COVID-19 , Refunds and Airbnb service Fees

[Jennifer-And-Simon0]

Last week we had a guest cancel at one of our properties. She was coming for her daughters wedding in August, which had now been canceled due to COVID-19. We made a personal decision early on, when this situation started to unfold, that we would to refund all guests who needed to cancel due to the impacts of the pandemic. So we refunded this guest in full at the time she canceled.

Yesterday we received the following message from Airbnb (quoted verbatim):

"We have recently heard from your guest and sadly, they can no longer continue their trip due to the current ongoing global health issues. As such, they are looking to cancel this reservation and get a refund in full.

Your guest has canceled their reservation outside our Extenuating Circumstance policy as such, we are bound to uphold you host cancellation policy.

We understand that situations affecting your guest ability to continue your reservation sometimes occur. In line with this, in light of this ongoing situation we would like to know if you are amenable to provide a full refund to your guest in the spirit of Airbnb.

Kindly respond to this message, so we can further assist you in the process.

Thank you for taking hosting to another level. Your Super host status speaks volume not just for who you are but how you are as a host in our community.

Looking forward to hearing from you soon."

"In the spirit of Airbnb" we checked the booking and saw that we had already given a full refund so we called the guest to find out what was going on. It turned out that Airbnb had not refunded their service fee to the guest, which came to several hundred dollars! The guest had thought that we had pocketed the money and did not realise that it was Airbnb who had kept the money.

So I sent the following reply:

"can you please confirm if Airbnb will also refund their service fees to XXX?"

In response they sent the following and shut the ticket:

"As per the cancellaiton policy she agreed on when she booked the reservation, free cancellation for 48 hours, as long as the guest cancels at least 14 days before check-in. Also, guests can cancel up to 7 days before check-in and get a 50% refund of the nightly rate, and the cleaning fee, but not the service fee.

As such, we are unable to provide her a full refund of the Airbnb fees.

It has been 72 hours and we still have not heard from your guest xxx. As such, we encpurage her to contact us again once they're able to provide documentation. Hence, we are closing this ticket for the time being.

Should you decide to provide a refund please refer to our Resolution Center to issue the funds to your guest."

Am I then only one who is appalled at the hypocrisy of this response?

Airbnb requested that I override my cancellation policy and provide a full refund to my guest "in the spirit of Airbnb" (which I had already done anyway, in the spirit of humanity) and then turn around and refuse to refund the guest their service fees, citing the same cancellation policy!

Is the "spirit of Airbnb" only applicable to hosts and not to Airbnb themselves. I feel that this attitude towards guests and hosts is disgraceful at the best of times but, in the current situation, it is really deplorable. 

I have never posted anything on a forum before but this has upset me so much that I felt I had to voice it somewhere!

[Rodney11]

Yes @Susan17 , I got the impression AirBnB may have been less than transparent about the cancellation program for their own needs. 

I meant it was unfortunate that @Jonathan1257 will not be receiving even at least the paltry 12.5% compensation to which he should have been entitled. And unfortunate that he had to come up against AirBnB's questionable business practices in this already stressful time.

[Susan17]

Lol! Ah, I see, @Rodney11! My apologies! My reading/comprehension skills must have slipped in my quest to lure you over to the dark side 😉

[Tyler320]

@Susan17 @Rodney11 @Jonathan1257

any updates on this? I am currently fighting for the measly 25% compensation for 4 reservations that I ended up cancelling because the guests weren't responding quickly and Airbnb was encouraging us to do so under the guise of "no penalty for the host." What a total disgrace here, as then we learned that any host-initiated cancellations would not qualify. PLEASE?!?!?!?!?!  We all know that not a single one of those trips was happening--so why do they all not qualify???? I am currently awaiting word on a support ticket but I don't have much hope. We are talking about chump change here, but every hundred counts at the moment for us hosts who have been forced to bear the burden of Brian's shoddy leadership. 

[Sue49]

I like you have requested that guests cancel, if they hadn't done so already, for same reasons.

The cancellations under ExCP should have worked both ways, whether Guests or Hosts cancel for reasons of Covid19.

We have had one guest cancel that either has not listed Covid19 as a reason or it's Airbnb's error. I have pointed this out to them that Airbnb will still charge their fees & they need to try to change it.

Seems to me that after ExCP finishes if a guest cancels (even if host gives a full refund) Airbnb still get their fees & if a host cancels after 30th April they will pay a penalty. Airbnb doesn't lose out at all.

[Sharon1014]

@Jennifer-And-Simon0  Greedy or just on the way to being broke?  Or already trading while insolvent?  They have begun a marketing campaign, a friend had a pop up appear on a totally unrelated site, saying that you should book your Airbnb vacation or getaway a year in advance and hurry because Airbnb property bookings for a year out were filling up fast.... gosh, our calendar still looks like a desert (not all that surprising for our southern hemisphere winter) but we have summer coming Sept onwards and no flood of bookings.  So why are they trying to get guests to book a year out?  Because they need the money to plug the dike between here and there.  How long is a piece of string and does Airbnb have the capacity to last the distance.... tourism will likely be the last thing to recover.

