Why do some hosts get 25% payment for Covid related cancellations and others not?

[John2654]

So if you have a strict or moderate cancellation policy you get something back from Airbnb during this Covid crisis. If you have a more guest-friendly policy that offers free cancellation you get nothing. Why is this? I have had over 30 cancellations owing to Covid19 and thought we were all in this together, that is until I heard that AirBnB was offering hosts with stricter cancellation policies 25% of what they were expecting to get. This seems somewhat unfair. Would probably be fairer to offer something to everyone who is suffering during this crisis. I rent out a room in my home and as a pensioner this is the only income I receive. Why discriminate against hosts based on their cancellation policies?

[Susan1188]

@John2654 

The terms were clear from the start!

These forums are full of people complaining, that guests don't read the rules!

As it turns out, apparently, many hosts do not read the rules.

If you accepted policies against your best interest, in order to improve your SEO, really what can you expect?  Some guests - maybe yours - filtered for flexible cancellation and chose your property because of that.  And now you want to change the terms?

Having said all that:  there is clearly a transparency problem,  people like @john2654 who trusted in the ABB model and perhaps made investments, commitments, renovations, improvements, and now have one solution: bankruptcy.  

I hope ABB will review it's model and work more in a collaborative manner with all hosts - maybe introduce a waiting period or delay to be sure the host is serious - but once the host is quality and honest please stop all these shenanigans from not allowing zapping one negative outlier review to pushing people to decrease prices to marketing long term stays on a short term platform.

[Susan1188]

---

@John2654 wrote:

@Susan1188  

I am certainly not wanting or ever will want to change my cancellation terms. I just don't see why those who have strict/moderate cancellation policies get some form of compensation

---

John, do you not see the contradiction in what you just said?

You want to keep your "flexible" or "moderate" cancellation terms.

But you want to be compensated for cancellations?

What?

If you had flexible or moderate cancellatin => people can cancel penalty free.

If you had non-refundable or strict => you should get what you signed up for, 50%, if not, at least a token refund of 12,5%.

[John1902]

@John2654  I agree with you. This is a special circumstance that means terms and conditions don't apply otherwise Airbnb wouldn't have given guests a total refund and they wouldn't have had to concoct a new fund to appease the folk that lost out. This is a financial assistance package which would support hosts who have lost bookings by this virus.  I'm like you i do this in my home in the spirit of Airbnb and at every step of the way I've been told by Airbnb to adopt a flexible cancellations policy. In fact on the 23rd march there was an article published in the resource centre saying we should adopt this as it's best for guests during the covid 19 outbreak. I suspect you will qualify for some assistance under the second scheme though set up for superhosts who rent accommodation in their home. I have a beef with this one as I made a third guest room available in January and having had no more than a small handful of starts that from has excluded me from assistance from this fund too! To my mind using number of listings Max 2 as an eligibility criteria is also ridiculous.  Lykke til broren min det alle skal passe snart!

[Melodie-And-John0]

@Susan1188 , well said, those of us like @John2654 and me that have a flex policy have always known we can and will lose bookings up to 24 hours before first available check in time and accept that because of the benefits you stated above.

One clarification, people cancelled because Airbnb didnt create an "EC" Button, its not actually a traditional cancellation.  Most didn't want to cancel, they just couldn't do the trip for one or more of 20 legally acceptable reasons that were completely beyond their control.  Keeping the guests money at that point would have been theft.  

No matter what policy we all had, no policy can override a catastrophic situation like this, its the epitome of "Extenuating Circumstances. The fact that Airbnb is giving anything to hosts is more than they probably have to do considering they already refunded the customer.  

Its sad but real and I pray everyone's worst memory of this year are guests that got their money back and hosts that lost money, stay well all, JR

[Susan1188]

---

Keeping the guests money at that point would have been theft.  

If you had a non-refundable hotel booking, a cruise booking, a wedding planned, etc etc.

You didn't take travel insurance.

And if there were. no travel restrictions in place, but you had to cancel for any other personal reason.

The apartment is there.  You can travel to it. Host was expecting you.  He renovated bought new sheets and hired a concierge to greet you.

Do you think you would get 100% back?  Entire refund?  No cancellation fee, refund fee?  Really?

[John2654]

@Susan1188 

Maybe I have not made myself clear. No where am I saying that I want to change what I have signed up for regarding cancellation policies but what I am saying is that in these extreme times it does seem strange that Airbnb is compensating some hosts for loss of income and not others, regardless of cancellation policies.   Anyway, we can go round in circles with this discussion so I'll end it there.   Stay safe everyone.

[Susan1188]

No, not "loss of income".

They are compensating because they CHANGED THE TERMS of the contract!

I will fully reimburse my guests who were not able to travel due to lockdown (extenuating circumstances).

Many of my guests cancelled out of personal disinclination to travel.

