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The Future of Airbnb

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In the travel wreckage caused by the pandemic, home-sharing has emerged as battered, but with a steady pulse, as rental houses became social-distancing refuges for the travel-starved.

Home rentals have outperformed hotels in 27 global markets since the onset of Covid-19, according to a report by the hotel benchmarking firm STR and the short-term rental analysts AirDNA. As leisure travel ticked up this summer, average daily rates were higher for rentals in July 2020 versus July 2019 in the United States — from about $300 to $323 — thanks to the popularity of larger homes.

Still, global restrictions have squeezed every aspect of the travel industry, including vacation rentals. Across home-sharing platforms, according to STR and AirDNA, occupancy fell by almost half between mid-March and the end of June to between roughly 33 and 36 percent, depending on the size of the rental (hotels by comparison fell to an average of 17.5 percent occupancy).

The biggest player in the short-term rental market, with more than 7 million listings in over 220 countries, is Airbnb. Over the years, its rampant growth and lack of transparency have made it a target for everything from charges of fueling overtourism and turning formerly residential neighborhoods into tourist zones to enabling raucous parties despite complaints and virus-related restrictions on gatherings.

After laying off a quarter of its work force in the spring, Airbnb jettisoned some new ventures, including forays into transportation and entertainment, and hunkered down to focus on its core strength, lodging, even as its valuation fell from a high of $31 billion to, recently, $18 billion, according to The Wall Street Journal.

Now, as Airbnb prepares to go public, we talked to Airbnb’s co-founder and chief executive, Brian Chesky, along with other industry experts, about some of the company’s challenges and the ways it is changing travel.

“People want to travel, they just don’t want to get on airplanes,” Mr. Chesky said. “They don’t want to go for business. They don’t want to stay in the really big cities as prevalently as they used to. They don’t want to be in crowded hotel districts.” But, he said, “they do want to get out of the house. And so we think demand is going to be strong in the future. I’m very optimistic, actually, about the industry.”

Airbnb has touted privacy and guests’ control over their environment — including having your own kitchen in lieu of patronizing restaurants — as safeguards during the pandemic. It instituted new cleaning guidelines and indicated in late August that more than 1 million listings had earned the “Enhanced Clean” certification, which involves training in new guidelines that detail how and what to wash and sanitize. The procedures recommend 45 minutes of cleaning per room. Some listings guarantee a 72-hour vacancy window before check in.

The company says its offerings are aligned with the way people are traveling now, in family and friend groups to less populated destinations. Over Labor Day weekend, 30 percent of its bookings — double the previous year — were in remote areas, though classic vacation spots like Hilton Head Island, S.C., and Palm Springs, Calif., were among the most popular. Urban bookings remain down.

“We’re seeing a little blurring between traveling and living,” Mr. Chesky said. “Before the pandemic, you lived somewhere 50, 51 weeks of the year, and if you were so fortunate, you’d go on your once-or-twice-a-year vacation. Now the pandemic is changing how people want to work, travel and live.” Remote school and work unbind families from their homes. “People are living differently and people want to live anywhere,” he added.

Whether travel truly turns into nomadism remains to be seen, though the average length of stay since May 1 increased 58 percent to more than four days, and fall bookings are stronger than usual, according to AirDNA.

Cities around the world, from Barcelona to Vancouver, are looking to curb Airbnb and other short-term rental companies, which many blame for hollowing out neighborhoods as real estate managers took long-term leases and listed them as more lucrative short-term rentals.

“You can earn more renting out apartments and houses on Airbnb than renting to locals,” said David Wachsmuth, an associate professor in the School of Urban Planning at McGill University in Montreal. “What’s happened on their platform is that actual home-sharing is a fraction of the activity. It’s dominated by commercial interests.”

Research published in the Harvard Business Review found that as listings rise in a city, so do rents. Analyses by the Economic Policy Institute, a nonpartisan think tank, found the costs to local communities of having Airbnb listings, including rising housing prices and shrinking availability, likely outweigh the benefits.

“The problems of overtourism were in the making for a long time,” said Makarand Mody, an assistant professor of marketing in the School of Hospitality Administration at Boston University. “Airbnb came along and made it worse. It was seen as one evil that needs to be sorted out, but there are much deeper societal and economic issues. Airbnb is just the supply side. But demand has increased so much.”

