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With the spread of COVID-19, a downturn in business was inevitable. Airbnb hosts have seen their bookings collapse because of the COVID-19 pandemic, as tourists cancel their travel plans.

The tourism industry in Greece is suffering a critical blow, with airlines cutting back flights around the world and people concentrating on surviving, the bookings for hotels and short-term rentals through platforms such as Airbnb have a severe drop.

According to Reuters’ report: “Home rental company, Airbnb has projected its revenue can fall about 54% to some $2.2 billion this year due to the COVID-19 pandemic. The Information reported on April 8th, citing people familiar with the matter. The projection, made in a scenario shown to investors, is preliminary as the length of the pandemic’s impact on the travel industry cannot be predicted”. Airbnb introduced various policies around the world earlier this month to relieve hosts, but for Greece, it remains to be seen.

Some experts think there may be a medium-term swing back toward traditional hotels once the travel industry starts to revive, due to fears about how consistently hygiene standards can be enforced in the home-share market. There are real concerns around various important issues such as the cleaning staff, the time between checkout and check-in …

The downturn is going to force a lot of Airbnb landlords to find alternative ways to generate incomes from their properties. Many hosts are either pulling out of Airbnb to find cheaper long-term tenants or keeping their houses vacant waiting for better pricing.

Analysts did offer some hope that businesses might improve this summer, suggesting that consumers were adapting, rather than abandoning, their plans. “We know travel will return and rather than merely hunkering down, the support we have received will allow Airbnb to continue moving forward as we invest in our community,” said Airbnb Co-Founder, CEO, and Head of Community Brian Chesky.

Sources: Reuter, Airbnb

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