Its not just hotels and airlines, Online Travel Agents, Vacation Rental platforms aren’t immune either. The sudden shutdown and uncertainty on future travel has potentially put in 50M jobs at risk. Slowdown in such a major industry can have a cascading impact on the entire economy. So, it is of utmost importance to track the health of this sector closely.
Airbnb, in spite of having $2B in the bank, has raised another $2B in debt. The company's administrative costs were around $175 million in Q3 2019 and, at constant cost, this comes out to be $700M each year. Even at $0 revenue, Airbnb has enough cash to survive the virus.
It's not just Airbnb, but also companies built on Airbnb's marketplaces are preparing for a tough time. Sonder, Vacasa, Domio have already laid off around 10% of their headcount.