AIRBNB CANCELATION POLICY IN COVID TIMES: ALL RISKS ON HOSTS NOW?

Arthur379
Level 1
Paris, France

AIRBNB CANCELATION POLICY IN COVID TIMES: ALL RISKS ON HOSTS NOW?

After the pandemic blast, Airbnb has shown some generosity to their hosts for a few months, helping them financially to support the subsequent reservation cancelations.  But now, I can testify that (super)hosts are merely expected to support any Covid related risk, because guests interests are blindly favored.

 

Two days ago, I received a cancelation request from a guest that was supposed to arrive in my listing only 5 days later. The reason given was that the person who was supposed to travel with them had been tested positive for covid.

This sole information was enough for airbnb to cancel the reservation, considering there was there an extenuating circumstance. So they repaid the guest entirely, and therefore left me without any compensation at all, only 5 days before the guest arrival date.

 

Since I have never had a chance to see a copy of this positive test, I can only hope that it has been been provided to Airbnb before they made that decision. Yet I am not even sure. However, I seriously doubt the legality of this conclusion, which shows a very serious breach into contract safety for hosts. Here is why.

 

I think it is totally fair that a person who is tested positive to Covid could get some refund for the travels that they are not able to do for that reason. Yet the problem here is that the person who has been tested positive has remained an unknown party to the reservation until their name was dropped only two days ago, to justify the cancelation request.

Indeed, when booking a listing on airbnb - in France at least - there is no need to mention - let alone get verified - the identity of the other guest(s) who may be traveling with the person that is making the reservation and hereby, dealing with the host.

In practical terms, this means that any reservation can be canceled and totally repaid, even at the last minute, as long as it concerns more than one person. To do so, one just needs to provide Airbnb with a Covid positive test - which can be under any name - declare that it is that person who was supposed to stay with them in the listing and so the case is closed, without any compensation for the host. Too bad for them.

 

In my case here, having in mind the many messages that the guest has sent me before finally telling me about their cotraveler covid case, I have serious reasons to doubt their good faith. I think that they were trying to find a way to cancel their trip for other reasons, at a cheap cost. I can’t be sure of this hypothesis. But what really matters is that Airbnb gave them all they needed to cheat, if ever they wanted to. Here is the breach. And I can’t imagine it is not being used.

 

The listing I am talking about here being my home, every reservation means that I have find another place to live, and pay for it. It is therefore crucial for me to get some security regarding airbnb reservations. This is why I opted for the strict cancelation policy that airbnb offers to hosts. However this option has proven totally useless here and I even think that it may have worsened my case.

Indeed, my guest may have not taken the case to the airbnb support team if they could have counted on a lesser money loss for their cancelation. Then I may have been better off, that is if the guest was happy enough with the lesser money loss…

But considering airbnb s justifications about my case, there is no reason why their very wide understanding of extenuating circumstances shouldn’t also apply as soon as the guest wishes for a better payback, whatever cancelation option is taken.

 

Finally I find myself without most of the revenue I was counting on for the upcoming month and a rent to pay for a place I no longer need nor can I afford. I can’t imagine telling the agency that rent me this studio to accept to cancel my lease because of my guest cotraveler got covid. And I don’t hold it against them : no business would accept to support the cost of a risk that concerns an unknown party. Yet that’s what Airbnb makes me do. So beware!

5 Replies 5
Mike-And-Jane0
Level 10
England, United Kingdom

@Arthur379 If there is one thing that is clear in the EC policy it is that stays can be canceled if someone has covid. 

Arthur379
Level 1
Paris, France

Hello Mike and Jane !

Personnaly I didn’t get this point before I had to face the situation although I had read the cancelation policy quite thoroughly.

Yet this doesn’t fix the main problem : every person whose condition may justify cancelation should be identified as soon as the reservation is made. Otherwise one can name anyone who has got a positive test and get total refund.

Also I think that this risk shouldn’t be belong the host only. If I book a flight or an hotel and get Covid I won’t get my money back unless I have taken an insurance.

Darran6
Level 2
London, United Kingdom

Unfortunately I don't think having the additional guests names will make any difference. At the end of the day the positive test evidence is just a PDF file. Easily faked. My neighbours, who also host, recently received a cancellation request 2 days prior to check in. Guest said they couldn't travel as they'd now have to isolate for 2 days on arrival due to a change in rules (it was a 5 day booking). Host's said sorry, policy is firm, but offered to refund if they managed to fill the vacancy with a new booking. The following day the guest miraculously provided a positive COVID test result to Airbnb. Dated 5 days prior to cancellation.... All of my 3 extenuating circumstances cancellations have smelled equally fishy. Basically your cancellation policy is worthless at the moment. 

Helen3
Level 10
Bristol, United Kingdom

@Arthur379  it's always going to be a risk with a business model like yours where to pay to stay somewhere else so people can stay in your home, that a guest can cancel at the last minute and get a full refund  if they meet Airbnb's EC policy fo Covid or any other issue they cover.

 

If you don't want to have this risk I would suggest you list on other platforms that have this policy/and market the listing through your own platforms such as a website/FB page and invest in advertising and marketing to drive traffic to your channels. 

 

The reality is that if you choose to rely on Airbnb you will always be vulnerable to their EC policy.

Lisa6632
Level 2
New York, NY

Hello out there, I am a super host frustrated with the new extenuating circumstances policy (of which hosts never received any emailed communication about updates, only emails regarding new "upgrades" to their platform). I recently had a guest contract covid 4 days prior to check in. While it is always a sadness to know someone needs to cancel or alter due to covid, when I called ABB to receive guidance they explained the policy has been updated to offer full refunds to guests. There are zero protections or compensation for the host who will not be able to rebook cancelled reservations, especially in under a week- a hardship for those in need of the income.

 

The original extenuating circumstance policy allowed for penalty free covid related cancellations and gave 25% to off set host's losses- this was when the pandemic was in it's first year. After this, and since the world was in full knowledge, the policy returned to the host's cancellation policy (flexible/moderate/strict) and the burden fell on the guest taking the risk knowing that policy before booking. This was for bookings made after March 2020.

I have personally offered guests needing to cancel, knowing they booked with the chance of covid related issues, special offers from a portion of their non-refundable payment going towards a new booking or adding a day on a future stay, but this was within my own control.

Now guests can cancel at any point, right to the very day and if ABB's policy is to refund, there absolutely needs to be compensation for hosts. We are their assets and they aren't helping. I understand the need for everyones health and safety, and agree, but ABB needs to help both sides of their business. It surprises me they have yet to partner with a travel insurance company, allowing guests the opportunity to make the decision to protect their travel. If I was to book a flight or hotel, I would certainly do so and would not dispute the risk I took booking a non-refundable hotel.

Is anyone out there going through the same issues with these new variants?