Mar 30, 2020 - Economy

Airbnb to spend $250 million to partially refund hosts

Photo Illustration: Thomas Trutschel/Photothek via Getty Images

After recently allowing all customers to cancel reservations due to the coronavirus pandemic, Airbnb says it will spend $250 million to refund 25% of the cancellation fees that hosts would have otherwise received depending on their select policy. It also created a $10 million relief fund for select hosts, which includes $9 million donated by Airbnb's founders.

The big picture: Airbnb has been in the unpleasant position of having to please both sides of its marketplace, while also managing its own finances. It recently cut marketing spend to save $800 million, among other moves, as its business takes a huge hit, a source tells Axios.

Go deeper: The gig economy's coronavirus test

Go deeper