Mumbai: The travel and hotel industry will never be the same again since the emergence of the pandemic COVID-19 say experts associated with the two sectors. People are now apprehensive about travelling and hence both these sectors stare at heavy losses at least for the next 4-5 years. Job losses will be the order of the day and many in the two industries will be staring at bleak futures.
Pink slips for employees
As a sign of things to come, ‘Airbnb’ has decided to hand over pink slips to approximately 25 per cent of its worldwide staff. The startup company is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. It said that 1,900 employees of its 7,500 workforce will be asked to leave.
CEO’s explanation
“We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill,” Airbnb CEO and co-founder Brian Chesky said in a letter to employees.
“I am truly sorry. Please know this is not your fault. The world will never stop seeking the qualities and talents that you brought to Airbnb,” Chesky further said.
Chesky said that due to the outbreak of the pandemic COVID-19, the company is staring at huge losses. The travel and tourism sector has been hit hard and Airbnb is suffering due to it. He informed that revenue in 2020 will be less than half of it had earned in 2019.
Health insurance cover
Meanwhile in another development, the Airbnb said it will take care of 12 months of health insurance for its US-based employees. This will be done through the COBRA insurance cover. For the remainder of the employees the insurance costs will be provided till the end of the year.
The company also informed that many of its partners in the hotel business are struggling to make mortgage payments and pay bills due to the coronavirus-related cancellations.
Agencies