Issues with guests requesting refunds due to needing to cancel

[Stephanie2354]

Hello, 

It seems like recently I have had multiple guests ask for a refund for a trip they had to cancel after the trip had started. None of these were due to issues with our place but rather the guest having a conflict and needing to cancel. Our current policies are set to Moderate for short term stays and Firm for long term stays. In addition, sometimes the guest is able to leave a review, and I am afraid they will leave a negative review if I do not allow the refund. I also feel guilty telling them no, but it has become frequent enough that if I keep allowing refunds outside of our cancellation policy, it is starting to really affect our income. Any suggestions on advice or how you handle these situations would be appreciated! 

Thanks, 

Stephanie 

[Joan2709]

@Stephanie2354 

Well...it depends on the reason for the cancellation for most Hosts. If it is a family issue or medical emergency:

Some will provide a refund for the days cancelled

Some will offer a discount on a future stay 

Some will offer to refund them if the Host is able to rebook the dates 

Some will NOT provide a refund, as the guest could have purchased travel insurance which would have covered them in most cases

In any event, a long term stay is difficult to rebook and involves a large sum. Short term stays don't involve the same amount of money. You could also offer the non-refundable option to guests, but we have found the guests will make up stuff in order to get Airbnb to refund them once they realize they can't cancel and get a refund.

I usually caution new Hosts to do everything they can to avoid a negative review. You have over 100 reviews, so a negative review can be absorbed. 

You'll have to decide which options works best for you and how much risk you are willing to take.

[Greystone0]

Hi @Stephanie2354 ,

Tough situation to deal with and no matter the situation any refund impacts the bottom line for sure.

Agree with Joan's excellent advice. Here's some thoughts:

- we have just started adding a line in our lease/house rules that it is highly recommended to obtain travel insurance. In your case you could also add a comment that once the reservation has begun refunds are not possible and to please plan accordingly.

-You could also consider adding a note about the cancellation policy like "free cancelation ends on X/x/x date and so please note that refunds after this point are not possible (and maybe add: unless we are successfully able to re-rent). I would add this in the body of a message for each reservation along with any other general reminders, like "AWD for winter recommended" or "here's a link to our local events" so that it seems less self serving if that makes sense.

- in practice, when a guest cuts their time short we have been 'splitting' the difference. We don't have too many examples of this but do have guests who just left early, mostly for weather related issues (like a snow storm coming our way or something going on at their home). In all cases it was just a day or two so the refund was minimal for us. In the case of leaving two days early, we refunded one day. Not sure how I would feel if this became regular though. I might have a less open mind.

Good luck!