Changes Needed in Cancellation Policy

[David1668]

Many guests cancel reservations beyond the cancellation date for reasons that don't rise to the standards necessary to receive a refund; perhaps their plans change, they become ill but did not take insurance, or they're unhappy with the property. The current cancellation policy allows no recourse.

I owned a 10-room bed and breakfast for 10 years. When guests had to cancel, I would immediately put the room back into inventory and if it rebooked at the same rate, refund them. The idea of taking money from two guests for the same room made me sick. I just couldn't do it. I think AirBnB should require the same of its hosts.

Also, AirBnB doesn't allow for advance cancellations once the reservation has begun. For example, if a guest arrives for a one-month stay but after arrival their plans change and they have to leave for two weeks, if they cancel immediately, the property is not blocked until their departure but becomes immediately available. This greatly reduces the host's opportunities of re-leasing it.

I'm leaving a property midway through a three-week stay and have an understanding host who will block the property on the calendar for the nights between when I cancel and when I leave, and who will refund me if he rebooks it.

This should be standard practice at AirBnB. There is no reason it shouldn't be.

David

[Danielle1294]

I feel the "Strict" cancelation policy should be done away with or be altered. It is unfair for someone to loose half the price of their stay if they cancel a month or more in advance. This is nothing but greediness on any host the chooses this policy. I am a host and would not sleep at night if I did this to someone. I personally have mine set as flexible .... my place is in a small rural area and I have always re-booked the cancellations. So I know these homes in more popular locations have no problem re-booking and are taking someones hard earned money. I just spent an hour consoling my daughter who had booked a trip with friends and she had paid the 50% up front. Something unexpected came up and some couldn't go and she had to cancel, not realizing she would loose $600. She canceled over a month in advance, the house will get re-booked and the host gets a fat bonus. I could see doing this if it were a week ahead or if the host was unable to re-book. Strict cancellation needs to be changed. This is extremely unethical and makes me ashamed to be a part of a business that would allow it. 

[Sarah977]

@Danielle1294  Your daughter was free to choose a listing that didn't have a Strict cancellation policy. And "not knowing" she would lose the 50% is not some excuse for sympathy. The policy is there for her to read, and she didn't. Whose fault is that?

Did she send a polite message to the host asking if they were able to rebook the dates, if they could offer her some refund? Many hosts are willing to do that. Just because a host has a Strict policy doesn't mean they are all greedy guts who feel no conscience about double dipping.

Just because you can easily rebook with a flexible policy, doesn't mean all hosts can. I certainly couldn't- my guests generally book a month or two ahead and I would not be able to rebook dates which a guest could cancel up to 24 hours before check-in. 

BTW, I have always had a Moderate policy, not Strict. 

[Danielle1294]

My daughter is new to booking through airbnb and as you knew when you are looking a multiple locations its easy to loose track who has what policy. She had written down that she had till a certain date to cancel but obviously was for a different location. She has learned a tough and expensive lesson .... don't book for others until you have their money in hand. Not looking for sympathy ..... I've felt the policy was unfair from the start and why I didn't choose it for my listing. I listed my house and give my time to manage and clean to pay for my aunts assisted living expense. Honesly I don't know if I would continue if my aunt didn't need the financial help. 

My daugher did message the host and she lied and said she couldn't do anything. So yes some are just greedy. 

[Sarah977]

@Danielle1294  Yes, for sure there are some hosts who are greedy and whose attitude is that they are doing this purely as a business and are not willing to work with the guest at all. I don't like that kind of host either. 

But it really isn't any different from any other business. If I buy a non-refundable plane ticket, and  have to cancel, I can't get the money back. If I buy something in a store that has a 30 day return policy, I can't bring it back in 40 days and expect a refund. I'm not sure why guests expect hosts to run their business in a way they don't expect other businesses to run.

I have three grown daughters and yes, just like we had to when we were young, some lessons in life are hard and expensive to learn.

