WARNING - AIrbnb Backdated the new Cancellation COVID19 cancellation policy to a booking that cancelled before it went into effect

Helen213
Level 10
New York, NY

WARNING - AIrbnb Backdated the new Cancellation COVID19 cancellation policy to a booking that cancelled before it went into effect

I had guests due to arrive March 30 - April 5th  to rent my entire apartment. In the beginning of March the guest was nervous about travelling and asked his options.  I explained the strict cancellation policy.  I also offered if he cancelled within 3 days I would give him the deposit back if I got another booking.  He choose not to cancel.  He waited until 3/10 and finally cancelled.  I was supposed to keep my deposit.  Airbnb just contacted me and they are giving it back to him.  The  new policy was not in effect when he cancelled.  They were not sick and there was no ban when he cancelled. 

 

I am now out the $500 which was my lifeline after the new policy went into effect and I lost all the rest of my bookings for 8 weeks.  This is completely unfair and I now I am going to get a bull**bleep** reply from customer service about this too.  So Airbnb looks like a hero and I may end up homeless!

56 Replies 56

@Ian-And-Anne-Marie0 ,  greetings. 

Extenuating circumstances [EC] policy overrides existed prior to March 14. It was always possiblefor guests to apply for  an EC ruling to be applied to their request for a cancellation. Just because the application for a cancellation relating to CoV9 occured prior to March 14, does not in my view render the request for a policy override as invalid. Why should a guest be penalised for the early realisation of circumstances which will affect their ability to travel? That's  not logical or fair to dismiss their request for a fair return of their money. In my view Airbnb have applied this blanket ruling because they could not trust  all hosts to respect consumer rights and issue a fair refund. 

Airbnb was originally a 2nd, or supplimentary income. 

If hosting has been set up as a primary income source, then these risks  [ drops in demand] were always present, and a back up plan was always required. 

The sudden and extensive world wide coverage of Covid9 is a dramatic event which includes a lot of old and newer accommodation providers, all having to consider what steps they may need to take to reduce their financial risks, or plan and prepare for falls in demand.

https://www.wsj.com/articles/airbnb-racks-up-hundreds-of-millions-in-losses-due-to-coronavirus-11584...

Maybe some hosts might like to pick up extra business with 2week bookings for those who need to self isolate. ; X)

I have had my place open and have had not takers.  It is extremely cheap for all of April.  Right now I have a nurse friend I am giving it too for free for 2 weeks but that does not pay my bills.

@Helen213 good for you 🙂

I've done the same for my place, offering it outside Airbnb at a huge subsidy for health care workers etc. Doesn't solve my problem, but at least generates some good karma for the time being!

Zero pity on Airbnb, host are losing thousand of dollars with EC 100% refund.

I wish Airbnb bankruptcy, the host can always work with other more serious companies (vrbo,booking...)

Helen350
Level 10
Whitehaven, United Kingdom

@Adriano78 ...Not us home share hosts, who host our basic spare rooms - in the spirit of the original Airbnb.... we need Airbnb, we have no other platform to go to.

 

I disagree hosts are losing thousands of dollars. No one stays = no money is earned! Following cancellation, your calendar is back open..... So new people can book! If they do not, because of The Virus, that's life, it's nobody's fault, it's not Airbnb's fault! 

@Helen350 

Every Host is different, along with their circumstances.

 

Our losses until April 14th stand near £3,000. There can be no disagreement there. Our lead time is 3-6 months. Thats why we have a Strict cancellation policy. The amendment made to this by the blanket Airbnb policy Covid-19 is their fault.

 

Other travel platforms are not insisting on this and it is not taking up Gazillions of Angst. Today, even Travelodge published information about their cancellation and refund policy stating basically - refunds/ rebooking/ postponement - will be in accordance with their terms and conditions. This, with only essential travel allowed.

