New strict cancellation policy update

Lizzie
Former Community Manager
Former Community Manager
London, United Kingdom

New strict cancellation policy update

Hello everyone,

 

The Airbnb team heard feedback from you and the host community about the upcoming change to our Strict cancellation policy. In order to address your concerns, we’re delaying the change until May 1, 2018.

 

Before the change goes into effect, we’ll share more about what we’re doing to address your concerns, particularly around protecting your listing details from being shared with guests who cancel. But for now, we’d like to clear up some confusion and help you better understand the new policy and how it will benefit the whole community:

 

Here’s how the new grace period policy will work—and some of the protections we have in place for hosts:

 

Limited-time refund within 48 hours after booking when the check-in date is at least 14 days away

Guests must cancel within 48 hours after booking and can only cancel if their check-in date is 14+ days away. This means that no matter how far out your guests book, they only have 48 hours from the time they book to cancel for free. We want to make sure that if guests change their mind, you have enough time to get another booking.

 

Three refunds per year per guest

To prevent abuse, guests are limited to three fully refunded cancellations a year.

 

No full refunds for overlapping bookings

To make sure guests are not making multiple bookings and then cancelling, any booking made by a guest when they already have an active booking for those dates will not be covered under our grace period policy.

 

Your hosting success is top of mind for us, and tests of this policy—including among hosts with strict cancellation policies in place—strongly suggest the change will result in increased bookings and successful stays. With this grace period, not only do guests book with more confidence, but they also have the ability to resolve booking mistakes without requiring your valuable time and intervention.

 

We value your feedback, and will follow up shortly with more insight into how your ideas are shaping this policy.

 

Thanks,

Lizzie

 

----------Update April 24th, 2018----------

 

Hello everyone,

 

Just to let you know there is now an update regarding protecting your listing details, as mentioned above. 

 

Here is the link to take a look: An update on the Strict Cancellation Policy

 

Thanks,

Lizzie


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1,325 Replies 1,325
Zappa0
Level 10
Key West, FL

I get your point about only giving us 24 hours but them 48...doesnt make sense but honestly it has not been an issue for me. Two weeks out is OK but I am in a very high volume area. 

 

What is a bigger issue is giving them 24 hours for "payment pending" and 72 hours for Group Payment on Last Minute bookings. I'm stuck wondering if I should kayak out to my boat and set it up or if they are going to flake. This should not be allowed on same day and last minute bookings. Huge headache. There is a button to "decline reservation" after I get the payment pending message but it does absolutely.nothing. I press it and still have my listing held hostage. 

Cor3
Level 10
Langerak, South Holland, Netherlands

Hi @Lizzie,

 

It is very good to experience that our comments are being taken serious by Airbnb. And they actually do resort in some effect to the policies of Airbnb!

As that’s what this community is supposed to be all about: Reflection (amongst others).

 

Also I do think that a 48 hour grace period is still too long. So, when there has to be a grace period, then 24 hours should suffice as well.

Most hosts are triggered anyway (in an attempt to keep their response time low), to react within the first hour of either a reservation or even an inquiry. So when mistakes by the guests or mismatches are revealed. These will easily become evident in the first 24 hours anyway.

So there should always be sufficient time, to cancel the reservation. Although I must admit, when there is a big time difference between the guest and the host during the booking phase of a reservation. The communication can take a considerable amount of time (I.e. at max 12 hour time difference). It happened to me already quite often, that either a request or an inquiry came in, during our nighttime.

 

And I agree with @Helen, @Jeremy100, @Ange2 that the private details of the host should not be shared with the guest until the grace period is over. Maybe Airbnb should generate an automated message, informing the guest that these details will be shared with them – as soon as the booking gets a confirmed status.

Ann10
Level 10
New York, NY

@Lizzie- Thank you so much! I think the main issue is not having a choice or control over our listings. We would like to be able to decide if a grace period is right for us, and if so how long. In addition, we don't want personal and sensitive information leaked to people who might be flaky or even criminal. I have come across several criminal guests on Airbnb. They know how to make Airbnb work for them and unfortuately Airbnb lets it happen over and over again in my experience. Even the staff doesn't follow Airbnb policy in my cases.

Yan3
Level 10
Hong Kong

There needs be mechanisms in place to prevent those who cancel within 48 hours from viewing "Location" and "Guest resources (House Manual, Wifi info)". I cannot risk jeopardizing the security of my apartment.

