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Post by All About Airbnb on Sept 23, 2016 19:49:20 GMT
Airbnb is planning to introduce an update to the Cancellation Policies and a corresponding increase to the host service fees. Unfortunately the pages explaining the pages on Airbnb are only visible to Italian hosts... However, a detailed explanation of the changes is available here. In short, what is going to happen is the following: - Each cancellation policy will have a grace period, i.e. a set period of time before a reservation when a guest can always cancel and receive a full refund
- The Moderate and Strict policies (less favourable to the guests), will be accompanied by an increase in host service fees, from 3% to respectively 4% and 5% to keep into account the extra protection from cancellations
- Guests that cancels pre-trip will not be charged the guest service fees, making cancellations truly 100% refundable
The rationale that Airbnb is putting behind this is that by having more relaxed terms, more guests will book, and that this will compensate a likely increase in cancellations. However, while this logic is true on a macro level (Airbnb's overall business), it will hardly be valid on a micro level (i.e. an individual host), since getting a reservation cancelled is always disrupting and annoying experience. The change is for now planned for Italian hosts starting from October 18 (they even created an online petition!!), but everything seems to hint at a future roll out to every host... What do you think about the changes?
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Post by Deleted on Sept 23, 2016 22:27:40 GMT
Aloha Deborah, Thanks for the update. The extra fees do not bother me, but I personally do not like the cancellation policies as stated. I had posted that even the hotels offer no refund with any cancellation fee waived, if it's for one day in advance or further out than a month. It's really not fair to hosts for guests to reserve during our 'high seasons' months in advance, and then can change their mind within the 30 day grace period for 'strict'. Even with 30 days notice, I do not think this qualifies for the 'strict' policy we hosts had in mind. Why are we expected to accommodate our guests more than the hotels do, when we operate on totally different levels? Extenuating circumstances we can understand, but it's only available to the guests, once again, if the host cancels within the 30 day grace period, the fault falls back on the host.
I just received another review to respond to, once I did, I was asked to review my stay at my guests house.
That comment was removed for a week and has returned.
I can't remember what country I'm going to in order to review my stay with the host (actual guest), but now I guess I'm going to Spain also.
Since Airbnb is making all this stuff up, and I'm a free-thinker, I'm going to assume this will be at Airbnb expense as I've never requested a reservation to stay at my guests homes.
There was a post on the FB AirbnbSecrets site that listed many other platforms available.
Due to the length and explanation of the specialties of each site, I did not want to copy and paste, but you might want to have a look.
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Post by maggie on Sept 24, 2016 0:14:00 GMT
Not pleased!
The increase in fees is bad but I could live with it. The change to my strict cancellation policy is not acceptable! I wonder what the grace period will be? I suspect that guests will use it to request to stay/haggle with multiple listings!
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Post by High Priestess on Sept 24, 2016 14:28:45 GMT
Thank you for posting about this, All About Airbnb. I am upset by the changes to strict cancellation policy, which I use, and have always used since first listing on Airbnb 3.5 years ago. Like other hosts, I am not so upset by the service fee change, but rather by the actual changes to the policy. Part of the change that isn't clear from your post, is that the 50% refund to the guest holds even if the guest cancels the day before they are due to arrive, and also, even if they cancel during their stay. So they could be on a 3 week stay, and if they cancel it 2 days after arrival, they still get 50% refunded. In that sense, it's accurate to say that the strict policy is being watered down, and in fact it's being collapsed into the moderate policy -- because a 50% refund during the reservation itself was the previous moderate policy. The closer the cancellation to the arrival date, and particularly if the cancellation is after arrival date, the harder this is on the host, as for many hosts who tend to get bookings further in advance, this makes it less likely that they will be able to make up the income loss. To be sure, some hosts do mostly last-minute bookings, and those hosts will be less effected by these changes than others. But the more of any particular hosts' business which comes from advance bookings, the more that such hosts will suffer under these changes to strict policy. Not happy campers The majority of my Airbnb-rental-days per year, is now actually neither on flexible, moderate or strict policy -- but are on long term cancellation policy, since most of my rental days are long term reservations. The long term cancellation policy is very reasonable for hosts...and I really hope that Airbnb doesn't mess