By 2019, the rise of the middle class globally contributed to expanding tourism above the rate of worldwide economic growth for nine years in a row, according to the World Travel & Tourism Council. In Airbnb, many travelers found affordable accommodations that allowed them to stay in neighborhoods rather than business centers.

Now that the pandemic is the ultimate overtourism disrupter, Mr. Chesky believes travel has been redistributed in a lasting way to places beyond bucket-list capitals. “It’s kind of redeemed our vision,” he said. “What I would love is to be able to help spread out travel to as many communities as possible rather than over-concentrating them in any one place.”

“My speculation is that the world does not quickly snap back to the way it was,” he added. “I don’t think travel will ever, ever look like it did in January. The world can’t change so dramatically like it has and then one of the industries that’s been hit hardest just looks exactly like it did before.”

Communities aim to ensure that. Last summer, Oahu enacted a law to restrict rentals without permits on the Hawaiian island, enforced with fines. In Europe, cities like Lisbon and Dublin are buying back leases or forcing landlords into long-term rentals in an effort to ensure that when tourism rebounds it won’t overwhelm them again.

Enforcement remains thorny, and Airbnb has been accused of looking the other way when it comes to illegal listings. Last year, Los Angeles limited rentals to owner-occupied properties registered with the city, though many illegal units remain on the site, according to the Los Angeles Times.

In response, Airbnb just launched a new City Portal that it says will allow governments to more easily identify listings that don’t comply with local regulations, such as unregistered listings.

Before the launch, the company shared the new tool with San Francisco’s Office of Short-Term Rentals. “They’re pretty positive about it and hopeful this will definitely improve their ability to get bad actors off the platform,” said Jeffrey Cretan, a spokesman for the city’s mayor.

Perhaps because of these scofflaws, Airbnb says it has not lost significant listings. According to AllTheRooms Analytics, among popular cities in Europe, only Rome and Lisbon have shed listings, about 2,000 each. In Lisbon, the crackdown still leaves just above 14,500 listings, the same figure as in January 2019, but down from the peak in July 2019.

The effect of more regulations may show up in the future, posing a threat to a robust portfolio. “For a platform like Airbnb, they’re not just worried about the demand side, but the supply side,” Mr. Mody, of Boston University, said, noting the travel freeze may convince hosts to put their units in the long-term rental market, shrinking the platform, and worrying potential investors. “When you’re living on venture capital, profitability is not as important as growth,” Mr. Mody added. “Shareholders will be a lot less patient.”

During the pandemic, Host Compliance, which tracks legal compliance among short-term rentals for 350 cities and counties in the United States, said noise complaints about so-called “party houses” tripled.

“A lot of people have been at home for a long time and they have to let some steam off and can’t jump on a plane to go to Europe or Cancún to party so they are renting out short-term rentals in driving distance from their homes,” said Ulrik Binzer, the founder and general manager of Host Compliance.

Often, these rentals are in residential neighborhoods, triggering noise complaints and health concerns about large gatherings.

In Miami Beach, short-term rentals were closed this summer, though those within condo and apartment buildings were allowed to reopen, with capacity limits, in August. That month, the city of Los Angeles cut the power on a house (not an Airbnb property) rented by prominent TikTok stars during a large party.

In August, Airbnb pulled the plug, too, announcing a global ban on party houses, defined as those that persistently generate complaints from neighbors. The company says 73 percent of listings already ban parties, though hosts often allow small gatherings like baby showers and birthday parties. Occupancy is now limited to 16 people.

Airbnb imposed a similar restriction in Canada earlier this year after a party in Toronto ended in three shooting deaths, according to BBC News.

“We want to do everything we can do to preserve the character of the communities and not allow these parties to get out of hand,” Mr. Chesky said.

It’s too soon, say observers, to know if the ban is working.

“The issue with Airbnb party houses is enforcement,” Mr. Binzer said. “It’s a little like having the fox watch the henhouse.”

On Sept. 14, a Twitter user wrote, “Found a cheap @Airbnb for 52 dollars. Cleaning fee for 1 night, 125. Nonsense.”

