TIME TO BE A REAL COMMUNITY - HOST SUGGESTION - COVID 19

Maria12494
Level 3
Larnaca, Cyprus

TIME TO BE A REAL COMMUNITY - HOST SUGGESTION - COVID 19

Hello Community!

 

First, I hope everyone is safe and trying to cope with the best way possible during these extraordinary and unprecedented times we are living in.

As we all understand by now Covid-19 will hit-hard the travel industry for many months to follow.

 

Even when things will start getting better there is a long way ahead to restore confidence in travelling. This does not only depend from the country we are living but also from all the other countries that we had arriving guests.

 

I believe that, like me,  other hosts if not all of you have invested a lot of money and energy in order to offer excellent service to your guests.  Now we are left with no or minimum income stream and also without a safety net. I have always considered Airbnb as  a great platform and that its community mechanisms would have worked to ensure that as hosts (and essentially partners)  in such times were protected too.

 

No one expected this to happened and certainly rushed decisions were made.

Airbnb decided to override our cancellation policies and offer a full refund to guests for the period of 14th of March – 14th of April.  That left me as a host exposed and made me think that I had no support mechanism.Whatever is done is done and no matter how bitter that decision was I respected it and took the loss . Even without the announcement of Airbnb  I would have probably offered full refund my self (for March and April reservations)  or the option of a discount / special offer when they would have decided to book again  that will equal the amount of the 50% cancellation fee.

 

Now its time for hosts to feel that they are respected from Airbnb . 

Everyone had the time to reflect by now and with a clear mindset its time to structure and implement a better plan for the difficult months ahead of us.  

 

That is why I am writing this suggestion before any other announcements from Airbnb are made.

Most probably someone else suggested it but I want to have my input as well .

 

Personally, for the majority of my properties I am already fully booked for the summer and my cancellation policy has always been  strict . Before the announcement from Airbnb I encouraged my guests not to cancel but to postpone their trip later in the year (and that was accepted by all guests) . But when Airbnb announced that everyone is entitled refunds then no other guest wanted to reschedule their trips and made the choice of the full refund . I understand that all airlines cancelled flights until further notice, so the possibility of rescheduling trips might have been difficult .

But there are solutions for hosts  to ensure that we maintain a certain cash flow , support the platform and to encourage travelling when all is over.  

 

I want this to be in writing when I declare that I do not wish for Airbnb again to override my cancellation policy after April 14th . Instead of that I believe that Airbnb has the means to issue credit vouchers for future reservations  that guests wish to cancel  in order to be used for booking the same property within a specific time frame (let’s say 12 months) . There is no better way to achieve a certain level of 'satisfaction' for all parties involved .

 

In this way when a guest decides to cancel :

  1. he/she gets a credit voucher with the total amount of their reservation- that they already paid to Airbnb that can be used for booking the same property within a specific time frame
  2. the host gets the 50% entitled by its strict cancellation policy (or what ever he/she are entitled by their cancellation policy or -my personal opinion- the BEST scenario is when Airbnb decides due to extenuating circumstances that all confirmed reservations so far and until the pandemic is over will be treated in the same manner (50%  equal percentage refund to hosts ) regardless of cancellation policy) . However it should be noted that the host will have control of his/her pricing strategy and if there is a difference in the voucher and the actual amount of the future reservation (lets say because the guest wants to book in the high season) this should be paid from the guest. 
  3. Airbnb can still maintain its service fee .

This is not something new , this is what most airlines are doing now when they cancel flights .

I was to travel in Portugal on the 15th of April and my flight got cancelled so now I have a 400 euros voucher to redeem for my next flight within the next 12 months .  

 

Some people might say that such action is  selfish in such horrible times . I will not accept that and i wont even debate anyone that claims such thing - what is actually needed now is to find the right balance. Other people will argue that this might have a minimum short term benefit or does not make up for actual losses of income. I disagree in some extent . This will provide the motivation needed so that hosts will continue doing short term holiday letting instead of deciding to rent long term in order to survive . 

