Airbnb Is Spending Millions of Dollars to Make Nightmares Go Away Quiz
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Questions and Answers

Why was the city of New York at odds with Airbnb?

  • Airbnb's safety team was ineffective
  • Short-term rentals were illegal (correct)
  • Airbnb had too many listings
  • The city had strict regulations on long-term rentals

    • How did the Australian woman and her friends retrieve the keys to the apartment?

  • They had to show their passports at the rental office
  • They got them from the Airbnb host
  • They picked them up at a nearby bodega with no identification needed (correct)
  • They were mailed to them prior to their arrival

    • What was the location of the first-floor apartment?

  • North 45th Street
  • West 37th Street (correct)
  • South 30th Street
  • East 42nd Street

    • How did the Australian woman and her friends retrieve the keys to the apartment?

    <p>They picked up the keys at a nearby bodega</p> Signup and view all the answers

    Why was the city of New York at odds with Airbnb?

    <p>Short-term rentals were illegal in New York</p> Signup and view all the answers

    What happened to the Australian woman in the apartment?

    <p>She was raped by a stranger</p> Signup and view all the answers

    What was Airbnb's response to the assault of a woman in one of their rentals?

    <p>Relocating her to a hotel, flying her mother in, and offering to cover health and counseling costs</p> Signup and view all the answers

    What was the settlement amount between the woman and Airbnb?

    <p>$7 million</p> Signup and view all the answers

    What is the nickname often used to refer to Airbnb's safety team?

    <p>&quot;Black box&quot;</p> Signup and view all the answers

    What does Tara Bunch, head of Airbnb’s global operations, emphasize regarding the nature of their business?

    <p>The unpredictability of dealing with real people in their homes</p> Signup and view all the answers

    Why is Airbnb's safety team described as crucial for the company's success and reputation?

    <p>It strives to maintain trust between users while navigating complex safety challenges</p> Signup and view all the answers

    What raised concerns about Airbnb’s safety policies and legal liability?

    <p>The incident of a woman being assaulted in an Airbnb rental</p> Signup and view all the answers

    What does Airbnb's business model rely on?

    <p>Trust between strangers</p> Signup and view all the answers

    What was the initial concern expressed by investors regarding Airbnb's business model?

    <p>Safety risks associated with the business model</p> Signup and view all the answers

    Where was the information about Airbnb's response to the crime reconstructed from?

    <p>Police records, court documents, and interviews</p> Signup and view all the answers

    What does the safety team's job at Airbnb involve?

    <p>Balancing the interests of guests, hosts, and the company</p> Signup and view all the answers

    What does Tara Bunch acknowledge regarding bad things in relation to Airbnb?

    <p>Bad things can occasionally happen</p> Signup and view all the answers

    Why does Airbnb face unique challenges in ensuring trust and safety?

    <p>Due to its platform's nature of connecting real people in real homes</p> Signup and view all the answers

    What is a notable legal issue involving Airbnb?

    <p>A woman being held against her will and assaulted by a host</p> Signup and view all the answers

    How does Airbnb handle most cases?

    <p>By sending them to arbitration due to terms of service provisions</p> Signup and view all the answers

    What makes it difficult to understand the impact of short-term rentals on neighborhood safety?

    <p>Airbnb's secrecy</p> Signup and view all the answers

    Where did deadly incidents continue to occur despite safety measures?

    <p>An Airbnb rental in Santiago, Chile</p> Signup and view all the answers

    What is a challenge faced by academic researchers studying the link between short-term rentals and crime?

    <p>Lack of data</p> Signup and view all the answers

    What did the family of Carla Stefaniak do regarding a case involving her murder at an Airbnb rental in Costa Rica?

    <p>Brought a lawsuit that was settled by Airbnb</p> Signup and view all the answers

    What did Airbnb do in response to a host's relative raping a U.S. citizen in India?

    <p>Settled the case</p> Signup and view all the answers

    What is the status of the liability of short-term rental operators for crimes that occur in their properties?

    <p>Not established by the courts</p> Signup and view all the answers

    What is the primary method of handling most cases involving Airbnb?

    <p>Sending them to arbitration</p> Signup and view all the answers

    Where did a U.S. citizen get raped by a host's relative who was out on bail after being charged with murder?

    <p>India</p> Signup and view all the answers

    What type of incidents have police responded to at short-term rentals in cities like Austin, Miami Beach, and Los Angeles?

    <p>Thousands of incidents</p> Signup and view all the answers

    What does Airbnb have to handle high-profile incidents?

    <p>A global crisis management team</p> Signup and view all the answers

    What is the primary reason for most of Airbnb's payouts?

    <p>Property damage under its host-guarantee insurance program</p> Signup and view all the answers

    What was the significant conflict Airbnb faced in New York in 2015?

    <p>Regulatory battles</p> Signup and view all the answers

    What did Airbnb's 10,000-word terms of service agreement require?

    <p>Confidential arbitration and barring legal claims for injury or stress</p> Signup and view all the answers

    What was the outcome of the $7 million settlement involving a sexual assault case?

