Cancellation refunds

[David501]

Does anybody feel as let down by Airbnb as I do?

Their policy to give guests a 100% refund with OUR money, without any form of consultation and despite our cancellation policy is an absolute disgrace and betrayal of the people (i.e. hosts) that helped make Airbnb what it is today.

Not only is this policy unnecessary and grossly unfair it is also, in the opinion of our Lawyers, unlawful. Their Extenuating Circumstances Policy states that THEY (not us) MAY (suggests consultation) refund guests in such circumstances. If Airbnb choose to refund guests with their funds this of course is their prerogative but to refund with our funds is a very different matter. In our Lawyers words, this is a misappropriation of hosts' funds; we prefer to call it theft.

Their cavalier attitude towards hosts' funds has cost our business £thousands in just 3 days and will put many in the tourism industry in financial dire straights. It's just too much money for us to ignore, so we have instigated legal action against Airbnb.

We are very reasonable hosts and are prepared to refund guest amounts far in excess of that detailed in our cancellation policy but to receive nothing for reservations that we have already incurred costs to process and prepare for, without any consultation and very little notice is simply not acceptable.

This nightmare that the world finds itself in will impact on all our of us, physically and / or financially but Airbnb still have an obligation to treat everybody, guests and hosts alike fairly and with repect, so why they expect hosts to take the full brunt of this situation defeats me.

Travel insurance companies are paying out (providing policies pre date CV outbreak) for forced cancellations and most guests would expect to lose at least a deposit for cancelling booking, so Airbnb's policy is unnecessary and one sided to say the least.

We welcome the views of all hosts, for and against Airbnb's policy. Hopefully Airbnb will read and listen to the responses posted. As they have closed their phone lines and email addresses, this or post seems to be the only way to communicate with them.

Best wishes to you all, David & Hannah.

[Mike-And-Jane0]

@David501 

Please do keep us updated as to how you get on. Have your lawyers taken this on a no win no fee basis? I may be wrong but if you are paying them then I suspect you will just end up worse off than you are now.

[David501]

Thankfully Airbnb saw sense and issued some (not enough) compensation for cancelled bookings, hence we decided against legal action. 

However, the latest batch of cancellations that we have just received for bookings that we are safely able to host and that guests can travel to without restriction is the last straw. There were no extenuating circumstances relating to these bookings and we've had over £4000 worth of revenue stolen from us for no good reason.  If guests chose not to travel because they are nervous about Covid 19 still I totally understand and would be willing to assist (postponed stay or increased refund perhaps)  but why we should foot 100% of the bill for such I cannot comprehend.

The fact is that Airbnb have no interest in or respect for their hosts financial welfare and as a result I will now be taken the legal action mentioned. I don't expect to come out of it particularly well but this is a matter of principle now and a small claim via County Court is actually quite a quick and inexpensive process. The case will be as well publicized as I'm able, so that the world gets to hear about Airbnb's conduct towards the very people that helped make it what it is today. 

I am a little surprised that more hosts aren't as upset as I am about this but perhaps I'm in a minority in that my holiday rentals represent the majority of my income.

I'll keep you posted, David

[Ian-And-Anne-Marie0]

@David501 

Thankfully Airbnb saw sense and issued some (not enough) compensation for cancelled bookings, hence we decided against legal action. 

What percentage did you manage to agree on, and was that total income value or lost cancellation payments?

[David501]

We have written to Airbnb and await their response (if we get one) before deciding how to proceed. I feel very strongly that hosts have been hung out to dry and will not let this go.

[Vanessa1239]

@Airbnb I completely 100% agree. My guest cancelled just hours before arrival due to these "mitigating circumstances" and airbnb not only gave them a full refund with no contact to me but I'm also getting no support in trying to get back the costs which I've now encured in preparing for the the guests arrival setting me back £500 GBP. My question to them is how can we as hosts continue to advertise our property when there is simply no protection for us when these guests decide to cancel (For whatever reason). Still waiting for a response from airbnb but so far this process has been appalling. I'm considering moving my business else where if this is how they treat us. Good luck x

[David501]

Hi Vanessa, good to hear from you.

The latest batch of cancellations that we have just received for bookings that we are safely able to host and that guests can travel to without restriction is the last straw. There were no extenuating circumstances relating to these bookings and we've had over £4000 worth of revenue stolen from us for no good reason.  If guests chose not to travel because they are nervous about Covid 19 I totally understand and would be willing to assist (postponed stay or increased refund perhaps)  but why we should foot 100% of the bill for such I cannot comprehend.

The fact is that Airbnb have no interest in or respect for their hosts financial welfare and as a result I will now be taken the legal action previously mentioned. I don't expect to come out of it particularly well but this is a matter of principle now and a small claim via County Court is actually quite a quick and inexpensive process and whatever the outcome will hurt Airbnb far more than me. The case will be as well publicized as I'm able, so that the world gets to hear about Airbnb's conduct towards the very people that helped make it what it is today. 

