Allowing guests to cancel booking under a strict cancellation policy-adverse consequences?

[Frances3408]

Looking for advice on whether there are any adverse consequences for rejecting a guest's request to cancel two weeks after a booking made under strict cancellation policy? They dont want a new date (which I was happy to apply a credit towards), just a full refund and then (maybe) they will come back later on. Its in 4 weeks time, a holiday long weekend and mid school holiday spring break but bookings have been slow to emerge after winter as all aussie travellers are overseas I think. Also guest has only one previous review (and this booking is for a group) so I thought I was taking more than enough risk. I had communicated 48 hours to cancel free at beginning and need to accept all terms incl house rules (my standard first message I now use which I got from this excellent forum). Anyway after getting no where with me they have gone to Airbnb (which I had also suggested) who have asked me to reiterate whether I can host them or not. I said yes I can. Is this the end of it? The only other time this happened where the guest was unable to provide new dates they took the financial hit and my dates were blocked. Am I correct in assuming that the dates will remain blocked as she has rejected my offer to reschedule? I am worried although its a 3 night booking they could still ask for their money back after turning up or something else?. If I decide she is probably trouble and I cancel the booking, do you think Airbnb will allow my first (ever) host cancellation without punity? I am a relatively new host so the SH status was hard to earn after a troublesome guest booking early on.

[Bob-And-Tam0]

@Frances3408 

We are "new" hosts, too (since January,) but I've read enough policy and forums to believe the following is correct.

First, you should never cancel a guest, if it's the guest wanting to cancel. If you cancel them, you'll pay a fine to Airbnb, and you'll lose Superhost status or eligibility, AND your dates will remain blocked. (Triple punishment.)

If they cancel their own booking, then your dates will become available immediately to new potential guests, and you can surely book someone for the holiday weekend, consider running a promotion if in doubt. Then it will be up to them to request an exception to the strict policy you have in place. Airbnb will contact you to get your permission to refund. Whether you do or not is up to you. There is no penalty for upholding your own cancellation policy. 

I'm confused why ABB asked if you can host them or not. They may be trying to get ABB to think you're asking them to reschedule because you can't host them, when the truth is you're trying to work with them since they can't stay during the original dates. Since they refused your offer to reschedule them, their only choices now are:  to cancel or to keep the reservation. 

If they want a full refund, they need to cancel first, releasing your calendar dates. Then if they request a full refund through ABB you can choose to honor that or not. We've done that for guests out of good will. But we were not required to and it was appreciated. 

If they keep the booking and stay and then try to get a refund by making stuff up, it'll be a headache. Telling them if they cancel and ask ABB for a refund that you'll honor their request may be the best way to avoid that. You should not use the "send money" feature to them to refund them, it needs to come from ABB, since they already have the money, not you.

[Frances3408]

Thanks Bob And Tam. Yes I would never cancel for a guest after reading this forum. I did also offer a credit to them if I got another booking but they ignored that.  I even said the quicker you cancel the quicker I can clear my calendar and try to get another booking to help the refund. I get the feeling they are after a full guarantee refund and are wanting to use the funds to go elsewhere or just cant afford it. Isnt ABB still honouring the one host cancellation a year for SH or is that a myth? The generic message from ABB to confirm able to host I got indicated there could be adverse consequences- as if this policy was no longer applicable?

[Huma0]

@Frances3408 

No, the Superhost criteria does not allow one penalty free cancellation per year. It's less than 1% of bookings:

"

To meet this criteria, cancel fewer than 1% of your reservations between 1 Oct 2021 and 30 Sept 2022.

The date you cancel a booking determines when the cancellation is counted in your cancellation rate, regardless of when the reservation was scheduled to take place. Your cancellation rate doesn’t include cancellations made under our Extenuating Circumstances policy."

As for your comment below, if it was the guest who cancelled and not you, then your calendar should not have been blocked. Are you sure the guest didn't send you a request to cancel because, if you accept those types of requests, it will be processed as a host cancellation, not a guest cancellation? Or, did Airbnb process the cancellation, in which case they may have processed it as a host cancellation because you wouldn't offer a refund. They are not supposed to do this, but it wouldn't surprise me as CS is a bit of a mess and a lot of the reps poorly trained or always taking the guest side regardless of policy.

