Coronavirus and Extenuating Circumstances - A Host Perspective

[Tom-And-Rene0]

We have properties in Bali.  Just a quick paraphrase of the many conversations that we are having with guests and AirBnB right now.

From Guest:

Dear Host,
We want to cancel our stay next week because of Coronavirus because we don't want to travel from Australia (70+ cases) / Germany (670 Cases) / France (653 cases) etc. etc.  to Bali (no cases at all).  We await our 100% refund.

Yours truly

Your Guest

From AirBnB:

Dear Host,
Your guest has contacted us and is unable to travel due to the Coronavirus. We have therefore given them a 100% refund under our Extenuating Circumstances Policy. I am sure you as a host are happy with this policy as if a host has to cancel a booking due to Coronavirus, we also give 100% back to the guests.  Either way the host receives no payment at all and so AirBnB is being entirely even handed and fair. 

 
We realise that it is now far too late for anyone else to book your property, but that is not our concern.  Our only concern is to make sure guests book through us again, and by over-riding the cancellation policy the guests agreed to and refusing to consider any travel insurance the guest may have, making the host give a 100% refund is the best way for us to do that.

We wish you all the best of luck in somehow magically finding a way to keep paying the salaries for your staff (we understand you are a fully serviced villa) and covering your villa bills and running costs and lastly finding a bit of cash for yourselves as we understand your properties your only source of income. If you don't then don't worry that is not any concern of AirBnB.

AirBnB values your business

Yours Truly

A Very Junior Person in AirBnB

[Thomas977]

A scary scenario ......................................... 

[Nicky109]

They have pushed it out two days running so nothing to stop them continue to do it.

The alternative is VRBO/HomeAway where guests have the option to buy insurance and VRBO can't MAKE  you give refunds.  That said even their CEO is asking hosts to offer a full refund to any guest that wants to cancel at the moment.

This should be a massive wake up call for Airbnb.

INSURANCE INSURANCE INSURANCE

They could even self insure.  And despite what others say it is a very lucrative business.  Warren Buffett, one of the richest men in the world, owns Geico.  When was there last a global pandemic like this?

I live and host in a hurricane part of the world and sadly Airbnb have done this to us before even when the hurricane passed nowhere near us.  If you try writing to Airbnb you will get nowhere - they are behind a glass door somewhere in cyber space - totally untouchable.

I would love to suggest that we all de-list to get their attention until they meet to discuss our concerns but I am sure as far as they are concerned they don't care if they lose a few of us as there are always others signing up to host.

I love the guests that I get through Airbnb but I am going to have to review this very carefully because otherwise I am not sure if I can survive financially if Airbnb continue like this. So most likely will de-list and just be on VRBO where I control my bookings.

[Nicky109]

From CNN travel on 15th March:

What about Airbnb hosts?

Travelers aren't the only ones feeling the pain of canceled trips. Thousands of Airbnb hosts across the globe are coping with lost income.

On Airhosts forum, a popular platform for Airbnb hosts, users are sharing their concerns about the financial impact of refunding money.

In some cases, the 50% deposits paid by guests to Airbnb (which holds deposits until 24 hours after check-in) might be hundreds or even thousands of dollars, money that hosts won't ever get when travelers cancel their bookings — whether or not they're in an area already severely impacted by coronavirus. (The CDC's Global Outbreak Notice notes that sustained community spread of coronavirus is occurring globally.)

On March 14th, the short-term vacation rental group purchasing organization Host GPO posted an open letter to Airbnb about the new refund policy.

"Extending refunds to practically everyone through April 1st," they write, "will be absolutely devastating to hosts." Arguing that the decision is a break with company policy, the letter asks that Airbnb reconsider.

"To prevent hosts from losing their livelihoods, it's important to make sure that hosts survive the unprecedented onslaught of cancellations."

[Nicky109]

Just a note regarding insurance:  Airbnb is forcing their owners take the fall for something the Travel Insurers already said they will not do....  Pay traveler claims for FEAR of getting sick.  Not surprisingly insurance companies are not going to pay out guests who have a fear of the pandemic.  Airbnb however are letting guests cancel for exactly that reason.  And I would argue have even stoked the fear.  Guests would have needed to purchase a Cancel for any Reason policy (CFAR) to be able to cancel their domestic trip as so far there is no domestic travel ban.

Additionally if Airbnb has any concern for their hosts then why don't they ask travelers to consider that many mom-and-pop owners are being hit hard by this crisis.    For a traveler to lose funds for one stay is probably not going to bankrupt them, but an owner having to refund all stays can put them in a VERY precarious financial situation.  

[Scott222]

I am in agreement as a fellow super host.   This is a devastating situation with massive financial losses to the tourism industry and hosts, ESPECIALLY on the AIRBNB PLATFORM. 