 

I think the 14 day rule also opens up room for problems. What if I am lucky enough to have different guests book and then make consecutive 48-hour cancellations for the same date ranges 14 days away?  I will lose out on real opportunities from guests who've actually made up their minds before booking.  Airbnb should extend this to 60+ days, otherwise they aren't getting their refunds.

Thank goodness for this acknowledgement of host concerns. Lizzie, your message is appreciated. I think you are still hearing from hosts that there is still so much room to improve this significant proposed change to a strict cancellation policy. Delaying the roll-out until May 1 seems like a fair way to continue a conversations with your host community. THANK YOU AGAIN FOR THIS!

 

I'm going to respond to each of Lizzie's bolded headings from her Airbnb update above. 

 

"Limited-time refund within 48 hours after booking when the check-in date is at least 14 days away"

I understand how this 14 day lead time works, but 14 days is NOT enough time and presents a risk to bookings in my case. In my market, and for my listing, if I still have an open weekend coming up in the 2-3 week window, there is often a flurry of activity and listing views say 15-20 days out. Airbnb's "Check Trends" often confirms that homes "are going fast." Within my listing, a guest will see a prompt that "X number of other people are viewing this home." Airbnb is basically building pressures and incentives for a prospective guest to hurry and book. They do this because it works to get people to seal the deal. If someone ties up my booking and then cancels, you better believe a handful of other prospective guests have moved on and booked other listings in the meantime, which means my chances of securing another booking ARE diminished. 

 

I've shared this before (but feel compelled to repeat here since the other threads have been closed and I fear my concerns may be diluted)...in my case, if I leave my calendar set up to receive a booking that is just outside of the 14 day window, I am effectively keeping my entire family's schedule in limbo so that we can be nimble enough to take the booking and make it work from start-to-finish. I  manage my entire listing myself and have a 3 hour round-trip drive between each booking to clean and stock the house between each guest. I have two young children who I am primary caregiver for. If I get a booking 15 days out, you better believe I have to hustle to make arrangments for childcare, synchronizing with my husband's work schedule, and planning my property management tasks for that booking. For a guest to then cancel, I am left undoing a lot of this logistical work. Inconvenience doesn't even begin to describe this scenario.

 

I'm not sure what the 'right' number is for lead time but 14 days is certainly not it. 3 weeks would still be pushing it, but would be heads- and-shoulders more fair and manageable than 14 days. I have read data suggesting that the average lead time for a booking is around 18 days.  

 

I will also echo other hosts in saying that 48 hours seems to be overly-generous to guests who may need or want to cancel. Any special offer expires in 24 hours. I have 24 hours to respond to an guest inquiry. Why is the Airbnb 24 hour language suddenly changing to 48? I could argue that cancellations should be given less than 24 hours, but in any case why isn't 24 hours the starting point for discussion here instead of 48?

 

 

"Three refunds per year per guest"

I've never cancelled a reservation in 18  months of active hosting, but I understand that hosts are not given three penatly-free cancellations. I struggle to understand why there wouldn't be parity here. I also do not see how this discourages guests from abusing the policy. Sure, there are some people who use Airbnb numerous times each year (business travellers), so three cancellations a year per guest could be enough to help those guests take their cancelling habits seriously, but many of the guests I host are very infrequent Airbnb users...they are often brand new to the platform or make just 1 or 2 airbnb trips a year. This 'three refund per year' business would mean nothing to them. 

 

I've seen on the platform that there is a standard statement that autopopulates a host's reviews if they ever cancel a reservation....it says something like "This host cancelled the reservation  xx days before checkin." Airbnb could consider a similar prompt appearing on a guest's profile if they cancel. (I saw somebody else suggest this, not my idea. ) For those hosts who have not given into the immense pressure from Airbnb to allow Instant Booking, they would at least have an opportunity to consider a guest's reliability when they consider a booking request. Guests already do this with hosts' reliability, when considering whether they should choose that listing or not and they notice the host has cancelled in the past.

 

"No full refunds for overlapping bookings"

This only makes a lick of a difference if guests book multiple bookings at once as a way to hold them. It does not prevent a guest from lining up an alternate Instant Booking (entering nearly all the required information to complete a booking), right befor they hit "cancel" on reservation 1, and then quickly submitting the booking for the alternate place.

