Guest Cancellation Policy Update

[Lizzie]

Hello Everyone,

A few weeks ago Airbnb made changes to what guests see when they book and what happens when they cancel a booking, those changes were discussed here on the CC.

You can read more about the changes in this Help Center article. We also want to open a thread here on the Community Center, to continue the conversation. We appreciate how important it is that our host community is informed when changes happen on Airbnb, even when those changes are for your guests.

What changed for guests?

The names of the cancellation policies themselves haven’t changed, so the policy you set—Flexible, Moderate, or Strict—will still show up for your guests. However, now when a guest makes a booking, they’ll see more information explaining the terms and refund cut-off dates for the policy you’ve chosen. We also changed Airbnb’s existing policy so that we now refund Airbnb guest service fees for cancellations, up to 3 times per year. This way, if a guest cancels within a fully-refundable window, the reservation—including guest service fees—will truly be fully refundable.

How will this affect me as a host?

This additional messaging for guests is meant to eliminate confusion about our cancellation policies and, ultimately, to encourage more bookings—especially for more flexible listings. The changes won’t affect refund cut-off dates, your payout, or your host fee. Guest cancellations are rare and we’ll continue to monitor this rate in light of the new changes.

Why did Airbnb make this change?

Through feedback and research, we’ve seen that guests often overlook the cancellation policy terms of the listing they book. This leads to confusion and frustration in the rare event that their plans must change. This added education is meant to help align guest and host expectations going into each booking.

I hope you find this information useful.

Thanks for your time.

Lizzie

[Barbara540]

Same thing happened to me.  Lesson learned...don't EVER comply with a guest who asks you to cancel or accept their cancelation request on Airbnb. That puts you in jeopardy; but does nothing to the guest who canceled.

[Lizzie]

Hello everyone,

I just want to thank you for your comments here, it is really important to us to hear your thoughts on this and I will be sharing them with the rest of the team. 

Also to add, I will continue to share any information I have on this with you here in the Community Center.

Thanks so much,

Lizzie

[Leila40]

Hello everyone,

Everyone seems concerned about his new policy, I have been hosting since 2012 and I have guests trying to abuse the cancellation policy.  In the past I had been protected, but with this new policy I do not see how the Hosts will be protected.

I went to this community seeking answers, but it seems as if we, the Hosts are not being supported by Airbnb, and this is happening more and more.  I will be trying a new platform that will still protect my reservations.  Guests need to take responsiblity for their actions.  I have found that a large percentage do no read all of the information and then they complain to Airbnb...this is frustrating.

I just wanted to know what is the purpose of the community? Are we being heard by Airbnb?

[Maria730]

Although I understand why AirBnB would want to make their process more appealing to guests, there does need

to be balance between the guest's & the host's risk of exposure. I have a strict cancellation policy & in the last year, have had 2 long term guests (> 2 weeks) cancel. The first one, left after a few days, claiming his dogs were driving him crazy at the home. His wife (whose name the property was rented under) was out of the country at the time. When she returned stateside, 3 1/2 weeks later, she asked for a full refund with some vague complaint of furnace noise. Of course, this was never mentioned by her husband in his voice mail. I refused a refund, but AirBnB did appease this guest, by refunding them an undisclosed amount, which was not out of my rental fees. The most recent cancellation, did get a refund, but again, is for a long rental period and I doubt I'll be able to fill those dates. I think it's a good idea to make the cancellation policies more visible for guests. In my experience, guests don't read the details. They ask questions to which the answers are clearly described in the listing. Strict cancellation policies do allow for the host to refund depending on circumstance. I do refund if I am able to rebook those dates. 

What is frustrating to me, is the continual emails I receive from AirBnB to encourage me to reduce my nightly rate, as part of "Smart Pricing", add "Instant Book" and alter my cancellation policy, all in an effort to increase the rental potential. One of their suggested reductions in rental would have placed our 3 BR, 2 BA ocean view home at the nightly price of $36! Seriously, I know these are sent by automated systems, but how disrespectful for the host to be encouraged to undervalue their property at AirBnB's gain. 

[Pamela138]

So how can we protect  ourselves? I am confused. We have a very short high season and a cancelaltion can really harm my income, which I rely on. And it looks like we are being punished with a lower listing if we have strict policy. I was teh 1st Airbnb in my area with 200 reviews and always top listing, but now I am being penalized. Terrible way to treat a long time Super Host. 

[Karen313]

@Pamela138 I could not agree with you more. After years of being a 'Superhost' we are being penalized for having the strict refund policy in place. 

[René5]

I just had a (partial) cancellation last night with request for refund; 2nd one since (very begrudingly) turning on IB a couple of weeks ago. Over 2 yrs of hosting (and note, W/O IB), I can count on 2 fingers the same type of requests. I also had my first below 4-star overall rating from a guest who did not read my listing particulars, knew my Strict cancellation, so put someone else in the room (w/o my knowledge) and left a poor review. I don't know that AirBnB understands what impact a seemingly inconsequential policy change has on the success and quality of both the host and guests and experiences that lend to generating loyalty to the platform.

IB --> quick decision-making w/o looking at particulars --> greater chance of cancelling or being unhappy with a not well-thoughtout decision --> no loss of revenue to AirBnB as, guests will either book another location (fees regained) or guest books at another trip as, they are happy with being able to dodge policy --> guests not happy with any hosts who do not refund their fees also --> Hosts are often stuck w/unpleasant cancellation conversations w/o AirBnB backup.