 As hosts, we are ONE family, that has been forced to absorb the costs of multiple families and travelers over multiple weeks.  Our financial loss is multiplied several times over our guests for this fact and strains our ability to make mortgage payments, pay taxes, insurance, and so forth.  Unfortunately, there is no way for hosts to protect against this loss unlike guests who can purchase travel insurance for a minimal fee.   As hosts, we cannot purchase” travel" insurance for unforeseen events other than to require cancellation polices.  To place all the burden on a host is unfortunate and overwhelming.  HOSTS SHOULD HAVE SOME PROTECTION!!!! For example... the ability to..

1. Offer a credit toward future stays   (LIKE 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
4. Allow guests to purchase Travel Insurance directly on the platform (btw 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. ALLOW HOSTS TO COLLECT SECURITY DEPOSITS (ANOTHER WAY AIRBNB DOES NOT PROTECT HOSTS-which would prevent party homes, and damage from unruly guests)
6. Allow guests to have longer cancellation periods (AIRBNB charges a 5% fee to hosts for any of their "Super Strict" polices" - VRBO nothing)

On my larger homes, that are booked by 5 families I must now take the brunt of their shared expense as my SOLE loss over multiple weeks. 

VRBO/HOMEAWAY allows hosts to work thru this with the guests, I was able to move one guest, offer a 50% refund to another, AND ONE GUEST DID CANCEL BUT HAD TRAVEL INSURANCE!!!! SO, I was able to keep my rental income!! PHEW!!  I BOOK on average $80,000 a month on AIRBNB and a decent amount on VRBO- I AM NOW MOVING ALL MY BOOKINGS FOR MY LARGER HOMES TO VRBO.  I cannot afford to host on a platform that does not protect its hosts. 

[Tat1009]

I agree with your comments, Thomas977, Nicky109, and generally, those of other posters in this thread.  The sudden imposition of the 14 Mar 2020 version of AirBNB's Extenuating Circumstances [due to Covid-19] policy at the expense of hosts is indeed AirBNB's way of using its hosts as insurance for its brand name.  I can understand why they would take this route - imagine the pre-14 Mar 2020 version of that same policy, which had a few hurdles that guests had to go through before getting a full refund cancellation, would probably lead to a lot of calls from guests to AirBNB's help centre to resolve cancellation/refund disputes between hosts and guests, and it probably will take more time to resolve; so, rather than spreading their internal resources to resolve such, probably easier to preserve their brand name, streamline their process, and let the hosts bear the costs of doing so.

I am not against cancellations due to the Covid-19, but there are many countries where domestically, they are not as affected as some of the countries appearing on news headlines everyday, but the current extenuating circumstances policy has given guests the green light to cancel, and re-book at cheaper prices, because of the current downturn in the accommodation market.  Does it matter to AirBNB that some of the hosts will probably lose their business/accommodation through some of the mass cancellations?  No, because if their brand name is preserved, and guests continue to want to us AirBNB, new hosts will come, and so long as hosts continue to churn, it does not matter because Air BNB will get its commissions, be it from the new or old.

Air BNB said that the 14 Mar 2020 Extenuating Circumstances policy version update was issued to protect the AirBNB community.  Yeah, Air BNB community definition per Air BNB = Air BNB guests.  Rightfully, if it was truly to protect the Air BNB community, there should have been something for the Air BNB hosts.

[Thomas977]

Please sign http://chng.it/Sj9nRW7VDn

[Nicky109]

Please take a look at this thread.  There is an appetite to take legal action or at least try and find a lawyer who could advise.  It's going to take a large number of hosts.  That is the only thing that will get Airbnb''s attention so please forward this is you are reading other threads that may have hosts who are interested.

https://community.withairbnb.com/t5/Hosting/Hosts-Livelihood-VS-Guests-Vacation-COVID-19-IMPACT-ON-H...

[Natalie-And-Jesse0]

Good Morning Airbnb Host<

We have two homes in the San Antonio Area by Lackand Airforce base.

With the recent shutdown of Basic Military Training graduations on the base, it hurts us to see military families turned away.

These young Airman who spend 8 weeks in boot camp will have to wait a couple of more months to see their love ones.

Praying for us all.

[Natalie-And-Jesse0]

College Fund:

I agree with host that something needs to be done on Airbnb side so we don't take all the financial burden.

The Airbnb rentals has provided our family some financial support.
This income would be much needed support our two boys when they start college next year and in three years.

A plan C, if you will after the college fund(529) , and scholarships, so they would not be burden with student loans.

Hope we have time to recuperate before the fall semester.

Praying and stay strong for all host.

