Refunds for cancellations that get replaced.

Ben3333
Level 2
Raleigh, NC

Refunds for cancellations that get replaced.

My listing is set for moderate cancellation settings. When guests cancel, there is a delayed partial payout that comes after a week or so. My hosting experience has been that before that cancellation payment is received, I have a reliable opportunity to win a replacement booking, but my chances depend on lowering my rates. I feel the rate reduction is necessary to adapt to the the smaller number of potential travellers who are "last-minute" bookings. It is my perception that these travellers are more likely to be "looking for steals". I'm totally fine with that, because I can count on the payout from the cancelled booking to make up for the lost remainder.

I'm not the kind of host who intends to "double dip" when a guest cancels, and is followed by a replacement guest for the same dates. That is, I would like to give at least some portion of a refund (beyond the automated refund of cleaning fees) to the cancelling guest. Today, evey bit of that equation is manual for me, and requires dialogue between myself and the cancelling guest (which could be potential for argument), calculations of difference in payouts between update rates, checking my bank to see if a payout posted.... It is too much work, just to try to keept it real, and keep it honest.

What I would like to see from the AirBnB software development team are some NEW FUNCTIONS for hosts using moderate or higher cancellation settings. These new functions would allow a host to automate refunds for the cancelling guest for whom the reservation is subsequently replaced. These functions should allow hosts to choose some common terms for that refund process. Some hosts would choose to double dip. Some hosts would choose to give a "set floor" refund; e.g. Cancelling travellers only get a 20$ refund per replaced booking date. Some hosts could select a percentage of the final payout amount. e.g. for each replaced booking date, a traveller gets 75% of the daily rate the host received. Some like myself would choose a "rate difference minus surcharge" amount. I want to be compensated for the work of the initial booking, engaging in dialogue about refunds, coordinating a replacement booking, tweaking the AirBnB software for a new rate. These are not free tasks. The "rate difference minus surcharge" would look at the replacement booking amount (regadless of cleaning fee) subtract this from the original cancelled booking amount (regardless of cleaning fee), then calculate the difference. The cancelling guest would receive this amount minus a surcharge specified by the host that compensates them for handling the replacemenbt booking, tweaking rates, engaging in dialogue with the cancelling guest.

10 Replies 10
Helen3
Level 10
Bristol, United Kingdom

It sounds like you must be dealing with a lot of cancellations which are subsequently rebooked.

 

 

however I don't understand why you are doing the liaison around this - just tell the guest to deal with Airbnb regarding cancellations and refunds @Ben3333 


 - that's what you pay your Airbnb fee for.

@Helen3  Because ABB does not deal with this well.  Their system is not equipped to handle a cancellation/refund after the cancellation is complete.  It took me 3 weeks and 3 reps working with ABB to do the same thing that @Ben3333 was trying to do.  The first rep said it couldn't be done, the 2nd so screwed it up that they made a double deduction from me on the next payout and it took the 3rd rep to hit it with a stick (escalate it to a special department) to correct the deduction and refund me my money. 

 

When the guest (at my suggestion) contacted ABB they said the issue was closed and to contact the host for a refund.  

 

The resolution center was no help as the system did not allow me to make the refund since it showed no available dollars to refund once the cancellation closed the event.

 

This is just good customer service, my guest was not expecting the refund, I gave it to her and she booked for the following year for an even longer stay.  

 

It's much easier to just Venmo or send a check to the renter that cancelled then to try and work this situation through ABB.  That is why @Ben3333 is right. ABB should not want us going outside out system to do more for a guest that ABB is willing to do which is why they should have the ability to handle this issue.

 

This goes in the category of "No good deed goes unpunished".

The first few refunds I made, I made blindly and ignorantly.  I may even have lost money, because I didn't realize the cleaning fee was automatically refunded.  Effects such as AirBnBs retention of their fees, which taxes may or may not be applied, and the long delay in payment posting does not help make this any clearer.  The last few times, I simply chose a nominal amount (20 bucks) and sent them that, without complaint.  During COVID, when personnel were stretched thin, I wouldn't've attempted to trouble AirBnB with a paltry sum.  If mine were a palatial rental, things would be different, but mine is only modest and smart.  

 

Refunds for cancellations are work.  I'm asking AirBnB to get that work done on the software side.  Hosts should be able to do the right thing without wrenching their backs. 

 

Cheers, B  😉

 


@Helen3 wrote:

It sounds like you must be dealing with a lot of cancellations which are subsequently rebooked.

 

 

however I don't understand why you are doing the liaison around this - just tell the guest to deal with Airbnb regarding cancellations and refunds @Ben3333 


 - that's what you pay your Airbnb fee for.


Hi Helen.  Thanks for responding.  🙂

 

I get maybe 3 or 4 cancellations per month, and it's not that painful for me.   My view on this subject is that I am also paying an AirBnB fee for dynamic software solutions.  

 

While I'm at it, I would like to suggest to AirBnB that they should allow guests engaged in a Pre-Approval with a host to send the host pictures.  I 've received requests about parking, requests about storage, requests about pets, all of which could be answered much faster if were able to see a picture.

Helen3
Level 10
Bristol, United Kingdom

Why don't you include information about issues such as parking and storage in your listing description- then you can direct guests to it @Ben3333 

 

if you feel it's essential for them to see photos of these amenities before the book - include them in your listing images. 

I need the guest to send me pictures, not the reverse.

Sarah977
Level 10
Sayulita, Mexico

@Jonathan6  "The resolution center was no help as the system did not allow me to make the refund since it showed no available dollars to refund once the cancellation closed the event."

 

I don't understand this. Hosts send refunds to guests all the time through the resolution center for cancelled bookings if they get a replacement booking. The funds just get taken out of future payouts, is my understanding.

 

@Sarah977 Don't know what to tell you it didn't work, ABB couldn't figure it out and as I said took 3 weeks to straighten it out.  Sounds like @Ben3333 ran into the same problem I did.  

 

It would be simple for an ABB rep monitoring the forum to look up my situation and inform the group.  Not making this stuff up.

@Jonathan6  I certainly wasn't thinking you were making it up, I just know that hosts do use the resolution center to refund cancelled guests, so I guess you must be encountering some kind of glitch.

 

Unfortunately no Airbnb reps or higher-ups monitor this forum, at least not visibly so. Sometimes the forum moderators here will try to get CS to deal with an ongoing issue hosts report is being ignored, but they can't do mu0ch beyond that.

Fred13
Level 10
Placencia, Belize

Part of the problem is that a cancelled reservation is no longer in the Reservation List, it shows only on the Upcoming Payouts which doesn't offer the option to refund a guest. Just had this happen yesterday, mother & daughter made a reservation for different dates, the mother cancelled and Airbnb is holding 1/2 her money and has it as a payout to me but in October.