Airbnb CEO says travel never going back to the way it was before pandemic

By Subrat Patnaik

(Reuters) – Airbnb Chief Executive Officer Brian Chesky on Thursday predicted travel would permanently change due to the pandemic with people seeking out thousands of smaller cities and spending more time visiting friends and family.

Traditional tourism and sightseeing at top global destinations would be significantly reduced by travelers who will drive to smaller communities and fly less for business meetings.

The startup was hit by the COVID-19 pandemic in early 2020 and its business dropped by 80% in a little over eight weeks.

However, as lockdowns eased, more travelers opted to book homes instead of hotels, helping Airbnb post a surprise profit for the third quarter. The San Francisco-based firm gained from increased interest in renting homes away from major cities.

The home rental firm went public in a blockbuster initial public offering in December, its shares more than doubling in their stock market debut. Shares of Airbnb rose as much as 10% to record high of $187.42 on Thursday.

WILL NOT FACILITATE VIOLENCE

The rental platform has been canceling home-sharing reservations in the Washington D.C. area for President-elect Joe Biden’s inauguration’s next Wednesday after law enforcement warned of a threat from armed militias.

Speaking during the Reuters Next conference, Chesky recalled the white supremacist rally in Charlottesville, Virginia and said that he did not want the platform facilitating people traveling to commit violence in communities.

Airbnb made the decision after consulting local and federal officials and after a number of hosts worried about potential attacks sought to cancel bookings.

However, major hotel chains including Hilton Worldwide Holdings Inc and Marriott International have said they planned to uphold existing reservations.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Lisa Shumaker)

Top hotels sued for ‘industry-wide failures’ to prevent U.S. sex trafficking

By Matthew Lavietes

NEW YORK (Thomson Reuters Foundation) – Landmark U.S. legal action was filed on Monday accusing several major hotel groups of profiting from sex trafficking on behalf of 13 women who claimed they were sold for sex in hotel rooms.

Twelve hotel chains were named and accused of knowing and ignoring warning signs that women and children were sold as sex slaves on their premises, according to the filing, a consolidation of 13 existing cases, in U.S. federal court in Columbus, Ohio.

The filing marked the first time the hotel industry – which has long been accused of serving as a breeding ground for sexual exploitation of women and children – faced action as a group.

The case drew together 13 separate actions that had been filed in Ohio, Massachusetts, Georgia, Texas and New York.

Among those named in the 13 cases were Hilton Worldwide Holdings Inc., Red Roof Inn, Intercontinental Hotels & Resorts, Best Western Hotels & Resorts and Wyndham Hotels and Resorts Inc.

Representatives of the hotel groups did not immediately respond to requests for comment.

The milestone case was filed by the New York law firm Weitz & Luxenberg on behalf of 13 women, many of whom were minors when they said the trafficking occurred.

The hotels “derived profit” and “benefited financially” by “providing a marketplace for sex trafficking,” the case said, citing “industry-wide failures.”

“Such corporate malfeasance has led to a burgeoning of sex trafficking occurring in … hotels that has reached the level of a nationwide epidemic,” it said.

An estimated 400,000 people are believed trapped in modern slavery in the United States, from forced labor to sex trafficking, according to the Global Slavery Index, published by the human rights group Walk Free Foundation.

“This is not one bad apple that need to be dealt with,” said Luis CdeBaca, former U.S. anti-trafficking ambassador-at-large.

“The entire barrel has a problem … For years the hospitality industry has known that sex trafficking and especially child sex trafficking has occurred on their properties and yet it continues to happen.”

One of the women in the complaint said she was held captive at age 26 at various locations of Wyndham Hotels for six weeks in 2012.

During her captivity, she said her nose was broken twice, her lip was permanently scarred and her face grew infected from repeated beatings.

“I just wish that people realize how much it really is here in the U.S.,” she told the Thomson Reuters Foundation. “It doesn’t matter if it’s a shady hotel or a nice hotel, it’s going on in all of them.”

Several hotel chains have launched initiatives in recent years to tackle trafficking, such as training staff to identify potential victims and raising awareness of the crime among guests.

“These changes have arrived far too late,” said the court documents. “Profit motives, not adherence to the law, continues to drive their decision making.”

The case seeks unspecified damages.

Weitz & Luxenberg has earned a reputation in personal injury and malpractice cases against companies that made or used asbestos, which has been linked to cancer.

“This is bringing that expertise from the multi-district litigation space to see if it could have the kind of impact in the trafficking world that it’s had in other spaces,” said Bridgette Carr, head of the University of Michigan’s Human Trafficking Clinic.

(Reporting by Matthew Lavietes; Editing by Ellen Wulfhorst. ((Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women’s and LGBT+ rights, human trafficking, property rights and climate change. Visit http://news.trust.org)