Host initiates class-action lawsuit over COVID-19 cancellations

[Lisa723]

https://www.cnbc.com/2020/11/06/airbnb-hit-with-proposed-class-action-lawsuit-from-host-missing-paym...

[Helen3]

I am sorry to hear that. All my guests were refunded in cash in full @Jo56 

[Kia272]

@Jo56 I actually didn't know that AirBnB was not refunding fully, and I agree that that is unacceptable. I know that any of my guests that cancelled got a full refund, and I helped guide them when necessary. However, relative to this thread, how is that a loss to the host? I understand that the thread is about AirBnB breaking and abusing it's host TOS, and as stated before, any intentional wrongdoing or illegalities absolutely have to be addressed. It's certainly bad for business overall, which affects hosts- I get that. 

And yes, the basis for my argument for refunding is that I would not keep a penny from a potentially vast number of people who may have just lost a job, and perhaps didn't know where their next dollar was coming from. 

I think we are in agreement here, but it's certainly a complex situation. 

[Mark116]

@Kia272 It's interesting that you seem to assume that the holiday maker guests are the ones who were financially hit hardest, not the hosts.  Hosts also lost jobs, lost income...some hosts have relied on Airbnb to allow them to keep their property, and when they lost all their reservations for months perhaps they didn't know where their next dollar was coming from.  The guest is only risking 1 payment, Airbnb caused hosts, who had tried to protect themselves with a strict cancellation policy, to lose dozens or more, a much more significant impact on the host than the guest.  

I always found it odd that somehow Airbnb hosts because you own the property have been portrayed as rich landlords and the people who had hundreds or thousands of disposable income to spend on a vacation are somehow the victims here.  

But that is beside the legal point of Airbnb making unilateral decisions and voiding the terms of the contract it has with hosts and guests alike.  

[Kia272]

@Mark116  The problem here is that you are personalizing the situation, as are many who replied. It doesn't matter if you were relying on  AirBnB income for 1% or 100% of your income. It's not like they can pick and choose who needs the money the most, and selectively grant it to those people.  

I have actually lost most of my primary income as a result of the pandemic, and I feel deeply for others who have, as well as hosts affected by the situation, be it "extra" money or primary income for them. 

What I'm saying is that in this particular circumstance- the pandemic- that a host's cancellation policy is not relevant. 

Nobody should have been forced to pay for something they could not- due to circumstances beyond their control- receive, and nobody was entitled to payment for something they could not- due to circumstances beyond their control- provide. 

If AirBnB has engaged in wrongdoing or deceitful practices, then by all means they should be held accountable. But that is a consumer issue, not an issue specific to hosts and cancellations only. 

[Mark116]

@Kia272  No, not really.  Our cancellation policy is moderate, so all but one of the cancellations fell within the normal parameters of cancelling within 5 days of arrival. 

But, if I had a strict cancellation policy and had assumed that this legal contract would be binding, as legal contracts are supposed to be, I would be absolutely livid that a global corporation unilaterally voided said contract, costing me thousands of dollars. There is nothing immoral or unethical about expecting both sides to live up to their agreement, and in extraordinary circumstances for both sides to NEGOTIATE an equitable change.

[Sharon1014]

@Helen3   Nobody expects Airbnb to subsidise their business.  That is frankly, a rather offensive suggestion.  What hosts do quite reasonably expect, is to have a valid contractual arrangement regarding host cancellation policies upheld and not have that contract overridden on a whim with no consultation.  That's not what a partnership is meant to be about.

And please think twice before deriding those hosts who were so deeply and personally affected by the company's decision.  For many of these hosts (I'm not one of them btw, I had been using a Flexible cancellation policy on Airbnb's advice, never again), if their strict cancellation policies had been upheld, they could have kept their heads above water instead of losing their homes and livelihoods.  That's no trifling matter.  Covid was a horrible eventuality for many in the industry, but that doesn't excuse the way Airbnb handled it.

I think that like every host involved with Airbnb, we all want the same thing -  to see the company be successful, to be well grounded in good business practices, to treat hosts with respect as partners not servants, to abide by the law and produce quality outcomes for guests, hosts and the company itself.  Nothing more, nothing less.

[Helen3]

Unlike you @Sharon1014  i was one of the people deeply affected by both Airbnb’s decision to override my strict cancellation policy and my government’s decision to close down STRs for four months so I can speak on this issue from first hand experience. 

Fortunately I had set aside some of my STR profits to cover periods when business was slow so this helped see me through.  

And now our government has put us in lockdown and Airbnb has blocked our calendars, so I am in the same position again.

if you look at chatter on this community and others during the first lock down you will see some hosts and property management companies  who were calling on guests and Airbnb to subsidise their business. So my comment is not offensive but  simply one of fact. 

