of conditions, including a clean refrigerator, full
cooking equipment, stocked toiletries,[87] fast Wi-Fi, and strong water pressure.[88] Airbnb Plus listings are
marked with a badge to differentiate from standard listings.[87] Airbnb Collections includes Airbnb for
Families, Airbnb for Work, and home venues for weddings and other gatherings.[85]

In addition to lodging, Airbnb includes listings for specific services on its platform, as Experiences; members
may book both virtual and live activities with guides, including cooking classes, tours, and meetups.[89]

Terms of use and guest review system


Linguist Mark Liberman has criticized the extreme length of the legal agreements that Airbnb members are
required to accept, with the site's terms of service, privacy policy, and other policies amounting to "55081
words, or about the size of a short novel, though much less readable".[90] Its 69 pages have been summarized
by a lawyer.[91]

Airbnb features a review system in which guests and hosts can rate each other after a stay. Hosts and guests
are unable to see reviews until both have submitted a review or until the window to review has closed, a
system that aims to improve accuracy and objectivity by removing fears that users will receive a negative
review in retaliation if they write one. However, the truthfulness and impartiality of reviews may be adversely
affected by concerns of future stays because prospective hosts may refuse to host a user who generally leaves
negative reviews. Besides, the company's policy requires users to forego anonymity, which may also detract
from users' willingness to leave negative reviews. These factors may damage the objectivity of the review
system.[92][93][94][95]

In August 2017, Airbnb cancelled numerous bookings and closed accounts belonging to attendees of the white
nationalist Unite the Right rally in Charlottesville, Virginia, citing its terms of service in which members must
"accept people regardless of their race, religion, national origin, ethnicity, disability, sex, gender identity,
sexual orientation, or age."[96] The move was criticized by Jason Kessler, organizer of the rally.[97]

Cancellations

Airbnb allows hosts to choose among three ways of cancellation policies, made to protect both hosts and
guests. Options are: Flexible, Moderate, and Strict.[98]

During the COVID-19 pandemic, Airbnb updated its cancellation policy to allow guests to cancel their
reservations for a full refund worldwide. According to the statement, "This policy applies to existing
reservations for stays and Airbnb Experiences made on or before March 14, 2020, with check-in dates
between March 14, 2020, and July 31, 2020."[99] The decision was negatively accepted by hosts who charge
for cancelation. However, on March 30, Airbnb announced that they set aside US$250 million to help them
regain some of the lost income, "When a guest cancels a reservation due to a COVID-19 related circumstance,
with check-in between March 14 and May 31, we will pay you 25% of what you would normally receive
through your cancellation policy."[100]
Flexible

A guest can request a full refund within 24 hours before the check-in time. If so, a guest will be refunded with
a full amount of the accommodation fees.

Moderate

This type of cancellation policy is stricter yet lets guests get a refund. A guest can apply a cancellation for 5
days before check-in to be fully refunded the accommodation fees. The cancellation must be initiated by the
guest.

Strict

Using Strict cancellation policy, a guest can get a 50% refund if the cancellation is made at least 7 days before
the check-in time and charge $100 penalty from the Host as well, it will deduct from the hosts' future payments
[101]

Deposits

Airbnb does not charge for the deposit immediately after the reservation has been created. To charge the guest
the host claims on the deposit. Also, there is a 14-day period after guest check-out for a host to make a claim
on the security deposit in cases of damaging the property by guests.[102]

If the host makes a claim, the security deposit is not collected immediately. The host has to collect pieces of
evidence of the damage has occurred and to reach Airbnb's Resolution Center providing them. The host has to
upload both receipts for repairs and photos.[103]

Since January 2018, Airbnb lets guests book with a deposit instead of requiring to pay the full amount in
advance.[104]

Regulations

Europe

Several European cities such as Barcelona, Amsterdam,[105] Paris, and Venice have enhanced regulations for
short-term rentals such as Airbnb to address the increase in the cost of living for locals, as well as the
disturbances caused by tourism.[106][107][108][109]

In Ireland, laws were introduced to require a change in planning permission for short-term lets, restricting
landlords to renting a short-term let for a maximum of 90 days per year for primary residences and requiring
registration by landlords with local authorities. Despite this, only a minority of landlords offering properties on
Airbnb actually registered by end 2019, prompting calls for stricter enforcement.[110]

United States

In the United States, Washington, D.C.,[111] Los Angeles,[112] Santa Monica, San Francisco, Charleston, and
New York have imposed restrictions. Jersey City, New Jersey has the most listings in the state and the number
one destination for Airbnb[113][114] and is also considered part of the New York City Airbnb market. A
November 2019 referendum (originally supported by Airbnb)[115][116] approved regulations for short-term
rentals which are considered the most stringent in United States.,[117][118] allowing for only 60 rental days per
year.[119]

Japan

In 2018, Japan created new regulations regarding home-sharing, which includes hosts registering and limiting
the numbers of days a home can be rented to 180.[120]

Controversies

Fair housing implications and discrimination

In July 2016, former Attorney General Eric Holder was hired to help craft an anti-discrimination policy for
Airbnb after the company faced many complaints related to racism, including a study by Harvard Business
School that showed widespread discrimination by hosts against guests whose names suggested that they were
black.[121] Airbnb has also faced complaints of racial discrimination in China.[122]

Housing affordability

Airbnb has been criticized for allegedly resulting in increased housing prices. Since the company's
globalization, many governments have passed various regulations limiting operations of short-term housing
rental companies, such as Airbnb.

