How are you handling Coronavirus cancellations?

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How are you handling Coronavirus cancellations?

Andrea Cole
Real Estate Investor · Summerfield, NC · Member since 2016 · 56 posts · 55 votes

We have a Strict cancellation policy but guests are asking for full refunds due to events that are cancelled in the area. We are not in a region of the US that Airbnb recognizes in the extenuating circumstance guidelines. I'm inclined to adhere to our cancellation policy but I'm having trouble putting into words the rational. Thoughts?? Am I being unreasonable?

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y

I just had my first cancellation due to virus concerns. It was beyond the full price refund time.

I gave them a full refund. I think it was the right thing to do.

I don't live hand to mouth and I can afford to do this.

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  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    6y

    Your being unreasonable.  Maybe keep their money, but let them reschedule their visit.  Keeping their money and giving them the boot is a good way to have negative word of mouth advertising.

    22Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    We don't give refunds.  Yes, Coronavirus sucks.  But why is it fair, or expected, for a guest to automatically transfer the financial downside of CV to the homeowner?  How and why is it the homeowner's fault?  I grow tired of the whole mentality in this country that if something befalls you, you immediately try to find someone convenient to transfer it to.  Let's all be big boys and girls here.

    Is it Donald Trump's fault because my 401K is cratering?  Should I demand a refund?  Nope.  It's on me.  That's part of living in the "land of the free".  No one is going to wipe your butt or protect you.  If you want that, move to Russia.

    Myself, I am vacationing in Cape Cod at the end of May and I've already paid my first half for the week of $2500.  My second half is due in two weeks.  I'll pay it.  Now, between now and the end of my I might, on my own free will, change my mind and not travel, but that isn't the homeowner's problem.  That's on me.  

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    18Reply
  • Jon Crosby
    Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    6y

    @Andrea Cole  Personally, when I had guests that had extenuating circumstances and they did not purchase the travel insurance I would always allow them to cancel if it was more than a month out because with enough time I could always fill it up again.  If it was less then a month and they REALLY had a compelling case, I would always just allow them to rebook their trip at a non-peak/holiday time in the future.

    8Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    Who decides what an extenuating circumstance is?  We had a guest call and say they needed to cancel because grandma broke her foot.  Hmm.  Well I'm really sorry about grandma, but my homeowner really doesn't deserve to suffer financial loss for grandma's broken foot.  No refund.  Two days later, grammy's foot seems all better and they are coming after all.

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    5Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    I just had my first cancellation due to virus concerns. It was beyond the full price refund time.

    I gave them a full refund. I think it was the right thing to do.

    I don't live hand to mouth and I can afford to do this.

    34Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y

    I have had no cancellations due to COVID19 but I had a cancellation last year. Grandpa had a stroke and wouldn't be able to climb the stairs. It was months before their visit and well within their cancellation time so sure!

    I did offer them a free 2 day stay if they wanted it and could come later in the year. Something to take their mind off their troubles. They didn't take advantage of it. I am not sure how grandpa fared but I am thinking it wasn't good.

    3Reply
  • Jean Taveras
    Property Manager · Palm Beach Gardens, FL · Member since 2015 · 111 posts · 27 votes
    6y

    Since our properties are thoroughly cleaned in and out and sanitized in areas that are mostly inhabited by people on their stay we explain our cleaning process. If flying is a concern, I would hold their deposit and offer another date they can book and honor those dates for the cost, or offer a small discount. If none work, I would then refund a portion and retain a small portion. But my cancellation policy is 30 days min, if they cancel way before that then they get 100%

    1Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y

    I have a cancellation policy. They booked for that policy. They could have bought trip insurance but decided not to. For the most part, they may not come due the coronavirus but that is their decision. Airbnb and booking.com and others have an extenuating circumstances policy that is applied.

    I do not feel it is my responsibility to lose money when they change their mind.

    6Reply
  • Bryan Devitt
    Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
    6y

    @Andrea Cole I don't own STR but I don't expect a full refund because a show/concert/expo was canceled. Are hotels in the area giving full refunds? I am of the philosophy that if you wanted a refund in the future you should have bought insurance.

    2Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 651 posts · 736 votes
    6y

    @Andrea Cole I also live in an area where most, if not all, conferences and workshops have been cancelled. And, as it turns out, most of my spring guests are visiting the area to attend a conference or workshop. I was close to 95% booked for the spring. Now, I'm getting tons of cancellations, one of them just a couple of days before check-in, all because a conference or workshop has been cancelled. Here is how I respond:

    "Check out Airbnb’s website. They have instructions on how to apply for an “extenuating circumstance" refund. Take care and I hope we have an opportunity to host you in the future."

