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.

[Sarah977]

@Joan2113  To answer one of your questions, hosts are charged a 3% service fee on bookings. As for your ther question, why Airbnb is not stepping up to help us, that's the question and the outrage you can read here in pages of posts. 

You sound like a guest who has some sympathy and understanding of the hosts' plight right now. What Airbnb coud have done, rather than refund guests 100% of their booking, was to allow the hosts to retain something like 20-25% of the reservation amount- guests would get the majority of their payment refunded, while not totally depriving hosts of their income due to a situation that neither guest nor host is responsible for. 

As a guest, would this seem fair to you, to share at least some of the loss with hosts ? Not that Airnb is going to do this, I'm just curious. 

[Michael303]

Anything would help.

[Ian-And-Anne-Marie0]

@Joan2113 

You sound like a lonely voice in the wilderness here, but we hear you!

I would guess you would not have any 'fee' for cancellation despite your expectation, and to be fair, any traveller would have that expectation I think.

Nobody expects to need travel insurance, fortunately your flights are covered and I expect you might need to accept an insurance payout. As @Michael303 pointed out, if you did have accommodation insurance - you would never need it !

Ironically, all those cancelled flights will probably be insured in parts, but now the airlines are claiming compensation from the government (UK) for the imposed foreign travel restrictions.

[Michael303]

Correct.

[Michael303]

Of course I’m in the same boat Adriano... VRBO, HomAway, TripAdvisor and Expedia all make travel insurance readily available to guests and let the guests know that they are gambling with their own money if they do not purchase travel insurance. 

[Carey1]

I have also spoken to Airbnb about this.  For the past 2 years, Airbnb has allowed the same type of blanket 100% refund for fires in California under their extenuating circumstances.   My listing is on the coast, and we have had no fire here, but guests still got 100% of their money back.  Also true of sick family members, etc.   I'm fine with Airbnb being magnanimous, but they are being generous with MY income.   it would be nice if they at least SHARED in the expense and gave us 50% of our expected income.   At the end of the day, I agree with the host who started this chain:  The best solution would be for Airbnb to offer trip insurance.   Who doesn't take out trip insurance given the state of current world politics?  Honestly.  

[Michael303]

AirBnB's total incompetence is at a new level. THEY ARE REFUNDING 100% TO TRAVELERS THAT HAVE TRAVEL INSURANCE! Travelers have insurance to recoup their money! I don't?! Travel insurance should be covering this loss.. NOT ME. 

Here is from my guest Steven this afternoon, "My travel insurance company say they will only pay out on unrecoverable costs of our trip to New Orleans. As AirBnB are offering a full refund for cancelling I have had to take that option." 

This is from Mellissa: "Yes, I have the Allianz Travel Insurance, but the Air BnB rep said I didn't need to apply it as this fell into the extenuating circumstances policy. I reach out to them, because I could not figure out how to send you the policy stuff. They said that I only needed to go through the site and it would take me through the process..."

They have made this blanket statement to refund 100% of the booking cost. 100% at my expense. Travel insurance is 100% covering this. THERE WILL BE A MONSTROUS LAWSUIT FOLLOWING THIS.

[Simon198]

Hi Guys,

100% true all what you wrote.

This policy will kill us as hosts soon. What makes super angry that Airbnb as an OTA submit themselves to applicable national laws. We have in almost all our listings the moderate cancelation options. It is hard but our own decision that we will get 0% if guests will cancel 5 days before but Airbnb take 100% of the 12% Airbnb fee. But now the situation changed. As a host we need to be their insurance and call center. How much working time we need to spend for cancelation in this moment is unbelivable. This is not acceptable. We only want that regular conditons will work and I can take the decision if we be can change or give a voucher as a gesture of goodwill.

As a professional hosts we see us as a start up company with 20 listings in Berlin, Germany. We pay per year only to Airbnb around 120.000 EUR AIRBNB Fee. In this moment Berlin is not a red zone but we got in the last week around 90% cancelation for the next 4 week. The circumstance cancelation policy bring us a loss on revenue of around 30.000 EUR from non refundable bookings.All this means we are not able to pay our leasing, employee or other stuff anymore. We have a small team of  6 employee and included our house keeping more then 15 people need they income to survive. And what we can do, tell my staff - forced circumstance that we will not pay out. I need to keep to laws. Airbnb not?

Now it become much better. For the less bookings we got in the moment they take all 15% fees (12% for the guest & 3% Host fee). As the rates are on the button, Airbnb earn per booking more than we do!

Last earnings will be snatched away, it looks like airbnb doesn't want that the host survive this crisis. Why they not tell us that they reduce the fee - this maybe will safe one more employee income.

As we explain also guests this situation a lot of them understand also our situation. And with some of the guests we find a fair solution that we give them a voucher (total amount they paid on Airbnb) for a following DIRECT booking with us in the next 18 month. This also will be a 100% deficit for the future but helps now to have financial scope.  

What we need to do? We need to merge us to find a solution with them. We need an ear of Airbnb and only if we handle together this company will listen.  Let's start an online petition for a Airbnb Covid-19 Host Program:

- Airbnb should reduce 50% of the commission for bookings (7,5% instead 15%) in this pandemic time. It's also not the time for Airbnb to make profits. We know they also have costs, in this case 50% will be fair.

- 100% refund for the guests as a voucher, valid for the next 12 month. 100% payout to the host. 

How we can start this petition?

[Michael303]

Hello Simon, I will be working on it as soon as I can catch my breath. My inbox is filled with questions, fears, and cancellations from guests.

[Adriano78]

@Michael303THANK YOU !

@Simon198  what i really hope that soon US hosts can start a class action suit

[Susan17]

@Michael303 @Adriano78 

US hosts are prohibited by Airbnb's T&Cs from taking a class action law suit. Binding arbitration only. 

Please note: Section 19 of these Terms contains an arbitration clause and class action waiver that applies to all Airbnb Members. If your country of residence is the United States, this provision applies to all disputes with Airbnb. 

[Simon198]

Airbnb prohibits hosts to broke the T&Cs but in the same time they ignore all rights of the hosts and especially the cancelations rules we accepted (moderate, flexible). It is incredibly ruthless. We now calling all few future bookings and ask not to follow Airbnb. We will give them a voucher of the full amount (including all Airbnb Fees) only to survive.  

[April161]

Question,

why does Airbnb not offer insurance to the hosts in case something like this happens? we should be insured in a case like this since Airbnb refuse to do nothing for us. I hope they are ready to come up with a plan for us. We need a financial Amnesty program put into place quickly to free us from obligations related to our cancelations. A letter for electric companies and Mortgages. A reprieve for 3 - 6 months. Issues Immediately. Airbnb is changing their "Policy" by the day. So if it changes anymore I will have to look for a long term tenant and forego the platform entirely. I cannot believe the way they are handling this. 

[Michael303]

April, 100% agree. But, we are screwed. 

[Bob39]

This is a breach of contract between AirBnB and the hosts. AirBnB violated the contract by allowing guests to cancel without penalties, despite the hosts' cancellation policy. There needs to be a class action suit brought by the hosts against AirBnB.