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Airbnb addresses the elephant in the room – followup story

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Airbnb’s public relations glitch

Short term rental website, Airbnb.com has been in the tech sector spotlight for some time after major success raising funds based on an impressive $1.2 billion valuation. Last week, some of the air was let out of the Airbnb tires when a user’s home was destructed by a renter.

The week long renter stole her credit cards and passport after “pillaging” her home as many tech columnists are portraying it. The user then alleged that Airbnb attempted to keep her quiet, meanwhile another user came out to tell a similar story of destroyed property, stolen identities, stolen goods and meth pipes left behind.

Co-founder omits “Airbnb horror” story on stage

Airbnb was hard at work immediately to manage their Twitter feeds and the like and were highly interactive in the public stream, but AGBeat columnist Herman Chan noted that “The ‘Airbnb Horror’ was splattered over the press Wednesday and Joe Gebbia was slated as a keynote speaker for Inman Real Estate Connect on Thursday. Talk about bad timing! At any rate, he was clearly there to extol the virtue of his site and that’s what he did. He praised it to high heaven.”

Chan continued, “All the while, there is a white elephant in the room. People in the audience wanted to know if is Airbnb dangerous? Is it a blow to their credibility? What is Airbnb going to do to prevent crimes against their users? Anyone who looked up Airbnb in the audience during Gebbia’s talk would have come across this horrifying experience. And yet, not a single peep.”

Addressing the elephant, Airbnb’s redemption

Since the real estate conference, the Airbnb team has had a major battle. Co-founder Brian Chesky said, “In the last few days we have had a crash course in crisis management. I hope this can be a valuable lesson to other businesses about what not to do in a time of crisis, and why you should always uphold your values and trust your instincts.”

Chesky said, “With regards to EJ, we let her down, and for that we are very sorry. We should have responded faster, communicated more sensitively, and taken more decisive action to make sure she felt safe and secure. But we weren’t prepared for the crisis and we dropped the ball. Now we’re dealing with the consequences. In working with the San Francisco Police Department, we are happy to say a suspect is now in custody. Even so, we realize that we have disappointed the community. To EJ, and all the other hosts who have had bad experiences, we know you deserve better from us.”

As a result, Airbnb has announced their “commitment to trust and safety” which offers a $50,000 to cover Airbnb users from loss or damage from theft or vandalism by another Airbnb guest which will apply retroactively to users who reported vandalism prior to August 1st.

They’re doubling the customer support team, opening a 24 hour customer hotline, a review team for any reports, they’ve made the CEO’s email public, and verified profiles. The company says they will continue to improve their safety offering going forward.

Airbnb has shown humility in a tough situation after learning the hard way how to handle their press. The elephant in the room has been addressed and the storm appears to show signs of calming.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

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5 Comments

5 Comments

  1. Joe Loomer

    August 2, 2011 at 5:08 am

    Refreshing to see these folks take ownership and show transperancy.

    Navy Chief, Navy Pride

    • herman chan

      August 2, 2011 at 1:40 pm

      now why didn't they just say this in the 1st place!? 😉

  2. Agriya Airbnb clone club

    January 3, 2012 at 7:47 am

    Airbnb may become the No.1 choice for vacation rentals. This type of business would definitely have lot of risks from the customer point of view. With the combination of $50000 money guarantee and lot of newly added safety features, there is no doubt that Airbnb would raise a strong voice in accommodation platforms.

  3. Vacation Rental Script

    May 11, 2016 at 7:36 am

    Homeowners wishing to rent out rooms or their home on mobile apps such as AirBnB need to obtain a conditional use permit before doing so or be at risk for hefty fines up to $250,000

  4. Ross Geller

    November 20, 2017 at 5:30 am

    Airbnb is really doing an amazing job and making it very easy to find rooms or hotels online.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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