 

Surely its for the best interest of Airbnb in order to keep its hosts and ensure that guests will return to book their holidays from this platform.

 

Lets not say to our guests 'farewell 'but 'see you later when everyone is safe' . 

 

I hope that all the above will be taken into consideration and that I can have your thoughts and feedback on that .

 

Together we can do so much more, so feel free to post any other suggestions.

 

As hosts we have to realize that due to this situation we already have and we will suffer in the future tremendous losses that cannot be compensated . But we need some kind of support and this is the time for Airbnb to show us that hosts matter .

 

This is the time that we all need to be an actual community by helping each other .

 

Be safe , stay healthy

 

Maria P. ,

from Cyprus (a small island in the Mediterranean Sea) & a superhost since 2015.  

March 30th 2020

9 Replies 9
Pat271
Level 10
Greenville, SC

I like the voucher idea, but I’m not aware of any option on the Airbnb website for the issuing of vouchers.  How were you proposing that vouchers be issued if the Airbnb software doesn’t support it?

 

I do think that Airbnb should add voucher issuance and redemption to the system, even for normal circumstances.  But that would be a good-sized project that would take some time to design, develop and test.

Hello @Pat271 and thank you for your reply !

Yes you do have a point that such a project takes time to develop and test . 

However i believe that Airbnb has already the infrastructure build in the platform as credit coupons are already being used by superhosts . 

As hosts when we achieve three time in a row the superhost status we get rewarded with a discount coupon (credit voucher ) that we can use when we book accommodation  in our desired destination . The serial number of the coupon is used prior completing the booking .  I have personally used this reward few times . So the structure is there but it needs to be scaled up so that guests will receive these coupons as well .  I am not aware of the time it takes for such thing to be implemented - we need an expert in software development , but it will be interesting to see someone from Airbnb respond to this and if they have been considering this option . 

Pat271
Level 10
Greenville, SC

@Maria12494 Ah, I wasn’t aware of how the Superhost voucher was handled, since I only became Superhost for the first time in October.  I am a software expert, and that functionality you described is a good start.  Database tables and associated code would have to be enhanced to store the guest voucher info (e.g. expiry date, amount), and manage the states for each voucher (e.g. Issued, Redeemed). It sounds like the front-end interface to enter the voucher serial number to pay for a booking is already there, although I don’t know if more than one voucher at a time can be entered for each booking. You’d also have to build the interface for the host to actually issue the voucher.  Then, what happens if a reservation is later cancelled under the various policies, e.g. would the guest get all, none, or half of the voucher reissued, etc.  Also, is the voucher authenticated against the logged-in superhost currently, or can anyone who has the serial number use the voucher? A lot to work out, but it’s good the basic flow is already there with the Superhost vouchers you describe.

 @Pat271  that is so great that you are a software expert and you gave that analysis !

 

To answer your question  each voucher has a unique serial number and  is attributed to each superhost profile . Therefore  i believe that the booking has to be made only by the host and can not be used by anyone else that has the serial number .

I will take  as an  example Aegean Airlines that are now building the interface for the credit vouchers : we have been notified that they will issue the vouchers (full amount of our ticket paid)  in April under our personal account and we can redeem them once and within a 12 month time frame . If the price of the ticket is higher than my voucher then i will pay the difference but if the price of the ticket is lower than my voucher then i will loose the difference and can not use the voucher for the remaining amount .  I guess it makes things more simple . 

What is left now is for an @Airbnb Admin to tell us if they are considering this option that it looks like a win win situation .  I have seen many messages within the community  that find this solution acceptable and if Airbnb is not considering this we are entitled  to know the reasons why . 

Huma0
Level 10
London, United Kingdom

@Maria12494 

 

I am not sure if you saw Brian Chesky's announcement yesterday? Airbnb are implementing a voluntary voucher scheme under their updated COVID-19 EC policy, i.e. guests can choose either a full refund or credit for future travel.

 

The problem with this is that the host's still do not get paid, even if the guest opts for the voucher (and why would they when they could get a full refund now and book again when it suits them?). The voucher applies to any Airbnb, not just the one they cancelled, so the money does not come to that host.