Several also cancelled, were OK leaving the 50% deposit, then went back and clicked on the big red 100% refund that ABB sent them by email.

Others have cancelled in July, August, September, for economic reasons (they are now out of work no vacay in 2020).  This is not extenuating circumstance.  They would have been happy to get at least 50% back.  Due to ABB reaction they expected 100% .

[Susan1188]

---

@John2654 wrote:

@Susan1188 

it does seem strange that Airbnb is compensating some hosts for loss of income and not others, regardless of cancellation policies.   

---

John, honestly, that makes no sense!

You want to be compensated, for a worldwide pandemic, from a booking engine?  

You had flexible policy, and you want compensation now for cancellations?

"Regardless of cancellation policies"?  

You had flexible, you got flexible.  End of story.  Change your parameters to strict, for the next epidemic. 

[Simon2566]

All my apartments on strict policy. Haven't received anything for these cancellations during this time.

Superhost in Hong Kong, they allowed full refunds for my strict booking guest cancellations based on EC since protests last year since July and now the Coronavirus.

The application of EC is inconsistent and dependent on the guest country of origin and regional call center.

I've lost hundreds of thousands USD since 2019 and 2020.  I've been able to survive because we made some money in prior years.

Airbnb collects 12%+ service charge on all the bookings for the last 4 years +. How can they collect this fee and provide no assurances on these cancellations even though its all strict cancellation policy apartments.  Some guests are cancelling but still re-booking other accommodation, the customer representatives are not vetting these requests, its all inconsistent and have been happening for months here. 

Now as it affects the US market, is there a big commotion and guidance. 

[Jay1385]

My two rooms were fully booked for March - May and all my guest got fully refunded. I was promised 25% of missed income due covid -19 but yesterday I got an invoice that I only get 25% of 50% of these invoices!! That means that if I had a 1200 euro reservation they only pay 25% of 600 euro's! I have a strict cancellation policy.

Also I have been a superhost from 2016 - 2019 with more than 300 five star reviews. I made a new listing because my private names were showing but I should be getting a compensation from the Superhost Relief Program. Casemanagers tell me I have to wait for an invitation which I will never get. It's one big maffia gang. I feel totally ripped off!

[Sarah977]

@Jay1385  It was stated in a way so as to to make some hosts think they would get 25% of the full cost of the booking, but if you actually read what is written, it clearly says you get 25% of what you would have received had your cancellation policy not been overridden. So 25% of 50%. Hosts who are active on this forum were well aware of that a month and a half ago. 

And why do you assume you won't get an invitation for the Superhost grant? Some hosts are getting them, maybe you will, too.

[Susan1188]

@John2654  after looking at your profile... wow I have to say I agree with you a bit.

You are a super-super-duper host with years of experience and have been trashed by this situation.

I hope when things get better I can come and stay at your place which looks fabulous.

I just think the discussion is misplaced;  

(1) Does ABB appreciate its LT superhosts with hundreds of positive reviews?

(2) Should ABB have voided it's cancellation policies in total favor of the guest for Covid 19

For me, 2 different things... but you should deserve some help/compensation for your long service and many positive reviews.

[Mark3205]

Sorry i have just seen this thread having only just heard about the 25% scheme

i completely disagree with you Susan i’m afraid. This completely discriminates against virtually everyone as far as i can see and looks pretty cynical to me. It wouldn’t matter what cancellation policy i have i wouldn’t benefit for almost all of my cancellations. For example all of May has been cancelled due to covid-19. A really busy month for me usually. 

Surely the solution is simple, the 25% should apply to covid cancellations that aren’t re-booked

As it happens i have a moderate policy however being in central london all of my guests are international travellers and of course in these circumstances are going to cancel way ahead of the 5 days.

Makes no sense

[Krystal5]

This has to do with the VERY UNFAIR UNETHICAL way that AIRBNB is treating their host s during this time. We had several sites in Hawaii that were protesting ABB because of their unfair cancellation and other practices.   The 1st thing that popped up is a blog from some "supposed CEO" stating there would be additional relief for superhost  & that they had Millions already allocated to fund this account..(A BOLDFACE LIE); since then no word on that AND that we would get 25% on cancellations caused by COVID. Today I read that only way they will pay  is if within cancellation policy. When the Country was announced that shutdown would be until 4/31 guest cancelled starting in the middle of March. Why would they wait until 5 days before arrival. This is just another stipulation that AIRBNB has added to stiff host. I guess they may be thinking we are getting  government subsidies. Forget that... Nothing has happened with them either but I dont have contract with them. I do with AIRBNB , and in my opinion they and officers & are nothing but greedy while we are still struggling with expenses and looming mortgage payments that will have to be caught up!!!

[Mary996]

Great point that compo doesn't go to Guests who re-book elsewhere. That's otherwise supporting abuse