That's really too bad that she booked without first insisting that her friends put their share in her hand. So it's really her friends who screwed her as much as the host- they should have all shared the loss equally (and still could if they wanted to), as it sounds like it was some of them jamming out who led to the need to cancel, not your daughter.

When I decided on my moderate policy, which I have always had, it was mostly based on what I would feel is fair if I were a guest. And I don't think I'd book a place with a Strict policy without purchasing travel insurance.

[Colleen253]

@Danielle1294 “I've felt the policy was unfair from the start and why I didn't choose it for my listing.”

Yes, if one thinks a policy is ‘unfair’ then one can also choose not to book the listing with said ‘unfair’ policy. Host has choice. Guest has choice also. It’s a free world. 

[Debra300]

@Danielle1294,

There are many locations that need a strict cancelation policy, because they are not located in places where guests can just drive or take public transportation to reach.  Reservations that are made months in advance, and canceled at the last minute are difficult to re-book when guests must have a valid passport, be fully vaccinated, take COVID tests, obtain travel authorization from the destination country, purchase airline/ferry tickets, and arrange ground transportation after arrival. 

I used to have the Strict Cancelation policy because of the difficulty to refill canceled bookings.  Now I have the Firm Cancelation policy,, and the reservation window is 90 or 180 days in advance.  This way my calendars are blocked for long periods before peak periods.

I recommend that everyone purchase travel insurance. For about the same price as the ABB service fee, a guest can protect their travel investment. 

[Danielle1294]

I understand some situations are different but this place is in a very popular tourist attraction so it will re-book easily. My daughter is just learning to do these things on her own. I try to guide as much as possible but she wants her wings to do things herself. She is a great kid who works hard and provides for herself ... so yes, it hurt my mom heart for her to be upset. I know it will never happen again, she is very good with her money and don't give it up easily or spend on nonsense. She worked hard to save money for this special trip.

I just found the host rude to lie ...... I personally don't live my life that way.

I have made many concessions for my guest. Check out early because their house was finished early ... Awesome! Congrats! no problem and refund them. Need to add days .... nothing else is booked ... sure. Need to change days around because schedules changed, I can do it. Help my dad load the car because we are running late and will be past check out before we can be back, on my way!! Do I go out of my way .... sometimes but its reflected in my reviews and repeat guest.

Life isn't just about money, its about helping others. This is something you should do because you enjoy people .... hospitality, pride in making someone feel at home, giving them a place to make memories. I would have never thought in my rural area that an Airbnb would do so well, but I still would never keep someones money if they couldn't make their reservation. I also wouldn't put myself in a financial position where I felt I had to keep their money if they couldn't make it because of a mortgage I couldn't afford otherwise. Honestly this is the mostly likely reason for the policy/option .... I was an office manager for over 20 yrs so I know all about budgets and financial planning but I prefer to not have that kind of stress in my life. Or feel forced to take advantage of someone else's misfortune by adding insult to injury by taking their money. 

[Sarah977]

@Danielle1294  Well, I host in much the same way. I didn't start doing it as some huge money-making scheme. I have a small guest room with attached bathroom that sat empty most of the year, only occupied occasionally when friends or family came to visit. 

A friend who hosted a private suite she had created in her home kept telling me I should Airbnb it- that solo travelers would love it. I procrastinated for a year or so, because I'm not savvy with online stuff, but finally listed.

I have had guests from so many places in the world, and while some keep busy while on holiday here, and I see them very little, most I end up chatting with over coffee or a bottle of wine, inviting them along for a beach day with friends, sharing some meals with- it's more like a have a new friend staying than someone I think of just as a guest putting $ in my pocket. 

So it's the meet nice people from all over aspect that I really enjoy, plus I like creating attractive, comfortable spaces that guests appreciate. The extra money is nice, for sure, and I wouldn't do it for free, but it isn't my main motivator. And if the room sits empty for awhile, that's okay, too. I have other sources of income.

The entire house, off-site host rentals are really an entirely different thing. And a lot of those (not all by any means- there are plenty of entire house rentals with hands-on hosts who aren't just all about the money) do have hosts who are all business and will keep as much money as they can.

