Guest cancellations due to weather: who pays the refund?

[Geoff22]

we have had snow in Seattle for the past week. I had one guest cancel before the snow hit, within the 5 day "moderate cancellation" policy timeframe, and since they were booked for just 1 night, they got nothing back.  Due to the snow, I could not re-book the room.  

Fast forward to today, we still have snow but it's getting better.  I have nobody now but a guest booked for Thursday (today is Monday) and we had discussed him cancelling a few days ago.  I recommended he make a go/nogo decision before the 5 day window, but he started getting very specific so I told him to contact airbnb to get the truth.

Today I messaged him and said things were getting better, and he said he had called airbnb and they said he can cancel ANY time due to 'extreme weather.'

Now I wonder:  if he cancels within the 5 day window, and gets his money back, who will pay him?  Me?  Or airbnb?  And if it's ME, I have two more questions:

1. Where specifically is the written policy that gives guests the right to cancel and the host pays based on "extreme weather"?

2. Who is the judge of "extreme weather"?   Can a guest claim extreme weather because of rain?  How about 5" of rain?  A hurricane ?  What distance from the eye of the hurricane?  You see where I'm going with this.   

[Emiel1]

@Geoff22,

If the guest cancels and applies at Airbnb for  "extenuating circumstances" , Airbnb will investigate the claim, and if granted guest can have refund  (and ao you do not get your money).

Please read this for conditions (includes also link to a list of ext. circumstances):

https://www.airbnb.com/help/article/1339/how-do-i-file-an-extenuating-circumstances-claim

Best regards,

Emiel

[Christine615]

This is a cost of doing business. Some extenuating circumstances are unavoidable. We had a returning guest who cancelled because the forecast was for an ice storm between her house and mine.  She asked if she could move to the next weekend but I already had guest booked that weekend. So she canceled and only got a percentage of her money back because of the cancellation policy. So I called Airbnb and asked them to refund 100% of her money. I don’t want people driving in bad weather conditions.  Now she contacts me first when she’s in town.

Weather is no joke. But if it’s another extenuating circumstance, demand Airbnb document it, and make sure they check to see if the guest is trying to check in somewhere else.

If we cancel on a guest we are not allowed to book our space. So if a guest cancels on us, they should  not be allowed to book another Airbnb during that same time frame.

[Emilia42]

The guest will claim extenuating circumstances. Airbnb will Google your area and see that there is some sort of weather happening and issue a refund (at your expense.) I read on here once… a host was told that for widespread emergencies, the folks at Airbnb draw a big circle around the affected area and if you fall within that circle (whether you are affected or not) you guest can cancel at will for a full refund.

I actually don’t mind refunding for weather when the guest cancels, particularly snowstorms in my area. It is one less headache I have to worry about... Constantly making sure the walkway and driveway is shoveled, worrying about or experiencing power outages, difficulties if the guest can’t get out/leave and another guest is coming in, the guest having a negative experience because they can’t leave the apartment, etc.

But, then again, if the forecast only called for a dusting and someone wanted to cancel, I would be a little annoyed.

[Ben551]

@Geoff22 what everyone says about extenuating circumstances and refunds is spot on. But, it really gets my goat every time I read this...

@Emilia42@Christine615@Emiel1  what do you guys think about the fairness of this? It really winds me up that hosts are being used as insurance companies. I don’t quite understand why guests are not required to get insurance for their bookings.  No major hotel or airline would operate this way and refund guests. When I travel I’m expected to have travel insurance. If there is a snow storm, the insurance company pays... not the hotel or airline...

Also, this policy is opening Airbnb up to abuse and Fraud. How does Airbnb know whether guests aren’t claiming a refund on their travel insurance AND claiming a refund from hosts on Airbnb? Hell, if I were a guest I could run about doubling my money for every booking.

Interested in your views on this...

[Christine615]

An insurance company isn't going to pay out without checking to see if Airbnb paid first. It just doesn't work that way.

