Guest cancelled the trip and ask for full refund

Chadanut0
Level 2
New York, NY

Guest cancelled the trip and ask for full refund

Hi,
I'm having a hard decision. A group of guests have booked a room awhile ago and they cancelled it because one of the traveler on the trip cancelled them so they cancelled me and ask if they could get the full refund. I set the strict policy. What should I do, should I give them back what they ask? I just worry about the money still appear on my tax form and I have to pay tax from it even if I give them back. Help me please..
7 Replies 7
Marit-Anne0
Level 10
Bergen, Norway

There is no reason why you should refund the full amount.  Ask them to cancel through the site and they will be refunded according to contract and your cancellation policy.  

If you want to be very nice - you could offer refund if you are able to relet. 

Thank you for your comment. They did through the site before sending me a request through the resolution center asking for the full refund.
I feel like they could have just asked me before doing anything.

@Chadanut0

Be happy that they cancelled through the site and freed up your dates.  Now you may be able to relet.  Except asking for a full refund, they did the correct thing.

@Marit-Anne0

Thank you so much again 🙂

I'm a seasoned traveler and I know for a fact that most travel related things like flights and attractions and hotels do not offer full refunds unless they are being managed through some of the newer, less reputable booking sites that offer deep discounts. I've had to change plans and lose my money on several occasions. That's just the nature of the industry. 

 

Generally speaking, I don't return fees. The fact is that most credit cards come with travel insurance and so I just assume the person cancelling can go to them for a refund. The only reason they are asking me is because their reason for cancelling is not likely to be covered by their insurance. If that's so it's because it's not for a good enough reason.

 

When I had a provision for booking months in advance, as in over six months, and a guest cancelled with a huge amount of lead time, then I would do the refund....if only because I knew I could rebook and the guests who asked were especially insistent. I did it to avoid the hassle.

 

On the other hand, I have been told, by cancelling guests, that they feel I have the time to rebook. They may be right, but the fact is I may not be able to book at the same price. This is especially true the closer the cancellation is to the dates booked.

 

I do think that there is something of an attitude that small business people are more amenable to refunds. However, that's wrong. We don't have access to the same economies of scale.

Dave-and-Deb0
Level 10
Edmonton, Canada

Ditto @Marit-Anne0!  In terms of the tax implications, if you refund them, it will not show up that you got paid and if you do not refund them, then you would pay tax on that as you received money.

 

David

Superhost Ambassador ~ Host Club Community Leader ~ Community Expert ~ Experienced Co-Host

@ Dave and Deb.
They already got a half refund back by cancelling it trough the site then they send me a message through the resolution center asking me for a full refund.

Is it still the same case for the tax? Because if I give them back it will actually be taken from my payout.