Mount Agung Bali and AirBnB's Grossly Unfair "Extenuating Circumstances" Policy

[Tom-And-Rene0]

Dear AirBnB,

Today you wrote to all guests with trips booked to Bali (see attached below) and told them that they can cancel their stay in Bali with no penalty, and receive a 100% refund simply by dropping AirBnB a message and letting them know.

I presume this is to be done under AirBnB's grossly unfair and inequitable "Extenuating Circumstances" policy whereby AirBnB gives itself the sole right to allow bookings to be cancelled and take what is due to be paid to the hosts and return it to the guests with no discussion whatsoever with the hosts, and it now seems with no consideration of the actual facts of the situation. 

So what are the facts about the Mount Agung eruption - assuming AirBnB actually cares about facts, which seems very doubtful given AirBnB's decision to already allow all guests to Bali to cancel, but here they are anyway:

1) Yesterday there was a minor eruption at Mount Agung on Bali.  The risk level has not changed and remains at 3, exactly what it was before the eruption, and below the danger level of 4.

2) It has not affected any flights to and from Bali, as the ash cloud is small.  Nor is it expected to as the winds are blowing the ash cloud away from the airport.  You can check the wind direction here: https://www.windfinder.com/#9/-8.7494/115.1614/2017-11-21T03:00Z

3) None of our villas (or almost any other Bali Based AirBnB hosts' villas) are anywhere even close to the danger zone, which is set only to areas within 7.5km of the crater of Mount Agung.  Most properties and tourist attractions used by guests lie at least 80km away.  Our closest property is in Candidasa, which is still more than 25km from Mount Agung, and separated from it by a range of mountains.

4) As of today there has no change in:

- The official travel advice for Australia citizens (http://smartraveller.gov.au/Countries/asia/south-east/pages/indonesia.aspx#)

- The official travel advice offered by the Singaporean government

- The official travel advice offered by the Indonesian government

There has been an update on the UK travel advice, only to say that there is no change in status:

- The official travel advice for UK citizens (https://www.gov.uk/foreign-travel-advice/indonesia)

Indeed there has been no change in the travel advice offered by any country as a result of this minor eruption. 

The only change of any sort that there has been, is that some (not all) travel insurance companies have stopped offering cover for costs caused by Mount Agung for policies which have been issued after 8.05 pm on Tuesday 21 November 2017 (see https://www.finder.com.au/balis-mount-agung-volcano-is-finally-erupting). So all guests that have booked before that date (which of course as of today the 22nd November is every single guest) are still entirely covered by the travel insurance policies, should something occur, however unlikely, that may affect or delay their ability to travel in and out of Bali.

We work extremely to maintain our properties and prepare them for guests.  We incur significant costs in doing this, including in hiring staff, and preparing and maintaining the villas for guests, as well as additional costs before guests arrive, including laundry, cleaning and equipping the property with food and drinks for the guests.  We also spend a lot of time and effort into corresponding with guests, and putting in place all the plans for their stay, including transportation, special requests and special equipment such as pool fences and equipment for small children (which sometimes have to be pre-ordered for the guests stay).  

Why then does AirBnB feel it has a right to unilaterally allow any guest to cancel their booking in Bali, and to take 100% of what has been committed to the hosts and return it to the guests?  We as hosts have done nothing wrong? Our property is available and ready for the guests. We have incurred costs to make it so. The travel advice to Bali has not changed? So why does AirBnB choose to penalise and punish innocent hosts in this way?

No other listings company punishes its hosts in this way as AirBnB does.  Homeaway does not do this.  Tripadvisor/Flipkey does not do this.  Booking.com does not do this.  Some hosts such as us have already suffered enormously from cancellations due to AirBnB's actions as nervous guests, misled by AirBnB's "scaremongering" and given the offer of an easy 100% refund on just the strength of just a short email can cancel their trip, or book elsewhere.

If AirBnB actually allowed hosts to comment first, before issuing a far-reaching and extremely serious "Extenuating Circumstances" decision such as this one, it might actually see that there has been no change in the official position of any government with respect to trips to Bali, and therefore no basis whatsoever for AirBnB to offer a 100% refund, no questions asked, for any guest that has booked a stay to Bali in the coming months - an offer by the way that would never be offered by any travel insurance company under any policy taken out by guests.

