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
David126
Level 10
Como, CO

I had somebody do that and was convinced it was to move it back to a ful refund, but they actually came so you never know.

 

System is more generous with refunds than it used to be, well to Guests. So maybe that has reduced the number of such enquiries.

 

I assume if that fails then next step would be Extenuating Circumstances, I never assume I can hold a Guest to my Moderate policy, too many ways around it.

David

Well, I just lost $1700.00 of my hard earned money due to strict cancellation policy and I can tell you the host was made aware within 48 hours of our cancellation decision, but it wasn't good enough for Mister Preciousness, so without doing anything for us whatsoever, a long time AirBnB guest like myself with stellar feedback and along history with AirBnB is out $1700.00. 

The system is flawed both ways, and AirBnB in my humble opinion could give a rat's ass less about who loses out. 

What happened in your case that caused you to not get a refund?

 

I thought that if you cancelled within 48 hours of booking you would get your money back...

Louise0
Level 10
New South Wales, Australia

No, it has to be both (a) within 48 hours of booking and (b) more than 14 days prior to check in date.

 

Read your terms and conditions before booking. The amount of guests that pretend to be illiterate is insane. It makes me wonder how they are able to navigate online!!!!


@Russell49 wrote:

Read your terms and conditions before booking. The amount of guests that pretend to be illiterate is insane. It makes me wonder how they are able to navigate online!!!!


Yes read them , and when you do the terms are so vague and mind boggling people do not understand them! It can’t be 48 hour free and 14 days ahead, some cancelled months ahead and get nothing ! That’s pure scam , no wonder people are suing  left and right

If they are vague, you can always ask the host a question. It falls down to the guest. It is the guest that books, not the other way around!

Branka-and-Silvia0
Level 10
Zagreb, Croatia

@Pat-and-Dennis0

I totally understand your frustration and you are 100% right. That is why we have flexible policy which is not a problem for us bc here the average stay is about 2-3 days so even if we lose few days sometimes it is not a big deal. Luckily it doesn't happen often.

I suppose it is a bigger problem at destinations where the season is just few months a year and average stay is longer.

 

Cormac0
Level 10
Kraków, Poland

@Pat-and-Dennis0

 

The obvious answer to this problem is a reschedule can't be cancelled as they must have been sure to sure to reschedule.

regards

cormac

eck III

ECK

 

 

Cormac

Your suggstion makes perfect sense and protects the host. I am sure it will never see the light of day.

@Regina38

 

LOL, my thoughts exactly.

 

Regards

 

Cormac

 

ECK III

ECK VIII

i agree 100%

Victor511
Level 1
Los Angeles, CA

How about the huge loophole the “stric policy has for us the guests? It’s a total scam!

i cancelled my reservation 4months in advance before check in, and got NOTHING BACK!!! Because supposedly is 48 hours before booking or 15 days brfore check in! Wjat about those 4 months that the host hat time to re-rent the place!?? They kept $2380!!! And they still rented the place to someone else. That policy is a money trap and airbnb stands with the host! Of course they want their commision. Who cares about the guests throwing all their holidays money for some strangers at an apartment they never gonna stay, 


@Victor511 wrote:

How about the huge loophole the “stric policy has for us the guests? It’s a total scam!

i cancelled my reservation 4months in advance before check in, and got NOTHING BACK!!! Because supposedly is 48 hours before booking or 15 days brfore check in! Wjat about those 4 months that the host hat time to re-rent the place!?? They kept $2380!!! And they still rented the place to someone else. That policy is a money trap and airbnb stands with the host! Of course they want their commision. Who cares about the guests throwing all their holidays money for some strangers at an apartment they never gonna stay, 


Absolutely they make a ton of money when people fail to understand the loophole , they rent  the place and make double if not triple the $ for the same time period and it’s outrageous ! However hosts can cancellation you same day without paying you a cent for being stranded with broken vacation plans! Don’t use Airbnb !!!