 

It seems to me if this feature were to be more impactful in actually discouraging guests from tying up listings when their only intention is to shop around, then they should be prevented from making another booking for a defined period of time....I come back to the precedent of 24 hours for nearly everything else on Airbnb. I don't know how much time, but you get the idea. That would introduce some risk that those who are just shopping around may lose the alternate booking. THAT would cause lookers to be very intentional about booking, as opposed to booking willy-nilly with no real thought of consequence.

 

 

My additional thoughts and concerns in response to Airbnb: 

 

- I continue to feel it important to say, that not all hosts want MORE bookings. This policy is not for me. I do not want MORE bookings. I want the right bookings.

 

- I understand that the policy was tested. I remember when I got the invite to try it out. It was in December, leading into a major holiday season...when I was making my own life/travel plans....I was especially averse to trying out a new grace period at THAT time of year.  Did Airbnb poll the hosts who did NOT opt in to the policy during the test, to gather host concerns and feedback about why they were not opting in? 

 

 

- This grace period will (I'm just being honest) likely change they way I interact with my guests. Lizzie and others at Airbnb, please look at how allowing a grace period stands to place MORE demands on my valuable time, if I am asked to be responsive and invest time with guests who then cancel. As it is, I quickly reply and share information with my guests. I am routinely asked for information to help guests prepare for their trip. Historically, I jump right in and am generous with my time, because this is part of my entire hosting philosophy. (I have even chosen to spend hours with guests BEFORE they book, sharing answers to their unique questions and circumstances.) With a grace period, I may feel compelled to be more scarce with a guest until their booking is no longer provisional. What a dilemma for a committed host! Creating a sense of mistrust, and inadvertently encouraging hosts to adopt an arms-length approach with their guests would be an unintended consequence of this grace period policy, and that's not good for anyone in the Airbnb community.

 

- To the extent that there is to be a grace period imposed on those of us who have been operating under the strict policy, I remain hopeful that Airbnb will make some structural changes to the booking flow...as it is my phone number, address, wifi, and house manual are instantly shared with a guest once they book. This is a security and privacy risk to me. This is a SECURITY and PRIVACY risk to me. Clearly there are many of us with this concern. It is also something that stands to create yet an additional demand on my time if I have to compensate by removing that information from my listing and shift to a manual system of sharing these details in the Airbnb message center. These are the steps I feel would be necessary to take to protect my privacy and security. But I do not think this is in anyone's interest. The message center is NOT the best format to share key information. It would be cumbersome for a guest to wade through. And I do NOT like the idea of extra steps and extra work just to share the same information with guests that I always have in the past. Again, Lizzie and others at Airbnb, can you please see how some of these nuances place more demand on our valuable time, not less?

 

 

I chose Airbnb as a listing platform and the Strict cancellation policy because that is what works for my family. If a guest doesn't want to book my listing because of the strict policy, then they do not have to book it. I am well aware that prospective guests may look elsewhere because of a strict cancellation policy, but I have made an informed choice to work within that limitation . And by the way, there are circumstances where I absolutely would have no reason to keep a guest's money if they cancel....just because I have a strict cancellation policy does not mean I would always enforce it. But I think I deserve a choice.

 

I believe this so strongly that I just spent my only time off all week to write this piece. I hope our collective concerns as host can make a differnce on this one.

 

Thanks for reading--

Kindly, 

Lila

Cor3
Level 10
Langerak, South Holland, Netherlands

Oh @Lizzie,

 

I forgot to mention: How can guests technically have overlapping bookings?

As third party bookings (from Non-Business Accounts) are not allowed according to Airbnb.

I do appreciate that guests may want to rent an accommodation + experiences (But that’s something else).

I do also appreciate that a guest might be booking multiple properties for a larger group of guests. But again, this is not allowed according to Airbnb – as the main guest must be in the group that will stay as part of the booking!

 

But maybe this is just my humble ignorance.

Lizzie
Former Community Manager
Former Community Manager
London, United Kingdom

Hello @Yan3@Lila-And-Chris0@Ben205@Ann10@Cor3@Helen3@Jeremy100@Ange2@Zappa0@Sean119@Carolina1

 

Thank you so much for your comments here, it is great to hear this information is welcomed by you. We really value your thoughts.

 

It is fantastic to hear more of your feedback and the level of detail you have already shown around how you believe this will impact your life as a host, is really helpful. A particular thanks to Lila And Chris here. 🙂

 

Thank you Sean for sharing your present experience with the Cancellation Policy. I am sorry it isn't more positive and I hope you will welcome the further changes we make to it. In regards to just this cancellation policy, how do you think this could be improved? We really want to hear from you and you are in a perfect position as you are already experiencing this policy.