As others have said, I would not get Airbnb involved in these situations if you can help it. Especially do not direct guests to contact Airbnb about these matters as it is then taken out of your control and can often go wrong. The advice to stick to your cancellation policy and offer the guests an additional refund only IF the nights get rebooked, is sound.

[Frances3408]

Thanks @Huma0  and yes with previous case Airbnb got involved and kept it blocked. I have zero host cancellations and I'd like to keep it that way for as long as possible.

[Huma0]

@Frances3408 

Well, that's really odd. If your cancellations are showing as zero, then it wasn't marked as a host cancellation and they shouldn't have blocked the calendar. It has nothing to do with you being a Superhost or not. That's just not what is supposed to happen when the guest cancels, regardless of whether you are offering them an extra refund outside of the cancellation policy or not. I get the feeling that CS reps sometimes try to bully hosts into offering refunds where they are not due, which of course is wrong, but it's especially wrong for them to go against their own policies and block your calendar. 

So, if this guest cancels and Airbnb blocks your calendar then, yes, I would contact them to tell them to unblock it as it's a guest cancellation, and insist on it. However, I would not get them involved otherwise if you are able to handle it yourself and the calendar isn't blocked.

[Jennifer2682]

Here's what I do.  Tell the guest that you would really like to work with them.  Your cancellation policy will apply, but if you are able to re-book the dates, you'll gladly refund them, minus any service fees.  The sooner they cancel (do NOT cancel for them... make the guest cancel it!), the better their chances of those dates becoming re-booked.  (Once they cancel, your dates will automatically open up.) Keep in mind, your strict cancellation policy is there for a reason, it is what it is, and they agreed to it.  You don't owe them anything, you're doing this to be nice.  (You don't need to say that to them, just keep it mind.)  Let them know that you will gladly refund them for all days booked minus service fees once you get their payout from Airbnb... typically about 5-7 days after they would have stayed.  And that you would really love the opportunity to host them in the future.  

[Frances3408]

Hi @Jennifer2682 . I did already try that as a credit so maybe I should try it as a refund if re booked. Last time I had a guest cancel  it themselves ABB kept the dates blocked after asking me if I intended refunding them (which I said no to as there were no extenuating circumstances). I dont know how ABB got involved but I wasnt a SH then so assumed they can do this? Do you think I should contact ABB Support to ensure it is handled better this time around?

[Gillian166]

@Frances3408  you can't issue a credit, you don't handle the money. 

[Frances3408]

Thanks @Gillian35 I guess by credit I meant more in accounting terms of funds paid.

[Jennifer2682]

Honestly, the last thing I would do is contact ABB Support or encourage guests to.  More likely than not, Support will muck it all up.  Tell the guest that if they want to cancel, they should cancel asap through their Trips page.  I've gone through this process plenty of times over the years... if the guest cancels, your dates will open up.  And if ABB screws it up and they don't?  No skin off your back.  You're trying to help this guest, but you're not obligated to, and you're going to get the payment you're owed regardless.  If anyone asks if you intend to refund them, state that you intend to abide by your cancellation policy but if the dates re-book that you will offer a refund minus fees.  The sooner they cancel, the better their chances.  Put this on the guest.  Follow your policy.  

[Jennifer2682]

And make sure they know that IF they get a refund, it will be about a week after they would have stayed (when you get their specific payout).  Make them wait for it.  You shouldn't be penalized because their plans changed.  Do not refund anything out of future bookings.  Once you have these systems in place, believe me, cancellations become SO much easier to deal with.  

[Frances3408]

I can see the goal is to get my calendar cleared so I will offer the refund if someone else books and to encourage a future booking. Thank you very much for your advice (and Bob and Tam too).

[Gillian166]

@Frances3408  If you're anything like us you won't have any problems filling up during school hols, and you're by the sea! how could you not be booked? 🙂 I would do the refund personally, because were I in the same situation that's what I'd like to happen (although I never book with someone with a 30day cancellation policy). 

The second option I concur with: agree to the cancellation and refund, only if you are able to rebook those dates.  and of course, the guest must cancel, and immediately so your calendar is freed up. Word the offer nicely but firmly when it comes to the timing. 

[Frances3408]

@Gillian166  Thanks for the advice and especially about setting a time limit on offer. We might be by the sea but our category is National Parks as we are also surrounded by Seven Mile Beach National Park. I certainly hope bookings bounce back. This time last year we were all in another lockdown so only locals could book and the police were pulling up all drivers crossing the Greater Sydney boundary.