    <p>Prevented the woman from blaming or suing Airbnb</p> Signup and view all the answers

    What was a key concern for Airbnb regarding the passing of keys in the short-term rental ecosystem?

    <p>Unknown hands handling the keys</p> Signup and view all the answers

    What was the role of former safety agents in keeping cases quiet?

    <p>Prioritizing less traumatic situations involving high-profile individuals</p> Signup and view all the answers

    What was the primary concern for Airbnb after an assault near Times Square?

    <p>Potential lawsuits and opposition from critics</p> Signup and view all the answers

    What was a source of tension between the safety and sales teams at Airbnb?

    <p>Removal of professional hosts for safety violations</p> Signup and view all the answers

    How many sexual assault cases were estimated to be handled by Airbnb annually?

    <p>Thousands</p> Signup and view all the answers

    How many sexual assault cases were filed against Airbnb in U.S. courts?

    <p>One</p> Signup and view all the answers

    When did the only sexual assault case filed against Airbnb in U.S. courts occur?

    <p>2017</p> Signup and view all the answers

    What was the impact of the settlement on the woman involved in the sexual assault case?

    <p>Prevented the woman from cooperating with prosecutors</p> Signup and view all the answers

    What was the initial response from Airbnb's co-founder after a significant safety crisis?

    <p>Public apology and $50,000 damage guarantee for hosts</p> Signup and view all the answers

    What was the reason behind the change in Airbnb's use of nondisclosure clauses in payout agreements?

    <p>In response to the #MeToo movement</p> Signup and view all the answers

    What action did Airbnb take after facing an increasing number of minor calls to the safety team?

    <p>Trained contractors in call centers globally</p> Signup and view all the answers

    What measure did Airbnb introduce after incidents of hosts committing crimes in short-term rentals increased?

    <p>Establishment of a trust-and-safety department</p> Signup and view all the answers

    What was the response from Airbnb's safety team to serious safety issues?

    <p>Provided support including flights, accommodation, counseling, and healthcare costs for victims</p> Signup and view all the answers

    What was the company's claim regarding the percentage of stays resulting in reported safety issues?

    <p>Fewer than 0.1% of stays result in a reported safety issue</p> Signup and view all the answers

    What type of background do some members of Airbnb's internal safety team have?

    <p>Emergency-services or military backgrounds</p> Signup and view all the answers

    What was the purpose of the cool-down rooms at work for Airbnb's safety team?

    <p>To address vicarious trauma from distressing cases</p> Signup and view all the answers

    What was the average annual spending of Airbnb on payouts to hosts and guests?

    <p>About $50 million</p> Signup and view all the answers

    What was the response from Airbnb's safety agents in sensitive cases?

    <p>Incentives to quickly secure payout agreements</p> Signup and view all the answers

    What change did Airbnb make to prevent recipients from discussing their settlements?

    <p>Stopped using nondisclosure clauses in payout agreements</p> Signup and view all the answers

    What was the budget allocation for Airbnb's safety team?

    <p>The company declined to comment on the safety team’s budget</p> Signup and view all the answers

    Study Notes

    Airbnb's Crisis Management and Safety Measures

    • In the early days, Airbnb co-founders personally handled customer service complaints on their mobile phones before hiring support staff to manage calls.
    • The company faced its first significant safety crisis after more than 2 million stays when a host in San Francisco had her home ransacked by guests, leading to a public apology from Airbnb's co-founder, a $50,000 damage guarantee for hosts, a 24-hour customer-support hotline, and the establishment of a trust-and-safety department.
    • As Airbnb grew, incidents such as hosts committing crimes in short-term rentals listed on the platform increased, including cases of rape and threats to victims.
    • The safety team, consisting of about 100 agents in various cities, handles serious safety issues and has a budget to provide support including flights, accommodation, counseling, and healthcare costs for victims.
    • Despite Airbnb's claim that fewer than 0.1% of stays result in a reported safety issue, with over 200 million bookings annually, this still constitutes a substantial number of trips with negative outcomes.
    • The internal safety team includes members with emergency-services or military backgrounds and has the autonomy to provide extensive support to victims, including unusual expenses such as dog-counseling sessions.
    • Former agents have encountered highly distressing cases, such as guests being assaulted by hosts or being involved in criminal activities themselves, leading to vicarious trauma and the need for cool-down rooms at work.
    • The company's safety agents are trained to prioritize customers in crisis, but they also understand their role in protecting Airbnb's public image, with incentives to quickly secure payout agreements in sensitive cases.
    • Until 2017, Airbnb used nondisclosure clauses in payout agreements to prevent recipients from discussing their settlements, but this practice changed after the #MeToo movement shed light on the use of such agreements.
    • Airbnb spent an average of about $50 million annually on payouts to hosts and guests, including legal settlements and damage to homes, as revealed in a confidential document seen by Bloomberg Businessweek.
    • The company declined to comment on the terms of settlements or the safety team’s budget.
    • The safety team faced an increasing number of minor calls, leading Airbnb to train contractors in call centers globally to handle the influx of complaints.

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