The company said Wednesday that it will increase the amount of liability coverage for hosts, up to $3 million, in a play for owners of nicer houses in high-cost places such as California.
It will also pair newbies with a “superhost” to guide them through the process of becoming a short-term landlord, from signing up to welcoming their first guest.CEO Brian Chesky says the San Francisco company is taking steps to make price more transparent when consumers browse Airbnb listings, and he predicts that will reduce sky-high cleaning fees that many hosts tack on well into the booking process — a major complaint of consumers.
Investors worry that consumers paying more for food, gas and housing — and facing predictions of recession — will cut back on discretionary spending like travel, hurting Airbnb. AirDNA, which tracks short-term rental numbers, said Airbnb listed nearly 1.4 million rentals in the U.S. in September, a 23% jump from a year earlier and 9% over 2019. Nearly two-thirds were added since 2020. The trends are similar for global listings.
Potential hosts sometimes hesitate, Chesky said, because they are uncomfortable having strangers in their homes. The company’s response is to triple the amount of coverage for hosts — from $1 million to $3 million — against damage, including to vehicles, boats and a wider range of art on the property.“Exactly, and home values have increased since we wrote the $1 million plan,” he said.
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