A grassroots movement started by Airbnb users to book accommodation in Ukraine with no intention of visiting as a way to donate to those in need has gone viral. Reuters
A grassroots movement started by Airbnb users to book accommodation in Ukraine with no intention of visiting as a way to donate to those in need has gone viral. Reuters
A grassroots movement started by Airbnb users to book accommodation in Ukraine with no intention of visiting as a way to donate to those in need has gone viral. Reuters
A grassroots movement started by Airbnb users to book accommodation in Ukraine with no intention of visiting as a way to donate to those in need has gone viral. Reuters

Will booking an Airbnb in Ukraine really help those in need?


Hayley Skirka
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Well-intentioned people have booked more than 434,000 Airbnb stays in Ukraine as a way to try and help those directly affected by the ongoing Russian invasion.

A grassroots movement started by Airbnb users to book accommodation in Ukraine with no intention of visiting as a way to donate to those in need has gone viral. The accommodation-booking platform subsequently waived all guest and host fees for stays booked in the country.

People around the world want to help and are using the platform as a way to send money to host families in Kyiv, Odesa, Kharkiv and many other parts of the country.

Ukrainian refugee Inna Medianyk with her children in a hotel ballroom, converted into a makeshift refugee shelter in the town of Suceava in Romania. AFP
Ukrainian refugee Inna Medianyk with her children in a hotel ballroom, converted into a makeshift refugee shelter in the town of Suceava in Romania. AFP

By March 12, about $15 million had been pledged on the site, according to Brian Chesky, chief executive of Airbnb.

But is booking an Airbnb stay really the most effective way to help those in need?

If I book a stay on Airbnb, am I helping people in Ukraine?

Many Airbnb hosts in Ukraine have indeed received money from stays pledged by those around the world, and hosts have been vocal in their appreciation.

But people booking such stays should be aware that they may not always be giving their money to those who need it most. This is because the most impoverished Ukrainians are unlikely to have listings on Airbnb or even access to reliable internet.

It can be difficult to know exactly who is behind a listing. Airbnb does not identify if hosts listed are professional property managers, investors or just an average person trying to rent out a room.

This confusion has surfaced before. In 2018, Airbnb was found to be in breach of European Union laws by not clearly identifying whether accommodation was being offered by amateur hosts or professionals. The issue was important because the level of consumer rights differ according to the status of the owner.

Who are the hosts listing properties on Airbnb?

In 2018, Airbnb was in breach of European Union laws for not clearly identifying whether accommodation was being offered by amateur hosts or professionals, since consumer rights differ according to the status of the owner. AP
In 2018, Airbnb was in breach of European Union laws for not clearly identifying whether accommodation was being offered by amateur hosts or professionals, since consumer rights differ according to the status of the owner. AP

Even if you do take the time to read a host's profile on Airbnb, it’s not always easy to figure out exactly who they are.

For instance, a one-bedroom apartment in the centre of Kyiv is listed by a woman named Yuliya. Clicking on her profile, it’s easy to see that her identity has been verified by Airbnb and that she’s been on the site since 2015.

However, clicking through to the next page shows that not only does Yuliya have four luxury apartments for rent, she also lives in Berlin, not in Ukraine.

Clicking through to a host's profile on Airbnb can offer more information on who they are and where they live
Clicking through to a host's profile on Airbnb can offer more information on who they are and where they live

The National reached out to Airbnb to see if any plans were in place to make it clear which properties on the site are listed by individual Ukrainian hosts. The accommodation provider did not answer the question.

Instead, a spokesperson advised people to read “host and listing profiles thoroughly” and said that the company “always keep measures to detect and deter fraudulent activity under constant review”.

When do people get the money that Airbnb users send them via bookings?

Airbnb hosts typically receive funds for bookings 24 hours after a guest is supposed to check-in. Photo: Airbnb
Airbnb hosts typically receive funds for bookings 24 hours after a guest is supposed to check-in. Photo: Airbnb

Airbnb’s standard policy is that hosts are paid about 24 hours after guests’ scheduled check-in times. This happens irrespective of whether a guest physically checks in or not.

However, it can take longer than 24 hours for payouts depending on the method selected by Airbnb hosts. International wire payouts take three to seven days, while bank transfer payments typically take about seven days to arrive in hosts’ accounts.

This means that while hosts will ultimately get the money that you pledge to them, there may be much quicker ways of sending funds, especially if the property is fully booked on all dates in the near future.

Does booking an Airbnb stay take a room away from someone who might need it?

One major flaw in the trend of booking Airbnb stays in Ukraine with no intention of travelling there means that rooms could become unavailable for other people to book.

While hosts will benefit by getting money from your booking, people actually trying to find a place to stay, perhaps in a safer part of the country after being displaced, may not be able to find accommodation options via Airbnb as hosts can only accept one booking for each listing on any given date.

Is Airbnb cancelling donated bookings in Ukraine?

Several people who have booked stays in Ukraine via Airbnb have now reported that their reservations were subsequently reversed and refunded.

Bookings may be cancelled automatically owing to hosts not being able to accept reservations in time. If hosts do not have auto-accept reservations turned on in their Airbnb profile, then they have a specified time frame in which to respond to a booking.

