Airbnb said on Monday it was allocating $250 million to help offset losses by hosts around the world whose guests have canceled bookings in the face of the coronavirus pandemic, following its announcement earlier this month that guests could get full refunds for certain reservations.
The aid, which will pay hosts 25 per cent of their normal cancellation fees, is being offered globally except for China.
The payments to hosts apply to the cancellation of reservations with check-in dates between March 14 and May 31.
Because hosts can choose different cancellation policies, some requiring a penalty payment with others allowing free cancellation up to a certain date before check-in, not all canceled reservations will qualify for a payment.
Airbnb had earlier announced that guests would receive a full refund for the cancellation of reservations made on or before March 14 for check-in between March 14 and April 14. Airbnb also said that hosts could cancel reservations without a charge.
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Airbnb said it is funding the program for hosts itself and will begin to issue the payments in April.
Airbnb provided no details on whether the $250 million will be sufficient to cover fees to hosts for all eligible canceled reservations.
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Airbnb’s revenue in 2019 exceeded $4.8 billion,