extenuating circumstance: We as hosts are also travel insurance for last minute cancellation by airbnb? I am sorry but this is not fair?!

[Alessio237]

Summary

Long term rental reservation was canceled by airbnb's extenuating circumstance policy and host's payout was set to zero only 6 days before the check-in date.

The mail thread between the guest and host clearly evokes the guest's intent to cancel the reservation before the coronavirus fear started.

Background

Corona Virus Fear as by March 6th 2020: the current fear and the actual coronavirus has arrived anywhere in the world and it is clear for me that guests can be scared (in this particular case an American Guest with a Japanese wife for a listing in Tokyo). Important note: Japan per March 6th 2020 is not on the list where the extenuating circumstance apply (currently only China, South Korea and North Italy)

Booking and Alteration Requests Timeline

- 3 January 2020: the guest booked a long stay (28 days)

- 7 January after having missed their 48 hour of free cancelling window (my policy is super strict) the guest argues that they are not sure about the dates and would like to cancel their reservation. I told them that in that case they should cancel and I will apply my cancellation policy, however if they book with me later during the same year that I would grant them 50% on their new booking price.

- on Jan 16th they have contacted airbnb however this time airbnb was on my side and respected to follow my cancellation policy

- on Jan 27th the guest asked me if it was possible to change the check-in date to advance by days and I granted their request by extending their reservation from 28 days to 31 days  for the same price.

-  on February 20th the guest asks me if they can change the trip to end of April instead of March and that they are not sure if they can commit on their travel or not.

- on March 3 (7 days before the check-in airbnb is sending an automated-reminder 'If you haven’t already, reach out to -- to send directions and coordinate check-in time.), I contacted the guest and asked to share their arrival info, a few hours later I receive a message from an airbnb case manager that the guest has exhibited documentation falling under airbnb's extenuating circumstances, therefore airbnb canceled on the guests behalf, opened my calendar and my payout was set to 0.

True Facts

Valid extenuating circumstances could include: Unexpected death or serious illness of a host, guest or immediate family member.

Serious injury that directly restricts a guest's ability to travel or a host's ability to hosts.

- the guest wanted to cancel after 72 hours of their original reservagion (mail thread)

- Feb 20 the guest is asking me to change the dates from March to end of April

- coronavirus is scary but Japan is not on the list

- suddenly the guest claims an extenuating circumstance (airbnb says they cannot share the reason since it is personal)

- given the above pre-story and airbnb's reply is 'please understand that medical documents are not allowed to be shared, and will never be shared to anyone.' implies that it most probably should be serious illness (which in case they are afraid of getting the coronavirus does not fall under the policy) and in case they got 'conveniently' sick that this document is most likely produced with the aim to get refunded

- 6 days before the check-in and the current situation the chances that I can rent my property are close to 0. that means from my side I bear 100% the risk and the financial loss.

I appreciate that airbnb tries to save both guests and hosts from such extenuating circumstances, however it should not be the case that the host should act as travel insurance for the guests. if airbnb wants to execute their ruling on extenuating circumstance on this case, then airbnb should use reserves or insurance they have for exact this purpose or support the guest to make a claim to their travel insurance, however it should on no account us HOSTS to be responsible for such occasions. as other booking sites or flight companies offer travel insurance packages at the time of booking airbnb should do so, with travel insurance some extenuating circumstances cannot be insured, but as long as we hosts comply with our duties and offer our service we should be the last to pay for this! 

[Lex7]

wow this is completely unfair! airbnb seems to protect the guests on the costs of the hosts. what a business equation, win win win for airbnb means win 3 times for airbnb. I had similar experiences when Japan started with the notification numbers in Japan, airbnb let down all hosts bent over and made a deal with JTB (a Japanese governmental organization) to offer hotels to guests who were affected because airbnb canceled all reservations also made before the new rules. so many hosts who have helped to build up airbnb were left fallen like cold potatoes. bad bad bad. yes the stories are long. I remember another anecdote where my guests have completely disregarded house rules. Japanese police needed to stop the party, they smoked and had over 40 people in a 60m2 penthouse in Japan. the landlord threatened To kick me out, the guest destroyed the flooring, the smoke in the house cost me a few thousand bucks and last but not least the guest have squeezed a cigarette butt on my designer table (no smoking, no party policy, max guests 2 pax at all times!) and airbnb's 1 Mio insurance paid me 0, absolute not interested in helping me not even paid for my table (my case manager said that was normal use) I am not smoking my dear airbnb. so dissappointed about you airbnb! where is the nice airbnb you have used to be. I guess this is what it means to become a wealthy big organization. only your owns interest and not the community who has built you. shame on you! bad boy airbnb BAD BOY!

[Alessio237]

Hi Lex yes I made many similar experience the topic you mentioned where airbnb was partnering with JTB and offered a one million dollar (Tbc) fund to book hotels Ci a governmental related JTB (Japanese travel agency) were really something they should have supported hosts as well to get their local notification numbers and for the financial loss they experienced when all reservations were canceled for the time period when the old rules still applied..  yes I remember another time where airbnb only thought about themselves and not the hosts which they seem to take for granted so often.. very sad and disappointing indeed - are you still hosting?

