Airbnb has suspended all of the host accounts of short-term rental startup Domio, Airbnb confirmed Monday. The suspension follows a subscribers-only report by online magazine The Information alleging several fraudulent practices, including fake host names and misleading Airbnb accounts.
As a result of the suspension, Domio will be unable to accept new reservations through the booking platform until Airbnb concludes its investigation.
"We have indefinitely suspended all of Domio's associated host accounts and listings as we expand our investigation into their activity dating back to 2016," an Airbnb spokesperson said in an email. "We will not hesitate to take aggressive action to remove suspicious content from our platform and, depending on the outcome of our investigation, we will determine the appropriate long-term action to take against these accounts."
Domio supplied the following statement: "Domio was founded to inspire travel and to connect through delightful stays. Built on a foundation of respect, innovation and collaboration, the Company is committed to working collaboratively with local governments to provide safe and secure housing, and to comply with applicable local ordinances. We are actively working with Airbnb to resolve any potential issues and consider them a trusted partner."
Domio CEO Jay Roberts last year spoke with BTN about gaining more business travelers. At the time, the company had grown corporate stays to 20 percent of its bookings, and Roberts wanted that figure reach 40 percent by the end of 2020. Roberts had said the company was working with large corporations like American Express, Bank of America and JP Morgan. It also raised $100 million in Series B funding last year, and had planned to use the funds for both national and international expansion, as well as for increased staffing.
Since then, the company has pivoted away from a master lease model and toward franchising, according to Short Term Rentalz, a site covering the short-term rental industry. It has yet to expand internationally, however the company confirmed it is slated to launch in the fall in Tulum, Mexico.
The short-term rental market has been hit hard during the pandemic, as have all accommodation companies. Stay Alfred shut down operations. Airbnb, Sonder, Lyric and Zeus Living reduced staff. Still, Sonder managed to raise $170 million in June, and last week Airbnb filed for its IPO.