The Extenuating Circumstances policy of AirBnB is grossly unfair to hosts.  It essentially means that all hosts on AirBnB are offering free and unlimited travel insurance to all their guests, on terms that are far, far worse than any travel insurance company would ever offer, all while the hosts have zero rights to debate, discuss or to appeal against any claim.

We have now had 3 separate Extenuating Circumstances issues in the past few months from AirBnB, resulting in many cancellations, all nothing to do with us, or our properties.  That AirBnB will unilaterally decide to send all money back to some guests, even after the date guests should have checked in to the property, is now our number one un-insurable risk, and getting increasingly worse.

We have been with AirBnB for 7 years, and it is only in the past year that AirBnB appears to have started to actively, and deliberately target hosts like us with its "Extenuating Circumstances" policy.  It is in our view no coincidence that AirBnB has started making regular use of this unjust and unfair policy, just as AirBnB has become the most powerful and significant player in this market.

For 7 years we have worked well with AirBnB, and we even recommended AirBnB to other hosts. No more. By this and other actions, AirBnB has shown clearly that it does not care about hosts.  That is bad news, both for hosts and indeed for AirBnB, as hosts increasingly see the large risks that they take by listing their properties with the large, insensitive profit-orientated mega-business that AirBnB has become and choose to move their business elsewhere.

On 22 November 2017 at 09:37, Airbnb <urgent@airbnb.com> wrote:

Dear Airbnb Hosts and Guests, As Mount Agung volcano has begun to erupt black smoke, we wanted to pass along some important information that may help you and your loved ones stay safe. Remember to follow the direction of local officials. Your local officials will be the best source of information. The National Disaster Management Authority of Indonesia (BNPB) is updating its website with relevant alerts and advisories for potentially affected areas and linking to the most current information at www.bnpb.go.id and is available to follow on Twitter @BNPB_Indonesia. If you currently have a reservation or have a reservation booked starting this week, please connect with your host/guest as soon as possible. Should you wish to modify or cancel your reservation, visit our FAQ here as a host and here as a guest. If you are currently hosting or have a booking for an Experience starting this week, please connect with your host/guest as soon as possible. You can find their contact information in your reservation confirmation email or within the app. Should you wish to cancel your reservation, email experiences@airbnb.com and a dedicated agent will help you process the cancellation. Please stay safe, The Airbnb Team

Sent with ♥ from Airbnb HQ  888 Brannan Street, San Francisco, CA 94110 Unsubscribe

[Amy38]

Outrageous...but on the other hand, how are people going to cancel their airline reservations with no traffic interruption?  Abnb is run by 20 year olds...not the most savy people around.

i wouldnt get too worried.  If the airport shuts down, then there are extenuating circumstances.

[David126]

Duplicate

[David126]

Wonder if Travel Insurers are paying for cancellations.

[Cormac0]

@Tom And Rene

It's as simple as this, a contract exists between Guest and Airbnb and presumably the liabilities that go with it, while only an agreement exist between Guest and Host to provide accommodation, where the liabilities are limited.

It's the usual AirBnb smoke and mirrors.

Regards

Cormac

The Explorer's Club Krakow III

[Natalie218]

I agree this is outrageous. It is up to guests to have the appropriate insurance cover and to have their costs reimbursed from the insurance company in the event of travel interruption - not deducted from the pockets of the hosts. Any insured guests would have been able to make a claim.  Anyone that booked travel after any sign of a potential eruption in Bali would not be able to get insurance cover as the companies would consider the event as a pre-known risk.

Air BnB should start selling guests travel insurance and offer the facility for hosts to view the status of their guests - insured or not - and this would be a factor in selecting guests. They need to start protecting their hosts as well as they protect their guests.

[Simon237]

You might need to do some fact checking of your 'facts'.

1) The risk level is at its highest http://www.newshub.co.nz/home/world/2017/11/evacuations-as-bali-volcano-alert-rises-to-highest-level...