It’s a typical complaint about the platform, which lists attractive nightly rates, but buries the fees until users begin booking. Cleaning and service fees can be modest — zero to $25, say — or add $450 to a booking, reflecting a mix of mandatory and optional host-applied fees. Sometimes there are additional occupancy taxes. And in some countries, Airbnb applies a Value Added Tax on its service fees.

Under Airbnb’s pricing structure, hosts pay the company 3 percent of the booking subtotal, which includes the nightly rate plus any cleaning fee and fees for additional guests. Most guests are charged a service fee of less than 14.2 percent of the booking subtotal, which goes to Airbnb. (If hosts elect to cover the fee entirely, they normally pay Airbnb 14 to 16 percent of the subtotal.)

Because of their variability and lack of transparency, fees are the latest financial facet users have fixated on after the company created its extenuating circumstances policy during the pandemic. It said that travelers who had reservations made on or before March 14 could cancel and not be subject to cancellation fees, even if, in their rental agreement, they were in the penalty period. The policy has been extended several times, now to Oct. 31. (While most guests were happy with the resolution, many hosts were not and Airbnb later apologized to hosts for not consulting them).

Airbnb said it aims to introduce a redesign of price displays this year. “We’re trying to partner with hosts to create clear standards and change the search line, so if someone has higher cleaning fees, that affects their placement” in search results, Mr. Chesky said. “We’ve heard from travelers that they want a simpler way for us to show more of the price up front.”

Four years before George Floyd was killed by police in Minneapolis, igniting this summer’s protests for social justice, the emergence of the hashtag #AirbnbWhileBlack called attention to a spate of racist incidents that users said happened at rental homes. Some Black renters were reported by neighbors as thieves. Others were subject to abuse by racist hosts rejecting their bookings. Complaints by Muslim, transgender and other groups followed.

Airbnb worked to purge discrimination from its platform by hiding guest’s profile pictures until a booking is confirmed; hiring anti-discrimination specialists to audit the platform; and creating a reporting channel to identify listings not complying with its nondiscrimination policy. The company said it has removed 1.3 million offenders.

This month, Airbnb plans to launch Project Lighthouse, a research initiative in the United States that aims to measure bias through perception based on names and photos, to determine where and when bias happens on the platform, from booking through reviews.

According to the company, the study has been in the works for two years in partnership with the racial justice organization Color of Change, with input from several social justice nonprofits, including Asian Americans Advancing Justice and the National Association for the Advancement of Colored People.

“It’s really hard to change what you can’t measure,” Mr. Chesky said. “Then hopefully we will use this data to continue to evolve our platform and reduce the bias.”

Its tech focus — on the platform rather than the in-person experience — won’t address incidents of in-person bias. Through its existing Open Doors policy, Airbnb offers to find a guest an alternative place to stay if they feel they have been discriminated against by a host.

“In a departure from its peers in Big Tech who pass off structural problems on the behavior of individual users, with Project Lighthouse, Airbnb is attempting to take responsibility for how tech platforms create the opportunity for harm at scale,” wrote Jade Magnus Ogunnaike, senior campaigns director at Color Of Change, in an email.

Airbnb doesn’t just rent lodgings. Through its Airbnb Experiences branch, it offers classes in mole making with an Indigenous cook in Mexico City, a music and cultural tour of Havana with a D.J. and walks among penguins with a conservationist in South Africa.

During the pandemic, many of its Experiences went virtual. Now, via Zoom, armchair travelers can visit an animal rescue farm in Connecticut, follow a plague doctor through Prague and sit in on a songwriting session in Nashville.

After Airbnb’s layoffs, many wondered whether Airbnb Experiences, long rumored to be losing money, would be shelved, too. In January, it had 50,000 Experiences in 1,000 cities. During the pandemic, the division was shut down, and later transitioned, with a fraction of its offerings, online. Today, it has 700 virtual Experiences generating $2 million in bookings over the past five months. In-person Experiences have resumed in more than 70 countries with restrictions on group sizes, though the company declined to say how many Experiences are available in person and how much money they are making.