@Ian-And-Anne-Marie0 I'm not unsympathetic to hosts who will not now earn what they were expecting.... I myself well may have no coming guests = no income in the coming months, & of course I'm not happy & rather concerned! My only other income is a 2 bed long term let, let to contractors. Yesterday, one of them left, & went back to mother, having been told to work from home. So goodbye to her income! How long before the other one is sent home? So I could find myself with zero income too..... I DO empathize, I just see future bookings as money we have not actually earned...... And the folk with their 100% refunds can take a break later.... if they haven't lost THEIR jobs & need their holiday money to live off.... Almost everyone will be disadvantaged by the new economic conditions imposed by the Virus..... we all lose... we can carry on as normal, keep earning & the disease wreaks havoc, or we take preventative measures & there is a financial cost. Both governments & individuals seem to have chosen life over economics so we all have to live with it...........

@Helen350 

If the other contractor goes home it might be a blessing in disguise. You can live there and still rent your other rooms in your house giving you safety as well as an income.

@Ian-And-Anne-Marie0 I won't begin to explain the impracticalities of your suggestion... has to do with my current 'lair' (as a lodger calls it) being too tatty & doggy for paying guests, whilst I don't want dog wrecking pristine cottage!) - I know you meant well! 🙂

@Ian-And-Anne-Marie0 The other contractor who remains in the rental cottage is in a key occupation, I would think. Oddly the one who was sent back to mother will now be back in Barrow (near you!) where people have died, whereas West Cumbria does not yet seem affected.... And the doc, who's gone from 2 weekends a month to 1 weekend a month? Well, he's been told he has to work 1 weekend a month in KENDAL! (He's trying to get back here tho' - better the devil you know, & my rooms are cheaper!)

@Helen350 

We are actually on the outskirts of Kendal, but you won't find us by typing in 'Kendal' we won't show. In that respect we might as well be in Barrow !

@Ian-And-Anne-Marie0 I am not Virtual signaling. Nor as it happens, am I slinging insults or sarcasm at other Hosts, or the Airbnb organisation. 

I am simply pointing out the reality that always prevailed even prior to this world health crisis. 

I have plenty of sympathy for Hosts and Guests who are adversely affected by this current situation. But it does noone any good if we waste all our energy blasting Airbnb as an organisation and constantly bleat about our perceived   belief in the superiority  of other platforms. Every company has its plus and minus and Hosts have been entirely free to sign up with however many other platforms that they wished to.

It's actually rather distasteful to Hosts such as myself to hear the callous way that some Hosts have written about their guests, and the company which they got on board with for the good times, and now have so quickly turned on. 

Hosts are free to part ways, but we will all have nothing if the head company goes under.

We will all have to accept our share of financial downturn with a bit more grace and compassion. 

I am not taking this opportunity to offend or be grand, simply appeal to our better natures, and encourage growth. 

For Hosts who have built small, medium and large businesses on the back of Airbnb, this may be the first serious business shock they have encountered and it is essential to evaluate their business structure, understand its strengths and the threats to sustainability, and put their learning into practice in order to ride out this financial challenge an future proof their enterprise.

Many Hosts might need to make immediate contact with their financial advisors, accountants, bookkeepers and small business consultants, to get some really good, locally applicable advice, to guide them through this period.  

In my view it is futile to expend too much emotional energy towards blaming others, we need to evaluate our own options, and act on them in a strategically measured way. Seek out good quality financial and legal advice which is relevant to your local jurisdictions, diversify your business model as far as you can at this time. 

If you are one of those hosts who have accumulated properties that you have mortgages on, or owe rent on, then it's  definitely worthwhile approaching your lender, or banks and landlords to discuss your current prediciment and negotiate financial leniency at this time.

Do this sooner rather than later. It will be better for you, your lenders, and your landlords. We are all connected in this and there are many avenues to explore.

Landlords  and banks worldwide, are sailing the same risky financial seas as you, and it's  not in their interests to see your boat go under either. There is every chance you will have a productive discussion. 

I hope these suggestions are helpful to some.

As for condemning guests for matters related to travel insurance, we hosts have always had our own responsibilities in terms of income insurance. 

The Airbnb Host guarantee was never designed, structured or promoted as being applicable to these type of circumstances.

A year or two back there were new-modified-alternate booking terms offered to Hosts to upgrade their refund policies in return for different charges. Tradeoffs were involved.

I'd  be interested to hear from Hosts regarding their experience with this product.  Absolutely genuine and sincere regards, particularly to those in distress.  Christine.

Hey @Helen350 would you like to be directed to the stories of hosts who have just lost thousands of dollars? There are plenty!

