Airbnb Inc. has finally stepped up to the plate, offering financial support to hosts for missed and canceled bookings.

The company has set aside $250 million to pay hosts for missed stays, according to a letter sent to Airbnb providers, CNBC reported today. Airbnb will provide 25% of the fee usually collected when users cancel bookings to Airbnb hosts through May 31.

The decision to provide compensation to Airbnb hosts is directly related to a decision by the company to allow users to cancel bookings without cancellation fees. Initially, that offer was bookings between March 14 and April 14, but Airbnb is now extending the offer of a full refund for any trips starting on or before May 31.

In the letter to hosts, Airbnb Chief Executive Officer Brian Chesky expressed regret over the previous decision to override previous policies without compensation.

“I deeply regret the way we communicated this decision and I am sorry that we did not consult you — like partners should,” Chesky wrote. “We have heard from you and we know we have let you down. You deserve better from us. Trust is the foundation of a partnership, and it is built over time. We know that we have some work to do in regaining yours, but it’s our priority and we are committed to it.”

Airbnb employees have also provided support, donating $10 million to a fund that will go toward the company’s Superhosts and long-tenured Experience hosts. Starting next month, those hosts can apply for a $5,000 grant from the fund.

Although many companies are struggling during the coronavirus pandemic, Airbnb has been one of the hardest-hit. With the global tourism market collapsing as countries close their borders and airlines shut down, the core of Airbnb’s business has taken a massive hit.

Airbnb had previously responded to the crisis by launching an initiative to provide accommodations for healthcare workers but only where hosts opted in March 26. The company delayed its initial public offering plans March 3 and was also sued by International Business Machines Corp. March 12 for alleged patent infringement.

Photo: Pixabay