But that said, it is still a guest's responsibility to abide by the terms of the listing they chose. And if a host upholds those terms, it doesn't make them a bad person- they are just running their business in the way that they see fit.

And the host saying she couldn't refund wasn't a lie just because you think she won't have trouble rebooking. Maybe she's had a lot of cancellations lately and if she kept refunding them she wouldn't be able to pay the mortgage or make her car payment. Maybe she had guests trash her house incurring damages she needs to rectify, i.e. she needs every penny she can get. Maybe she "can't"  because she doesn't want guests getting the idea they can cancel and get refunded despite the policy they agreed to. "Can't" can have a lot of interpretations.

[Rohan110]

Thank you @Danielle1294. I'm glad that there are hosts who see it this way. I can't tell you how stressful it's been trying to get a refund for a booking that's two months away. The host has been unresponsive and I think it's his way of delaying the process. It's a very popular listing and he's ignored me when I offered to cancel so he can rebook and then refund me. Airbnb support have been less than useful.

[David1668]

I started this thread. I have no problem with the strict cancellation policy. I use it for my whole-house rental. However, I make it clear to people that if they have to cancel I put the house back on the market and make every attempt to re-book it. If successful, I refund the money, keeping only a small administrative fee, and I think AirBnB should require all hosts to do the same. I feel it's unconscionable for a host to receive payments from two people for the same dates.

[Sarah977]

@David1668  I couldn't in good conscience do that either. But unless it gets rebooked through Airbnb, how could they know if it got rebooked?

Many hosts use multiple platforms and also do their own direct bookings and just because dates appear as blocked doesn't mean they got rebooked. 

A host might think, well, since that booking got cancelled, I'll block the dates to do a big deep clean and spruce-up, or take a holiday myself, or tell my friends who are coming to town they can stay there instead of a hotel.

And what if the guest who cancelled was a huge PITA, taking up hours of the host's time asking a ton of questions they could have found the answer to by thoroughly reading the listing, then changing guest counts, or making date alterations and asking for the host to make exceptions for their dog, or whatever, only to end up cancelling. The host might feel quite justified in not refunding them just because it got rebooked.

[David1668]

On the surface those sound like good points. But AirBnB can flag a listing to see if a host has blocked it or not. And if a host wants to do a deep clean or some remodeling/renovation, just about every location has a slow season for that. Booking friends into the space -- it should not be done on the backs of guests who have to cancel. And guests who cancel and have been difficult prior to cancellation -- well that's what an administrative fee is for. Its amount can be tailored to how much time and effort went into the original booking.

[Rohan110]

I can't tell you how refreshing it is to see posts like this in this community. I would like this post twice if I could.

I've had the misfortune to book into a popular listing with a strict cancellation policy and a host who is looking to double dip.

He even said that if I were to alter my check in date, the cancellation policy would take effect which turns out to be incorrect. Airbnb has ignored this when pointed out.

I've offered to cancel so that he can rebook the apartment and refund me only if he finds guests. He's ignoring me and all support have to say is that they can't do anything. I'm not sure how they expect me to move ahead with the reservation if the host is so rude after receiving half the money. I can't imagine the lack of communication once he has received all of it.

I'm out over a thousand bucks and the lack of support has been stressful. This was my first time using Airbnb and will be my last.

[Zheng49]

Why would you book with a place with strict cancellation policy and expect a refund for no-show? It's the same as booking with an airline and then not show up and expect any refunds. 

There are plenty of places with flexible cancellation policy such as my listings and I do make every bit of effort to allow the guest to cancel and issue full refunds sometimes even on the day of checkin. 

There are some guests who will not show up at all, and then ask for refund which is what gets to me sometimes though. 

[David1668]

Airbnb was begun with a sharing ethic. Owners aren't Marriott or Delta. The default owner position on cancellation should be to refund minus an administrative fee if rebooked. If an owner doesn't want to do this, they can perhaps offer their property at a lower rate.