    I'm willing to give everyone, even the person cancelling a couple of days before check-in a 50% refund. I think it is reasonable for all of us, hosts and guests, alike, to SHARE the financial burden of Covid-19 or any natural disaster. 

    I have a serious problem with Airbnb's policy that provides guests 100% refunds if they book a place that experiences a natural disaster between the time of booking and check-in. 

    In the summer of 2017, I booked a place in Puerto Rico for a week in December. Then Maria hit. I refused to cancel my reservation because I did not want to add salt to the wound of those who were trying to survive Maria. I was stunned to learn that Airbnb provided guests with Puerto Rican reservations that year with 100% refunds. How do they justify that?!?! Why should the host in Puerto Rico bare the full financial burden? Haven't they suffered enough?!?!?

    4Reply
  • Ashley Rothacker
    Investor · Boise, ID · Member since 2020 · 33 posts · 10 votes
    6y

    @Andrea Cole Going through the same thoughts right now as I just got my first cancellation request due to the virus. They were coming into town this month for an event at the local college, and that college unfortunately closed for the rest of the semester. A lot of guests come in for similar reasons so worried this is just the start. I feel like it'd be hard to get the guests to understand the rationale behind not giving a full refund though unless they are a host themselves...

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Carolyn Fuller:

    @Andrea Cole I also live in an area where most, if not all, conferences and workshops have been cancelled. And, as it turns out, most of my spring guests are visiting the area to attend a conference or workshop. I was close to 95% booked for the spring. Now, I'm getting tons of cancellations, one of them just a couple of days before check-in, all because a conference or workshop has been cancelled. Here is how I respond:

    "Check out Airbnb’s website. They have instructions on how to apply for an “extenuating circumstance" refund. Take care and I hope we have an opportunity to host you in the future."

    I'm willing to give everyone, even the person cancelling a couple of days before check-in a 50% refund. I think it is reasonable for all of us, hosts and guests, alike, to SHARE the financial burden of Covid-19 or any natural disaster. 

     While I applaud your charity, is Airbnb “sharing” the burden of CV19 by waiving some of their fees to home owners for actual guests?  Are utility companies forgiving your bills for this month?  Is your mortgage co. forgiving your monthly payment?   The guy that just fixed your roof...is he refunding part of his charges to help share?

    If Airbnb has carte blanch to give refunds for “extenuating circumstances, I am glad that I don’t use that platform.

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    2Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y

    There is nothing reasonable about this at all. If my roof is blown off by a Windstorm, are the guests going to pay half of it? Do they chip in for MY insurance?

    "I think it is reasonable for all of us, hosts and guests, alike, to SHARE the financial burden of Covid-19 or any natural disaster."

    0Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 651 posts · 736 votes
    6y

    @Collin Hays Yep. Airbnb has carte blanch to provide 100% refunds for what they consider "extenuating circumstances."

    As my husband says, Airbnb has a huge majority of the STR hosts but they don't have the majority of the guests. They are offering 100% refunds for "extenuating circumstances" because it differentiates them from their competitors. It screws their hosts but, for many of us, Airbnb is the only viable platform.

    I was stunned when I discovered this Airbnb policy but there isn't a lot I can do about it.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Bryan Devitt:

    @Andrea Cole I don't own STR but I don't expect a full refund because a show/concert/expo was canceled. Are hotels in the area giving full refunds? I am of the philosophy that if you wanted a refund in the future you should have bought insurance.

    not sure all hotels and airlines but most are giving full refunds.. or full credit for a future flight or future stay if not a full refund.

    I have one STR I need to check in with my PM and see whats up with it.. its in Indy so its not really a destination type spot its more for business folks coming to ELI Lillie.. the indy 500 and such events.. so far indy 500 is still going if they start cancelling those races around the country boy that will have an impact..

    If i gave a full refund I would sure want to monitize that to curry favor with others who frequent Airbnbs not sure how you do that.. but thats what i would attempt to do.. seperate yourself from those that gave no refunds.. and now maybe have some negative reviews becasue of it. ?"

