WHY WILL COVID-19 BANKRUPT HOSTS AROUND THE WORLD?

[Michael303]

COVID-19 WILL BANKRUPT HOSTS AROUND THE WORLD BECAUSE AIRBNB REFUSES TO ACKNOWLEDGE THE EXISTENCE OF TRAVEL INSURANCE!

Travel Insurance is easy and inexpensive for Guests to purchase. The lack of travel insurance protection is completely devastating for Hosts!

For 3 1/2 years I have been trying to get AirBnB to listen. Well, unfortunately, a global pandemic is going to bankrupt hosts around the world because AirBnB refuses to make legitimate travel insurance available for booking guests.

VRBO and HomeAway do such a superior job offering travel insurance to their/ our guests.

1. If you drive a car without insurance and get into an "unforeseen" accident, you are responsible, not the person you ran into. If you book a trip without travel insurance and something "unforeseen" happens, you are responsible, not the person who is hosting you. 

2. I have to carry liability insurance, flood insurance, homeowners insurance with an added hotel policy on top of that on my building to protect me and my guests for short term rentals. I would carry travel insurance for all my guests if I could... no wait it do?! It is AirBnB's insane policy of refunds?! Hosts are not Insurance companies. 

3. I think it's beyond unfortunate for Airbnb, hosts and guests that Airbnb does on hold guest accountable for travel insurance. The simplest way to handle this is to explain travel insurance up front - prior to booking and let guests know it's their responsibility to purchase it or guests will be taking the risk themselves. Travel insurance has existed since the beginning of modern travel. 

4. Airbnb Actually Recommends Travel Insurance. (the AirBnB link is blocked by AirBnB) Airbnb offers refunds at the host’s expense. It is completely unacceptable as a policy and puts the hosts in an untenable situation of loss that cannot be recouped for last minute cancellations – which, by the way, is why trip insurance exists.

5. Suggestion: if Airbnb wants to act like an insurance company and refund guests their money then charge a fee ($35 – $45 to be competitive with trip insurance companies) for that service.

This part of the Airbnb & Host relationship is 100% unfair and 100% unprofessional. Hosts are not Insurance companies. This policy is insane. Travel insurance has existed since the beginning of modern travel.

Airbnb is hurting the small business owners who are the reason Airbnb is in business at all. Shame on them for allowing this and for interfering with legitimate trip insurance companies who protect the owners as well as the traveler when situations happen outside of either parties control. Airbnb clearly is not protecting owners and their businesses with this kind of policy.

[Victoria51]

I’m also furious and every time I try to post my displeasure I’m given an error message on this forum.

[Michael303]

@Victoria51 Keep trying we are listening!!

[Michelle-Larry0]

Thanks Michael,

I have written them all too, echoing your exact points. It is criminal that Airbnb does not offer guests travel insurance and explain that they may lose some portion of their trip if they cancel without insurance. 

[Sheila22]

In my House Rules I explicitly say that I strongly recommend the Guest purchases travel insurance and if they do not they are assuming their own risk if they have to cancel due to something unforseen. I state that by agreeing to my House Rules and booking my place they are agreeing to this.  Even though this is in my House Rules and guests AGREED TO IT upon booking (along with all my other house rules), Airbnb has been 100% refunding Guest left and right, depleting me.  I've been complaining to Airbnb about the EC policy for a long time and expressed that they must make travel insurance part of the equation -- provide the option, have an opt out at own risk -- but still they have not done it.  I feel like it is a cultural thing.  I think they want a very back-packing flight-by-the-seat-of-your-pants hipster vibe, and purchasing insurance is just too 'adult.'  This is my theory.  Other platforms do it and airlines do it, so it's not like Airbnb isn't aware that this is a viable and much needed solution to the extenuating circumstances problem (well before COVID-19), so there is really no excuse for them not having something like that in place.

[Karen2542]

Hi Michael,

I hope you are well and safe throughout this pandemic.

I live in Australia and have a few properties that I own and host to hold them.

I am in complete shock that we are forced to give back 100%.

This seems so unfair.

I am very happy to refund the overseas guests who may never have the opportunity to travel again. I feel this part is ok and I am trying to be a good person.

However I have this policy enforced to all the domestic local travellers. Even people who live an hour away.

I have been given no choice to even offer them a credit note to say please come back once all this settles down and help kick the economy of again.

Then to add further insult Airbnb have refunded a guest who canceled before the COVID-19 pandemic came about but this guest has jumped on the policy and thought she would cash in as well.

It is so upsetting that no care has been given to the hosts.

I am till supporting and paying my cleaner because she is a beautiful person and without her I would have no business. She has been with me for 15 years doing holiday rentals. Airbnb are also taking wages away from the staff we employ.

