Warning about cancellation loophole scam

Pat-and-Dennis0
Level 2
Fallbrook, CA

Warning about cancellation loophole scam

Warning about cancellation loophole scam

 

We had a guest book a holiday weekend about 3 weeks in advance.

 Our cancellation policy is Moderate, meaning:

  1. If cancelled 5 or more days before checkin our cancellation policy refunds 100%
  2. If cancelled less than 5 days before checkin, the refund is only 50% of the last day

So 4 days before cancellation, he sent a message that they had to cancel and he wanted a full refund.
But he didn't cancel at this point. We answered that he had to go through Airbnb for cancellation & we couldn't cancel for him.


Now 3 days before checkin, he still hasn't cancelled, but instead requested a 'rescheduling' for 2 weeks later.
Apparently Airbnb lets guests off the hook for cancelled bookings if they 'reschedule'.

 

Now here is the loophole & scam.
If we accept the rescheduling, he gets a full refund for the original booking because he's just rescheduling, not cancelling. Then in a week, he could cancel the new booking (more than 5 days prior to checkin) and receive a full refund for it.

And the scam is this - bottom line, he pays nothing and we're out 2 weekends of income because he knows how to play the system.

 

And if we decline the rescheduling, he can continue to request it again and again (he did) to keep us on the hook to decline his request or get dinged for slow response. We actually went around like this a few times until we figured out what he was doing. At this point, we didn't want this guest under any circumstances and there was a worry that since he didn't cancel, he might show up anyway and do something for revenge.

 

I finally called Airbnb and explained the situation. The agent helped solve the issue, but didn't really get the problem. She kept explaining that everything was up to the host. I don't know what happens if the guest claims 'extenuating circumstances' and Airbnb accepts their proof. She made it sound like we didn't have to accept the ruling. Does anyone know how this works? We ended up offering a larger refund if the guest cancelled that day. He did. Blackmail.

 

Until Airbnb fixes this loophole, hosts are basically forced to refund more money to unethical and savy guests who cancel. The cancellation policies we confidently attach to our listings are powerless agains a guest who knows his way around Airbnb.

 

Tags: cancellation, refund, hosting, scam

 

 

 

42 Replies 42

Yes this is terrible when you spend thousands of dollars flying somewhere with your family and cannot recover from this situation with hotel rooms.

Pete123
Level 2
Atlanta, GA

My complaint is that the 1st landing page on the website states Free Cancellation next to the property rating and whether or not the host is a Superhost. When I read Free Cancellation, I let down my guard. So I click and move to the 2nd landing page on the website where I review photos, bedroom count, bathroom count, amenities. I spend a lot of time and energy here, picturing whether or not the property will work for me. By the time I click and move on to the 3rd landing page, where the actual cancellation policy is listed, I'm not paying attention any longer. I still have Free Cancellation circulating in my mind and feel that I can place a hold on the property, like a hotel. I didn't ever notice the "fine print".

 

I just wish the 1st landing page said what the actual policy was next to each property. This home is Strict. This one is Moderate. This one is Flexible. That would reduce clicks on those with Moderate and Strict, but that's not my problem.

 

The whole thing stinks, is unethical, bait-and-switch and will eventually be deemed illegal. I'm sure of this. There's also a big class action lawsuit just sitting out there for those so inclined.

 

I loathe AirBnB and will not be using it ever again.

How can I find out more about this class action law suit?  I can add to it....

Nicole1282
Level 2
Asheville, NC

Does anyone know if there are any pending lawsuits against Airbnb for the misrepresentation of their cancellation policies? Has anyone here been duped by Airbnb's cancellation policy?

I would be interested as well - I have a recent experience of canceling within 20 minutes of booking, not realizing there were differences in Cancellation policies by listing.  I booked for a date 1.5 weeks out, on a strict cancellation policy - meaning as soon as I booked I had no way of canceling for a full refund ever, because they’re policy is 48 hours AND 2 weeks prior to the stay.  

@Linda1663 All listings have their cancellation policy clearly stated in the listing. Guests need to read ALL the listing information, scrolling all the way down the page and clicking on "Read more" where applicable.

Hosts are actually annoyed that Airbnb has stuck our house rules and cancellation policies way down at the bottom of the page, under the reviews and the map because many guests fail to scroll down that far. But we can't do anything about the format that Airbnb chooses to display.

