Testing a new cancellation policy

[Debra300]

I am very excited to test a new beta cancellation policy, because it's more comparable to what's offered on other platforms and our own website.  For our guesthouse, we previously had to choose the strict policy, because the more guest-friendly moderate cancellation policy that provides full refunds up to five days before arrival would generally leave us almost no opportunity to get a space filled if a cancellation occurred within a few weeks of the arrival date.  This would be particularly disheartening when the cancellation was for a reservation had been on the books for months, and we knew that it prevented other potential bookings that would really have taken place.  Now with the beta cancellation being applied to some of our bookings, we will have a longer window of opportunity to get a replacement booking.  The impact may be that some guests will wait until closer to the arrival date, but that's probably best for most people due to the possibility of the sudden imposition of a travel restriction.

Have any of you seen it already?  Would you use it if it were available to you? @ Here are the screenshots.

@Ann72 @Ute42 @Melodie-And-John0 @Mark116 @Helen3 @Sarah977 @Anonymous @Jessica-and-Henry0 @Inna22 @Emilia42 @Lawrene0 @Cathie19 @Robin4 @Nick @Quincy @Colleen253 

[Nathalie-Et-Gilles0]

@Debra300 

It looks like a Homeaway cancellation policy.
But there is a huge difference between Homeaway and Airbnb.
Homeaway keeps its word when the write 100% non refundable if cancelling 1 month before arrival whereas as pointed out @Anonymous  in a similar post :

"what happened was that a lot of guests chose non-refundable for the discount, but then when they cancelled with "extenuating circumstances" Airbnb gave them a full refund anyway. So it was a lose-lose situation for hosts."

https://community.withairbnb.com/t5/Hosting/Pro-Con-of-participating-in-air-beta-pilot-program/m-p/1392548#M331720

It is a reason why many hosts who use both websites prefer Homeaway.
It is safer.

Oddly, Airbnb does not understant what "non refundable" means.

[Debra300]

@Nathalie-Et-Gilles0 ,

Everything that you've said is true.  Although Booking has it's challenges, I like that I control the financial transactions, which includes the opportunity to obtain a true security deposit.  Ironically, when I rarely charge a person's card for the deposit, but the knowledge that I can is usually enough to help people regulate their behavior and actions during their stay.  

I've never had a reservation through HomeAway, but I will unsnooze my listings when I re-open guesthouse next week, and see if things have changed since people are looking for more longer term stays.

[Ute42]

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@Debra300  

I think I could work with the old or new strict cancellation policy, but I like the old version better.

I have a vacation rental and the average timeframe between guests making a reservation and check-in day is 8 (eight) months. If guests want me to take my place from the market for 8 months, that should cost something no matter what.

The problem on airbnb isn't their strict cancellation policy, the problem is that their customer support is unpredictable.

Biggest problem so far, their extenuating cancellation policy. They said this will be changed effective jan 21st, but I don't believe their new policy will be what we hope/expect it to be.

Second problem are refunds. I once read a story from Tailand. Guests had booked a place for a week. On the one but last day of their reservation there was a tropical thunderstorm and leafs from a tree fell into the pool. They required a refund for this unbearable situation and they did get a 50% refund, but not for the last day of their stay but for the entire week.

Third is the fact that if a guest accuses You of something, without any proof of course, airbnb may delist Your place and cancel all outstanding reservations.

In 2019 I had a total revenue of $50k and only 8% were airbnb reservations, the rest came through other booking channels. We all know the saying: Don't put all Your eggs into one basket. So in 2019 from the 100 eggs I had only 8 ended up in the airbnb-basket. If they want more of my eggs, they should spruce up their basket a bit. Offering an alternative strict cancellation policy is not sufficiant.

[Debra300]

@Ute42,

You know, blown leaves is yet another reason why I don't have a pool.  Besides it being a waste of limited resources, IMO, it's so fragile that the whole collection of water and fun experiences can get ruined by a few leaves.

Based upon the responses that I've read thus far, hosts that have listings in marketplaces where guests can drive to the location tend to have fewer cancellations of reservation made several months in advance than those places where a passport is required, and guests have to fly or sail to reach the destination.  There is more probability of a late cancellation for the latter type of travel, because it is more susceptible to disruption (and restrictions).  

