Airbnb during pandemic

The effects of COVID-19 pandemic on the ecosystem of Airbnb is evident. It is safe to assume that many of the reviews, hosting lists, and etc decreased during this unprecedented times. As a matter of fact, according to data, 47% of host don't feel safe renting to guests while 70% of guest are fearful to stay at an Airbnb. However, It is surprising how Airbnb was able to adapt to this time and change factors for the business that allowed them to thrive. So what allowed Airbnb to beat the Corona virus? First thing I want to look at is the economic aspect of this crisis. According to Forbes, management initiated a layoff of 25% of the workforce. With the steep reduction in discretionary and capital expenditures, it was evident how much money Airbnb was able to save during this tough period. Airbnb is a part of a monopolistic competition with other hotel venues, so as the demand went down, they had to brainstorm ideas so they could make the most of the situation by trying to at least charge the customer the amount MR=MC to at least make normal profit. Not only that, but something that they had to build was trust which they were able to do through the use of refunds. To bolster the marketplace, Airbnb used more than $1 billion of its funding to provide refunds. There was also a commitment of up to $250 million for hosts that were impacted by cancellations.

Also, due to this pandemic, it was imperative for me to try to manipulate another set of data that was specific for 2020.