With an ongoing war in Ukraine, it is probably not always possible for hosts to accept the funds being pledged to them via bookings.

Twitter user @Marciano has suggested that Airbnb turn auto-accept on for all Ukraine bookings as people there have “more on their minds than to answer Airbnb bookings”.

Hosts in Ukraine have reported having their accounts deactivated after adding new listings or cancelling coming "ghost" reservations to try to be able to accept new bookings and get more necessary funds.

Airbnb did not answer The National's question about why accounts and bookings were being cancelled. However, a spokesperson for the company recently confirmed to Protocol tech website that it had suspended a handful of hosts who "did not support this effort in the spirit intended".

How can I make sure I’m booking a legitimate Airbnb in Ukraine?

An Airbnb room listed for rent in the Ukrainian city of Odesa. Photo: Airbnb
An Airbnb room listed for rent in the Ukrainian city of Odesa. Photo: Airbnb

There are a few steps to take to help discern if an Airbnb host is really in need.

First, avoid booking a new Airbnb listing. Check reviews and make sure they go back more than a month or so to ascertain that the property has not recently been listed on the site to take advantage of charitable donations since the war started.

Understandably, some Ukrainians may have added listings to the site recently to try to get funds for survival, but scammers and chancers have sadly also had the same idea.

“Guests can look at a host's profile to see how many listings they have and check the history of reviews on the listing to see how long the listing has been active," suggested an Airbnb spokesperson.

Is there a better way to help people in Ukraine?

Refugees fleeing Ukraine are receiving aid from the International Red Cross and other charitable organisations at the Vysne Nemecke border. Getty Images
Refugees fleeing Ukraine are receiving aid from the International Red Cross and other charitable organisations at the Vysne Nemecke border. Getty Images

While most people booking stays on Airbnb simply want to help, there are better ways to ensure that money gets to the people who need it most.

Airbnb’s non-profit arm Airbnb.org has pledged to house 100,000 refugees in short-term accommodation and has banners on the platform — including on Ukraine listing searches — directing users to the website for the initiative. It encourages people in neighbouring countries who can host those fleeing the war to sign up on the platform.

“As of March 13, approximately 36,000 hosts on Airbnb.org are signed up to offer their homes to refugees around the world. More than 21,500 new hosts have signed up in just the past two weeks [from February 28 to March 13]”, an Airbnb spokesperson said.

Some travellers familiar with Airbnb for booking holidays may be more inclined to donate to Ukraine if they are able to do so via a service that they have previously used. So in this sense, donating via Airbnb is likely better than not helping at all.

But there are other initiatives that can better guarantee donations will get to those who need them most. The Red Cross is recognised around the world as a charitable organisation and it is accepting donations for people in Ukraine.

Several other charities are also supporting the cause. Resources such as the BBB Wise Giving Alliance lists charities raising funds for assistance efforts, and Charity Navigator ranks organisations by how confident people can be in donating to them.

Anyone who works in hospitality can connect with Hospitality Helps, a platform setup by Ukrainian Sofia Widmann to connect refugees with available hotel rooms. Several well-known hotel groups including Marriott and Hilton have joined the platform. It currently has 358 supporting hotels in a total of 41 countries.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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RESULTS

5pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Dirt) 1,400m
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6pm: Al Basrah – Maiden (PA) Dh70,000 (D) 1,800m
Winner: Kalifano De Ghazal, Abdul Aziz Al Balushi, Helal Al Alawi

6.30pm: Oud Al Touba – Handicap (PA) Dh70,000 (D) 1,800m
Winner: Pharitz Oubai, Sean Kirrane, Ibrahim Al Hadhrami

7pm: Sieh bin Amaar – Conditions (PA) Dh80,000 (D) 1,800m
Winner: Oxord, Richard Mullen, Abdalla Al Hammadi

7.30pm: Jebel Hafeet – Conditions (PA) Dh85,000 (D) 2,000m
Winner: AF Ramz, Sean Kirrane, Khalifa Al Neyadi

8pm: Al Saad – Handicap (TB) Dh70,000 (D) 2,000m
Winner: Sea Skimmer, Gabriele Malune, Kareem Ramadan

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%3Cp%3EPat%20Cummins%20(capt)%2C%20Scott%20Boland%2C%20Alex%20Carey%2C%20Cameron%20Green%2C%20Marcus%20Harris%2C%20Josh%20Hazlewood%2C%20Travis%20Head%2C%20Josh%20Inglis%2C%20Usman%20Khawaja%2C%20Marnus%20Labuschagne%2C%20Nathan%20Lyon%2C%20Mitchell%20Marsh%2C%20Todd%20Murphy%2C%20Matthew%20Renshaw%2C%20Steve%20Smith%2C%20Mitchell%20Starc%2C%20David%20Warner%3C%2Fp%3E%0A
Desert Warrior

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Rating: 3/5

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French Open (1 title) - 2009 bt Robin Soderling

Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic

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Roll of honour: Who won what in 2018/19?

West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles

UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up  Jebel Ali Dragons

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UAE Conference: Winners  Dubai Tigers; Runners-up  Al Ain Amblers

Updated: March 17, 2022, 1:57 PM