Airbnb really came through on this, but I still hate the Extenuating Circumstances policy.

[Allison2]

Last Monday (3 JUL) I got a call from a guest who was reserved for this Sun-Mon (9-10 JUL) nights. Her husband required emergency surgery over the holiday weekend, affecting their son’s wedding and their ability to stay with me. I told her that she’d need to cancel from her end and then claim extenuating circumstances to receive a full refund. I called customer service to see how this would work and get the ball rolling. John from Airbnb was helpful over the phone and followed up over e-mail with both myself and the guest. They ended up refunding her money in full (this was poorly communicated – the payout just disappeared from my upcoming transactions).

I felt terrible for the guest, of course. It’s not like her family chose when to have a medical emergency. But I was also irritated about this policy; this is exactly what Travel insurance is for! It seems that rather than upsetting guests over non-refundable trips, Airbnb has shifted 100% of the financial loss to hosts. And this was for a guest who I had no doubt was being honest in her dealings. That hasn’t always been the case – this policy is far too easy for unscrupulous people to take advantage of.

Despite offering a discount through Airbnb, and posting the vacancy through Facebook, the dates didn’t fill. So I was pleasantly surprised to see a payout for about one night’s cost, and an e-mail from John telling me that they were able to cover a portion of the cancelled stay.

I’m happy with this particular outcome, but I still think EC is a bad policy. As hosts, we choose our cancellation policies based on our market, personal economics, and degree of risk aversion. I fill up early for our very popular, and SHORT, tourist season, but almost never get re-booked at short notice. I’m painfully aware that an EC cancellation could happen at any time – it was lucky it happened on a $400 reservation and not a $1200 one this time.

If you think Airbnb should offer trip insurance, or allow hosts to determine their own Extenuating Circumstances policy, please show your support here:

https://community.withairbnb.com/t5/Host-Voice/Replace-Extenuating-Circumstances-policy-with-Trip-In...

[David126]

I have an Insurance background, no Insurer would provide cover to the extent of the current Policy.

If ABB provided the cover as a fee then I am sure they would not be so generous.

[Joanna85]

I have a part time job where it's commission-based.  I pay a smaller commission and the company pays for any charge-backs.  I guess that's the same principle as we'd want here.  I think maybe they could do the same thing...collect a fee, if you elect, called Cancel Protect or something silly like that.  I'd pay a buck more every booking to ensure I don't have to pay the total cost if I already have been paid on it.  I realize insurance on stuff like that doesn't make any sense, but if I paid a buck a booking it's more like a shared repay pot that we all use...and if I end up having somoene cancel due to Extenuating Circumstance mabye once or twice a year...I'd have paid it over time with each booking. They could even set a limit on that- like you are covered for two a year totalling xzy...and maybe set it for hosts who have booked a certain number of nights or been hosts for a certain number of months and the max amount could be an average stay or amount they have had in that period of time and say that only Strict Cancel policy could be on or you can't participate...just really tighten it up. I bet Airbnb would actually make money on that but they'd would really have to tighten up giving the money up, though...refunding for cicumstances would have to be provable by the guest and looked at with a microscope...which it isn't like that now because the burden of payback is with us hosts and Airbnb is the ultimate decision maker as to whether or not the guest gets refunded. Sometimes there are actual circumstances and I understand guests need to cancel but there are also hosts who count of this money as income or who get the payout and it's already accounted for so they can't just let their other bookings pay for the cancel.  I agree with David that if Airbnb was spending their own money, it would be a whole different way.

[David126]

Put that dollar from every booking to one side and you have your own fund to call upon that only you control.

[Lizzie]

Thanks for starting this discussion @Allison2. I think you have raised a good point here and it does sound like you understand why there is a extenenuating circumstances policy, but you also don't want to loose out. 

Similarly to @Joanna85's suggestions, do you think there is a way that the policy could be improved so that both guests and hosts are happy?

It would be great to hear more thoughts on this.

Thanks,

Lizzie

[Paul154]

Thanks for the interest Lizzie.

