Hosts bear the burden of "extenuating circumstance" cancellations

[Dede0]

I've brought this up before, but will (gently) bring it up again.

We just had a guest, who we sympathize with completely, get a 100% day-after-checkin refund from AirBnB because of (completely legitimate) extenuating circumstances. (Massive weather system in the midwest resulted in widespread flight delays and cancellations). We're even the ones who suggested to the distraught guest that they contact AirBnB and use the "extenuating circumstances" reason to ask for a full refund. Because, as I said, we fully understand the guest's unavoidable situation.

That said, we, as the host, end up with $0 for a now-unbookable, lost reservation.

When these situations arise, there are TWO victims -- the guest, who shouldn't be on the hook for the entire original charge, and the host, who likewise shouldn't suffer the loss of the entire original booking (unless they're able to quickly rebook all/most of the lost dates, which is almost always impossible).

What I suggest is that AirBnB come up with some simple formula (for the guest refund) that kicks in a day or two AFTER the original start date. If the host has been able to fill some/all of the original dates, then the guest refund could be based on that. If the host is completely unable to refill the dates, then the guest refund basis would reflect that.

Yeah, there are some complexities here, but some simple rules or guidelines could be worked out. For example, using our latest cancellation (a 3-night booking, which we were completely unable to refill), perhaps the guest might've been charged for 1 night out of 3.  Or a flat fee, perhaps some percentage of the entire booking or of the first night. Something like that. Basically, something better than exactly $0.

My larger point is that even when truly "extenuating circumstances" occur, there are two parties affected, two "victims" -- the guests and the hosts. Neither should bear the entire burden or reap the entire benefit. That seems so simple and so obvious.

[Ron103]

I got hosed by Harvey cancellations as well and then the media screwed me by acting as if Galveston County and Galveston Island were the same.
The island didn't get any flooding to speak of but you would not have known that by the news reports.
I have a moderate cancellation in place and do not forgive cancellations due to weather.
Airbnb will put heavy pressure on hosts to refund money. It is  NOT host friendly in that regard.

[Lynette25]

well said, Dede. I hope AIrBnB look at this issue seriously.

[David2163]

We've just had a guest upon arrival claim that our beachside apartment had an odd smell about it. She admittedly said that she was extremely sensitive to numerous things. We had in preparation for her arrival at her request, removed all cooking items, bedding, basically darn near everything as she would be bringing her own stuff for her month long stay.  We agreed to let her cancel with a full refund and she would not have to pay for the one night stay while she found another place.  We then found that our dates were locked out and could not unlock them.  So we gave a month long rental full refund, allowed the guest to spend a free night. Then could not unlock our dates for a month... BTW we are Superhosts...with nothing but fabulous reviews about the unit and the beach location... Upon contacting the case worker, the speed that they require you to make decisions to accomodate guests is no where near the snails pace that they make decisions to help the host out.  There definately needs better balance  between meeting the needs of the host and the guest.  

[Seattle-Oasis0]

We just had this happen to us for our Kauai properties.  Guest cancelled 1) A week a head of their stay 2) were staying Miles away from any flooding 3) Their stay by the time it came would have been largely uneffected other than possibly access to one hiking trail on the northern most part of the island.  However the "Extenuating Circumstance" was granted.  We aren't hosting in Hanalei.  Our property isn't flooded.  Access isn't even limited.  Why should we face the penalty of a true act of god?

[Eric642]

I agree with the spirit of this suggestion, although I would perhaps recommend a slightly different strategy for compensation. Judging by the low number of "extenuating circumstances" cancellations I've experienced as a host, is guess they are fairly rare. Perhaps hosts could sign up for "extenuating circumstances" insurance for something on the order of 1% of booking revenue. Hosts who choose to do this could have full coverage for themselves and guests and a streamlined process to use it when necessary. Additionally, hosts who do it could receive a prominent badge and search filter to let prospective guests know they have additional protections if staying with such hosts, and both could be paid out in full even if the host can't rebook. The host would be paid at the normal time, and the guest as soon as whatever evidence Airbnb needs is provided. It wouldn't be universal insurance, just for extenuating circumstances.

Just a thought.

