Reservation cancelled due to UK Government imposed travel ban

[Alison91]

Please help - I list our Cape Town family home on Airbnb each Dec/ Jan, and my London based guest had to cancel as all flights out of the UK were cancelled.

His reservation was made in November 2020 for 3rd to 16 Jan 2021. He messaged me on Airbnb 4 days before check-in to tell me he needs to cancel. 
I have just noticed that he did not formally cancel under Trips on the platform and his reservation is still in progress. I increase substantial costs moving my family out, making the home ready for guest, and paying for alternative accommodation.  I have a Strict cancellation policy in place. What refund, if any, is due to my guest?

[Robbie54]

@Anonymous  yes, I'm aware of this. Regardless, Airbnb have given hosts and guests the option to cancel penalty free if covid restrictions prevent a guest from travelling or a host from hosting 45 days prior to check in. I've had to use this option 3 times the past fortnight since the new restrictions were put in place.

In the case of the OP the guest should have used this option and the host should have been more professional about the situation, no matter what the cancellation policy is. Hence the reason Airbnb have allowed the option to cancel penalty free. 

[Alison91]

Thank you @Robbie54  @Andrew0   @Nathalie-Et-Gilles0  for your time and valuable insights. Your advice and suggestions are much appreciated. I've just returned from my upcountry hideout that had  very intermittant wifi.

Just to confirm, my guests  booked 3 - 16 Jan ( I have a highly capable house keeper who would check them in and take care of them ) He messaged me 4 days prior to check- in that  their London to CT flight had been cancelled and they had rebooked their flight for the 9th Jan.  On the 6th Jan they messaged me explaining all flights out 9th had also been cancelled, and asked what my cancellation refund policy was.   I told them the booking was subject to a Strict policy and I would need contact Airbnb on how process the cancellation.

Thereafter followed a few days of trying to get hold of Airbnb but I couldnt find an email address or phone number.  The Covid policies online were confusing and a bit contradictory.  (I also had limited wifi access) It was at this late stage that I found the page about a Guests cancellation and refund option by going to the Trips page. I first tried to do this for him but was unsuccessful. I then messaged my guest the link and asked him to do the cancellation.   I see that he didnt,  and I continued looking for information.   I'm very thankful to  finally have find the Community.  

You are all correct ... he is not strictly due a refund but the solution should be fair.  My concern is I reduced my rate by 40% to attract a booking in these strange times ... the time, effort and cost I incurred was higher than the payout.  I'll first enquire about travel insurance. If he doesnt have insurance  I'll offer a 50%  discount should he book a  2-week stay next Christmas, and see how he responds. 

Thank you all again for your great advice. You guys have been amasing.

[Helen427]

@Alison91  have you given your Guests the option to alter the dates of their reservation for a future time to address it that way?

It gives both yourself and your guests something positive to look forward to and is good to have those working relationships rather than lose a booking altogether.

There will be travel again, hopefully before we realise it in the near future.

We've had an increase of Aeroplanes flying overhead in the last few days and around 8 flights departed Auckland on Saturday afternoon/ evening alone  which is a lot more than either none or one.

It's unknown what was on those flights or who and where the destination was however I'm sure we may find out via our media.

Be positive as there's far too many doom and scaremongers out there, a couple of promenient UK psychologists have pushed that negative attitude since Day 1 which is the opposite to Best Practice in the industry.

Most people have had enough of that.

All the best

[Nathalie-Et-Gilles0]

@Mike-And-Jane0 

"Can you explain why your policy breaks English law?"

It is you who must explain to Airbnb why.

You wrote, in another post, that when the traveller cannot come, it was not clear to refund or not in UK.

Airbnb is not responsible if the host breaks local laws (it is his listing, his, settings, his refusal to refund and his country and finally his money).

When French hosts contacted Airbnb, last spring, to explain the that it was illegal to repay without host aggrement in the French law, they sent the laws and common law to Airbnb.
Airbnb was smart enough to read them carefully and change the "exceptions".

Keep in mind that Airbnb does not want to have the Uber European court decision applied to it.
And that UK was still in Europe when reservations were canceled in December.

But i agree on one point, if the host does not respect the UK law then the guest should sued the host.

[Mike-And-Jane0]

@Nathalie-Et-Gilles0 If the law changes between booking and hosting whereby it becomes illegal for the host to take guests then, under English law, the host (and Airbnb) are legally required to refund the guest in full. Equally under these circumstances the guest cannot sue the host for the lost accommodation. The Airbnb policy does not comply with this law and will confuse many hosts who will think their cancellation policy applies.

As I have said elsewhere, the case where a guest cannot travel to an English listing that could host is a lot less clear.