@Rodney11 @Susan17 

[Susan17]

@Sharon1014 

Impossible to tell how much they're operating with right now (apart from the latest $2 billion they raised, which was mostly in debt, at crucifying interest rates typically reserved for failing companies in distress). When interviewed, the top brass all appear to be giving conflicting answers to reporters, in relation to how much cash they have stockpiled. Certainly, they're pulling every stunt in the book to keep hold of the vast majority of service fees involved in the original "100% refund" cancellations, along with a plethora of other shady moves to maintain cash flow. And of course, revenue has been decimated, and will remain so for most of the year, so much of that new 2 billion, will likely be earmarked for working capital. Marketing and hiring have been halted in the hopes of saving $800 million, the founders aren't taking a salary, and key executives pay has been cut by 50%, but the operating expenses are still eye-watering. And all that is before you even take the payback on that recent $2 billion into consideration.

In the opening seconds of the April 15 Bloomberg interview below, Chris Lehane, Airbnb Head of Public Affairs and Global Policy awkwardly swerves a very clear and direct question from the reporter, asking him exactly how much of a financial cushion the company has, by ignoring her query and shifting the conversation to inquire about her family. Definitely not his usual verbose, rambunctious self. The outlook is not exactly positive from many of the more seasoned analysts either.

https://www.youtube.com/watch?v=eVuKtoMmYS4

[Rodney11]

@Susan17 it will be interesting to see how long the financiers dangle AirBnB's current owners at the end of their line.

I've seen circumstances where lenders keep pumping just enough money into a company with a high brand recognition during a crisis to keep the company afloat and make the original owners do all the work of rebuilding the value of the brand. Then when the company has rebuilt the brand value, the lenders call in the loans, and when the owners cannot pay, the lenders snap up the company at a bargain price, making the funds they put up to keep the company afloat the down payment on a good investment to add a coveted brand to their portfolio. 

Time will tell.

[Susan17]

@Rodney11

Exactly this. Got it in one. 

[Christina99]

Many of my friends had trips planned to Mont Tremblant Canada for Ironman in August. Unfortunately 3 weeks ago the province of Quebec cancelled all sporting events, festivals, etc through August 31. My friend had booked a house and reached out to both Air BnB and the host to cancel and they refused to waive any fees. I would like to see Air BnB step up and extend their extenuating policies through the end of the year. She then tried to see if she could shift the booking to 2021 and the host added $400US to the reservation. This is ridiculous. I had been taking a break from hosting after having several bad experiences last fall and experiencing the lack of interest on Air BnB's part to make things right without a lot of harassment. 

[Linda542]

Terribly disappointed in Airbnb. They have  Not  Followed through with us as hosts regarding the 25% refunds. They paid a few but not all reservations that met their criteria. They are taking service fees from guests.
They say one thing and do another. I really expected better. The last email I received from them said they were going to take money from us off future bookings to pay off a cancellation- that we never got paid for. Ugh. What they heck?
We love sharing our home - this has been our passion and solo income - not sure what to do anymore. )-:

[Tracy340]

I haven't gotten ANY reimbursement.  None.  Zero.  I went from being booked everyday through the middle of March (originally fully booked through April and May and most of June) to nothing.  50 plus cancellations (one-day stays mostly as a pre-cruise stop for most).  Was also told I was eligible to "apply" for some grant/loan?  Have heard NOTHING.  I'm in huge trouble with nowhere to turn.  My space was a good portion of my overall income.  

[Mary3894]

Trying to reply...getting kicked out of the system with a message of "Enexpected Error"

Let me try again. I am appalled by the actions of Airbnb. I too have guests booked this summer (booked before the end of Feb, but beyond the May 31 deadline to qualify for the Extenuating Circumstances policy). It is not right that Airbnb is encouraging hosts to refund guests fees in full, but Airbnb is keeping their fees. I am disgusted. I will work with all guests to refund them in full, but Airbnb needs to participate in this. I agree that the EC policy should be extended to the end of the year. I am hoping their is information on this in this afternoon's message from Brian Chesky.

[L--Jay0]

The funds that Airbnb will return are funds that Airbnb kept because of cancellation fees.  It seems. I could be wrong. But, if this is the case, the 250 million refund are fees that should be due to be paid to Hosts anyway; if they have the strict refund policies set up. I had several cancellations and will not get anything, because I follow Airbnb messages that say moderate policies encourage more bookings. But, from now on, I will only opt in for the strict cancellations. It may hurt my bookings, but it give me peace of mind that if someone does book, I will have more chance to profit from the booking in some way if there is a cancellation. Because here in Switzerland people tend not to book much at the last minute. Many bookings take place one year in advance as this is a ski resort. Brian Chesky's message today, April 28, 2020, offered me no new hope. In fact, I do not qualify for any support under the special program funding started by Airbnb employees. Going to have to tighten my belt.  It is financially tough. 

[L--Jay0]

At Jennifer....Wow! That must have been a tough experience to handle. I would only suggest that you contact Airbnb in the future first and foremost before you make any adjustments as their computer logistics control a lot. it could have saved a lot of confusion.  Might still not work out perfectly all the time, but it is best to let them walk you through the possible repercussions. Just saying...

[Pauline52]

It is absolutely deplorable the way Airbnb has treated hosts during this pandemic.

Their complete lack of support and solidarity with their hosts is shocking.

It is not even about the money anymore but a matter of complete disrespect for hosts.

This selfish attitude by Airbnb has prompted me to post for the first time in my life.

What are they thinking !.  so much for Airbnb's community policy and spirit.

This issue is a reflection on Airbnb itself.  i am just appalled.