“I would be surprised if they drop it completely,” Mr. Mody, of Boston University, said. “They don’t want to be just a home rental company. Travel is about experiencing the destination in its entirety and they want to play a role in that.”

The company said it stands by Experiences, even waiving its take — which is normally 20 percent — for its Social Impact Experiences, which include playing with shelter cats in Osaka, Japan ($25) and learning beat-making with an organization devoted to teaching underserved youth ($75).

“Experiences was hit hard by social distancing,” Mr. Chesky said, maintaining that the online transition has been successful. “In a world where there’s not a lot of things to do, we think there’s a window for Airbnb Experiences,” he said.


By: Elaine Glusac
Title: The Future of Airbnb
Sourced From: www.nytimes.com/2020/09/24/travel/airbnb-pandemic.html
Published Date: Thu, 24 Sep 2020 18:10:01 +0000

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Limited time Amex points transfer bonuses ending soon!

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During normal times, points transfer bonuses by Amex or any other issuer gain a lot of traction. However, we live in unusual times. Travel is nowhere close to normal and only a small minority is actively looking to book travel. Amex Membership Rewards points, along with Chase Ultimate Rewards points are two of my favorite transferable points currencies. Amex, in particular, has the edge over Chase when it comes to international airline partners. At the moment, Amex is running two lucrative points transfer bonuses with their Membership Rewards points. However, if you’re looking to travel any time soon then now is a good time to transfer time as these limited time bonuses end on October 31.

Amex Points Transfer Points Bonuses

Amex is currently running points transfer bonuses for Hilton and Marriott. These limited time offers expire on October 31, 2020.

Hilton Honors

The standard points transfer ratio for Hilton Honors is 1:2. With this bonus, you’ll get a ratio of 1:2.8. For example, if you transfer 1,000 Membership Rewards points, you’ll get 2,800 Hilton Honors points.

Marriott Bonvoy

The standard points transfer ratio for Marriott Bonvoy is 1:1. With this, bonus you’ll get a ratio of 1:1.4. For example, if you transfer 1,000 Membership Rewards points, you’ll get 1,400 Marriott Bonvoy points.

Crunching the Numbers

During normal times, many frequent travelers tend to jump on these limited time transfer bonuses. However, how lucrative are these bonuses during the current situation?

For example, let’s say you want to book a top tier Hilton hotel. One night will cost you at least 95,000 points for a standard room. With this bonus, you’ll need 39,000 Membership Rewards points instead of 48,000.

Similarly, let’s say you want to book a top tier Marriott hotel. One night will cost you at least 85,000 points for a standard room. With this bonus, you’ll need 61,000 Membership Rewards points instead of 85,000.

In short, the higher the category of the hotel, the more lucrative these transfer bonuses become for you.

Credit Card Bonuses

If you’re falling short on Marriott or Hilton points, another option is to sign up for co-branded credit cards from Marriott and Hilton. Currently, many of these cards are running limited time offers. Please note that Amex and Chase restrictions may apply to these credit cards.

Card Name Sign-up Bonus Application Link
Chase Marriott Bonvoy Boundless 30k points
Apply Now
Chase Marriott Bonvoy Bold 5 free nights (up to 50k points each)
Apply Now
Marriott Bonvoy Brilliant American Express Card 125k points + Platinum Status for 2021
Apply Now
Amex Marriott Bonvoy Business Card 100k points + $150 in credits
Apply Now
Hilton Honors Business Card 130k points
Apply Now
Amex Hilton Honors Card 95k points
Apply Now
Hilton Honors American Express Surpass Card 140k points
Apply Now
Hliton Honors American Express Aspire Card 150k points + 1 free night
Apply Now

The Pundit’s Mantra

In most cases, I don’t recommend transferring points speculatively. However, if you do have a trip on the horizon, then it makes sense to use these Amex points transfer bonuses to your advantage.

In the past, I’ve used transfer bonuses to book some really cool trips. For example, I used a transfer bonus to British Airways in order to book a last minute trip to Colombia. However, given the current scenario, not many of us are planning such trips on the go.

Do you plan to make use of either of these points transfer bonuses before the end of the month? Tell us in the comments section.