The extenuating circumstances is a generous policy on Airbnb's behalf -  but only with other peoples' money!

More scams and gaming could be prevented if Airbnb shared in the cost (50/50?)

Airbnb are the experts.

Airbnb could demand proof.

Airbnb has guests' history.

Airbnb could choose to offer travel insurance. 

The cost to Airbnb would be minimal. Airbnb could lower the cost by higher placement of the vacated reservation.

As hosts, we don't have the power that Airbnb has. Also, because we only offer one or few rooms,we don't have the flexibility of a hotel to refill a cancellation.

Thanks

[Allison2]

Yes, I understand why there's an extenuating circumstances policy. It's awfully generous of Airbnb to refund the guests' entire non-refundable visit at my expense.

As you'd see from the link to my suggestion in Host Voice, I think this policy could be improved by replacing EC with Trip Insurance.

If that's not possible, hosts should be able to set two cancellation policies: One for regular circumstances and one for extenuating circumstances IF WE CHOOSE TO OFFER IT. And let the market decide.

I'd wager this policy isn't something people consider when booking: When I've told guests that their reason for cancellation qualifies for EC, they're usually very surprised that my strict policy doesn't apply. They were prepared for the terms they booked under.

And I'd much rather fill my calendar with guests who understand that 50% of their booking is non-refundable and that I'll only refund anything extra if the dates re-book. If EC is super important to guests, I'll see bookings drop and need to re-evaluate.

I really enjoy being an Airbnb host, but this and the quality of the verification process are two areas of major concern for me.

So big question: Is Airbnb just a booking platform? Or are they my business partner?

Guests and I paid $3800 in service fees to Air last year and I made about $5k after taxes and expenses. I did most of the work, am the actual owner of the asset we're profiting from, and bear most of the liability. As my business partner, Airbnb was paid handsomely for their work advertising my place and moving money from one pocket to the other. I'd expect my business partner to have some interest in what I'd need to continue the partnership. In this respect, Airbnb is failing me. My partner sees fit to refund money I need to make this venture worthwhile without giving me any say.

If this is just a booking platform, why are they setting my policies for me?

[David126]

Easy to be generous with other peoples money.

[David126]

I am not sure what they see themselves as, I would say booking service with frills.

[Helga0]

I saw the EC policy in action for a host. All bookings cancelled without penalties but they did ask for proof, like a certificate of hospitalisation. --(and send chocolates and flowers)

principally it works both ways, enen if the Terms say, the guest will get it and the host may get it. In case of last minute calls from a host "Hi, I'm in the emergency room, they will confiscate my phone in a minute, please take care of all bookings for the next 3 weeks, airbnb has some work to do and may foot higher hotel bills. 

It's a world wide service and in some countries you can break a rental contract under certain circumstances. Principally, a global policy is probably easier. 

I could imagine an insurance for hosts - how much would you be prepared to pay with all your bookings to get the rare EC cancellation paid? 

What they could improve is communication: tell the host what kind of proof was provided. Not a copy, but that they asked for proof and got an hospital admission certificate or a deatg certificate or whatever. An airline or teavel insurance would ask that too. 

[Helga0]

Btw, @Allison2, when you tell your guest, that EC may apply, add also that they will need proof for it. Like a confirmation of hospital admission for the father. That decourages the scammers. 

[Allison2]

Thanks @Helga0 - I've only brought it up with people who are cancelling for what sound like legitimate reasons. If it sounds fishy I figure they can do their own due dilligence on Airbnb cancellation policies and follow the process without my help.

[David126]

@Allison2

Agree, that is my attitude.

[Joanna105]

I have had a few similar incidents and thats why I changed my cancellation policy to Strict.

I still have guests cancelling on me and give all kinds of stories  (usually medical) and requested full refund, sometimes even added the Airbnb service charge! 

I always decline and said unless they have all formal documents to proof to Airbnb on their side of story, i will not issue an refund.

Rude yes, but its the only way to protect myself. 

[Branka-and-Silvia0]

I agree completely, @Allison