All or nothing cancellation penalties

David3404
Level 2
Steuben, ME

All or nothing cancellation penalties

First time posting...    Superhost with 2 rentals here.     

I like to offer guest friendly options to cancel so I keep my cancellation policy moderate.   For me personally, the strict policy charging 50% or more in cancel fees is a bit cruel.    I understand if it’s a no show or last minute without any excuse.   However in my experience before COVID, cancellations were quite rare.   

At the same time,  cancellations are a minor inconvenience.   I am a bit disappointed that there is only options for a HUGE penalty or nothing at all.      If I understand correctly, Airbnb still retains all booking fees from the transaction.     So for a $1000 booking that cancels, Airbnb still makes $100+ but the host with a guest friendly cancellation policy... ZERO.       I don’t think that $500 or $1000 is fair to the guest.     I’d just like to make a small amount say $20...  heck if that were in place for this COVID era, I could have made a mortgage payment with those funds!!!    

My major disappointment is that the cancellation policy penalties seems to be ALL or NOTHING.   Why can’t there be something that is fair mutually to both guest and host???


7 Replies 7
Sarah977
Level 10
Sayulita, Mexico

@David3404  Like you, I also have a moderate policy and extremely few cancellations, in 3 years of hosting, until the pandemic.

I agree that there should be some charge for a cancellation for hosts with moderate or flexible policies. It would be nice if it were an opt-in feature, as some hosts might not want to charge a guest at all as long as they cancelled far enough ahead that there was ample time to rebook the dates.

I would like to see it as a set fee, rather than a percentage- this acknowledges that the host has already put some time into dealing with messages to the guest, or answering questions the guest may have posed. Even $20 would seem fair to me, and wouldn't be onerous on a guest. The reason I say a set fee, is because if it was a big reservation that was cancelled, if the guest were to be charged, say 15-20% on a $2000 reservation that was booked under a more forgiving cancellation policy, losing that much money would piss them off. And hosts do choose to take a risk when not using a Strict policy.

 

 

One way to make it for equitable to the hosts while invisible to the guest is if Airbnb shared a portion of their booking fee that they already collected with the host after cancellation.     If they did this only with hosts that had moderate or flexible policies.,  the host would at least get something for their effort without any additional charges to the guest.   

@David3404  Well, Airbnb relinquishing a portion of their booking fee is about as likely as hell freezing over. I don't see any reason a small charge of $20 as, lets call it a handling fee, which of course many businesses charge on returns, would have to be made invisible to guests. Airbnb just would have to make it clear on the info about the moderate and flexible policies that there is a standard $20 host handling fee to cover the time hosts spend on every reservation, whether the guest cancels or not. If I spend time answering a guest's questions, and making sure they have read all the listing info and it will be a good fit for them and for me, I shouldn't have to do that for free. Some guests don't require much messaging time, but others ask a lot of questions.

 @David3404 , good questions.   We have 2 suites and a Glamper we rent and been "Most Flexible" since opening (3.5 years) and like Sarah , I've had very few cancellations (<5%) until now (>90%).  The feedback we have received tells me we have received far more bookings I might not have gotten if I hadn't been 100% of hosts fees returned up to 24 hours from check in than those that received a refund.  

 

@Sarah977 , A $20 fee sounds fair and good if said fast enough, unfortunately hosts charging $250 a night will want more and the hundreds of thousands that charge closer to $25 than $250 a night would be getting over half their normal charge payed to them for a cancellation and that wouldn't work either. 

 

The new search filter button for "Flexible" hosts in the possible stays search might help point out the differences we are able to choose from as hosts and encourage booking us over someone that is not.  Adding the 24 hour block between stays should also help encourage people to stay with us even during less than perfect viral times like this.  

 

Turns out, being "Most Flexible" pays the same as being least during a pandemic (who would have thunk that?), we both get nothing either way when someone cancels!  The difference between the two of us is who we are pointing our "Blame-throwers" at- Those with the least Flex seem to be overwhelmingly flaming "Prime Minister Chesky" and all of Airbnb with the wide net approach to fixing the blame.  On the other hand those of us looking for more targeted  ways to fix the problem mostly have always flexed the extra mile for our traveling customers are directing the heat precisely on the root of the cause, Covid 19 (Corona Virus, the invisible enemy within (the one we will be better off without!!!!). Im not trying to be judgmental with that noticement, every host has reasons for why they choose the options they do,  just trying to keep it real and nearly factual when viewed from Bearpath Lodging (my house), ha ha!

 

Once we finally get through and hopefully survive this  pandemic as a world, there will be plenty of time to play Sniper and work on some very irresponsible players, to be sure, they are far higher in the pecking order than Comrade Chesky and Company... Stay well, JR

Seriously Im getting shafted by airbnb. Difficult to sing their praises 2 months into either their negligence or outright fraudulent lies regarding the 250 allocation for 25 percent coverage. . No faith in Airbnb honesty .And as for. compassion  as of today none. The CEOs can feign sadness from their mansions while saying how committed they are to helping us hosts. I imagine they spend $66 on cat food alone. I got $66 for 2000 in cancelations just this go. They've all been a shortchanged eat dirt payout.  Tears and your proclaimed awakening all cold crocodile tears.  Mortgage food family my covid problem what's your probkem Private pool too hot or cold? Let me know I'll send you my $66 maybe  you can use it towards a repair or a bigger better pool. Don't cry in videos be ethical get people allocated funds to survive for fks  sake 

 

 

Im a superhost. Only allowing guests to cancel when they reach out to be. So far being raped on the promised 25 percent. Most recent invoice iwI received was a  $66 payment on about  $2000 worth of cancellated bookings. Airbnb you're a disgrace. It's been 2 monthd and all you offer your "partners" so far is a run around and shameless PR about your "altruism" and more PR about a community that you don't give a **bleep** about.  based on my experience during this most challenging time Airbnb corporate is quareentined in mansions informing hosts  and public  their. sacrifice I haven't seen sacrifice. Unless us hosts are the sacrifice. Btw is the $250 million from the government? If it is and it's being misappropriated or mismanaged It would seem to me nothing short of federal crime

 .  

 

Time passes and truth stands in  my experience. I hope Airbnb you're  distributing federal funds and

all allocations

Above biard. Corporate or not there are those with a federal fiduciary responsibility to hosts. Do yourselves a favor and make good. I for one will not forget an injustice. However an honest errror I can forgive. Let us hope that is the case here the alternative would be simpy sickening. 

@David3404  As a traveler, I've often accepted zero-refund cancellation policies as the trade-off for getting a bargain room or a cheap flight - it was an amount I was willing to do without if my circumstances changed. I don't find it cruel when the terms of the contract I willfully agreed to are upheld. 

 

Very few Airbnb hosts can say they personally have a monopoly on accommodation in their regions. So guests have choices - if they feel one provider's terms are unfair or risky, they can either book a property with more flexibility or choose an insurance plan that offers more cancellation coverage.  Many hosts with Strict policies are willing to offer more leniency at their own discretion, as what's fair compensation for their labor and losses can vary according to the situation. 

 

 

 

Fred13
Level 10
Placencia, Belize

The concept of fairness is nebulae for one person's sense of fairness differs greatly from another. I approach cancellations on a case-by-case basis, despite the fact I am on the very-cut & dry Super Strict 60.  Only 3x (out of 500)  has a guest resorted to getting Airbnb involved without coming to me first, and only once they canceled the reservation & refunded the guest before I heard about it; otherwise the guest & I always work out what is best for both.

One thing I also follow, I never get involved about what Airbnb is charging the guest or whether they keep their booking fees or not.