Airbnb CEO on Traveling During COVID-19 with Guy Raz | How I Built This | NPR | Summary and Q&A

Summary

In this interview, Brian Chesky, the co-founder and CEO of Airbnb, discusses how the company has been managing operations during the pandemic and the challenges they have faced. He shares insights into the difficult decision to lay off employees and the steps they took to support those affected. Chesky also highlights how the travel industry is shifting towards more local and outdoor travel experiences. He talks about the measures Airbnb is taking to ensure cleanliness and safety for hosts and guests. Despite the impact of the pandemic, Chesky remains optimistic about the future of travel and the resilience of Airbnb.

Questions & Answers

Q: How has Airbnb been managing operations during the pandemic?

Chesky shares that he spends most of his day in front of a screen, working 18 hours a day. He highlights the difficulties they have faced as a company during this time, especially with trying to go public and adapt to the crisis via Zoom. He emphasizes the importance of making a conscious effort to maintain connections with others, both personally and professionally.

Q: How did Airbnb handle the layoffs and what steps did they take to support their employees?

Chesky explains that there was no playbook for layoffs, but they wanted to approach it with humanity and compassion. They made sure to treat each person individually and not robotically. They exhausted all options, including cutting costs and raising two billion dollars. The decision to lay off employees was made when they realized the travel industry would fundamentally change and they had no timeline for when travel would return. To support the employees, Airbnb provided a 14-week severance, health insurance for a year, and other resources. They also offered assistance with finding new jobs through their recruiting team and by publishing the profiles of laid-off employees.

Q: How has Chesky dealt with the emotional impact of having to lay off employees?

Chesky shares that writing the layoff letter was extremely difficult for him and that he wanted to be transparent and compassionate in his message. He emphasizes the importance of treating people with humanity during a crisis and acknowledges that leaders need to show compassion. He wanted to be brutally honest in the letter and wanted to let employees know that he genuinely cared about them. He believes that business leaders have compassion but often struggle to express it due to conventional business practices.

Q: How is Airbnb maintaining morale among the employees who were not laid off?

Chesky mentions that it has been challenging to maintain morale, especially when people cannot physically gather together. He shares that he holds weekly Q&A sessions with employees to connect with them and answer their questions. He points out that maintaining optimism is important during this time and that there are reasons to be optimistic.

Q: How has the travel industry been impacted by the pandemic and how is Airbnb adapting?

Chesky explains that the travel industry has been hit hard with a significant drop in bookings. However, Airbnb has seen a mix shift from hotels to homes as people choose to travel within their own countries and stay in remote locations. He mentions the rise in bookings for non-urban areas, small towns, and rural communities. Chesky believes that this crisis will lead to a major change in travel trends, with people seeking unique and intimate experiences. He also mentions the rise of small towns and communities as popular travel destinations.

Q: Is Airbnb considering expanding into the RV rental business?

Chesky shares that Airbnb already has thousands of RV rentals on their platform and unintentionally became one of the largest RV rental companies in the world. He points out the increasing demand for unique and intimate travel experiences, and Airbnb allows hosts to offer one-of-a-kind accommodations like cabins, airstreams, yurts, and houseboats. He believes that people are discovering new ways to travel and are interested in staying in interesting and unconventional homes.

Q: How is Airbnb addressing cleanliness and safety concerns during the pandemic?

Chesky talks about the enhanced cleaning protocol that Airbnb launched in collaboration with former Surgeon General Dr. Murthy. Hosts are required to go through an online course to learn about basic cleaning protocols and receive a badge on their listing to indicate compliance. Airbnb also provides guidelines for hosts and has implemented gaps between checkouts and check-ins to ensure minimal contact. They are working on ways to verify the standard of cleanliness and plan to update the review system to include cleanliness ratings.

Q: How long will it take for Airbnb to recover financially from the effects of the pandemic?

Chesky avoids providing specific details about the financial recovery of Airbnb, citing sensitivities regarding discussing financials when the company is preparing to go public. However, he expresses optimism about the company's future and believes they will be stronger than initially forecasted due to the green shoots they are already seeing. He mentions that Airbnb has received significant investments and aims to be a good investment for their stakeholders.

Q: Is Airbnb planning to go public, and how is the IPO process going?

Chesky confirms that Airbnb is still planning to go public and is actively working on the process. He mentions that they have been dusting off the initial public offering (IPO) documents and updating them to reflect the changes in the business. While he doesn't provide a specific timeline for the IPO, he states that they will be ready to go public when the market is ready for them.

Q: Has Airbnb considered creating a category for homes suitable for remote work or quarantine stays?

Chesky expresses interest in the idea and mentions that they have received similar suggestions. He believes it is a good sign and indicates that they may consider implementing such a category. He highlights Airbnb's focus on providing unique and useful experiences for their users and how they have already started addressing concerns like internet speed for remote work.

Takeaways

Brian Chesky and Airbnb have faced significant challenges during the pandemic, with a drastic drop in bookings and the need to lay off employees. However, Chesky remains optimistic about the future of travel and Airbnb's ability to adapt. The travel industry is shifting as people choose to travel locally, stay in remote locations, and seek unique experiences. Airbnb has implemented enhanced cleaning protocols and is working on ways to ensure cleanliness and safety for hosts and guests. They continue to focus on their core mission of connecting people and providing meaningful travel experiences. Despite the uncertainties, Chesky believes that people can handle more challenges than they think and emphasizes the importance of staying connected and following one's intuition during difficult times. As Airbnb prepares for an IPO, Chesky remains determined to lead the company through this crisis and focus on long-term growth.