 

All Airbnb are currently offering in terms of payment for COVID-19 cancellations is 25% of what you would have received under your normal cancellation policy. So that is not 25% of the booking amount. If you had a Strict policy, you would receive 12.5% of the booking amount. If you had a Flexible policy, likely you will receive nothing. It doesn't matter if the guest chooses the credit or the full refund. It is all the same for the hosts. We will lose all, or almost all of the payment.

@Huma0  I’m glad you see the distinction between Airbnb offering a voucher to be used at any Airbnb, and the host offering a voucher to be used with only that host.  Completely different animal.  I would really like to see this latter functionality added to Airbnb as a feature, though, to be used by hosts as an option for handling cancellation requests.  I’m hopeful they will add this feature at some point, as it seems they have already implemented some voucher-related features.

Dawn298
Level 8
Toronto, Canada

@Maria12494 

I agree with you, Maria, everything you have said is right on point! A strict cancellation policy should be applied to every cancellation thereby giving hosts a 50% return, minus Airbnb's fees,  for upcoming cancelations. And a credit that can be used towards future bookings with that host, as I have given all my guests that have canceled with me. The problem is that Airbnb is giving everything back and an "open" credit for guests to travel and book anywhere with any host, not the host they were previously booking with. Airbnb needs to realize that without the hosts opening up their homes there would be NO Airbnb at all! Guests would have nowhere to stay! But Airbnb is confident that they will come out on top!!!

While I understand the need for vouchers/credit in certain refund situations in general, at least for covid-19 EC cancellations.... I don't agree that issuing host or listing specific vouchers/credit is a good or even realistic option. 

 

I'm a host that targets ONLY international guests (because I choose to host legally, according to relevant local laws) and as a frequent traveler myself, I know how difficult it is to plan and re-schedule an international trip. Especially if the visit/trip has a specific purpose, like for a seminar or exchange program or special time-sensitive event. So in this type of situation imo, a full cash refund or cancelling the credit card charge all together would be the best..... all things considered. 

 

A voucher or credit means..... Airbnb gets to continue to hold onto the guest's money while the guest hasn't really gotten anything back and the host will still not be paid since a stay hasn't happened. Even if I (host) end up not making money from a booking that won't happen or maybe not getting any money from a cancellation, I'd rather that money just go straight back to the guest..... not stay in Airbnb's pocket. But again..... this is just me. 

Rodney11
Level 9
Toronto, Canada

A guest specific voucher is not viable for the reasons @Jessica-and-Henry0 points out: the trip may be a one time excursion, and a voucher to a location a guest does not plan on visiting again is of no value. Even if the guest does plan on returning to your area, the future dates they want may already be booked at your property, so again the voucher is of no value to the guest. Vouchers are only of value to guests if they can be used at any property across the AirBnB platform. 

The unfortunate reality of the current market is that AirBnB needs to provide their customers with the level of service they have come to expect from places like WalMart and Amazon: full refunds for a product or service that is not to their satisfaction. Just to be clear, AirBnB's customers are the guests; the hosts' properties are AirBnB's product. 

When pleasure travel is once again viable, and that probably won't happen this year, AirBnB wants customers to come back because they remember that AirBnB provided them with a stress free refund during a time of crisis. This will benefit the hosts who are still around to use the platform, because AirBnB has a huge share of short-term rental market. 

AirBnB knows that many of their hosts will either choose to remove their property from the platform, or unfortunately no longer own a property to list. AirBnB also understands that the short-term rental market is dead for the foreseeable future and they will be shifting their business model to long-term stays, and looking for millions of new hosts to bring on board for their new business model as can be seen here: https://techcrunch.com/2020/04/06/airbnb-turns-to-private-equity-to-raise-1-billion/

Hosts need to also shift their business model to long-term if they can, or some other form of extracting the equity from their properties. This will likely be very challenging for hosts in vacation destinations. 

Best of luck to everyone in these difficult times. Most important of all, I hope you, and your loved ones, all stay healthy.