- In 2015, Airbnb launched its Smart Pricing algorithm that analyzes seasonality and market popularity to automatically set nightly rates that attract and maximize bookings.
- While partially devised to close the earnings gap between Black and White hosts, the tool made the gap 20% larger because Black hosts are 41% less likely to use it.
- Airbnb’s anti-discrimination team receives minimal internal support (less than 0.1% of marketing budget) to rectify the issue.
- Without more support, the disparities will persist.
How Airbnb failed its own anti-discrimination team
(06/15/2021)