I am a little surprised that more hosts aren't as upset as I am about this but perhaps I'm in a minority in that my holiday rentals represent the majority of my income. I will however be making more posts with a view to galvanizing hosts opinion on the matter, in the hope that Airbnb will take heed (assuming they even read this material) and come up with a sensible compensation scheme for hosts and thus eliminate the need for messy court proceedings. I remain hopeful.

I'll keep you posted, David

[Helen3]

I don't feel let down @David501 . The money guests used to book their stays with us was never 'our money' until we had provided a service that the guest was paying for. 

Why would we as hosts expect to be paid by guests for a service we can't provide. That's like a restaurant, festival or event being expected to be paid in full for a meal or event they can't provide. All Airbnb did is return the money they had taken from guests when hosts were no longer able to provide a service/guests were no longer able to travel safely.

Airbnb have always retained the right to extend or implement their EC policy including for pandemics. I am surprised the legal advice you paid for from your solicitors advised you others.

It's being incredibly tough for everyone including small businesses of all types including STRs. We are luckier than the vast majority of businesses because we could still take bookings from key workers, turn to long term bookings and have mortgage breaks to offset our costs.

Good luck to you. Hope your bookings are now picking up.

[Jen89]

@Helen9  I think the OP is saying that in the current round of cancellations he is able to host and guests are able to travel but still AirBnB is cancelling and refunding bookings ad infinitum.  This is totally out of order.  AirBnB has had the use of the money paid by guests, sometimes for long periods, do they pay the guest interest when they refund?  I very much doub t it!

[David501]

Hi Jen,

Yes, that is what I'm saying, you're quite right. 

To cancel bookings with full refund that can legitimately and safely go ahead, riding rough shod over host's cancellation policy, is just plain wrong. Furthermore the whole E.C. process from Airbnb has been carried out without any consultation with or consideration for hosts. Most of the guests I have spoken to could not believe their luck when offered full refunds and they totally expected to pay something, albeit minor, towards hosts costs. We have even had several guests offer us a donation because they thought the Airbnb policy was unfair.

From a legal point of view an E.C. has be be "fair and reasonable" to all parties concerned to be lawful. 100% refund to one party and 0% compensation to the other cannot be considered such. This has been challenged in the U.S. and it is my belief that the threat of law suits lead to the previous host hand out from Airbnb. The fact that they made this hand out clearly demonstrates that they are aware of their error and this should therefore be extended to all cancelled bookings, not just those before the deadline they imposed. Also the E.C. policy should now be dropped as government restrictions governing self catering accommodation and travel (with minor) exceptions has now been lifted.

I feel very disrespected by Airbnb and as a matter of principle am continuing with legal action.

[Ian-And-Anne-Marie0]

@David501  @Helen3 

I agree with you entirely David, but Helen the idea that income from bookings is never 'our money' until we had provided a service is just ridiculous. Those bookings are contracted and have fixed terms. When the terms get changed and the basis on which they're changed is manipulated for benefit and without due notice, then losses by the host are caused by an interference with the contract. It then becomes nothing to do with the Covid situation. This just becomes a legal matter and those cancelled contracts should be fully reimbursed. In simple terms, Hosts have been defrauded of their income.

In the current situation where accommodations can be open since 4th July and still Airbnb are refunding guests on 'attesting' an excuse - until 31st July - this is just an abuse. 

Congratulations @David501 on your successful compensation claim. Do keep us informed on progress.

[David501]

Thanks for response Ian & Anne-Marie, you've explained the situation much better than I did.

We're just looking to be treated "fairly and reasonably" by Airbnb and to receive 0% pay out for cancelled legitimate bookings is just not that.

[Helen3]

Sorry I can’t agree. @Ian-And-Anne-Marie0 . 

Contractually in it’s terms Airbnb make it clear that it reserves the right to cancel bookings and refund guests under it’s EC policy at any point or to refund guests on arrival if listing is not as described. 

Hosts using Airbnb should never rely on guest income until after a guest check’s in and if you have a flexible cancellation policy not even then.

I stand by what I said. Both legally and morally under Covid you can’t expect to be paid for a service your government has said you cannot provide, any more than restaurants could charge you for meals you couldn’t eat, musicians for concerts you can’t attend or airlines for flights you can’t take under Covid.

[David501]

With all due respect Helen I think you misunderstand.

The fact is we CAN host the bookings that I refer to. We had 3 bookings cancelled that we are now permitted to host and for which there are no travel restrictions in place, in other words no longer any extenuating circumstances. 

We have a cancelation policy in place with Airbnb, which should be honoured in the absence of extenuating circumstances. I also wish to point out that for an E.C. policy to be lawful it has to be fair and reasonable to all parties  affected. This has been challenged in the U.S, and found not to be the case.

I had a trip booked myself with Airbnb during May and insisted on paying the host their cancellation fee, as we were both effected by Covid 19 and should share the pain.

[Jen89]

Well my favourite restaurant takes credit card details on booking and in the event of a no-show will deduct a pre determined amount (made clear on booking) from the account.  My dentist also makes it clear that missed appointments will not be tolerated and a charge will be made and I am sure that there are many other similar situations.  If you know the situation re charges when you book, I think it is perfectly legal and morally acceptable to make a charge for the wasted time/loss of income.