Airbnb Beefs Security and Transparency; Is It Enough?

Airbnb uses a straightforward, unconditional apology as the best antidote to bad press.

In a lengthy blog post last Monday responding to customers' concerns about ransacked homeowners who trusted the home rentals site, CEO Brian Chesky admitted that the billion dollar company mishandled the robbery/ransacking issue — and paid the price.

Acknowledging the recent incident as a wake-up call (with other customer complaints now coming out of the woodwork), Chesky blogged: "Guided by your feedback, we have iterated to become safer and more secure. Our job's not done yet; we're still evolving. In the wake of these recent events, we've heard an uproar from people, both inside and outside our community. Know that we were closely listening."

As another way to make amends to all its customers, Airbnb is offering the Airbnb Guarantee, along with tighter security, screening and 24/7 customer service to respond to emergencies, Chesky stated. “Starting August 15th, when hosts book reservations through Airbnb their personal property will be covered for loss or damage due to vandalism or theft caused by an Airbnb guest up to $50,000 with our Airbnb Guarantee.”

Chesky’s closing words: “Like Airbnb, the world works on the idea that people are good, and we’re in this together. When we first started Airbnb, I told my mom about our plans for the business and she said, “Are you crazy? I’d never do that.” But when I told my late grandfather he said, “Of course! Everyone used to stay in each others’ homes.”

When “EJ” first reported the vandalism to Airbnb, she said the company was unresponsive, but Airbnb said they reached out to her and worked with San Francisco police, eventually leading to the arrest of a suspect.

When her June 29th blog post (and a follow-up blog post) relating the incident went viral, Airbnb was forced to respond publicly. EJ today responded to Chesky's post, and while she applauded their belated diligence to make amends, writes that her anguish continues:

"…while Mr. Chesky's public apology to me is clearly a heartfelt one and certainly appreciated, and while I applaud the steps that Airbnb is taking to fulfill its commitment to safety and security, the reality for me is that the hardship continues. As will, no doubt, the nasty comments and unwarranted name-calling that have been thrown in my face."

New features in response to this crisis include a 24-hour customer hotline; an expanded customer support team; a new director of customer support; and a dedicated in-house team to investigate suspicious activity. Updated user profiles will provide more transparency and information data about potential hosts and guests, including reviews from other members. The site also added a product suggestions poll, and an area for soliciting customer ideas for improved safety at airbnb.com/safety.

Immediately following the announcement, 9flats.com, the Berlin-based competitor to Airbnb, tried to take advantage of the negative publicity surrounding its rival and offered its own property protection plan, covering up to €2,500 in damage at a cost of €3.50 a night.

“There’s no real surprise here,” said Stephan Uhrenbacher, founder of 9flats.com. “If you compare this whole model to Ebay, it’s the same assumption: essentially you assume transactions are good and people are good but you have to prepare for the negative outliers.”

Valere Tjolle
Valere Tjolle: Valere is editor of the Sustainable Tourism Report Suite 2011 Special Offers HERE