In San Francisco, the issue led to protests in November 2015.[123][124][125][126][127][128]

Several studies found that rental prices in many areas increased due to Airbnb, as landlords kept properties off
the longer-term rental market and instead get higher rental rates for short-term housing via Airbnb.[129]
Landlords have been accused of illegally evicting tenants in order to convert properties into Airbnb
listings.[130]

A study published in 2017 found that increasing Airbnb listings in a given neighborhood by 10% leads to a
0.42% increase in rents and a 0.76% increase in house prices.[131]

A study found that on Manhattan's Lower East Side, full-time listings earned hosts an average of two to three
times the median average rent.[132]

A study by the University of Massachusetts Boston Department of Economics found that with every 12
Airbnb listings per census tract, asking rents increased by 0.4%.[133]

Similar concerns have been raised in other parts of the world such as Scotland, where, in 2017, an increase in
Airbnb listings alarmed the local community.[134] Airbnb has carried out extensive lobbying of Scottish
politicians to oppose a law which would restrict short-term lettings.[135]

Negative guest experiences

In 2017, travel blogger Asher Fergusson analyzed 1,021 incidents of negative experiences reported by guests.
He found that there are ways for hosts to use fake information to circumvent Airbnb's background checks. He
noted several reported incidents including last-minute cancellations, moldy or rodent-infested lodging, theft,
invasion of privacy, and even rape and murder. Airbnb responded that the 1,021 incidents are statistically
insignificant compared to 260 million check-ins at the time and that the company tries to remedy any
problems.[136][137][138][139][140]

Bait-and-switch scams

A Vice News journalist reported in October 2019 on a bait-and-switch scam in which a network of fake
accounts advertised stays at dozens of properties across eight US cities that once booked was said to be
unavailable at the last minute. Substandard alternatives were offered in their place, including to the journalist,
refunds were refused, fake positive reviews were left for the fake properties, and negative retaliatory reviews
were left for customers who complained. Airbnb closed some of the accounts and the FBI began an
investigation in response to the report.[141] A Wired journalist reported a similar scam in London in February
2020 run by a German man, Christian Baumann, and his company Continental Apartments. Airbnb closed the
accounts, but Wandsworth Borough Council planning office took no action.[142]

Delisting of West Bank settlements

In 2018, Airbnb announced that it will remove the approximately 200 "listings in Israeli settlements in the
occupied West Bank that are at the core of the dispute between Israelis and Palestinians".[143][144] Listings in
Israeli settlements in East Jerusalem or the Golan Heights were not affected.[143] The move was praised by the
Boycott, Divestment and Sanctions movement, Palestinians,[145][146] Human Rights Watch,[147][148][149] and
Amnesty International.[150] The move was criticized by the Israeli Tourism Minister[151] and the Simon
Wiesenthal Center,[152] which decried the move as antisemitism.[153][154] A class action suit in the Jerusalem
District Court alleging discrimination based on place of residence was filed against Airbnb by affected
property owners.[155][156] In April 2019 the company has announced that it "will not move forward with
implementing the removal of listings in the West Bank from the platform" and that "Any profits generated for
Airbnb … will be donated to non-profit organizations dedicated to humanitarian aid that serve people in
different parts of the world".[157][158]

Lawsuits

In New York State it is illegal to rent out an apartment for less than thirty days unless the registered tenant is at
home.[159] In 2018, New York City passed legislation requiring Airbnb and other short-term rentals/home-
sharing services to submit monthly reports to the city.[160] Airbnb contested the law and in January it was
blocked from taking effect pending further litigation.[161] In May 2019, Airbnb agreed to turn over some
anonymized information for approximately 17,000 listings so that the city could pursue illegal rentals.[162]

Similar cases have been settled in Boston and Miami.[163]

Philanthropy
In November 2012, Airbnb partnered with New York City Mayor Michael Bloomberg to offer free housing
for people displaced by Hurricane Sandy.[164] Airbnb built a microsite, where victims registered for housing
and property owners offered free housing. Service fees were waived, while the host guarantee was
maintained.[165][166]

In 2013, Airbnb launched its Global Citizenship Champion program in cities where its offices are located.[167]
In January 2017, the company offered free housing to refugees and any others not allowed into the United
States as a result of Donald Trump’s Executive Order 13769, which temporarily banned refugees from the
United States.[168][169]

In June 2017, Airbnb launched Open Homes, to connect hosts offering free or low-cost housing to uprooted
people, such as refugees and those fleeing natural disasters.[170]

In 2018, Airbnb employees provided "11,000 hours of service to 250 projects worldwide", according to the
company, as a result of its policy to provide employees with paid time off to be used for volunteering.[171]

COVID-19 response
In a letter to employees, CEO Brian Chesky said the company was letting 1,900 of its 7,500 workers go due to
the COVID-19 pandemic and cutting businesses that don't directly support home-sharing. Those include its
investments in hotels, air transportation, and movie production.[172]

Other ventures
Airbnb runs Rausch Street Films. Its first release which it produced and financed, Gay Chorus Deep South,
premiered in film festivals and through its distributor MTV Documentary Films, had a United States limited
theatrical run in 2019 and airing on MTV's flagship US network that same year.[173][174][175]

Sponsorships
Airbnb has been the official sponsor of Australia's national basketball team at the 2014 FIBA World Cup.[176]

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External links
Media related to Airbnb at Wikimedia Commons

Official website (https://www.airbnb.com)


Airbnb companies (https://opencorporates.com/corporate_groupings/Airbnb) grouped at
OpenCorporates

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