Any 50%money I was going to be given as a refund I wanted to share it her.

I have lost 30k in 2 days of refunds and I am still paying the staff that have looked after me for the last 15 years.

Airbnb have caused a chain reaction to this in the way of loss.xx

[Lisa600]

Funnily enough I've just had a reminder to renew my travel insurance. Pandemic is covered and the insurers are keeping it in my policy when I renew. From what I am hearing in the media  new policies taken out after March are not covering Pandemic. In the UK some insurers have stopped offering any travel insurance policies entirely. So some may be insured and some not. Either way the AIRbnb has conducted themselves is awful

[Sheila22]

Cancelled flights and travel restrictions are covered.

[H44]

Anybody has any information or had luck with temporary mortgage relief, or any suggestions @Michael303 ?

[Scott222]

I had a guest cancel on VRBO/HomeAway, who purchased trip insurance thru their site at check out and was fully covered.  Including the cleaning fee! Way better platform.. here are my suggestions to protect hosts.  As one family, we are asked to absorb the cost of multiple guests/families over multiple week, that is a bit unfair, there could be other solutions...

1. Offer a credit toward future stays  (MY AIRLINE JUST DID WHEN I HAD TO CHANGE MY PLANS FOR APRIL BREAK , I WAS NOT OFFERED A REFUND)
2. Offer the option to change dates
3. Offer a partial refund, like VRBO at 50% with a full refund of booking fees,
4. Allow guests to purchase Travel Insurance directly on the platform (all travelers can buy travel insurance even for AIRBNB thru a 3rd party - I ran a quote online for approximately $125 to protect a $5000 trip for 4).  
5. REQUIRE THE CANCELATION TO BE AT LEAST 24 HOURS BEFORE CHECK IN, and preferable 48 HOURS, 
6. ALLOW HOSTS TO COLLECT SECURITY DEPOSITS (ANOTHER WAY AIRBNB DOES NOT PROTECT HOSTS.  This would prevent party homes, and damage from unruly guests,
7. Allow guests to have longer cancellation periods (AIRBNB charges a 5% fee to hosts for any of their "Super Strict" polices" beyond 30 days- VRBO nothing)

[Michelle53]

One has to buy CFAR insurance, which is more expensive, and has to be purchased within a certain time of of the first trip purchase. Most other policies would not cover Covid-19.

https://www.insubuy.com/coronavirus-disease-covid-19-travel-insurance-faq/

[Ange2]

@Michelle53    True, CFAR is more expensive than the $9.95 flat fee that credit cards offer, but it is still incredibly cheap for the expansive parameters it covers and what it offers. I always buy it.

[Tony-And-Una0]

Travel insurance will cover it if flights are cancelled and the guest cannot travel.

Given the travel bans being put in place, this would cover a large proportion of claims. I am waiting for a travel ban to come into effect so I can claim for a trip to Spain in May. My insurance company has told me I can claim for the accommodation as it was non refundable . The airline will refund the flight.

[Caroline257]

This is not true. Attached are 2 fairly typical travel insurance policies - both specifically excluding pandemics. I have looked at many and have not found a general one that covers pandemics. It doesn't matter if the airline cancels the flight - however most airlines are refunding, some offering credit.  Maybe CFAR is the only sure way of being covered - this is very expensive and not commonly taken, especially for people on longer vaccations.

be sure ,you have to take a CFAR policy as Ange2 mentioned. 

[Scott222]

I had a a guest cancel on VRBO and they were fully covered

[Emma690]

I have tried speaking to Airbnb about this.  They are ignoring the fact that many hosts actually own premises specifically for holiday letting and run these as their business and only income.  In order to do this properly in the UK you have to pay very high mortgage interest rates and very high insurance rates.  Just the basic running costs of my property are about £1200 a month.  My Spring/Summer season bookings are the only ones that make a profit and provide me with my income for the year.  I am fully booked to September but now am threatened with these being cancelled with full refunds by Airbnb and am also being pressurised by guests to offer refunds even if the UK government doesn't ban travel.  If my bookings are cancelled, I have no other income to pay the mortgage and will lose my business and income.  I have three bookings through another agency who are not offering refunds and telling people to claim on insurance but these won't keep me afloat.  Someone on another thread said hosts can just sell their houses and, although that is an option, I've been trying to sell it for two years with no luck (mainly because of the crash in the housing market caused by Brexit) and I can't see it selling any time soon with what is going on now!  And even if I do sell it, I'm then left without a job.  I fully support the idea that Airbnb refund 50% so that they are protecting both guests and hosts and this is definitely the fairest option.  Does anyone know of a way to contact someone in authority at Airbnb?  I just get the teenagers on the helpline who are completely useless!