with that one, since by taking a long term reservation, which is MUCH more likely to be booked far in advance than a short one, hosts are much more vulnerable to income loss from cancellations. I dont' feel it's fair for Airbnb to remove hosts' choices in the cancellation policy department. Airbnb has consistently emphasized in its TOS that hosts and hosts alone are responsible for their listings, and their business, and their contract with guests....but then Airbnb has also continually imposed upon and dictated the terms in these contracts hosts have with guests. I feel all of that is inappropriate and I wish Airbnb would stay out of hosts' private businesses and the choices we make in how we run our businesses. If hosts want to have strict policy, and lose guests as a consequence of that, why is that a concern for AIrbnb, when other hosts make other choices and have flexible or moderate and guests could opt to go with those hosts? By making these cancellation policy changes, what Airbnb is essentially doing is protecting guests who fail to read the terms of the agreements they enter into. Guests have plenty of choice but are not using those choices responsibly, are entering blindly or carelessly into contracts and then complaining to Airbnb about the results of their failure to make responsible choices. Air is enabling them by forcing hosts to offer terms that are more favorable to guests. Yet, there are still options left for hosts. Here's a plan I have that I wanted to offer, something which other hosts could use to protect themselves from financial loss based on these new policies, which I do expect to go worldwide after their first test-out in Italy. One of the ways hosts can "fight back" against such policy changes, is to start looking at refunds more collectively rather than individually, and pay attention to the "pot" of money that one has gained or lost through refunds. MEaning, that instead of focusing on any one particular guest's refund situation, the host can consider that what they lose with AIrbnb's policy changes, and what is taken from the hosts' "pot", might be made up in another situation where a guest cancels but the host can rebook. Up until now, I have been willing to offer to fully refund guests when they cancel, if I am able to rebook the dates to another guest. As I am on strict cancellation policy, this means that sometimes a guest cancels but only gets 50% back. If I can rebook the dates I refund them the additional 50%. However, if Airbnb applies these policy changes and waters down the strict policy, I will no longer offer such refunds to guests even in intances when I am able to rebook the dates. I will consider the income from any rebooked dates, as income to make up for the losses that the watered down policy has caused me, in other situations when a guest cancelled and I was NOT able to rebook the dates. I would plan to explain this to guests as well --- tell them flat out that since Airbnb has chosen to water down its strict cancellation policy and cause more financial risk for hosts, that I am no longer able to provide refunds if I can rebook the dates, because that income now has to also cover the losses I incur in other instances when I am NOT able to rebook dates for a guest who cancels and gets 50% back or even 100% back.
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Post by helgaparis on Sept 24, 2016 17:49:38 GMT
I'm reading this thread sitting in the bistro with Auguste, the parrot, after handing over the keys to a Taiwanese guest, who booked in February or March. In the meantime, her booking became very inconvenient for me, and her late information of arrival time forced me to plan with a late arrival. She arrived at 11 am and I'll spend an uneccesarily uncomfortable night, having my train tomorrow only. If I imagine that plus cleaning and then having a last minute cancellation with 50 % refund or a 30 days cancellation with no money to pay the train tickets, which are non refundable - that would make me really angry. It's simply not worth the risk to rent the full apartment under these conditions. Or maybe do something else: tell the guest to sign a contract, cancel and pay by bank transfert. I started booking my Craigslist guests on airbnb, this policy makes the inverse procedure interesting.
And as said anove, no more refunds of doubly booked days, which I apply already on moderate policy.
The host fees were unreasonably low anyway, that does not bother me. But evidently, if the global percentage is high snough, all repeat guests will want to pay cash.
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Post by High Priestess on Sept 24, 2016 17:57:41 GMT
I definitely try to get my repeat guests to book direct and not through Airbnb. Sometimes they want to book via Airbnb for the extra protection it gives them...and with the changed cancellation policy they will have more motivation to do that. So the host can counter that by offering more of a discount to book directly.
For the future, I am looking at moving more of my short term stays to other sites. I still get a good number of "long term" bookings thru Airbnb and that goes well for the most part. But for the short term bookings, eventually I would like to try to "diversify" more and use other sites, preferably ones that have better policies for hosts. I plan to start diversifying more this winter season and see how it goes.
