After its success in Mexico, Airbnb’s free medical stays will expand under a new funding model

After a successful pilot year in Mexico, Airbnb will will allocate US $500 million over the next five years to expand its provision of free accommodations for people experiencing  medical emergencies, natural disasters or domestic violence company CEO Brian Chesky announced on Tuesday. 

Building on a new funding model similar to the one used in Mexico, the independent non-profit arm of the online rental platform, under the name Airbnb.org (rather than simply Airbnb), will establish a $500 million fund by contributing 10 cents of its own revenue for every stay booked on the platform, without increasing prices for travelers or reducing payments to hosts.

The dime per stay may not sound like much, but the cumulative effect is significant. “We tried to go as far as we could imagine,” said Chesky. “It’s a significant percentage of the company’s annual earnings.”

Airbnb.org has provided approximately 6,300 free nights in Mexico for various emergency situations, around 1,500 of which were for medical stays, according to Chesky. 

The program also works with 20 non-profit organizations in Mexico, including Fundación IMSS, Ronald McDonald House Charities Mexico and Lilo Foundation Mexico, to meet the needs of families of patients requiring specialized care who must relocate to the capital, since almost 40% of the country’s specialized medical care facilities care oncentrated in Mexico City. 

The program “was successful because the families were really satisfied with the service, and we felt there was enough demand to expand it,” said Chesky.

In May, Airbnb.org announced a $1.1 million contribution to expand its medical stay program in Mexico for three years. This was before the new 10 cents-per-stay fund.

The roots of Airbnb’s accommodations initiative go back to 2012, when a New York host offered her home to people displaced by Hurricane Sandy, encouraging other hosts around the world to do the same in subsequent disasters. Airbnb.org was formalized in 2020, and has had a globall reach even before the newly annunced initiative.

The new funding model launched on Tuesday is expected to serve more than 20 countries. The  contributions will only apply to completed stays, not reservations canceled before check-in or to Airbnb Experiences or Services. The goal is to reach 1 million free nights per year for the next four or five years.