The $100 billion IPO nobody thought was possible

In early 2020, the travel industry came to a screeching halt. Flights were grounded, cities went into lockdown, and tourism disappeared almost overnight. This was nothing short of catastrophic for Airbnb, a company built entirely around people staying in other people’s homes.

The company’s revenue plummeted by over 80% in just eight weeks, and Airbnb found itself hemorrhaging around $250 million per month. Yet, remarkably, less than a year later, Airbnb launched one of the most successful tech IPOs of the decade, closing its first trading day with a market cap of over $100 billion.

Brian Chesky was the captain of this sinking ship, and in a few months, he was able to steer the company away from bankruptcy to a market valuation of 100 billion dollars.

His approach is a masterclass on crisis management. Here is how he achieved this remarkable feat in five (5) simple steps;

The first thing Chesky did was refocus the company on its core mission.

Over the years, Airbnb had expanded into multiple business lines: Airbnb Luxe, business travel, and even airline partnerships. But in crisis, clarity matters more than creativity.

“We realized that we had gotten away from the roots of the company,” Chesky said in an interview with Stanford Graduate School of Business. “So we made the decision to get back to basics.”

Projects that were not directly related to Airbnb’s core home-sharing model were either paused or cut entirely. This freed up resources and helped the company concentrate on what mattered most: supporting hosts and guests.

One of the most defining moments of Airbnb’s crisis response came in May 2020, when the company laid off 1,900 employees, about 25% of its workforce.

Layoffs are always difficult, but Chesky’s approach was widely praised for its transparency and empathy. He wrote an open letter explaining the rationale, the criteria used to make decisions, and the steps being taken to help those affected.

Laid-off employees were offered 14 weeks of severance, extended healthcare, and job placement assistance. The company even built a public-facing directory of employees who had been let go to help them find new work.

“A company is ultimately a collection of people,” Chesky said. “How we treat people during this time will define us.”

For founders, the lesson is clear: Even in crisis, humanity matters. The way you lead during the hard times shapes your brand, your culture, and your legacy.

Another crucial part of Airbnb’s turnaround was how it treated its hosts. After canceling millions of bookings, hosts were understandably upset, many had lost significant income.

Rather than ignoring the issue, Airbnb took responsibility. The company created a $250 million fund to help cover canceled bookings and a separate $10 million Superhost Relief Fund to support top-performing hosts in financial distress.

This move wasn’t just about goodwill, it was about survival. Airbnb’s hosts are the backbone of its business model. By supporting them during a crisis, Airbnb ensured loyalty and maintained its network for the eventual rebound.

While international travel was still off the table, Chesky noticed something interesting: people were booking local stays, within driving distance of their homes. Airbnb leaned into this trend.

The company quickly adapted its product offerings to reflect the new reality:

• Enhanced safety protocols for COVID cleaning.

• Flexible booking policies for guests uncertain about future plans.

• New marketing campaigns focused on local travel and long-term stays.

Chesky even talked about how remote work would reshape travel in the long run. With people no longer tied to offices, Airbnb began positioning itself as a platform not just for vacations, but for working from anywhere.

This adaptability, listening to user behavior, and evolving quickly is something every founder should bake into their crisis playbook.

Perhaps one of the most underappreciated leadership qualities Chesky displayed during the crisis was psychological resilience.

“The hardest part of being a CEO is managing your own psychology,” Chesky said. “If you lose your cool, everyone around you feels it.”

In times of crisis, employees look to leaders for emotional signals. Chesky’s ability to remain calm, vulnerable, and hopeful gave his team the stability and clarity they needed to keep going.

He also leaned on mentors like Warren Buffett and Barack Obama, seeking advice on decision-making, communication, and purpose.

This willingness to learn and seek outside perspectives, especially during chaos, is a vital trait for any founder.

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