 

I have a screenshot of the posting.  It’s says: Strict Cancellation Policy: FREE Cancellation within 48 hours.

 

That’s it.  I am not an avid Airbnb user - I have booked twice and I usually do not cancel. I have unusual circumstances that unfortunately doesn’t fall under airbnb’s Policies of “exigency conditions” or whatever they’re called.  While I understand the onus is on me to review the policy, Airbnb clearly knows what they are doing to fool customers into a false sense of security.  

 

I don’t blame the host for not being transparent in their listing - yes that is Airbnb’s unethical behavior.  I do blame the host for being unreasonable.  I contacted her within a minute of her accepting the booking and am being charged over $600 for what exactly?  

 

As with Pete above, I saw Superhost and FREE Cancellation and let down my guard.  I had no idea that different listings could have different cancellation policies - it’s not like it’s openly advertised ANYWHERE on Airbnb! 

 

I used to love Airbnb but I will never again book ANY of their listings. 

@Sarah977 additionally, if you, as a host, are so concerned about where the house rules and cancellation policies are, might I suggest adding it to your listing description way at the top with a big WARNING?  Unless Airbnb strictly forbids you from doing this, which again - unethical. 

A lawsuit is in order and it will win 100% this is a scam and I have seen companies pay dearly for this kind of practice 

the way they write the Cx policy is extremely vague and confusing , as I said it’s a scam and a lawsuit is in order ! Hosts need to stop pretending how FAIR this is knowing full well they make money by fooling


@Sarah977 wrote:

@Linda1663 All listings have their cancellation policy clearly stated in the listing. Guests need to read ALL the listing information, scrolling all the way down the page and clicking on "Read more" where applicable.

Hosts are actually annoyed that Airbnb has stuck our house rules and cancellation policies way down at the bottom of the page, under the reviews and the map because many guests fail to scroll down that far. But we can't do anything about the format that Airbnb chooses to display.

 



people 

@Gena48  Airbnb's wording is vague and confusing in general, not just as regards the cancellation policies. It's actually something that drives hosts crazy as well-half the time we can't figure out exactly what they are saying. I don't know if it's purposely vague or if they just have people writing this stuff whose brains don't work like normal people's do.

But as far as the cancellation policies go, they are pretty clear if you take the time to really read them.

Hosts intentions are not to make money by fooling guests- but we can't just have guests booking, having their reservations block the calendar for sometimes up to months, only to decide to cancel too close to the dates to be able to get the place rebooked. Airbnbs aren't hotels, where another guest will probably walk in the door within a few hours looking for a room.

Personally, I've only once been paid out according to my moderate policy- that guest had something personal going on in her life that was consuming her and never answered any of my messages, and Airbnb had to contact her, which even they had a hard time doing. She ended up cancelling 2 days before her booking date, so I got paid 50% according to my policy. My listing is just a single room for 1 guest, so it's not like she ended up losing hundreds or thousands of dollars, and the 50% I did get really only paid for the time I had spent dealing with her reservation- the initial messaging at time of booking, and the several messages and emails I had sent with no response, plus I had already spent time getting the room cleaned, etc. She wasn't mad- quite the opposite, she sent me a very apologetic message, telling me why she hadn't been answering and why she had to cancel. And it was too late to rebook the dates, so it's certainly not like I was double-dipping.

Russell49
Level 10
Katoomba, Australia

Guests need to view these terms as legal contracts. If you are forking over your hard earned money-know what you are getting as well as what you are entitled to. Hotels have strict cancellation policies too. Just because guests can feel "burned" doesn't mean they need to inconvenience the hosts who reserve their days.

Correction hotels have A CLEAR cancellation policy where you can cancel within 72 hours for full refund, what Airbnb does is illegal 

Not true. Cancellation varies upon properties. Know what you are booking and what the individual policy entitles you to. Blame yourself if this situation doesn't go your way because you "couldn't be bothered" reading what policy you are signing up for.

Stop twisting the topic, you said hotels: I told you the very clear policy of hotels!

Now you are back to defend   unclear , vague deliberately misleading policies of Airbnb ! If it’s 48 hours cancellation window it should be clearly stated so, without the addition of some preposterous  ”And or 14 days crap” !  

People can book 6 months in advance and Cx 5 mo in advance and still lose money! This is A SCAM and nothing short of it!