2) It has definitely affected flights, with both Jetstar and Virgin cancelling all flights to Bali. https://www.brisbanetimes.com.au/business/companies/jetstar-virgin-cancel-flights-to-and-from-bali-a...

3) The radius is 10 km (see newshub article)

The fact is that natural disasters happen, and some times guests are unable to complete their visits as planned. That's just life as a host. New Zealand (where I host) is also subject to natural disasters such as slips, snow, flooding and earthquakes, and I would have no hesistation in giving a guest a full refund if such an event happened that affected their ability to visit or stay at my place.

[Satori0]

The point she made, and I make, is our properties are far from the Volcano Simon, no risk, open and safe for bussiness as normal. And the aiport operating normally, yet the guests recieved 100% last minute refund. That's like a Taupo guest cancelling because they were frightened by a Christchurch earthquake on the TV news. 

[Matthew285]

So apparently they have closed the main airport in Bali as of Monday, Nov 27, 2017.

https://www.nbcnews.com/news/world/volcano-eruption-shuts-bali-airport-stranding-tens-thousands-tour...

[Ivary0]

It's up to the guest to have appropriate travel insurance against such cases. If the guest has decided to not to get any insurance then they accept the risks.

Of courise IF the local government says that it's not suggested to travel to the destination or there is a big threat such as imminent tsunami or tornado which makes it impossible to stay at the accommodation (a volcano 65km away is not a threat). In such case the host may agree to 50% refund.

[Simon237]

The fact is that the airport has now been closed for 48 hours. That by definition is an 'Extenuating Circumstances' that is well beyond the control of the guests, and IMO, valid for a full refund regardless of the host's cancellation policy.

[Margaretha3]

Yes the airport is closed... but if my guest cancel a booking two days from now and the airport is open (and they cancelled) do we get our cancellation policy reinstated (as they can travel). I honestly think not as this thing is going to go around in circles for a while. Yet when does the responsibilty for insurance companies step in and not the people being effect on the ground in Bali?

[Ivary0]

Simon, you say the volcano is beyond the guest's control but I'd like to point out it's also beyond the host's control as well. If we don't consider travel insurance, then it's fair that the guest gets 50% refund. In this case the host loses half and the guest loses half. Neither is to blame.

For any unxpected situations such as a volcanic eruption, there is travel insurance. I'm not sure why some people travel without insurance. With insurance everybody wins: the host gets paid and the guest gets refunded. That's how it should be.

[Simon237]

Of course it is beyond the hosts control. The point I am trying to make is that AirBNB have a documented Extenuating Circumstances policy, and "Urgent travel restrictions or severe security advisories issued after the time of booking" is one of those. Hosts agreed to these conditions when they signed up, so shouldn't be surprised or complain when AirBNB follow their own policy and offer 100% refund (including service fees) to guests affected by the situtation.

If a guest went to their travel insurer for a refund, I would assume that they would decline the request as the guests can obtain a refund on the EC policy, and thus has suffered no loss.

[Tom-And-Rene0]

Simon, every large faceless corporation hides behind "this is our policy and you signed up to it" nonsense.  That does not make that policy fair, equitable or even in some cases legal.  Also there is a massive difference to the way a policy is worded and how it is actually implemented.

AirBnB chooses to implement its policy as broadly as it is possible to do so, pro-actively contacting guests to offer a 100% refund, even when there has been no change in the formal travel advisory from governments, even while airports are still open and unaffected, even when hosts properties are a long way outside of the area that experts have stated could be affected (all of which mean zero chance of getting a cancellation claim accepted by an insurer).  Its policy also allows guests to cancel with the most minimal of evidence and inconvenience (no forms to fill in, just an email is all that is needed).  

Most guests rebook with AirBnB in another location, so AirBnB often does not even lose their commission, and so it can be seen to be very "generous" to guests (on the back of hosts paying for it all) at negligible cost to itself.  So actually its policy is an effective marketing tool and bizarrely it is in AirBnB's interest to offer cancellation to guests for Extenuating Circumstances.  

This is the basic issue, if a decision costs you nothing, and you gain from it, and there is nothing to stop you doing it, then you actually have an incentive to do it.