I do think that Airbnb needs to have a stronger policy in place to prevent guests from claiming bogus reasons as "extenuating" circumstances. It is ripe for abuse. But I think severe weather is an exception and in the long run builds up good will.

[Ben551]

I think that depends on the country @Christine615 - in NZ and Australia there have been recent financial market authority reviews of the whole banking and insurance system. In summary: it’s not great and there are a lot of problems. I’m not confident that the NZ insurance market even have the systems and processes to combat basic insurance fraud, let alone this potential new kind...

[Lisa723]

@Geoff22 I agree with @Christine615... our vacation rentals on the Olympic Peninsula were/are also affected by this storm, with over a foot of snow. We contacted our guests and offered to reschedule or refund them. Two parties rescheduled and three parties chose to come anyway. One of these got two cars stuck in our driveway and had to be towed out and find a hotel on short notice. Another group is still waiting to make up their minds about this coming weekend.

[Christine615 · Accepted solution]

I don't know if they still do it, but a few years ago 3 airports were closed due to weather. I had economy non-refundable tickets for myself and my daughter. Southwest contacted us independently and said there was a rule we could use within a certain time limit if we cancelled our trip. Normally the money would just go on hold for another flight. But under this federal rule, we got a complete refund of the unused tickets:

No other airline has done that. For those in the US - here's the information:

https://www.transportation.gov/individuals/aviation-consumer-protection/flight-delays-cancellations

In the Airbnb system, unless you think the guest is gaming the system, I would offer a refund if the problem is bad weather and build up karma points if they can 't reschedule. 

[Margaret112]

I just had a guest cancel a weekend stay at noon today;  the day they were to check in. I'd already sent them several weather warnings earlier in the week, asking that they cancel and I'd refund whatever payout was sent to me(I have a moderate policy) so that I wasn't stressed out about them not making it to Lake Tahoe. I've already had the last two weekends cancel due to extreme weather and road closings. I had to have Airbnb intervene in last weekend's booking because the guest refused to cancel and I should have done that this weekend as well, but the guest insisted they were coming.  2 days agoI sent them another suggestion with the NOAA weather report stating that travel to Tahoe was not advised, and asking them to reconsider. No response. Then last night at 10pm they asked to change to a different weekend, after I'd already paid to have the driveway plowed for them, purchased all the food for their breakfasts and snacks, cleaned their three rooms. So I said no, because everything was all ready for them and I didn't want them to switch to a different weekend two weeks away for half the price, and the food would be wasted. Of course they cancelled at noon today, claiming that they couldn't get to Tahoe because I-80 was closed. Of course it was closed- I told them this would happen because there was a big storm coming. And they waited until today, deliberately so that they could claim a full refund without penalty due to "extenuating circumstances".  Meanwhile, I'd already offered them a full refund earlier in the week, asking them to be considerate  and not cancel on me at the last minute. Now they sent an email stating that they are going to claim a full refund, instead of asking me if I would issue a refund. So rude. I re-read Airbnb's policy and there does appear to be a loophole. It states,"We may be able to give you a refund or waive the penalties if you have to cancel because of an unexpected circumstance that’s out of your control".   So, the winter storm we're currently in the middle of was NOT an unexpected circumstance. We all knew it was coming and we expected that there would be road closures. So, I believe they shouldn't be able to get a full refund because they were just working the Airbnb system, at my expense. It doesn't seem fair that guests can wait it out until the road closes and then when I've spent money and prepared everything, they still cancel the day of? Does anyone have any advice for me? There was an alternative route, but they didn't take it. 

[Norman31]

I have a guest who was due to arrive today.  I granted her early check in at 2pm instead of 4pm.  Last night I told her that there was a power outage, but it should be switched on by 4pm and, just in case, I'd bought more flashlights and other items.  She's just cancelled (despite my policy being strict) saying she can't come because there's no power.  But there will be power from the time her stay is meant to commence.  This AirBnB policy is grossly unfair.  This is the fourth cancellation I've had this year and it's seriously affecting my revenue - and all of them would have been covered if the guests had taken out travel insurance.

