Human lives are not the only thing that has adversely affected by the coronavirus, but the economies and businesses have also been shaken up. There are loads of people who have lost their jobs, and the employment rate plummeted. More people were relying on the government for financial aid because of the unpreparedness for the pandemic. Amongst the lockdown, travelling is also an activity which is banned in the fallout of coronavirus.
Due to the travel bans, Airbnb has suffered a lot as it continues to lose customers across top global cities. The company is feeling the imminent financial crisis. Top cities such as New York, London, Paris and Tokyo are losing thousands of dollars every month; not to forget the other popular cities. Hosting services such as Airbnb have been decimated by the lockdown imposed in March as their business runs with the constant flow of flights and bookings.
The flights across the globe reached an all-time low, and so did the Airbnb business. For analytical purposes of the current situation of Airbnb, it can be visualized by the following stats:
- New bookings are down to 85%
- Cancellation rates hit an all-time low at 90%
- The company lost a potential business of $1.5 billion in bookings
Airbnb is in a critical situation and a financial crunch as they still have to make do for their rental and mortgage payments with less to almost no business. This also creates a problem for the superhosts who build their entire business on the Airbnb ecosystem. Hence, the question rises if Airbnb needs a bailout?
To answer that, here is an infographic which shows detailed statistics on how bad the situation really has become for Airbnb since the lockdown.
Infographic by: remoteventures.com