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

[Marianna188]

Before reading the extenuating circumstances policy, I contacted all of my guests with reservations and told them that if they chose to cancel because of Coronavirus concerns, I would fully refund their reservation. However I feel that NEW bookings made after today, now that information about the pandemic is public knowledge, should be reimbursable, because I was losing the opportunity for another guest to book at that time who would choose to travel.

[Adriano78]

Very disappointed with Airbnb, they don't *sensitive information hidden* care about Hosts!.

extenuating circumstances is a joke and host is spoiled by airbnb

AirBnB is the only OTA I am aware of that, gives itself the right to over-ride the agreed cancellation policy, is very important that hosts should look at other options such as Homeaway and TripAdvisor. AirBnB's Extenuating Circumstances policy is our number 1 risk.

HOSTS ARE CONSIDERED BY AIRBNB LIKE A TRAVEL INSURANCE!!

[Logan48]

If Airbnb wants to fully refund guests it should come out of their pocket, or we should split it 50/50. 

[Will283]

Why doesn't AirBnB's Host promis guarantee thing cover these cancellations?  Why should we as hosts cover cancellations that are outside the policy that we agreed on?

Or if guests don't have travel insurance they should be responsible.  I didn't agree to this.  I still have to pay my rents, property taxes and mortgages so will lose a lot or I will go under as a business.  I will likely close some of my airbnb

Airbnb should cover these cancelations with their own cash reserves, loans or the guests should.

[Rose123]

@Tom-And-Rene0  thank you for your intelligent, witty and accurate post. I just woke up to a slew of cancellations for which I'll receive nothing, and after speaking on the aforementioned "junior" rep on the phone with Airbnb have realised that - because my property is located in New York - every. single. one. of my upcoming bookings is going to be fully refunded to the guests. I'm going to lose my apartment. Even if I sunk my life savings into trying to float it over coming months, I don't think I can come back from this. It's unfair and illogical for Airbnb to be pulling the plug out from under hosts at this difficult time. My policy was set to strict, but even a 50% refund, splitting the cancellations with the guests, would have made all the difference. Or some protection, for some of the bookings. But to lose all of my bookings in one hit is too much. I currently have no idea what to do and can only consider making a Go Fund Me campaign so that I don't lose my place, but I'm aware that now all of the hosts in the New York area are in the same predicament, so even that seems individualistic. Thank you for your eloquent response to an absolutely disgusting turn of events on Airbnb's part this week. 

[Nicky109]

'More information is coming out about the coronavirus (COVID-19) every day, and the situation is changing rapidly. We understand this is a challenging time for hosts in our community—beyond the disruptions to your everyday life, we’ve heard from many of you about how COVID-19 is impacting your hosting business.

Last week, we reached out with an explanation of our extenuating circumstances policy, which allows hosts and guests to cancel eligible reservations in certain circumstances without charges. We’re following up to let you know that our extenuating circumstances policy will now be applied to eligible reservations for stays and Airbnb Experiences in the U.S. booked on or before March 13, 2020, with a check-in date of April 1, 2020 or earlier.

What you need to know:

Eligible active or upcoming reservations can be canceled without charges, including:

• Guests who are traveling to or within the U.S.

• Hosts who are hosting in the U.S.

What happens after a reservation like this is canceled?

• The guest will receive a full refund (including any fees)

• Hosts won’t incur any cancellation fees

• Hosts can accept new reservations for those dates

• Superhost status will not be affected

The safety and well-being of our global community are our top priority, and we’re committed to keeping you informed as the situation evolves. We’ll continue to follow the recommendations of governmental and health authorities, and we’ll be sending updates as we have them—in the meantime, you can visit Airbnb.com/COVID19 for the latest news and guidance.

Our hearts go out to everyone who has been impacted, and thanks as always for being a part of the Airbnb community.

The Airbnb Team

[Hollie6]

Thank you for the clarification but what about making guests buy travel insurance and or splitting the cost 50/50 like so many have suggested. This financially devastating for so many who have been loyal hosts. I think this should be seriously considered and travel insurance promoted. You could probably even make a little on doing so.

[Sarah977]

@Hollie6 Travel insurance is not going to cover anything for the coronavirus. Insurance companies make money because the premiums charged cover the claims plus the companies' profits- that only works if the percentage of claims is small. If 100% of clients claimed on their insurance, the amount of the claims would far exceed the money in the insurance companies' bank accounts. That's how insurance works.

[Hollie6]

I understand how insurance works but what do you think happens to insurance company's when there is a hurricane or some other natural disaster? They get crushed financially and usually the government will come in to help. People can buy travelers insurance with flights so why not us? Most of the time the insurance company's come out ahead and will keep the money until something like this happens and hopefully for them it works out in their favor in the end.

[Sarah977]

@Hollie6  Yes, natural disasters are disastrous to insurance companies, and yes, govt. does often bail them out.

