Spot the flaw in the cancellation penalty system....

Louise0
Level 10
New South Wales, Australia

Spot the flaw in the cancellation penalty system....

Note, these are hypotheticals, but based on actual events ......

 

A guest books on September 7 using Instant Book for September 12 - 15, a booking with a value of $1,210.  The booking is for 6 adult guests.  

 

My rules include no pets, no events, a max of 9 guests and that all humans - regardless of age - are to be included in guest numbers at the time of booking and that they are to be charged the accommodation fee.  I have a Strict cancellation policy.

 

On September 11 the guest finally responds to my booking message and informs me that they're having a family reunion and will be holding a BBQ dinner on my pool terrace for 16 people.  They also mention that the group staying consists of 6 adults, 4 toddlers and a labradoodle.  So they've broken 4 house rules - pets, parties, max guest numbers and haven't included all guests on the booking.  

I then ring Airbnb to get the booking cancelled  because of rule breaches. (I have to do it via phone because it's 24 hours prior and therefore I can't just tick that box to cancel). The booking due to start the next day is cancelled.  I am left $1,210 out of pocket, the guest gets off with no penalty.

That's bad enough, but what if these are particularly smart and devious guests....

A slightly different scenario.  3 couples get together on a Saturday night and over a boozy dinner and, realising that they've all got a few days free in the coming week, decide on the spur of the moment to take a mini-break in Sydney.    They get on the app and book my place - 6 guests, 3 days starting on Monday at a cost of $1,210.    By Sunday afternoon they've sobered up and decided it isn't such a great idea after all.  Realising it's too late to get any of their fee refunded, they come up with a cunning plan.  They'll get me to cancel the booking.

 

They send a message mentioning their plans to throw a party.  They also inquire about the availability of extra beds for their 18 month old triplets and reassure me that their Irish Wolfhound is super well-behaved.  So guess what, I ring Airbnb, the booking is cancelled, I'm $1,210 out of pocket and the guest gets off with no penalty.

 

Yes, this does seem a pretty extreme and far-fetched scenario, but it's one I recently overheard a group of 30-somethings discussing a few days ago as they tossed around ideas about how to get out of an Airbnb booking without being penalised.  Yep, the worst has happened, and guests are getting more savvy and smarter about how to game the ABB cancellation policy.  

It also shows how manifestly unfair ABB's application of the cancellation policy is.   Guests who book with no intention of abiding by the rules should be made to wear the cancellation penalty or at the very least a substantial portion of it.  Any forced cancellation by the host because of a rule breach should be treated exactly the same way as if the guest cancelled, particularly if it happens during their stay.

12 Replies 12
Kimberly54
Level 10
San Diego, CA

@Louise0,

 

I only read a few paras down...

 

You can not let your house get out of your control, and calling AirBnB (or 911) will not solve anything. 

 

Be safe!

Kim

 

 

Kim
Lawrene0
Level 10
Florence, Canada

They may think it will work, @Louise0, but I am (pollyanna-ishly) wondering whether there is a flaw in the cunning plan itself, in that they get only three penalty-free cancellations, and don't those cancellations that happen because of hypothetical toddlers and wolfhounds in fact go on their record? Do you know for sure they do not? If they try it once, maybe, but after a few times wouldn't their profile be at risk? 

Maybe not. Hopefully if the place is available to them last-minute and the cancellation happens, there will be someone else to book last-minute. And you certainly don't want the cunning lot, if they are willing to play those sorts of tricks. 

Once upon a time, a person could just create a new profile, but I think that is harder than it used to be. I had a guest try it, and it didn't work, which I found heartening. So that cannot be part of their happy ending. 

Anyway, thanks for bringing this up. It is certainly good to know what they are saying out there!

Louise0
Level 10
New South Wales, Australia

@Lawrene0  I think you've missed my point.  Whether the guest gets "three penalty-free cancellations" or 3,000 is irrelevant.  It's not the guest who is cancelling.  This is counted as a host cancellation, even though the host has requested the cancellation because there's a clear and egregious breach of the rules.  The guest will suffer no penalty nor even a black mark against their name.

 

David126
Level 10
Como, CO

Remind the Guests of your house rules and that they will be enforced, do not cancel.

David

Agreed

David-and-Fiona0
Level 10
Panglao, Philippines

The conspiracy theory is moot if you followed the proper procedure. 

  1. Inform guest that they intend to violate your clear house rules and tell them to cancel the booking (standard cancelation terms apply)
  2. Contact airbnb through twitter and tell them of your issue and what you communicated to the guest
  3. If the guest doesn’t cancel to bad. Don’t let them onto the property as you have flagged it with airbnb
  4. Airbnb will have your back if you follow protocols

Sorry this happened to you (hypothetically) 

 

Ciao


D

 

Marzena4
Level 10
Kraków, Poland

@Louise0 @David126 @Lawrene0 @David-and-Fiona0 @Kimberly54

Maybe it's time to make a claim to airbnb to change their cancellation policy in the cases when guests have not met the requirements or simply are on a mission to break the house rules? Whenever there is a hole in the system, it will be exploited sooner or later. That's why tax havens exist.

// "The only person you can trust is yourself"
Kelly149
Level 10
Austin, TX

@Louise0 this is not hypothetical... if you go back and find the thread from Farah from a couple months ago where a guest was in residence, and refusing to honor very clear rules, ABB allowed Farah to remove the guest but paid for NONE of the rest of the guest's reservation. The lesson learned from that whole experience is that yes, you can remove a rule breaker (before or during their reservation) but you WILL NOT BE PAID.

As @David126 often reminds all of us, the ABB cancellation policies are fairly useless. If a guest wants out, there will be a way out.

Cathy172
Level 10
Dennis, MA

@Louise0@Kelly149@Marzena4@David-and-Fiona0@David126 I know that if a host cancels it is branded into their review history. Do guests who cancel have it on their record as well?

@Cathy172 I have never seen a guest profile that showed any cancellations. This would be a GREAT idea. And I think I've even seen it proposed in Host Voice. 

Btw, if a host cancels bc of guests breaking a rule, it does not count against the host. It's more like the res never existed. 

@Cathy172 Maybe in Airbnb's database... I doubt their coders would waste time deleting it. Of course Airbnb will support guests, not hosts. After all they do not discriminate. So it seems like the only way we as hosts can mind ourselves is to present our guests with some questions like some hosts here said they do.

// "The only person you can trust is yourself"
Fred13
Level 10
Placencia, Belize

I think it is best to look at the inquiries from Airbnb (or any other booking agency) as 'leads', the rest is up to you as to who gets to stay.

It makes sense that hosts do not get paid if terminate a guest simply because they 'broke' the House Rules, which could mean anything, there is also the matter of prove and interpretation. That is a quagmire Airbnb will wisely never enter.