[Eugénie1]

To Dede (Austin TX)
I would never travel anywhere without taking appropriate full travel insurance to cover me for flight delays, loss of flights or accommodation, sickness, baggage etc and knowing exactly what I am covered for.  Frankly, anyone who chooses not to take comprehensive travel insurance, which in the big picture it's not expensive, is being foolish and irresponsible.  In Australia some people choose to have their home in the lovely bushland, even though the area is bush fire prone. However, many choose not to take building and contents insurance for fire because it costs money or they think they don't need it because fire won't get to them.  When their homes and everything they have are destroyed by fire they cry 'who's going to help us'. 

Seriously, individuals must take responsibility for their choices.

In my opinion, it is not airbnb hosts like you or me, who should be out of pocket for any cancellations or no shows that falls outside of our cancellation policy specified in our listing. Having said that I'm in Australia and you may have different regulations in USA. 
I suggest Airbnb include in the must offer all guests prior to check in 'full comprehensive travel insurance' with policy document submitted, with the choice for the host to accept or decline if no travel insurance is submitted.

[Dustin25]

You are right there needs to be a middle grounds that can be negotiated because it is unfair to have an unbreakable weekend, because of on for seen events. However it is unfair to the host to just lose out on that reservation. There needs to be money it’s paid for a guarantee refund and if people don’t opt for The insurance should only get a partial refund. That way the money that is generated for people that get the insurance I don’t need it is used to help pay for the situations where this happens on extenuating circumstances.

[Alice-and-Jeff0]

For those of you who agree, you can upvote in Host Voice: 

https://community.withairbnb.com/t5/Host-Voice/Hosts-shouldn-t-bear-the-entire-burden-of-quot-extenu...

Here are the 21 current Host Voice suggestions regarding Extenuating Circumstances: 

https://community.withairbnb.com/t5/forums/searchpage/tab/message?advanced=false&allow_punctuation=f...

https://community.withairbnb.com/t5/Host-Voice/idb-p/host-voice

[Sarah-and-Alex0]

This probably varies based on the host's situation, but we can't afford to deviate from our Moderate cancellation policy, which we use because we can generally get a new booking 5 days out.  We do offer guest's a modified version of OP's suggestion, namely we tell them that if they cancel and we get a new booking, we'll refund them whatever we can.  If we can replace the income, we credit them.  People are generally understanding/appreciative, so thought other hosts might find that useful.  

[Bryce46]

Go an set up the Strict Refund Policy! It prevents this exactly from happening!

[Dede0]

@Bryce46 It's hard to tell whether you're commenting on the original posting or one of the many followups. But, in general, you're pretty much dead wrong in suggesting that the Strict policy takes care of everything. For one thing, all three of the normal cancellation policies include this statement by AirBnB:

"Cancellation policies may be superseded by the Guest Refund Policy, extenuating circumstances, or cancellations by Airbnb for any other reason permitted under the Terms of Service. Please review these exceptions."

In addition, even *if* the Strict policy addressed any of the issues raised in the original posting or subsequent comments, the Strict policy introduces problems of its own (reduced bookings, etc), as some of the other comments pointed out.

[Doug221]

As a new host I dealt with this 3 weeks into my hosting service.  Guest got sick day rental was to begin and couldn't travel.  I'll lose 5 nights (very unlikely will be picked up this late) revenue.  Airbnb needs to offer travelers insurance to guests for these "extenuating circumstances" - and not have to deal with the ambiguity these create (as well as angry hosts).  

[Ryan858]

I'm at the stage of pulling my listing, as the host, we carry all the risk from terrible reviews that don't reflect the price point provided and guests with unbelievable high expectations who don't understand how a low rating affects your rating, which damages your reputation you sent years building.

I have just had a cancellation 3 hours before and Airbnb just messaged me advising I was to cover the cost of the missed flight. As a traveller, I can protect myself against this, as a homeowner, I can't. 

If Airbnb wants to offer this stupid policy, how about they pay for it, they love taking fees from us, why can't they stand up for the homeowner who put their blood, sweat and tears into hosting and stop treating us like lage multi-million dollar business, it's simply not fear, we are not an insurance policy.

I'm so frustrated with Airbnb currently.

Let's hope someone starts a new company to take over to start looking after hosts better, I will be on board 🙂