Airbnb Cracks Down on Price Gouging During L.A. Fires

Airbnb hosts in two California counties will be blocked from raising their prices more than 10% from levels before the Los Angeles fires broke out on January 7, the company said Wednesday.

They'll "instead receive an error message," Airbnb said, referring to hosts in Los Angeles and Ventura counties.

The policy follows a consumer alert issued by California Attorney General Rob Bonta January 7 reminding residents that price gouging is illegal during a state of emergency.

Bonta told KTLA 5 on Thursday that the state has received hundreds of complaints about landlords jacking up rents in the wake of the wildfires that have ravaged Los Angeles County. He said the state will prosecute price gougers.

Airbnb declined to share examples of price gouging by Airbnb hosts, but says the overwhelming majority of hosts are not engaged in such conduct.

Airbnb Email to a Host

In an Airbnb email to a host obtained by Skift, Airbnb wrote: "If necessary, we may roll back a listing's price to the original nightly price structure prior to Jan. 7, 2025."

Airbnb said it was working with hosts in the two counties to ensure they don't increase rates more than 10% since the start of the wildfires.

"We are urging all other hospitality companies in Los Angeles – including the hotel industry – to take similar action against exploitative pricing in service of victims displaced by the fires," Airbnb stated.

Housing the Homeless and First Responders

Meanwhile, Airbnb's non-profit entity, Airbnb.org, reached its goal of providing free, temporary housing to 25,000 displaced people and first responders, as well as 6,000 pets, in the wake of the fires, according to Airbnb.

"Airbnb.org is now focusing on supporting extended stays and has committed to funding another 50,000 nights to support the thousands of people in Los Angeles who continue to need housing support," Airbnb said.

The efforts comes through an Airbnb.org partnership with 211LA. "Stays are completely free for guests – Airbnb waives all of its fees for these stays, and Airbnb.org covers the cost of stays," Airbnb said.