Real-life resilience - Airbnb

Welcome to another weekend edition of The Resilience Brief where we cover stories of real-life resilience and discuss the ideas and lessons from what happened. This week we’re covering the global accommodation phenomenon that is Airbnb.

In 2011, 4 years after the platform launched, an Airbnb host named “EJ” in San Francisco had a horrific experience. She’d rented her home out through Airbnb, only to return and find it completely trashed with valuable items stolen and personal documents taken. EJ was devastated and tried to seek compensation from the company.

At first, Airbnb didn’t handle it well. The response from the customer support team was simply to cite the company’s terms and conditions, which didn’t provide hosts with significant protection. The response was seen as bureaucratic and dismissive, which only added fuel to the fire.

So EJ went on the offensive, writing about the experience on her blog. The story exploded online and Airbnb faced huge backlash, mostly because they focused on damage control rather than addressing the root issues or empathizing with EJ’s experience. This slow and tone-deaf response led to widespread criticism, with many people questioning whether Airbnb could be trusted.

But then something changed. Co-founder and CEO, Brian Chesky realized they were not staying true to their core values. They were not taking care of their community. He issued a public apology, acknowledged the company’s failure to support EJ adequately, and committed to introducing stronger measures to protect hosts in the future.

“We let her down, and for that, we are very sorry. This is not acceptable, and we must fix it. Trust is the foundation of our community, and we have failed to uphold that trust. We know we need to do better, and we will.” - Brian Chesky

The new measures included a $1 million Host Guarantee, giving hosts protection if things went wrong. They also rolled out new safety features, like guest identity verification, easier ways to report issues, and other safety protocols.

Challenge after challenge

Airbnb launched in 2007 as “Air bed and breakfast”. It was born out of necessity as two of the founders didn’t have enough money to pay their $1150 a month rent. Trying to figure out how to earn some extra cash, the duo saw an opportunity when a huge conference was taking place nearby and all hotels across the city were completely sold out.

They used their apartment floor space to blow up three air mattresses and rented them out for $80 each. They even threw in breakfast and so it was born: “Air bed….and breakfast.”

Since that first offering of $80, the company has been on a rollercoaster of a ride. EJ’s story above is just one of the challenges they have faced over the years. They’ve had to navigate accusations of racial discrimination, loss of trust, new competitors, and , of course, the pandemic.

And yet, despite all of these hurdles, Airbnb has demonstrated significant adaptability to now be recognized as the most successful accommodation platform in history.

How we can move forward like Airbnb:

1. Innovate in the face of challenge and adversity. James Dean has this great quote I love to think about whenever things don’t go my way: “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” This is resilience in action - our understanding that we can’t control certain elements, but we can control how we respond. In business, there is almost always a curveball of some sort. We can either lament it, ignore it, or get to work to find a solution. The founders of Airbnb were designers. Interestingly, if we look up framework for design thinking, the first step is empathy. Solutions start with looking at the problem from a different perspective. We can start there too.

2. Stay rooted in purpose. Airbnb cemented their mission statement early on. “Belong anywhere” became their North Star, helping to guide any difficult decision and stay relevant to both customers and the hosts. They believed in the power of community and that helped them take decisive action whenever they needed. We all need a North Star of our own - something we can commit to that helps us stay on track when things get overwhelming. When someone throws another last-minute task on our list, we can either complain, or we can see it as the opportunity for us to practice our craft. Our clear purpose helps us remember that passion for our craft.

3. Embrace failure. Mistakes, even the big ones, don’t have to destroy us. What matters is how adapt to we fix them. For Airbnb, the messy moments have turned out to be the ones that have helped them grow the most. Because of EJ’s story, they not only changed their policies to build trust with a much wider audience, but they implemented new processes to handle challenging moments differently in the future. Failure is always our greatest teacher.

Resilience is not just about weathering storms, but using them as catalysts for transformation. Airbnb’s story shows us that challenges aren’t roadblocks. They’re great opportunities to innovate and grow.

Until next time friends, stay resilient!

Carre @ Resilient Marketing Minds

PS - My long-time friend, Chris March, has a great weekly newsletter on Leadership that I read every week. For some excellent leadership tips in your inbox each week, check it out below.