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?

[Mary996]

@Susan1188  that's a nice thing to say to @John2654 after being so tough and legalistic on him!!! xx

[Bob40]

The last thing we need is hosts arguing among themselves. I am certain I saw a popup recommending changing my strict cancellation policy to moderate or flexible to achieve more bookings. This was about 2 years ago. So I changed to moderate and am left with nothing following 4 months worth of cancellations. Airbnb denied this could have happened when I mentioned it on the phone, but then, they would wouldn't they!

BTW, has anyone noticed we now have SIX cancellation polices to choose from? That's ludicrous!

[Mary996]

@Bob40 oh wow I'll have a look.

[Simon2566]

Hi all, 

I'm a 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. 

[Mario-Vitor-and-Daniela0]

Hello @John2654 , I too agree with this being somewhat unfair. I have lost 6 reservations, with all explicit written reasons due to covid-19.

If we consider that, as @Susan1188 pointed, cancellation policy is the issue, the topic here is distant from a common sense. The reason for a compensation as I understand, is to keep the ABB community of hosts and guests able to keep themselves hosting and travelling -and promoting this platform.

This has nothing to do with whether hosts facilitate or not the guests with the possibility of having a full or partial refund.

Once again, the reason here is a world health crisis, and in my view, this should be the crucial point for ABB to distribute the support they're offering.

Maybe this % of compensation could be more well thought as to compensate as many people of the community due to the main reason why this is happening, and not due to a Superhost status or strict cancellation policy (which can be very frustrating for many guests, and I have been an active guest and user of ABB to say this with reasoning). 

@Bob40 and @Simon2566 pointed different issues that we should be aware and most of all, consider the cancellation reasons above the cancellation policy or host status.

Remember, the community is made of people, and despite policies or status, the airbnb fee is collected from all guests and hosts, no matter status or policies.
It would be fair to have a more human than algorithmic reasoning in this.

[Susan1188]

@Mario-Vitor-and-Daniela0 

First of all, I hope you are well and all my respects for surviving this crisis in Italy.  We are in Spain it has been hard.  All the best to you.

The reason Airbnb gets you the occupancy you have, is because it is a bulk platform, worldwide, using algorithms to boost internet communication.

So we cannot expect individual personal intervention for each case, especially in a world crisis.

However what I would not expect, is the rug being pulled out from under me in time of crisis and a big email sent to guests inviting them to cancel for free, when many did not have the intention to do this.

Of course if you booked a non refundable flight on ryanair, and they send a cancel for refund free button, of course you would do it!  But if not, you would respect the terms you agreed to and maybe lose your mney.

I have personally helped several guests during this crisis and I have not charged anyone, one cent, if they cancelled because of legal travel restrictions.

Problem is many people now think they can reserve and block calendar, then cancel just before for free.

[Gaby6]

I couldn’t agree more. Those offering moderate or strict cancellation policy would have earned more in any case over the years, and now they will be further rewarded, whilst we get nothing. ‘We’re in this together’ rings very hollow at this point. It’s great Airbnb have offered some support, but why discriminate between hosts?  I believe it is to make the offer ‘sound’ generous, whereas it is, in our case 25% of zero = zero!   They quote ‘if you would have got $400 cancellation ...’ who gets that as a cancellation fee???  A pretty small minority I suspect.  I think this needs to be fair and equitable across all hosts affected by C-19

[James-And-Lisa1]

I have a moderate cancelation policy but non of the cancelations that I received were within the 5 days before reservation, so I will be receiving nothing.  I had a full calendar from March 16 through May 31, and will get nothing.  You have to be invited to apply for a grant, so who knows if anyone will get them.  I will attempt to apply for unemployment, but I don’t think that will go through because I think you have to file like it’s a business and we file as rental income.  So,  nothing.  Hosts are left out in the cold!

[Jay1385]

Same here! 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 invoice!! 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!

[Susan1188]

@Gaby6 

All good then!  Put your cancellation policy to "strict" now, so that we all can have a common denominator

If your expectation is to be compensated for a cancellation, please, put strict, like many of us has.

I hope everyone will do this.  It will level the playing field.

good luck to you all the best .

[Chris225]

I just received an email today for cancelled reservations in March. We have a flexible cancellation policy. Guests cancelled well in advanced. Wanted to share.

[Susan17]

@Chris225

Could you give some more details please? Are you saying that you got a payment from the $250 million relief fund, that pays out 25% of the amount hosts would have received under their regular cancellation policy? What dates in March were the bookings for, and when were they cancelled? 

[Chris225]

@Susan17 

Yes, I believe so. "Cancellations through Apr 08, 2020"

Booking date, Cancellation date, Check-in date, Checkout date

1. 2020-02-09, 2020-03-15, 2020-03-18, 2020-03-22
2. 2020-03-04, 2020-03-16, 2020-03-28, 2020-03-29

When the World Health Organization declared COVID-19 a global pandemic, guests with reservations booked before March 15 became eligible to cancel under our extenuating circumstances policy.

In an effort to lessen the financial impact on you, Airbnb is providing 25% of what you would’ve received for each cancellation.

This support payment will be included in your next scheduled payout to your default payment method. If you have an outstanding account balance, we’ll apply your support payment towards that first. You'll receive support payments for any eligible future guest cancellations through May 31, 2020.

To learn more about our $250M USD commitment to help hosts and how it will work for you, read our Resource Center article.

[Susan17]

@Chris225

"In an effort to lessen the financial impact on you, Airbnb is providing 25% of what you would’ve received for each cancellation"

But you'd have received $0 payout for those cancellations under your regular flexible cancellation policy, would you not? 

[Chris225]

@Susan17 

I don’t understand the language either. I think you and I—and many others—read it one way. Perhaps it’s worded poorly. Perhaps they mean:

"In an effort to lessen the financial impact on hosts, Airbnb is providing hosts 25% of what they would’ve received if the booking had been completed and not been cancelled due to covid-19 extenuating circumstances”