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I suspect this will not be popular but here goes anyway.
Given the Airbnb Extenuating Circumstances policy that existed before Covid 19 I do not believe Airbnb had any choice but to refund guests at 100% once the virus got going. In fact a significant portion of hosts also wanted to cancel to protect their health so probably fair all round.
Now Airbnb is offering hosts with strict cancellation policies approximately 12.5% of their booking revenues for March/April/May which, whilst a relatively small amount, is much appreciated.
The biggest loss for us is actually the bookings going forwards as we are relatively new to this and don't get bookings a long way in advance. I hope not even the loudest complainers feel this is Airbnb's fault - At the end of the day we are all (Airbnb, hosts and guests) in this together and we just have to recognise that we are in unprecedented times (at least in living memory) and should just celebrate our health while we can.
@Mike-And-Jane0 , We've technically always been easy to cancel employing the most flexible policy so the virus affected me not Airbnb. I completely agree with you and will make some predictions based on Airbnb's decisions to refund the customers.
Because as the old adage says. "The Customer is always right" (and it is guests pay us our earnings to stay in our places), they will remember they got treated exceptionally well by Airbnb and will likely use it before they use a system that only paid them 50%, less or maybe nothing. I'm sure that like many other small businesses of various types that may not have deep enough pockets to weather this storm or leave as a reaction to the "Extenuating Circumstance" policy, there will be less hosts on the platform that allows those of us left to possibly be more successful in the long run.
Its not pretty and some excellent hosts will not be listed with the platform when this is over but its likely the outcome. I don't think Airbnb is dead or close as announced by a number of angry hosts on the CC that disagree with the corporate decision of the mother-ship. They care for the customers first and that is a mark of an organization with staying power, they can count me in. Stay well, JR
@Mike-And-Jane0 Your thoughts are my thoughts too. I too have been reflecting on the fact that I don't get bookings far in advance; I get many same day bookings & most of the rest book 1 - 3 days in advance. So my loss is all the people who will not book this Spring & Summer, not cancellations. All of us who cater for passing tourists will be in the same boat. I agree with everything you said!
@Mike-And-Jane0thank you, my thoughts exactly. And no, it won't be popular as I have been attacked now a number of times for saying similar things on this forum. I only just posted somewhere yesterday (in response to somebody demanding that I explain my position) that the normal extenuating circumstances policy, which we all signed up to, would have covered what is happening. Hosts that are still yelling at Airbnb are not even realising that their biggest problem is not cancellations but the fact that they won't be getting any bookings at all. They should be spending their time and energy thinking of a way forward rather than trying to reclaim their lost earnings. I believe Airbnb have done the only thing they could in these trying times, and I think their new help package is awesome. So, I agree, good work @Airbnb - not all hosts are upset and angry with you, and thank you for ensuring the loyalty of our customers down the track.
I see you're in England so you've probably seen ABTA's advice to travel and villa rental companies to NOT refund deposits, as this should be covered by guests' travel insurance. This is ABTA saying it, not a bunch of moaning Airbnb hosts!
@Bob40 . Given that Airbnb have an extenuating circumstances policy I don't think people would be able to claim on their insurance.
Exactly, and that's the problem. Insurance companies are there for unforeseen circumstances, it's their job. Airbnb doesn't need give back guests' money if they had travel insurance. It ain't rocket science.
I too am of the mentality that Airbnb did the right thing for the guests; what were they suppose to do, burn them for 50% during a situation in which they have 0 control. Heck, guest can't even get to their reserved destinations even if they wanted to. Airbnb would have looked like the ultimate evil empire after this is over.
And yes, perhaps they could have given the hosts a true 25% (vs. 50%) for cancellations for the last month to give hosts time to adjust to the sudden reality. Perhaps it would have cost them the same as this complicated 'solution' Chesky just announced Monday.
These are tricky times indeed.
@Fred13 The solution is travel insurance, then everyone gets their money and we hosts wouldn't be in this mess.
Let us hope this not-so-little fiasco may finally push Airbnb to get with the times and really encourage/facilitate travel insurance, or offer it themselves. As I understand it not all carriers would have covered this event, but other would have. Yes, it makes total sense now.