[Zeno26]

I can't find anything on the side of Airbnb about travel insurance for the host? 

[Alessio237]

hi Zeno, yes this is the point, the extenuation circumstance is also applicable for the host (e.g. somebody in the hot's family would pass away and for some reason they cannot host anyomore) and because of this airbnb allows the host to cancel the reservation in this case penalty free (meaning the host is not penalized and keep his super host status, but of course he would loose the rental income (in this case I dont think airbnb would refund the host for the income loss, which in this case it is acceptable however if you apply the same logic actually the host should be refunded as well..) and for the guest airbnb will help the guest to find another accommodation.

however in case the guest needs to cancel airbnb and airbnb applies the extenuation circumstance policy in this case they held the host responsible (meaning the cancellation is free for the guest but the host is loosing 100% of his income of that particular reservation) which is  in my opinion not fair at all.

I am copying here the official statement for China:

'As governments and organizations work to contain and mitigate the outbreak, travel and other restrictions have been implemented in several places around the world. To help accommodate these disruptions, we have activated our “extenuating circumstances policy” to offer impacted hosts and guests the option of cancelling eligible reservations without charge. This policy is being updated regularly and observes guidance and recommendations from the World Health Organization and governmental and health authorities. Please find more details here.'

therefore my whole argument is that hosts should be insured as well (for the guest without charge means that this cost is at the expense of the host, however I think it would be fair in this case that the guest does not need to pay and the host should be compensated of the rental loss (in case he cannot rent it out anymore in my case impossible given the current situation with the coronavirus and fear of people of traveling) 

therefore I think that airbnb should either

1) take out insurance and then pay out the host (if guest cancels based on extenuating circumstance policy)

2) build reserves from the % they are taking from both guests and hosts and then pay out the hosts for their loss (since these are extenuating circumstances payouts should be very limited)

3) or give an option to guests to make their own travel insurance 

but again not on the cost of the hosts

[Darrell60]

Airbnb is continually cancelling my Guests reservations under the Extenuating Circumstance Policy.  Whether it be an impending Hurricane, death in family or now the Corona virus.  Airbnb is asking the Host to be the Insurance for guests.  (VRBO offers trip insurance ).  We as Host are being asked to absorb every guests misfortunes.  I am not heartless, but when I have a tragedy in my Family I am the one that incurs any monetary losses.  I have 4 properties and cannot afford the potential liability of Airbnb refunding all my guests their money last minute.  We as a community of Hosts need to stand up to Airbnb.  It is not Fair! 

[Lorissa0]

Are hosts contacting AirBnb directly to talk with leadership about this? I see a lot of well thought out comments on these posts about the ‘extenuating circumstances’ policy and how it is affecting hosts but unfortunately AirBnb will never see them. How do we escalate this?!

[Tat1009]

I have contacted AirBNB, and their reply/stance as follows: "We stand by our extenuating circumstances policy as it is meant to protect the AirBNB community in light of the current situation with Covid-19".  When asked what rights of or protection for the hosts are covered in the policy, when guests, regardless of whether they are actually affected by the Covid-19 virus situation personally, or domestically (not all countries are affected domestically as China/Europe is/was), "we stand by our extenutating circumstances policy as it is meant to protect..." - so far as I can tell, AirBNB community to Air BNB means guests only.  Good luck escalating this matter and trying to find some support from Air BNB for a different point of view.  All they are currently doing is supporting the cancellations by guests under their Extenuating Circumstances policy, even if these guests are in a very much lesser impacted location and are domestically travelling by land vehicles to their accommodation.

Escalate indeed, but to whom?  Hosts do not have an advocate within Air BNB.

[Zeno26]

I found this: https://www.cnbc.com/2020/03/05/coronavirus-whats-airbnbs-cancellation-policy.html does not mention Japan.

[Zeno26]

https://www.airbnb.com/help/article/1320/what-if-i-need-to-cancel-because-of-an-emergency-or-unavoid...

[Zeno26]

Japan is actually doing a great job in handling the virus (except what they done with the Cruise Ship, that was terrible). https://www.economist.com/asia/2020/03/07/japan-may-have-to-cancel-the-olympics

[Zeno26]

Quote the Economist: Given that 3,300 deaths were attributed to flu in Japan in 2018, the good hygiene inculcated in recent months may well have saved far more lives than covid-19 has claimed.

[Alessio237]

thank you Zeno! In any case the EC policy if it’s applied it should not be the hosts who need to pay for it it’s complete unfair and airbnb shall be responsible. 

[Zeno26]

I think Japan is safer then the US as far as the handling of the Corona Virus goes.

[Sky13]

Airbnb should simplify their refund policy by offering trip insurance. Buy the insurance or no refund, just like the Airlines do it.