They're optimizing for profits and not allowing a buffer of higher costs in the short term for support, which would support higher profits in the long-term by maintaining a good relationship with people in the present. It's an externalized or delayed cost they don't seem to be accounting for.

I think a competitor will pop up before they fix themselves, just the right conditions have to occur and Airbnb's market share will quickly sink - they likely will have exited and dumped the risk and unsustainable platform onto the general public by that point though.