 

Thanks again everyone and lets keep this conversation going, plus please do share any ideas you have.

 

Lizzie

 


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Thank you for the last 7 years, find out more in my Personal Update.


Looking to contact our Support Team, for details...take a look at the Community Help Guides.

Rebecca181
Level 10
Florence, OR

@Lizzie Seems to me that @Lila-And-Chris0 perfectly summarized the core issues and concerns related to this 'Strict with Grace Period' policy (along with many others here). Seems to me that their comment needs to be read by the team in charge of reviewing these planned changes. One question: Why does ABB seem to have such a strong aversion to cancellation policies that include the words '30 days'? Property Managers listing with ABB have the ability to use either a 'Super Strict 30' or a 'Super Strict 60'  cancellation policy. Why?: Because this is standard for Property Managers (and the only way to entice them to use the ABB platform) and it is standard on most other well known booking sites for even us 'regular hosts' as well when implementing a 'Strict' cancellation policy of any kind. Just because I am not a 'Property Manager' does not mean I am not a 'Professional Host' who takes my short term rental business seriously, i.e., I operate it with the goal of making a profit. Seems to me that 'Strict' and '14 Days' create a George Carlin-like oxymoron - The two terms / concepts simply do not go together at all. Change the 14 to 30 and ABB might find it has more support from us hosts. 

 

I do hope that while the team is reviewing and hopefully re-conceptualizing the 'Strict' cancellation policy options we non-Property-Manager hosts have access to that they will also reconsider the new methodology soon to be used to calculate one's Super Host achievement. A bell curve average over 12 months will still be used, not a weighted average. Once a Super Host goes below a certain percentage (including from those occasional bizarre reviews that are unmerited and undeserved and which happen for all kinds of reasons that most all Super Hosts are aware of, and have experienced) it will be nearly impossible to work one's way back into Super Host status due to the amount of consecutive 5-Star reviews needed to 'recover'. This is frankly demoralizing, de-motivating, and also discouraging to even the most resilient and committed host, and the many posts about it lately here on the CC would seem to warrant a similar review as the one that is currently taking place around this new 'Strict with Grace Period' policy. Hopefully such a review is also taking place.

Louise0
Level 10
New South Wales, Australia

I signed up voluntarily and see no evidence that it increased either views or bookings.  

@Lizzie states that "tests of this policy—including among hosts with strict cancellation policies in place—strongly suggest the change will result in increased bookings".   I don't believe this statement.   I don't believe that it's possible with such a small and 'dirty' data set to prove, or even suggest, a causal link between the adoption of this policy and an increase in bookings.  Whilst Airbnb may suspect and hope it will lead to better outcomes for hosts, I don't believe it's possible that any analysis of the available data could or would deliver any quantitatively robust results at such an early stage.  Yes, there may be some anecdotal, qualitative evidence, but surely implementation of such a disruptive and unpopular policy should not proceed without some robust empirical evidence to justify the rollout?

 

Once this policy is globally implemented, it's going to be very damaging to Airbnb if it's found to have negative, unintended consequences and is subsequently retracted.   The issue of threats to hosts' security because of the release of property and contact details without any firm committment from the guest is a real concern and one which could have dire repercussions for Airbnb if it results in even one minor episode of damage to a host or their property.  Airbnb's cavalier attitude towards hosts' concerns in this regard reeks of hubris.

 

 Overall, I think Airbnb is jumping the gun here.  The voluntary uptake should be retained for as long as it takes to gather good data and analyse the costs and benefits.  Only then, when there's hard evidence of a net benefit, should it be imposed on hosts.

Sean119
Level 10
Blue Hill, ME

@Lizzie31  From reading many of the host comments, I think the manner in which these were imposed on ABB hosts is as equally untenable as the new terms.  I think ABB will lose some very good hosts that previously wanted to be a part of ABB.  

 

I have seen some good comments regarding  ABB more equally sharing the risk of cancellations between guests and hosts (pricing structures commonly seen in hotels, arilines, etc).  Since ABB clearly wants to increase the quantity of guest bookings, why not offer future guests the option of a lower transactional cost if they accept the risk of (Standard) Strict Cancellation Policies?   ABB could allow hosts the choice to keep (Standard) Strict Policy, with possibly an incremental increase in ABB transactional fees?  