Again, in these partial cancellations (rez already started), if AirBnB is going to be the "good guy" that leaves we Hosts the "bad guys" if we don't also refund. "Strict" implied strict before. Now, between IB and this refund dig, it can imply "whatevers".

[Jeffrey6]

It would be really nice if there was another option, and one that doesn't include dropping my rate.  I'm glad Airbnb will now be refunding its fee, when a guest cancels.  Over my almost two years of hosting now, I have had to explain to several potential guests and guests, they would not get the airbnb fee back if they cancelled.  It did seem ridiculous (if you can get the host's fee back then you should be able to get airbnb's fee back).  What I really don't like is the huge void between moderate and strict options.  Moderate is a joke, especially now that the Airbnb fee gets returned, and strict is too strict.  My place can easily get booked with around a month in advance.  I'd be happy for airbnb to fully refund a cancellation 30 days or more out.  

What is difficult, is when someone cancels a week out.  I actually just switched my listing from moderate to strict.  Because I had a potential guest cancel this Mother's Day weekend only 7 days out, and I couldn't get it rebooked.  Worst yet, I knew she was problematic because she was trying to bargain with me.  We need another option between moderate and strict please!

[Colleen47]

Agreed. There should be another option. Especially for seasonal communities. 

[Frances-Ruth0]

It is all BS, especially now not being able to have Super Strict on those high demand weekends.  I've just about had it. And, if you have not noticed, they(Airbnb) label listings when guests are shopping " fully refundable" on listings that have the Flex or Moderate cancel policy, which again is discriminating. They are totally serving guests over hosts

[Kim268]

It is disappointing that there is no middle way available and that Airbnb seems to be leaning more and more towards guest interests at the expense of hosts. 

We have been superhosts for over 2 years now and so are reliable and trustworthy providers.

In that time we have operated the strict cancellation policy and have had several cancellations, one from someone who asked for a full refund because they had found "better accommodation" (actually a free stay on a friend's yacht) at less than a week's notice. Unfortunately I think the new policy changes will encourage this kind of attitude. In the case of the other cancellations we have either refunded in full, or if very close to the date of stay have said that we will refund in full if we can resell those dates - I think this would be a great option to be helpful to both parties.

Finally, if there are changes to policies that affect refunds, what policies are in place for existing bookings. Are they subject to the t&cs that were originally agreed to or are they automatically "upgraded" for want of a better word? Also how about a current booking, for example if there is an ongoing 4 month stay are the guests still bound by the older cancellation rules?

Cheers

Dave

[Deb22]

Even before this new policy I always thought it unfair that if a guest cancels, Airbnb still gets their service fee but hosts do not. I have had very few cancellations and in most cases have been able to re-rent the space but it feels like guests take priority when, in fact, if it weren't for hosts, there would be no Airbnb to begin with.

On a related note, one time I canceled a reservation through an oversight--my bad.  As a result I lost my SuperHost status.  But, because the rules are very black and white, there was no consideration given for the fact that the booking and cancellation all took place in less than an hour for a booking that was months away.  It was not a case of canceling a long stay the day before arrival. I apologized profusely to the guest for my mistake and quickly directed her to several similar airbnb lisitings in my neighborhood which she appreciated and was able to book her trip seamlessly. I also explained in detail in my review about what transpired and to assure future guests that this was not reflective of my general way of doing business and my 95% 5 Star Rating and subjective reviews attest to that. But, based on Airbnb's set up, once you make a cancellation as a host, you can never get a 100% Commitment Rate rating.  So am I to assume I will never reach SuperHost status again?

[Linda450]

If hosts have only one or two places that we rent out, should we be considered "rich capitalists"?  There are times when people have to cancel due to circumstances beyond anyone's control; it is then that the burden could be shared.  However, when it's a peak season or special event or so close to the move-in date that another booking can't be made, then the burden should be on the guest unless some other agreement can be reached or the host decides to not enforce their policy.  It is not Airbnb's right to force the host to lose income.

[Pal1]

Guests often travel with friends. So three friends can book three different accomodations for the same time in one place and after they arrive decide which one they like and cancel the other two. They can do this twice more. Then after they have used up their free cancellations they shut down the account and create a new one using a different credit card.

On the other hand a hosts property is fixed and if bad guests give us bad reviews we are stuck with them.

AirBNB needs to do a lot more to protect its hosts. ALL of their policies are there to support the guest, often at the expense of the host!

[Kim176]

The scenario with the 3 friends doesnt work, refund cut-off dates on cancelations are still in effect. So once any guest crosses the Cut-Off threshhold its 0% refund. The new policy only effects hosts using the Strict: 50% refund up until 1 week prior to arrival.  

• • How will this affect me as a host?
    

"This additional messaging for guests is meant to eliminate confusion about our cancellation policies and, ultimately, to encourage more bookings—especially for more flexible listings. *--> The changes won’t affect refund cutoff dates <--*, your payout, or your host fee."

So essentially the only real threat this policy applies to are hosts with Strict Policy and losing the 50% if the guest cancels BEFORE the 1 week Cut-Off date. Hosts with any other policy were always willing to give full refund up until 5 days prior to arrival.