pledging some $265 million to them in the form of grants and partial reimbursements for cancellationsOne bright spot for the company amid all the wreckage has been long-term rentals. Some city dwellers have turned to Airbnb to find places to stay in less urban areas to ride out the pandemic. Some nurses and other health workers have used the service as they've moved to areas affected by it to help out.
"The longer-term stays market is ripe for a makeover," the company said in its note. "We think Airbnb can change that and give people a better experience with options that feel more like home."The market that Airbnb is pursuing is a fairly fractured one.
The company has long operated "Airbnb for work," an area of its service devoted to business travelers and corporate travel departments. Through that site, corporate travel managers can book travel for workers, designate a single corporate credit card for use with all employee travel, and link their Airbnb accounts to their enterprise travel management services, such as that operated by American Express.
Even if Airbnb does continue to focus on longer-term accommodations, there's not guarantee it will become a major player in the market. In fact, it faces some significant challenges, industry analysts say. Airbnb's ability to compete in the extended stay market "really depends on the hosts," said Michael Bellisario, a senior travel industry research analyst at Baird.Another big challenge the company is in making more inroads with corporate customers. Many corporate human resources departments and travel managers have existing relationships with extended-stay hotels and corporate housing providers in particular markets.