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    A few years ago, I was flying my daughter to Dallas to see a Justin Bieber concert.  Non refundable plane tickets and an advance pay hotel that was non-refundable.  Five days before the concert, Justin Bieber sent out a presser stating that he was cancelling the remainder of his tour.  I didn't call American Airlines and ask them for a refund.  That's not their problem.  It's called "the cost of doing business." 

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    1Reply
  • Andrea Cole
    OP
    Real Estate Investor · Summerfield, NC · Member since 2016 · 56 posts · 55 votes
    6y

    Thanks for all your replies!!! It helped reaffirm what my gut was telling me. I decided to not process the refund. (They cancelled today for check-in tomorrow.) Here is the message I sent to the guest.

    Hi [guest name],

    I'm sorry to hear your event got cancelled. We do uphold a Strict cancellation policy which all guests agree to at the time of booking. If you're looking to recoup more of your funds, I would suggest contacting Airbnb. They have instructions on how to apply for an “extenuating circumstance" refund. Additionally, many credit cards offer travel insurance as a built-in member benefit. If you booked with a card, I suggest giving them a call.

    Sorry we weren't able to host you!
    Andrea & Travis Cole

    According to all press statements, the event they claimed got cancelled is still happening so I'm not entirely sure they're being honest with me. For that reason, I decided to not offer a credit towards a future stay, which I would normally do. I'll update this thread if anything else worth mentioning happens.

    10Reply
  • Rick Ortiz
    Rental Property Investor · Philadelphia, PA (19148) · Member since 2020 · 38 posts · 39 votes
    6y

    @Collin H.

    Your absolutely correct. Its the cost of doing business. But of course people will ask for a refund for CV related stuff. Why not ask.

    Your business, so your choice on how to handle cancellations. But its a no brainer that someone who saved up all year for vacay will at least try to get a redund.

    0Reply
  • Matt M.
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Andrea Cole

    My sister lives in Oregon and has a work conference coming up in San Diego. It was canceled due to Corona. The VRBO person said tough sh*#. I don’t think it’s right with what’s going on. She only booked for 4 days and won’t get her money back.

    1Reply
  • Andrea Cole
    OP
    Real Estate Investor · Summerfield, NC · Member since 2016 · 56 posts · 55 votes
    6y

    @Matt M. 

    I think the point that's been made is that it's fair to neither party. In my situation, the guest did get a partial refund so we both (guest and host) lost money this weekend. 

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Andrea Cole:

    Thanks for all your replies!!! It helped reaffirm what my gut was telling me. I decided to not process the refund. (They cancelled today for check-in tomorrow.) Here is the message I sent to the guest.

    Hi [guest name],

    I'm sorry to hear your event got cancelled. We do uphold a Strict cancellation policy which all guests agree to at the time of booking. If you're looking to recoup more of your funds, I would suggest contacting Airbnb. They have instructions on how to apply for an “extenuating circumstance" refund. Additionally, many credit cards offer travel insurance as a built-in member benefit. If you booked with a card, I suggest giving them a call.

    Sorry we weren't able to host you!
    Andrea & Travis Cole

    According to all press statements, the event they claimed got cancelled is still happening so I'm not entirely sure they're being honest with me. For that reason, I decided to not offer a credit towards a future stay, which I would normally do. I'll update this thread if anything else worth mentioning happens.

     If you toss in a six pack of Coronas I think you’re all set.  Good job.

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    1Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y
    0Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y
    1Reply
  • Anand S.
    Plantation, FL · Member since 2009 · 329 posts · 119 votes
    6y

    Now all my guests flying in from Europe will qualify for extenuating circumstances. Crap!

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    6y

    I checked the bookings of both of our units a few days ago.  Neither were booked out as far as typical but they were both 100% booked for this month.  One of our units is typically booked full about 3 months out.  This unit is still fully booked for this month and virtually full the following month. 

    The other unit usually is booked out a little less than 2 months.  When I checked it a few days ago, it was 100% booked for the next 3 weeks.  Now it has 2 weeks (13 days) available in March.  The PM has not called to say they provided special refunds due to the Carona virus so I suspect the guests will be stuck with the charge if it does not get re-booked (hopefully the PM is not going to tell us that they refunded the money for a late cancellation).   

    The more interesting issue is what will the occupancy be going forward. In the Great Recession we converted these units to LTR in the school year and STR only in the summer. It is too late for us to consider this approach for this year, but if there is still an issue as the summer comes to a close we may need to evaluate if that is our best course of action.




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