[Anonymous]

@Mike-And-Jane0 I don't know what the current laws in South Africa are, but in this case I don't see any indication that it was illegal for the host to accept guests. Would it not be relevant that the circumstances were neither extraordinary nor unforeseeable at the time the booking was made? In November, the pandemic and its associated restrictions were an ongoing circumstance, whereas my understanding of a contract frustration is that it only applies if the contravening event occurs after the contract was made.

It would be interesting to see how this actually played out in an English court; are you aware of any recent cases along these lines?

[Mike-And-Jane0]

@Anonymous The frustrating event is the change in the law - Just knowing that restrictions might change will not change the fact that an originally legal contract becomes illegal.

I don't know of any recent court cases as no sane organisation will withhold refunds as they will likely be liable for court costs in addition to refunds if they do.

In this specific case I think hosting is legal in South America  so it is likely that the guest gets no refund. I think I said this in my first reply.

[Nathalie-Et-Gilles0]

@Mike-And-Jane0 

Anyway, if the rental is in South Africa, it is the South African law which is applied.

Not the UK law.

It is usual in tourist lease to have penalties for host or guest when cancelling.

The option you are talking about is not usual in this activity but it could exist if Airbnb wishes it.

However, if a host has a strict cancellation policy and does not want to refund the deposit, it is his right (according to local laws).

Come on @Mike-And-Jane0 

Covid and travel restrictions risks are well known since March 2020.

As much as monsoon in India and cyclones in tropical areas impeaching to fly.

You don’t know the dates it will happen but you know it can happen.

If I got the point, it is the guest who cannot fly from UK.

Not the South African host who cannot host.

Any good travel insurance covers this risk.

I have one myself.

Don’t tell me all insurance companies have stopped working in UK.

[Mike-And-Jane0]

@Nathalie-Et-Gilles0 did you even read my post?

[Robbie54]

@Nathalie-Et-Gilles0  

"Covid and travel restrictions risks are well known since March 2020.

As much as monsoon in India and cyclones in tropical areas impeaching to fly.

You don’t know the dates it will happen but you know it can happen."

Airbnb themselves have given the option for hosts and guests to cance penalty free due to covid restrictions. So if a UK guest cancel penalty free using Airbnb's cancellation option is the guest violating South African law? 

[Ric19840]

"Don’t tell me all insurance companies have stopped working in UK."

Unfortunately, they are living up to their reputation and weasling out of paying up wherever they can. We had a guest back in March (via another platform) who had to leave halfway through their stay as the airline basically told them "catch this early flight on this date or you're not getting home". We were happy for them to have stayed their final week, but they had no option but to leave. Their travel insurance refused to pay out for their curtailed holiday. They even had the cheek to tell the guest that we, as hosts, should have insurance to cover guests leaving early!

[Nathalie-Et-Gilles0]

"did you even read my post?"

My apologies @Mike-And-Jane0 .

I replied to @Robbie54  and did a wrong selection of the name.

@Robbie54 

"Airbnb themselves have given the option for hosts and guests to cance penalty free due to covid restrictions."

This option is illegal if both party (traveller AND host) does agree to change the terms of the contract (reservation).

However, last spring, Airbnb added new cancellation policies that host could activate which was :

If you have a moderate or strict cancellation policy, guest can be fully repaid  (i don't remember about Airbnb fees) if  covid  cause is selected when cancelling.
And this is legal because the host agrees no to apply his cancellation policy when cancelling for the covid reason.

To make things clear, if the host can still host and agrees to refund, it is legal.
If the host does not agree, Airbnb does not have the right not to apply the contract.

Many hosts did not activate this new cancellation policy (refund when covid reason) because they wanted to have their cancellation policy applied.

"So if a UK guest cancel penalty free using Airbnb's cancellation option is the guest violating South African law? "

I don't know the South African law but it does voilate the contract if the host did not activate the new cancellation policy (refund for covid reason).

Both party (traveller AND host) MUST agree to change the terms of the contract (reservation).

Airbnb did a mistake in refunding guests last spring when hosts could host and travellers could not come).

It is the reason why they were sued. 

Keep in mind that some hosts lost their home and are starved if they don't rent or if the cancellation policy is not applied.

Not traveller lose their home because they pay a deposit they agree to pay when booking.

@Ric19840 

Just a secret between you and us.
Tell your guests to pay their flight and hotel/rental with a gold amex CB.

There is a travel insurance which works when their are governemental trip restrictions or if their is a cyclone or if the traveller is ill.

Not if the traveller changes his mind or because the sister's cousin on the stepfather side has a cold.

Obviously (unlike Airbnb) real evidences are required  to be repaid.

There are plenty of travel insurances. Some are better than others for the same price.

If travellers are dishonnest, they can be repaid by both Airbnb and travel insurance.
They cancel and print that they lost the deposit and send it to the travel insurance.
Then they call Airbnb saying it is a scandal and Airbnb refunds.
Easy scam because Airbnb does not check anything.