Nowhere did I deride those on strict cancellation policies. That isn’t who I was referring to. 

I have an issue with hosts with all types of cancellation policies who aren’t able to provide accommodation because of government restrictions but who still want to be paid for these bookings. 

I don’t know any hosts in the UK or through these forums who lost their personal homes through Covid but would be sad if this happened.

Unlike many in the wider hospitality industry who truly have lost everything- the advantage we have as hosts is we have a valuable asset which we can use for long term rentals when we can’t do STR. 

[Sharon1014]

@Helen3   Please don't make assumptions.  I also was affected, losing thousands in income (only because Airbnb told me to have a flexible cancellation policy) and am thoroughly entitled to comment just as much as you or anyone else.  I note also from your profile that you appear to have a well paying full time job, so perhaps the lost income from renting your one room in private home was  in fact no biggie for you nor something that "deeply affected" you as claimed .  Others were not and are not, so fortunate.  For many, Airbnb income is not an optional extra, it is their livelihood and something they are utterly reliant on.  Compassion for and solidarity with people in a world where "everyone belongs" goes a long way.

And FYI, not all hosts can or want to do LTR's. Delighted for you of course, that you are not in that position and can happily and easily move out of your home and make it available for LTR if the STR market isn't available in your jurisdiction.  

[Helen3]

I didn’t make assumptions @Sharon1014 you were the one who said you had a flexible cancellation policy . I was responding in the context of you not having been affected by losing out in the way that hosts with strict cancellation policies were.  I didn’t say it wasn’t appropriate for you to comment.

I don’t think your personal attacks are warranted you have no idea about my personal financial circumstances or how deeply I have been affected. 

I won’t respond further. 

[Sharon1014]

No worries @Helen3  I have no interest at all in personal attacks, but if one makes claims in a public forum that don't seem to add up, or portrays a sense of entitlement to comment as if others don't have the same latitude, then one has to expect that others might query those claims and respond appropriately.  Healthy debate between consenting adults is always a good thing - makes for a robust well rounded community. 😀

[Inna22]

@Kia272 people like you always fascinate me. You think you are so righteous, you advise other to reexamine their values? You managed to add politics and even business basics into the mix. People are taking a chance when listing on Airbnb? Perhaps you do but many run it as serious and legitimate business, with a business plan, employees and diversification plan. And why would a tourist who did not bother to buy insurance be more entitled to a refund against a contract they agreed to than a host, who has expenses and family to feed. Why would it be a full burden of just one party? These are rhetorical questions, you do not need to answer 

[Rebecca181]

@Inna22  And, lest we forget, it was Airbnb itself that encouraged hosts to treat it as a legitimate business and who encouraged hosts to view it as such. Again, no other short-term rental booking agency handled Covid-related refunds in this manner that I am aware of. If I am wrong, please correct me.

It appeared to me at the time that Airbnb wanted to make a big Public Relations show of "taking care of their guests" by offering (but not always actually issuing) these refunds, and this was done at the expense of hosts, some of whom were destroyed financially by this highly publicized gesture. I suspect they did this hoping it would give them an edge over these other booking platforms who involved hosts in the refund decisions and process. Not the first time hosts have gotten the fuzzy end of the lollipop. And it won't be the last.

[Kia272]

@Inna22  I don't think you read my message very carefully, or perhaps didn't understand it. As with personal opinions, you can agree or disagree. I don't claim to be right or righteous. 

Your response isn't really relative to what I said. No matter HOW you run your AirBnB- be it a spare room or a multi-property business, there is no guarantee of business, just as the coffee shop on the corner has no guarantee that it will make enough sales on any given day to cover costs. 

My emphasis was obviously on a circumstance that went above and beyond travel insurance, lack thereof, or AirBnB's TOS with hosts. A circumstance beyond the control of all involved. 

I'm not saying that AirBnB handled it 100% correctly. My comment was on my PERSONAL shock and dismay at hosts who felt entitled to money under these extreme circumstances. 

There is a lot of nuance behind this thread and it's obviously open to interpretation as well as subject to the personal opinion of those who weigh in. 

[Emilia42]

What surprises me is that this host only lost $655 dollars. 

[Sharon1014]

@Emilia42   That's why it was in Arbitration, small amount.  And although not reported, it would seem Airbnb lost that case and were subsequently ordered to  pay the plaintiff's costs, which they defaulted on.  Arbitration is a different legal process to a Class Action.  In the Class Action, there will be a motherlode of other plaintiffs with much higher claims.   An educated guess, could be anywhere from $20 million to $100 million (or more if worldwide claims are added to the suit).