earlier this week Airbnb secured 1 billion dollars in private investment to
private equity firms provided the cash on the surface this might sound like a
bad investment especially if your hosts who had suffered who has suffered a huge
financial loss from covin 19 in this video I'll do my best to explain why a
private investor would provide Airbnb with cash and what that means for you as
a host spoiler alert this is great news for us welcome to another episode of
Airbnb uncovered I'm Matt the creator of Airbnb uncovered dot com and Airbnb super
host on this channel I uncover some of the best kept hosting secrets as well as
share with you everything that I've ever learned after hosting over 3,000 guests
my tips tricks and best practices are all focused on helping new hosts earn
more attract the best guess and achieve super host status faster
as I was saying it doesn't seem like a logical decision for private investors
to give more money to Airbnb when the travel industry has all but collapsed
entirely many years ago I worked in a government-sponsored venture capital
fund as a junior venture capitalist by no means am i an expert in this area but
I do have a very good background of how the private equity investment market
works and based on this knowledge there are some great silver linings for you as
a host without going into too much detail the fundamental goal of that
private equity firm is to find companies that are operating in a space that is
risky but that has a huge potential for growth and profit Airbnb is currently in
that position and what makes them even more appealing is that due to the
downturn in the market the value of Airbnb has likely dropped allowing
investors to get in for a lower price the cash infusion provided by these two
new investors signals to you as hosts that they are fully expecting the travel
industry to recover in the near term this is a big deal because private
investors don't invest without compelling evidence that they're gonna
make money they expect a large return on every single one of their investments
this is huge news for you as a host without doing all the research that a
private investor would have done before making an investment you can reap the
findings from their investment decision and make plans for the future of your
hosting business like many of you I believe the likely
outcome of life after kovat 19 is not gonna be the same as it was before I
just don't think we're going back exactly right away but there are gonna
be many many people who are going to want to get out of the house get out of
the city and go and explore these are the very same people who are booking our
places before covet 19 the thing is is that some of these people within this
group are going to be a bit more cautious they're going to be leery about
getting on a plane and being inside of an airport especially since both of
these places fueled the spread of the virus in the first place in North
America this is probably going to create more travel closer to home rather than
flying to some far-off destination those wanting to explore will likely drive but
this is also good news the gap left by more cautious international travelers
will likely be filled by more locals but we may even see a rise in local
travelers because so many of us have been denied the experience to explore
for so long the economy postcode vid will also be slower millions of people
will have lost their jobs as a result of the pandemic and it's gonna take some
time for their finances to recover but again as hosts you are well suited to
deal with this because you don't have the huge overhead costs that hotel do
that hotels do and you're well positioned to set your rates to match
the market experts have told us that a vaccine is at least a year away and
probably more like 18 months away there are drug trials going on to find a drug
that will treat Cove in 19 but that too is month away so what can you do to
survive in the meantime just know that things are going to get better and you
need to position your business to survive this storm what you can do is
host medical relief workers and distressed travelers
who may be unable to get home and therefore need a place to stay
cut your costs and take advantage of government stimulus packages to stay
alive if you might have excess capital you may even want to consider expanding
your portfolio over the short-term property values are gonna decline and
you can take a page from the recent investors in Airbnb and pick up a new
location on sale the travel industry will recover and you will survive Cove
in nineteen the innate desire to explore and travel is not going away I cannot
wait to get out of my home and resume explored in fact I've promised myself a
trip after all of this is over even if my finances don't allow for the big
investment guns have signaled that the travel industry is not doomed forever so
you have to do whatever it takes to survive so that you can reap the rewards
of the recovery I hope that you enjoyed my analysis of the recent investment in
Airbnb and my outlook for the travel industry post kovin 19 if you did please
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Airbnb related content thanks again for watching and until next time bye for now
you