But hurricanes and other natural disasters are localized. They aren't pandemic. The insurance company doesn't have to pay out to people in Arizona because there is a hurricane in Florida.

[Ange2]

@Rose123    A collective Go Fund Me campaign:)

[Rose123]

Hi @Ange2 

I'm posting this on a thread here - you can find it under my profile, as well as the Airbnb instagram. 

***WE CANNOT PAY OUR RENT WITH BIG IDEAS: AN OPEN LETTER TO BRIAN CHESKY***

On March 14, 2020, Airbnb changed policy to allow guests full compensation for cancelled bookings as a result of the current COVID-19 health crisis. This policy overrides existing policies hosts have in place to protect their homes and livelihoods, placing the responsibility of an entire global health pandemic on their shoulders.

Brian, you say your hosts are “heroes”, but everyday heroism can take many forms, and among these is corporate social responsibility. You tweet that Airbnb is concocting “big ideas” to help hosts, but we cannot pay our mortgages, rent, staff and bills with big ideas.

The impact of your March 14 policy change will be rapid and far-reaching. The diverse individuals who comprise your host community will face the very real prospect of eviction. This impacts individuals who may not have another source of income. Or, they may have a hosting income, but are also active participants in creative industries. They are poets, painters, artists, writers, academics, musicians, dancers, ceramicists, bloggers and others who balance the economic precarity of creative work with hosting as a matter of necessity, not luxury. They are the same individuals who, reliant on a gig economy, do not have access to health insurance, nor the protection of employer benefits and sick leave.

Your guests have a refund at stake: your hosts, their homes and livelihoods. We ask you to protect hosts as well as guests. We urge you to reimburse hosts for cancelled reservations according to their cancellation policies. We as a host community do not believe that guests should be traveling in the current health crisis. We also do not think that hosts should suffer crippling losses. We ask you to acknowledge the loyalty – and the revenue – of the hosts who built you. And we ask you to consider how to best support your most precarious hosts, those who will soon be on the verge of eviction.

***Feel free to copy, paste and share. Use the hashtag: helpyourhosts***

[Bridget16]

I host in sedona.   spring is when i make my money for the year. airbnb has totally screwed me with mandatory refunds.  

[Michael303]

Travel Insurance is easy and inexpensive for Guests to purchase. The lack of travel insurance protection is devastating for Hosts!

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. Nothing new here...

1. Airbnb recommends travel insurance: Please follow all AirBnB suggestions (see link below) and make sure to purchase TRAVEL INSURANCE to protect your trip! <-- this is how I end my welcome email to guests. ** weblink censored**

2. 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.

3. 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. 

4. I have to carry business interruption insurance, liability insurance, flood insurance, homeowners insurance, I even have to have a hotel policy on top of that on my building. All for the benefits of my guests and myself. It is insane that guests aren’t provided an option for travel insurance.

This part of the Airbnb - Host relationship is 100% unfair and unprofessional. Hosts are not Insurance companies. This policy is insane. Travel insurance has existed since the beginning of modern travel.

Mandatory TRAVEL INSURANCE for guests! Problem solved. Check out this discussion:

COVID-19 WILL BANKRUPT HOSTS AROUND THE WORLD BECAUSE AIRBNB REFUSES TO ACKNOWLEDGE THE EXISTENCE OF TRAVEL INSURANCE!

https://community.withairbnb.com/t5/Help/WHY-WILL-COVID-19-BANKRUPT-HOSTS-AROUND-THE-WORLD/m-p/12580...

[Alex6547]

While I agree with the travel insurance concept in general, it is also not 100% on the guest and not applicable in this case in particular.

Government raising a wall and making it impossible to reach is the same as your neighborhood builds a wall and you say you can't get in - your problem. Moreover, force majeure been always in contracts, extenuating circumstances policy is technically the same thing - if a party can't fulfill his / her duty due to force majeure - it breaks the contract automatically from following regular terms of it.

I think in this case insurance companies most likely won't refund anything either because this is a Force Majeure for them as well. Some insurances DO include specific clauses for Force Majeure when they are specifically for those - such as earthquakes, floods, fires, tornados, and such. Most companies (airlines, hotels, ...) agree to refund because they want to *preserve* the guests/clients. Guests pay AirBnB - therefore they side with them because after the crisis - they want them back.

Btw, the mentioned "flood insurance" is exactly the reason for it - force majeure. Otherwise - other insurances won't accept flood claims. Most travel insurance doesn't cover that anyway.

It seems to me that here the most reasonable approach here would be for AirBnB to use their service fee t purchase an insurance for such kind of matters. What you suggest in #2. Uber does that already for various crimes that might happen, therefore bears their part of the responsibility. All in all, this clause in AirBnB's policy been there since the beginning, what's the point to object to the original policy that everyone agreed to but didn't want to take it seriously?