 

I think if a fair choice is offered, many ABB hosts will be able to find a way forward that suits them.

 

In regard to the 48-hour period...that simply must be 24 hours or less.  In the modern world there are very few, if any, comparable examples for ABB to justify this time period.  When ABB says it "gives the guest confidence" I read that as it very loosely hooks the guest, and a cost to the host and not ABB.  I personally want someone to chose my listing with 100% confidence they want to be my guest, not in their options to cancel more easily. 

Sandra126
Level 10
Daylesford, Australia

I can't help but wonder why it needed changing in this way? Has Strict been found to prevent bookings?

Lizzie
Former Community Manager
Former Community Manager
London, United Kingdom

Hello @Mary167@Sean119@Mary167@Sandra126@Louise0,

 

Thank you for your comments as well here. As I have mentioned, this is really useful to hear and this is exactly why we have created this topic as we want to discuss this more with you.

 

In regards to your response Mary around your listing details being shared, this is an important point and as I touch upon briefly above this is something that we are looking to address and will be able to update you on before the change is made to the Cancellation Policy in May. 

 

Louise, thanks for sharing your experience with policy, similarly as I asked Sean have you got any suggestions on how you think this could be improved? 

 

Thank you all and speak to you soon.

 

Lizzie


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Thank you for the last 7 years, find out more in my Personal Update.


Looking to contact our Support Team, for details...take a look at the Community Help Guides.

Pete28
Level 10
Seattle, WA

What if anything is even more confusing is if you switch from moderate (in low season) to strict (high season) I'm yet to find any easy way to know what terms I agreed each booking on. I'm sure it's somewhere but would be great if it were more prominent. 

 

On on the wider issue

 

- 24hrs should be enough, and seems the industry norm

- the ux for the guest should be clear what the booking conditions are

- it can be hugely painful to take a week long booking, then find the guest cancels shortly before. This can be $1k+ (a lot more I am sure for some folks) and this is why we care.

 

My impression is that those working as product managers at Airbnb are sadly not eating the dog food and hosting themselves...

 

Huma0
Level 10
London, United Kingdom

@Lizzie

 

It is encouraging to hear that Airbnb are taking our comments into account. I hope that they will take this further by listening to the concerns raised here. As for the feedback I'd like to be conveyed back to the team in charge of this:

 

- I agree that there's a double standard going on here. I don't necessarily have a huge problem with the 48 hour grace period (in fact, I opted into it, but that was on the understanding that it was OPTIONAL and something I could change if I found it wasn't working out for me - can't see any evidence of increased bookings btw). If guests are given 48 hours to make up their minds, hosts should be granted the same, i.e. 48 hours to accept/decline a booking.

 

- The 14 days is not enough. Most of my guests book further in advance than this, although some do book more last minute. In the 48 hours just before the 14 day period, it's quite likely that I could lose the only other bookings I would have received for those dates. I agree that 30 days would be much more in line with the timescales elsewhere in the industry.

 

- There should absolutely NOT be any sharing of info such as full address, phone number etc. before the 48 hours has expired. It is opening up a huge can of worms. Many hosts are already taking on a great deal of risk by opening up their homes to strangers. Don't make this untenable for us!

 

- If this policy is kept in place (or even if it is tweaked), how is it being marketed to guests? I believe there is a lot of potential for confusion here, with guests thinking they can just go ahead and book lots of places or book somewhere they really haven't made their minds up about, because as long as they cancel within 48 hours there is no penalty. Do they even understand that it only applies to bookings made earlier than 14 days, or that they can't apply this to several bookings for the same dates?

 

- Also, in regards to the last point, a group travelling together could be encouraged to make multiple bookings for their group from different accounts, in the knowledge that they could cancel most of them, while they take 48 hours to make up their minds which one they prefer.

 

- Agreed also that the maxiumum times a year is not much of a deterrent. The vast majority of my guests use Airbnb fewer times a year than that. Has any research been done into how many times a year the average guest books?

 

I think I've pretty much just reiterated what others have already said, but wanted to say it again to show that I totally back up those opinions.

 

I've always felt that there should be something inbetween the Strict and Moderate policies, which seemed so drastically far apart. Moderate seems too risky for me as a host and Strict too harsh on guests, but the 14 day period really goes against the security that the Strict policy is supposed to offer to hosts. Make it 30 days and it would be a HUGE improvement.