@Giles26,
I am sorry this happened to you, and know that you are more than miffed that it occurred. Thank you for sharing your experience, because it will help other hosts who read your post. I had previously read a posting about a similar matter, and that saved me from the distress that you're going through.
A guest booked this past Thursday, and yesterday just two days later, I received a request from him to cancel the reservation and receive full refund, because the cousin he was coming into town to visit had tested positive for coronavirus. I have a moderate cancellation policy, and the full refund eligibility period expired the day before. This is what I told him:
"I am sorry to hear about your cousin. I cannot issue a refund. Please note that Airbnb has your money, and hosts are not paid until after the guest arrives. When you cancel, they will process your refund according to the cancellation policy."
The guest then sent me a message to me stating that he spoke with an Airbnb rep, and they told him to ask me for a full refund before he cancels. Then they will send me an email requesting my approval for the refund. He asked me had I heard of that before? Since I had learned from another host's experience that if I agree to the refund that my account would be debited, and saw it as another money grab on Airbnb's part, I gave this response:
"No, I am not aware of the process that you mentioned. It sounds like you have been given some misinformation, and a bit of a run around. There is no need for you to ask me for a refund before you cancel if Airbnb is going to send me an email to request my approval of a refund. Maybe it's therir way of trying to make you reconsider, but it seems like they are trying to imply to you that hosts have authority where none exists. Honestly, hosts have no ability to enforce that Airbnb does or doesn't issue refunds.
For situations like these, I suggest that you take out travel insurance so you are covered for valid travel plan changes. If you do not receive your full refund, I will let you apply the amount of the non-refunded room rate to a future stay to be completed by July 18, 2021."
The guest decided to keep the reservation, and said that he just won't go to the cousin's house to avoid the risk of exposure to the virus. I don't know if the guest's story is true, but I do know if I had told Airbnb that I agree to a full refund, I'd be in the same boat as you, and out $650USD.
Again, I am sorry for the ordeal you're going through, but you are helping others.