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The Chase Sapphire Preferred is currently offering a limited time welcome bonus of 80,000 Ultimate Rewards points. You’ll earn a welcome bonus of 80,000 Ultimate Rewards points after you spend $4,000 in the first 3 months. You’ll also earn 2x points all on all travel and dining spend and 5 x on Lyft rides.

Apply Now

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Disclosure: The Points Pundit receives NO compensation from credit card affiliate partnerships. Support the blog by applying for a card through my personal referral links. This article is meant for information purposes only and doesn’t constitute personal finance, health or investment advice. Please consult a licensed professional for advice pertaining to your situation.

By: The Points Pundit
Title: Limited time Amex points transfer bonuses ending soon!
Sourced From: travelupdate.com/limited-time-amex-points-transfer-bonuses-ending-soon/
Published Date: Tue, 20 Oct 2020 12:10:32 +0000

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Cruise Ship Rescues 24 People From Sinking Boat Off Florida Coast

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The Carnival Sensation was sailing in international waters off the Florida coast on Saturday when crew members spotted a crowded 36-foot boat that appeared to be in distress.

The ship maneuvered alongside the boat and crew members handed over blankets, life jackets, food and water to the 24 people onboard the smaller vessel, including two children, according to the Carnival Cruise Line.

As it floated 37 miles off the coast of Palm Beach, the boat began to take on water. The passengers were quickly ushered aboard the cruise ship through a side hatch that is typically used in port to load supplies via a gangway. The boat sank after the rescue, a Coast Guard spokeswoman said.

The rescued passengers were the first guests to board the cruise ship in months, Carnival said. They were evaluated by the cruise ship’s medical staff and quarantined away from crew members, the cruise line said. They were picked up by the Coast Guard after about six hours, the spokeswoman said.

The rescued boat was coming from Freeport, Bahamas, said Nicole J. Groll, the Coast Guard spokeswoman. It was not clear where the boat was headed, she said, nor was it clear what had happened to the boat that caused it to sink.

“The disabled vessel sank and actions are currently being taken to coordinate the transfer of the individuals ashore,” Ms. Groll said in a statement Monday.

The $45 billion global cruise industry serves 20 million passengers in a typical year. But since the beginning of the coronavirus pandemic, ships have been roaming the seas for months without guests, staffed by skeleton crews. Operations have been suspended until Oct. 31, and some lines have canceled cruises into next year.

Carnival operates 23 ships. While they are idle, they maintain a “minimum nonoperational manning status,” according to a spokesman. That means they are staffed by 75 to 100 crew members, including marine engineers, technicians and officers, as well as housekeeping, culinary and other staff members.

Occasionally, they perform rescues, the spokesman said. In July, the Carnival Legend responded to a call for help from a boat that had run out of fuel off the coast of the Bahamas. The Legend gave the boaters 25 gallons of gas to help them make their way back to Jacksonville, Fla.

Ships are obligated under maritime law to respond to vessels in distress, said Jim Walker, a Miami-based maritime lawyer.

The duty to rescue a derelict vessel falls to a ship’s captain, who “has both a moral and a legal obligation to help,” he said.

There are typically three or four such rescues every year, some of which involve migrants, Mr. Walker said.

“Often there is no true ‘rescue’ of foreign immigrants at sea because the cruise ship will call the U.S.C.G. who will pick them up and then return them to their home countries,” Mr. Walker said in an email, referring to the Coast Guard. “It is not so much a ‘rescue’ but an ‘interception’ at sea.”

In some cases, he said, a ship’s captain or the captain’s employer could face criminal charges for ignoring a cry for help.

In 2012, Princess Cruises was sued after one of its cruise ships, the Star Princess, failed to help a disabled fishing boat that had been adrift for days when it was spotted by crew members and passengers. Two of the people on the fishing boat died.

The cruise industry has come under fire during the coronavirus pandemic, particularly early in the outbreak as passengers and crew members were trapped aboard ships where the virus spread rapidly.

In February, more than 700 passengers were infected on the Diamond Princess as the ship idled off the coast of Japan. Nine of the infected passengers died.