I limited the booking window to three months for my listings, and extended it to six months for this test.  It will take quite some time before I can truly assess the affect of the new cancellation policy, because international leisure travel has been greatly impacted by the quarantine requirements at destinations, and for many travelers, after returning to their home countries.  Add this to the inability/difficulty for Americans and Europeans to travel to/through the others respective continent, and the slow rollout of the vaccine (yes, I will take it), I think the international segment of the travel industry will limp along for at least another year.

[Jennifer347]

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@Ute42 wrote:

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@Debra300  

I think I could work with the old or new strict cancellation policy, but I like the old version better.

I have a vacation rental and the average timeframe between guests making a reservation and check-in day is 8 (eight) months. If guests want me to take my place from the market for 8 months, that should cost something no matter what.

The problem on airbnb isn't their strict cancellation policy, the problem is that their customer support is unpredictable.

Biggest problem so far, their extenuating cancellation policy. They said this will be changed effective jan 21st, but I don't believe their new policy will be what we hope/expect it to be.

Second problem are refunds. I once read a story from Tailand. Guests had booked a place for a week. On the one but last day of their reservation there was a tropical thunderstorm and leafs from a tree fell into the pool. They required a refund for this unbearable situation and they did get a 50% refund, but not for the last day of their stay but for the entire week.

Third is the fact that if a guest accuses You of something, without any proof of course, airbnb may delist Your place and cancel all outstanding reservations.

In 2019 I had a total revenue of $50k and only 8% were airbnb reservations, the rest came through other booking channels. We all know the saying: Don't put all Your eggs into one basket. So in 2019 from the 100 eggs I had only 8 ended up in the airbnb-basket. If they want more of my eggs, they should spruce up their basket a bit. Offering an alternative strict cancellation policy is not sufficiant.

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This happened to me as well, it was most frustrating experience I had with Airbnb.  A new Airbnb user booked my place last minute but cancelled 1/2 hour before arrival because she didn't realized one of the rooms in the 2000 feet suite is locked and unavailable for guests to use.  This condition was written allover my listing and no guests have mistaken this term before.  We even offer her a free bed to use, but it was not good enough for her, she complained to Airbnb about misleading description.    Not only Airbnb refunded her in full but unlisted my listing for four days!  After that incident, I unlisted my suite from Airbnb and rented out long term.  

[Leslie576]

Same here.  AirBNB Does and will allow a guest to cancel for anything, will refund them and will take the money from you without any notice until after it is decided.  Be forewarned.

I will be leaving AirBnB due to their unfair cancellation policies which don't even adhere to the policies THEY POST.

[Michelle2475]

@Debra300  I have a strict cancellation policy and decided not to change it. Vermont is seasonal so it could lead to even more cancellations where I won’t have time to rebook. Lift tickets require reservations now and there are travel restrictions which means that all guests have to plan in advance - so I’m less likely to be able to get another guest in. When I get inquiries I make all of this clear and particularly that COVID is no longer a reason to cancel to eliminate those who will book and change their minds. I did, however, recently give a guest a partial refund when he cancelled two days before check in but that was my choice. 

[Lisa723]

I'll use it if/when I get the chance.

[Cosmo4]

Just to give another voice, reservations for my two cabins on the same property are currently being booked in advance between two weeks MAXIMUM and the day before arrival. I choose the Moderate policy because it could be worse and it could be better, but it's simple and to the point and not confusing. Also, 5 days gives me enough time to be rebooked from mysterious circumstances cancelations so I can sleep at night. I can't see using the new policy because of how people are currently booking. This could be because I've only been renting for six months, because of the season, or because of the geographical area and what there is to do at this time of the year with COVID. It could also be my price points which vary because one cabin is nicer than the other. I appreciate the attempt to be flexible and try new policies. I'm sure a new policy will come along that is more appealing to what I have to offer.

[Leslie576]

I can tell you from 6X cancellation experiences with AirBnB ----- IT DOESN'T MATTER WHAT YOUR CANCELLATION POLICY IS -------  AirBnB will and DOES allow a guest to cancel when they want if they request it, for a full refund and without any consulting with you on the matter.  I've hosted for a bit now and I've had it happen multiple times.  Just today a guest cancelled less than a week out advising that her boyfriend (not her, mind you) had to have surgery and so now she couldn't travel... I guess it's a new definition for sympathy pain????

AirBnB's policy says cancellation is not accepted for "unexpected injury".   .... It's a lie.  They accept it.