Helen350
Level 10
Whitehaven, United Kingdom

@Rose123 No, those hosts never earned that money to start with. You can't lose what you never had. Anyway, someone cancels, and the calendar is then open for someone else to book instead..... Ah! you say, no one else will book for months because of coronavirus..... Well, we don't know for sure, & if no one else books because of the Virus, that is the fault of a pandemic, NOT AIRBNB'S FAULT. Relying on STR for income has always been a gamble; there are many reasons why people stop travelling, environmental disaster, economic collapse, war, so many things that are nobody's fault.

@Christine1 

You make fair points, but not all Hosts have the same perspective and neither are in identical circumstances to any other Host. I would certainly like that crystal ball of those guests, otherwise, they're just cancelling because they're uncomfortable with the situation. Extenuating Circumstances do not rely on an uncomfortable feeling they rely on physical facts.

 

Extenuating Circumstances policy does always exist, and Guests can apply for its application to their cancellation by providing evidence of such relevant circumstances. In doing so, they need to provide evidence that such Extenuating Circumstances did actually exist. Thats pretty hard to do when in the future.

 

The blanket policy applied by Airbnb takes no National, Regional or Local circumstances into account, so fails to be a workable policy. Hosts, who are aware of the situation on the ground, the circumstances of their guests  and their Local, Regional and National restrictions would be far better placed to make a more considered judgement. (i.e. on whether they would be flying in from a foreign country or  just travelling internally, or even travelling across town). By the same measure, Guests too would be able to evaluate the situation and would/should have a grown up conversation with the Host in order to arrive at some satisfactory conclusion considering risk, travel, cancellation policy and applicable booking circumstances.

 

None of that is a requisite of the free 100% cancellation refund.

 

Essentially, I agree that that the standing EC policy would, despite the current situation be applicable.

 

We have been dictated to by Airbnb that "Hold on - these are now the rules which apply, apply them..." Those rules have the caveat of specific dates, specific duration and NO specific regional application. In the worst of cases those EC may well fairly apply. In our current situation, the UK , those circumstances would not apply since according to the WHO, Regional government directives need to be taken into account of which, here, there is nothing constitutionally binding. Here, now, having the grown up conversation would be sensible. That has been ridden over rough shot, and we are to adhere to an inappropriate directive where the Host just ultimately loses all.

 

Airbnb are playing a game. They want to come out of this smelling of roses, with a great customer base, at no cost, with an IPO intact and ready proposition, and they want Hosts to foot that cost adhering to their directive.

 

Their directive states that external to their specified dates "Normal terms apply". Do let those normal terms apply, they are as you say the existing EC. Let guests who are variant to the directive obtain written evidence to substantiate their cancellation, letters from airports, doctors certificates and the National restrictions which were applicable at their time of cancellation and allow Hosts to dispute those with the same evidence at the time.

 

Rarely, as in the case of @Helen213 or @Rose123 when they apply 'normal terms' will they get rebuked. Here, and more widespread Airbnb are just playing a game at the Hosts expense and playing 'chicken' with people's livelihoods.

 

My previous post above where a cancellation is moved from 'cancelled' to 'pending' is part of their game. I believe this is to cater for a future amendment. I believe too that a decision by the guest is binding at that point of execution. (not, I will cancel now then reserve the right to cancel later - just to be sure - and all other facts considered and based on rules in force). For years, they have underestimated their Hosts, believing they are cannon fodder, believe me, there are Hosts around who see right through all their antics, some who will just comply for an easy ride and others who will just ultimately bring them down. This is not an intent, but a reaction. A reaction towards all the sly, underhand, guest centric tricks they have applied over the years, manipulating what are essentially a motivated and high standard Hosting community towards being subservients. Hosts are not standing for it any longer as can be seen, and more are having their eyes opened.

 

@Christine1 

Maybe some hosts might like to pick up extra business with 2week bookings for those who need to self isolate. ; X)

 

Amongst those travel restrictions, national, regional and local restrictions (which guests might have potentially already cancelled under) How EVER, should that be allowed to happen?  Hypocrisy rules! Maybe some hosts might NOT like to accommodate guests who could potentially bring Covid-19 into their homes, infect themselves, their family and their loved ones ? Those decisions should not made by a corporation.