In August, the cruise industry voluntarily suspended operations until Oct. 31, following the extension of a no-sail order for cruise ships through Sept. 30 issued by the Centers for Disease Control and Prevention. The agency noted that from March to July there had been nearly 3,000 suspected and confirmed coronavirus cases and 34 deaths on cruise ships in U.S. waters.

The Carnival Corporation, which operates Carnival, Princess and other brands and serves roughly 50 percent of the global cruise market, has dealt with outbreaks on several of its ships, including Holland America’s Zaandam, which tried to unload sick passengers in Florida in April. Last week, Carnival Cruise Line canceled several cruises that were scheduled for November and January.

By: Marie Fazio
Title: Cruise Ship Rescues 24 People From Sinking Boat Off Florida Coast
Sourced From: www.nytimes.com/2020/10/19/us/carnival-cruise-rescue.html
Published Date: Mon, 19 Oct 2020 22:51:45 +0000

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2,000-Year-Old Cat Etching Found at Nazca Lines Site in Peru

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The image, stretching for 40 yards on a hillside in Peru, shows a creature with pointy ears, orb-like eyes and a long striped tail. It appears to be a cat lounging, as cats often do.

Archaeologists stumbled across the faded etching while remodeling a section of a UNESCO heritage site known as the Nazca Lines, Peru’s Ministry of Culture announced last week.

The catlike geoglyph — which experts say dates to 200 B.C. to 100 B.C. — is the latest discovery among the carvings of larger-than-life animals and plants previously found between the towns of Nazca and Palpa, in a desert plain about 250 miles southeast of the capital, Lima.

“The discovery shows, once again, the rich and varied cultural legacy of this site,” the ministry said in a statement.

The Nazca Lines were first discovered by a Peruvian aerial surveyor in 1927. Images of a hummingbird, a monkey and an orca were unearthed at the site. UNESCO has designated the Lines and Geoglyphs of Nasca and Palpa a World Heritage Site since 1994.

The cat etching is believed to be older than any of the prehistoric geoglyphs previously unearthed at Nazca.

“It’s quite striking that we’re still finding new figures, but we also know that there are more to be found,” Johny Isla, Peru’s chief archaeologist for the Nazca lines, told Efe, a Spanish news agency.

The designs were believed to have been created when ancient Peruvians scraped off a dark and rocky layer of earth, which contrasts with lighter-colored sand underneath. Researchers believe that the figures once served as travel markers.

Drone photography has led to several discoveries in recent years, Mr. Isla said. In 2019, researchers from Japan, aided by satellite photography and three-dimensional imaging, unearthed more than 140 new geoglyphs at the site.

Research and conservation work had continued at the site even during the coronavirus pandemic, when most tourist sites have been closed. Archaeologists and employees were working on the Mirador Natural, a lookout point in the protected site, when they began unearthing something intriguing. When they cleaned the mound, clear lines showing the sinuous body of a cat emerged.

“The figure was barely visible and was about to disappear because it is situated on quite a steep slope that’s prone to the effects of natural erosion,” the culture ministry said in a statement.

The authorities said that even a stray footprint could mar the fragile grounds, and have imposed strict rules against trespassing at the site. Before the pandemic shut down tours, visitors were permitted to view the lines and figures only from planes and lookout points.

But disturbances at the Nazca lines have occurred, drawing widespread condemnation.

In 2014, Greenpeace activists left shoe marks near a large hummingbird design when they placed a sign that promoted renewable energy, Peruvian officials said.

“You walk there and the footprint is going to last hundreds or thousands of years,” Luis Jaime Castillo, a Peruvian official and archaeologist, told The Guardian at the time. “And the line that they have destroyed is the most visible and most recognized of all.”

In 2018, a truck driver was arrested after intentionally driving his tractor-trailer across three lines of geoglyphs.

Even as Peru works to preserve its ancient sites, officials reopened Machu Picchu this month for one lucky tourist after he became stranded during the pandemic and waited seven months to see the 16th-century Inca citadel.

By: Tiffany May
Title: 2,000-Year-Old Cat Etching Found at Nazca Lines Site in Peru
Sourced From: www.nytimes.com/2020/10/19/world/americas/peru-cat-nazca-lines-nasca.html
Published Date: Mon, 19 Oct 2020 08:48:43 +0000

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