Jesse

[Leslie-and-Thomas0]

Glad to see the Host community come together against this awful policy. Some of us may end up losing our ability to Host if we can't pay the mortgage. We started this as a business and weren't planning on paying for it all out of pocket. But just as bookings were starting to fill the calendar, Coronavirus hit and now we are out 100% of our bookings for the next month. Unbelievable. Not a good way to "partner" with Hosts.

[Bryan147]

Airbnb you are trying to look noble whilst treating us hosts like the cause of all problems!

Airbnb you are NOT Looking after us hosts and you are also DAMAGING the Tourism Sector.

By refunding 100% without consulting us and understanding the repercussions this will cause to the staff we employ.

If we at a minimum got to keep 25% of the booking it would have possibly helped us survive and have some cash flow to pay wages, expenses etc.

Guests and hosts are part of a chain and in cases like this, the losses should be shared not inflicted on the hosts. 

You have done this TWICE in 1 Year,  to Sri Lankan hosts.

Once after the terrorist attacks and now due to the Corona Virus.

On both occasions guests kept the dates blocked till the very last minute just in case they decided to travel BUT still got a 100% Refund.

I totally agree that Airbnb is truly hurting us hosts by their Extenuating Circumstances Policy and Refunding 100%.

Twice in one year in Sri Lanka, we have had to suffer 100% losses. because of you as a company trying to look noble with other peoples money & livelihoods.

Once because of the terrorist attacks and now because of the Corona Virus.

And on both occasions, the guests hang on to their bookings till the very last day denying us of any chance of a rebooking just in case they decide to travel.

I'm sorry but they are being treated like gods whilst we are being treated like we are part of the terrorists or the ones spreading the Corona Virus. It should be the responsibility of guests to take out travel insurance in case they cannot travel but as it stands there is no need as if anything happens Airbnb changes our booking terms without any consultation refunds them 100%. 

Without us hosts Airbnb you will be nothing and once again you have treated us totally unfairly and are putting us other unfair and immense financial pressure.

I'm sorry and your 'A Message From Our Founders' did nothing towards helping me or others.

[Daniel7178]

I think we should do some kind of class action for loss of business,  possible bankruptcy etc.  It is not their money to refund.  At least contact hosts with an option to hold for example 25% which would help tremendously towards  mortgages, our property insurance, licences cleaning staff , as how are we supposed to pay them? If we do survive this I too like many of you hosts affected will be using home and away , trip advisor as it is now obvious AirBNB are a risky company to work.

[Nicky109]

19.11 No Class Actions or Representative Proceedings. You and Airbnb acknowledge and agree that, to the fullest extent permitted by law, we are each waiving the right to participate as a plaintiff or class member in any purported class action lawsuit, class-wide arbitration, private attorney general action, or any other representative proceeding as to all Disputes. Further, unless you and Airbnb both otherwise agree in writing, the arbitrator may not consolidate more than one party’s claims and may not otherwise preside over any form of any class or representative proceeding. If the “class action lawsuit” waiver or the “class-wide arbitration” waiver in this Section 19.11 is held unenforceable with respect to any Dispute, then the entirety of the Arbitration Agreement will be deemed void with respect to such Dispute and the Dispute must proceed in court. If the “private attorney general action” waiver or the “representative proceeding” waiver in this Section 19.11 is held unenforceable with respect to any Dispute, those waivers may be severed from this Arbitration Agreement and you and Airbnb agree that any private attorney general claims and representative claims in the Dispute will be severed and stayed, pending the resolution of any arbitrable claims in the Dispute in individual arbitration.

The above was posted on another thread a few days ago.  A smart lawyer may be able to walk all over it as Airbnb have blown through their agreement with hosts.

That said there is nothing to preclude hosts taking out a small claims for each cancellation.  That would be very very costly for Airbnb.

They have added to the panic in my view.  Our island is open for business and families are here on vacation having a great time.  If they hadn't offered my guests a full refund I don't believe they would have been panicked into canceling.  Worse, a lot of guests are canceling, getting a full refund and then turning right around and trying to book other properties at half price!  My point being that people are still quite happy to be here especially if they can get a bargain.

[Nicky109]

One more thing.  I am sure everyone who is getting cancellations is getting the same message as below from their guests.  It's the standard reply which my guest told me Airbnb wrote for him.

'Unfortunately, I won’t be able to stay at your place after all because of the incident affecting Anna Maria.'

Originally I was alarmed as I thought what is the incident he is referring to on Anna Maria.  When I asked him he told me that was Airbnb's reponse not his.

In fact, and most importantly, there is no incident in Anna Maria.  Nor I suspect in the majority of the places they are inserting in their text.  Again dishonest, disingenuous and just adding to the panic by Airbnb.