I am also one of the few that think Airbnb was right to give full refunds for those who could not travel due to covid-19.
People keep mentioning travel insurance and as far as I know, travel insurance doesn't reimburse for a flight that was cancelled altogether - the airline gives a refund. The airline may still have their planes fueled and crew ready to fly at a moments notice...... But let's say..... due to international travel restrictions, we've come to a point where some countries are not allowing flights from certain other countries to land. Even domestically, flights are being cancelled because there aren't enough passengers. So when a flight is inevitably cancelled by the airline (by no fault of their own) it is the airline, not the travel insurance, that provides a full refund to their guests. I would think using the excuse of a nonrefundable ticket reason to NOT provide a full refund just plain wrong and which is my thought and logic behind why I support full refunds to guests who have had to cancel travel plans due to covid-19 and are literally and actually in a position where travel is not possible. There is no choice or other options at play here. Travel is banned.
And the refunds should absolutely NOT be in credit or vouchers.
Honestly though....... I think the "25% payout to hosts" (which is actually only max 12.5% for a select few) scheme that Airbnb has come up with is just another stab in the back to many hosts. Just another carefully worded and well calculated PR stunt.
I agree with your last paragraph - can't believe they will be paying out anything like $250m on this.
Not only that, we have lost every one of our AirBnB booking so far up to 21st June, all cancelled well before our moderate 5 day cancellation clause kicks in. Guests are not stupid, and they know this terrible situation is going to continue for several months, so quite rightly, they cancel early to ensure they get there money back.
Sorry to disappoint you, but this is what Airbnb is now sending out to guests:
"We’ve expanded our cancellation options. You can always change or cancel your existing reservation under the terms of your host’s cancellation policy. As an alternative, we are now also offering guests impacted by COVID-19 the option to cancel and get 100% of the amount they’ve already paid as travel credit to use toward a future trip. To receive this credit, please cancel at least 7 full days before your check-in date to give your host plenty of notice. Know that when you choose this option, Airbnb will also pay your host a portion of the reservation value from a support fund we have established for this purpose. This is our way of helping to ease the financial burden of both our guests and hosts during this crisis."
So, not only is a travel credit the only way for this guest to get a full refund, they have to cancel more than seven days before, meaning the host will be paid less from Airbnb's fund than if the guest cancelled last minute. Very sneakily worded to lead the guest to believe this is a kindness to the host, whilst at the same time a veiled threat to the guest to do as they're told or lose 50% of their money.
So, for others here that think Airbnb is being benevolent in all of this... Really? Yes, I get why they would issue full refunds to guests in the current situation, but don't be fooled, that's about saving their own reputation, nothing else. As for the host fund, it's is a pure PR stunt, plain and simple, as @Jessica-and-Henry0 have said. I know because I worked in PR/Corporate and Governmental Affairs for years and am specifically trained in "Issue and Crisis Management".
When Airbnb pull tactics like the one in the above email, do you really think this is a company trying to do the right thing and "We're all in this together."? Or, is it more likely this is about saving their business and their billions?
One could argue that there is nothing wrong with them trying to save their business. Fair enough. But please, don't give them credit for doing this out of kindness!
I can't believe people are actually falling for this PR c**p.
But then again..... in my work as an interpreter, I've seen plenty of situations where people hear only what they want to hear. Not what is actually being said. So I guess what this just means is.... there are a lot of people out there who WANT to believe in all the BS that Airbnb is touting.... they are refusing to accept the truth. And the truth is..... Airbnb is playing us all for fools.
On a completely separate note, I believe that for any bookings made after WHO officially recognized covid-19 as a pandemic.... the original cancellation policies should stand and these bookings absolutely do not and should not fall under extenuating circumstances. People booking trips after the announcement were aware of the risk of travel bans/restrictions but booked anyway which imo cancels out the basic assumption needed for these bookings to be eligible for extenuating circumstance.
I sure hope that they did not send that to my guests. As I read Airbnb's offers I will not quiify for a single dime. I think this is misleading to the guest because thay are assuring the guests that they are taking care of us when they are not.