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Post by High Priestess on Dec 9, 2018 16:56:28 GMT
I'm happy to see this -- Airbnb is taking a new approach to the issue of guest refunds, an approach which finally (after other approaches that tended to reward guests at the expense of hosts) seeks to protect hosts. Given that guests are getting "extra" when they select a cancellation option that allows a greater refund (eg, when they choose flexible over moderate cancellation policy, or moderate over strict), it only seems reasonable that the guest who gets more, should be paying more. It's apparently been the case that for many years, airlines and hotels have offered lower prices for "non-refundable stays." In essence, airline and hotel guests have been offered two pricing tiers: on the first tier, the "premium" price, the guest pays for the room or the flight at full price plus a premium fee, and this includes the option of a full or partial refund if later on they have to cancel. But, for those who know they won't cancel, they have the option of buying the same hotel room or flight at a lower rate. They get a discount for guaranteeing they wont' cancel and/or expressing that they are content to get no refund if they do cancel. This makes a lot of sense. If you want the option of a refund of any type, then you should be paying more to get that option. Airbnb is finally following suit and imitating the hotel and airline industry in this regard.
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Post by rhonda on Dec 9, 2018 23:44:40 GMT
Thank you Deborah for bringing this to our attention.
I previously had not taken the time to read this and the results are quite humorous.
I was unable to do a print screen.
My policy is Strict. There is no statement of the 10% guest discount.
My guest options are:
Strict - Full Price
Flexible - 7% Premium
Airbnb and their experiments......
Enjoy a great day!
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Post by High Priestess on Dec 10, 2018 0:01:29 GMT
Hi Rhonda...
This new launch by Airbnb of this process is still in beta testing so it's not likely many hosts will see this show up in their dashboard yet.
But when it does...what would your approach be?
Some hosts might raise their prices to cover the 10% discount being offered. Others may not.
What I'd really like to know is if Airbnb is still going to let itself be suckered by guests who want to get out of a contract. As it is now, some guests engage in various antics to get out of the cancellation policy they signed onto, and many hosts have reported that Airbnb is not sticking to the terms of the extenuating circumstances policy, but instead is tweakiing extenuating circumstances to cover many an irrelevant issue the guest raises that causes them to want to cancel.
So if that pattern by Airbnb continues, what in fact will a "non-refundable" booking be worth? I mean if the guest can count on getting a refund if they scream loud enough or threaten to retaliate in the star ratings, does "non-refundable reservation" really mean something? I think we need to wait and see how this holds up. Because it's one thing to say "I won't raise prices so that the 10% discount for the nonrefundable guest is covered" when you're indeed protected from the loss due to refunds. But if you find out that you're losing anyway because too many guests raise a stink and get out a refund in a "non-refundable reservation"....well then....
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Post by rhonda on Dec 10, 2018 1:11:15 GMT
Aloha Deborah,
The experiment in my area was stated as:
Maximize your earning potential by adding a 7% premium for reservations with a Flexible cancellation policy. Guests can pay your regular nightly price for a Strict cancellation policy, or pay 7% on top of your nightly price for a Flexible cancellation policy.
Yours is different, thus the reason it caught my eye. Your print screen options are for guests to choose flexible or 10% non-refundable.
My first thought of reading your posted version of their experiment was that it would indeed force us to raise the fee to absorb their discount; then I read flexible is full refund if cancellation is within 24 hours which I'm not willing to do.
I am not inclined to allow Airbnb any further control of my pricing methods.
It's already a time consuming battle with Airbnb to honor the listing as stated.
I mostly hate their 48 hour cancellation guarantee.
I had two different guests who I encouraged to use the 48 hours, who then messaged me Airbnb still charged them 50% (not reflected on my notification of cancellation). It wasn't my circus, but I used my time to inform Airbnb on the guest's behalf of their mess up IF it was not the guest's fourth cancellation within a year.....blah, blah, blah......
I just went round and round all week with a chick who booked for 2 days knowing their day of arrival was not available. I responded back with my typical welcome, tax due amount and the Absolutely No Access to property prior to 4 pm on your day of check-in statement (which she had stated would be earlier).
Like a whining child she continued to message me that she would like to cancel so she could stay someplace else without switching locations. She'd read my reviews (which was why she was SO EXCITED to stay, knows my cancellation policy, but just this once, cause she's only one day after AIRBNB's 48 hour booking guarantee, couldn't I just this once refund her entire 100%?
It went on and on....she involved Airbnb.....I stomped my foot like the louder tantrum throwing child to the Airbnb Rep. who apparently informed the guest he was also unable to persuade me to join her in her corner.
I was quite relieved to finally receive the cancellation as agreed in the listing PRIOR to booking.
My opinion of Airbnb is they have too many cooks in the kitchen. It is so obvious the right hand doesn't know what the left hand is doing, and they are only experimenting to pre-pave ease of transition to a hotel/mega chain situation.
I loved Airbnb more when their stated Core Values really were a reality.
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Post by High Priestess on Dec 10, 2018 1:16:54 GMT
Okay I think I've discovered why the option you were offered, Rhonda, is different from the screenshot I posted. THere seem to be two versions of this new approach by Airbnb to non-refundability. In one, when hosts have set their cancellation policy as flexible, those guests seeking flexible policy get standard rate while those choosing "non-refundable" over flexible, get a 10% discount. In the other, when hosts have set their cancellation policy as strict, those guests choosing strict (which is somewhat non-refundable, but not entirely) pay regular rate, while guests who want flexible instead would have to pay 7% more. So the bottom line is, if you start out with strict cancellation policy, you as a host get a better deal than if you start out with flexible.
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Post by rhonda on Dec 10, 2018 1:53:00 GMT
Giggles at Deborah as I appreciate your mathematical input on all these experiments.
You were correct upon my shock of discovering a single guest had the payment plan option. She ended up cancelling and payout was as the Strict policy agreement.
Mine shows this choice as guests pay 7% more to receive the flexible option.
Strict is ..... If the guest cancels less than 7 days in advance or decides to leave early after check-in, the nights not spent are not refunded. 50% prior to 7 days, no refund from Airbnb's 48 hour time clock to 14 days of check in
Flexible is .... Cancellation less than 24 hours, first night non-refundable. All else prior to 1 day refundable.
I realize every market is different.
This idea would be extremely challenging for hosts in my geographical location vs guests who choose to gamble a potential price increase; thought a vacation in Hawaii was a grand idea until the balance of their room charges came due, or the boyfriend who got into a drunken brawl at the bar and has ugly bruised face (Airbnb sided with that one....grrr and LOL).
I can accept This is a Test. This is only a Test.
I do appreciate your sharing these tid-bits for us hosts to ponder and try if desired.
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Post by rhonda on Dec 15, 2018 3:32:51 GMT
OMG!!
Shame on me for reading this.
This week has not yet ended with cancellations.
All but 1 out of 5 (I grew tired of the excuses mid-stream)forfeited 50% of their entire reservation no matter the duration.
I don't know what in the heck is going on with cancellations at this point in time, but certainly has been a rough year for Hawaii.
So, had all of these guests chosen flexible, would I have ended up with nothing since the reservations were all greater than 24 hours out?
So far I have done pretty well refilling those particular dates and guests are receiving a wake up call to read the listing first.
Always much aloha to you!
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Post by High Priestess on Dec 15, 2018 7:42:50 GMT
I've had more cancellations too, not so much recently, but in the last couple months. I think Airbnb's "grace period" is encouraging more cancellations.
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