[Jiakang0]

Hi,

Things are different now! 

I happened to be in a similar case this past Christmas Holiday. I booked 3 nights in Lake Tahoe. Unlike you though, the host didn't warned us in advance about he inclement weather coming and we didn't realize the snowstorm is that bad. My gf and I and two other friends from FL drove from San Jose to Lake Tahoe on Sunday, but we were told I80 was closed and were forced to turn back where was only 40mi away from the destination. We then tried Hwy 50 but closed again in halfway. We stuck in traffic for 7-8hrs and the news said the roads were closed until at least Tue morning. 

Tbh, i didn't want to cancel the trip but my friends are flying back home after the trip and I rly don't have a clear schedule for the new year, so i asked for a full refund first and then said I was willing to pay for one night to cancel it. The host said NO because he/she couldn't afford the holiday loss. And, there's no more extenuating circumstance covering for extreme weather. 

I wish my host were like you, kindly warning us in advance and we might change plan according, instead of taking advantage from the updated airbnb policy. I don't totally agree with this policy and the platform should think harder to come up a better policy to serve both sides. But hey, the host at least gives me a full year to reschedule. I guess I get some thing worth my money.

[Brenda328]

I have a cabin in an area that is a popular skiing and snowmobiling destination.  To ski or snowmobile you must have . . . SNOW!!!  I had a guest that booked several months ago for Thanksgiving (a very popular holiday date) with a strict cancellation policy.  There were several areas where snow was forecast over the holiday.  During that time only light snow was forecast in the area where my cabin is located.  Several days before their scheduled arrival the guest began making various requests for early check-in and other accommodations as members of their groups were coming from different locations where snow was forecast.  I agreed to accommodate all of their requests.

A day or so prior to their scheduled arrival the guest indicated that since some people in their group lived in areas where snow was forecast the entire group probably would not come.   The guest did not cancel with Airbnb and the group did not check-in to the cabin as scheduled.  It did not snow at all on Wednesday when they were scheduled to arrive, or on Thursday.  It began snowing late Friday evening.  Their original check-out time was Saturday morning.  On Saturday afternoon, several hours after their scheduled check-out time, they contacted Airbnb and 'cancelled' the reservation that was already completely in the past.  Airbnb cancelled their reservation and contacted me to let me know they would be recapturing the entire amount of the reservation (which was already paid out to me after their scheduled arrival date four days ago) and refunding it to the guest.

I do not believe this falls within the extenuating circumstances policy which states:

'If you’ve confirmed your circumstance meets the requirements above, first cancel your reservation and then contact us to file a claim. We’ll walk you through the next steps, which will include submitting any required documentation and waiting for our team to review your case. Claims must be submitted within 14 days of cancellation.'

How do you cancel a reservation which is in the past?  They cancelled hours after their scheduled stay had ended.  That is no longer a cancellation!  This also meant that I was completely unable to re-book these dates.

The customer service agent who made the decision to refund them in full refused to tell me where he was located but did admit that he was outside of the United States and had no knowledge of snow or winter weather.  He also could not provide any response as to why the guest was allowed to cancel after the entire reservation period was in the past.

I am now faced with the prospect not allowing any Airbnb guests to book this cabin during the winter season (it is also a popular summer destination).  Airbnb provided about 40% of my bookings in the past.  I also get bookings from referrals and other booking sites and those sites do not allow guests to arbitrarily cancel under an 'extenuating circumstances policy'.  For cabins in ski areas it is not uncommon for it to snow almost every day during the winter and I cannot have Airbnb guests booking prime dates and then cancelling with no recourse at any time - including after their scheduled stay!  Especially when there are other guests who are eager to book dates when it is snowing because of the great skiing and snowmobiling.

All hosts that own ski and winter recreation properties need to be aware that Airbnb's policy is now that guests can cancel at any time (including after their scheduled stay) because 'it snows at ski resorts during the winter' and the host will bear the full cost of the cancellation regardless of the cancellation policy the host has selected.