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Post by High Priestess on Sept 24, 2016 20:51:29 GMT
One of the other problems with the proposed changes to the strict policy is this: by allowing guests to have a 50% refund all the way up to date of arrival and beyond, there is no incentive to guests to help hosts out by cancelling early (say, 3 weeks before reservation starts) rather than at the last minute.
A graduated refund incentivizes guests to do the right thing and give hosts adequate notice of cancellation. PResently, guest gets 50% back up until 7 days before arrival, and then gets 0% back after that. BUt if the refund they get is the same if they cancel 28 days before arrival, as if they cancel 2 days before arrival, guests may not be motivated to help the host...in fact the opposite could occur...a guest could try to bully the host into refunding more than 50%, saying in effect: "if you dont' give me back more than 50% I will wait to cancel until the last minute, and thus reduce the likelihood you'll be able to rebook the dates".
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Post by Mabel on Sept 27, 2016 1:02:43 GMT
I've just experienced my first imposition of this new policy. I had a reservation for a party of 4 gals to be arriving tomorrow, where my listing only accommodates 3, but they asked for a special exception for the fourth guest, and I accepted.
Just now, Airbnb contacted me by phone saying that the party has sudden "concerns" about my request to not mention Airbnb to my neighbors, in the name of privacy and discretion, as although it is completely legal for me, it is also highly controversial in my city right now. Due to this "concern", the guest would now like to cancel. The customer service agent stated that he felt the "concern" warranted a full refund even though I have a "strict" cancellation policy. The guest just wrote me, mentioning how sorry she is, and that it was her friends' concern not hers and that they should not have left it for the last minute.
I highly suspect that the friends decided last minute that they don't fancy fitting all 4 into one room with a shared bathroom, and opted to look for a different reservation, but chose to use this whole "concern" excuse to get out of the strict cancellation policy, which "Lee" a very young-sounding agent bought, hook, line and sinker, and told me that the concern was valid enough for Airbnb to over-ride my strict cancellation policy, and not even accept my offer for a 50% refund, but do away with it altogether, offering me a $200 compensation for the entire week's cancellation for 4. I have contacted airbnb to oppose this decision, which is being processed through resolution, but we all know how this will turn out. I will post any further updates.
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Post by Deleted on Sept 27, 2016 1:34:18 GMT
Now grace, we were on a roll...not time to let a young whippersnapper make us change our tune to Two Out of Three Ain't Bad.
Since we have no access to see each other's listing, is this stated in your listing which they originally agreed to?
I'd ask for one of those "Case Managers" immediately.
It is valid for all of us to be concerned with our guests behavior and the impact it has on our neighbors, and visa versa. I don't think guest's 'assumptions' are valid reasons, and I'd fight this one till...well, just till.
And OMG!!! Do they hate it when you post on the official FB page.
Of course Emily chose to hang up with me, but those Two Out of Three weren't bad when I could get nowhere with Joe Operator.
I'd even have the 'extenuating circumstances' policy right in front of my blind little eyes to quote that their whining and assumptions do not qualify.
Best of luck, and as always, With much aloha
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Post by Mabel on Sept 27, 2016 1:52:02 GMT
thanks Rhonda for the tips and advise. They are helpful and I will do my best to follow through. Will keep you apprised. Is apprised spelled right? There is no spellcheck on this.
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Post by Deleted on Sept 27, 2016 2:30:32 GMT
Grace, It's your $$. My first year I whined, cried, and told CS I didn't want to be a host if this is how the game was going to be played.
OMG!! do they hate to hear a widowed old lady cry!!
I even received travel credits so I could have my own vacation. They could see I was solidly booked and didn't have enough time to take a vacation to the flippin toilet.
Of course I chose the Time Out Room at CC's house.
We've never shared this story in the forums. In her personal comments she thanked me and said I was the quietest guest she ever had. Cripes, I even had to go to Dictionary dot bomb for one of the fancy pants words she used in her review of me. And NO, she didn't verify that I was Certifiable, or question my character with my obsession of her train.
That's why I stalk her reviews, she has never used such a big word in her other guest reviews that I had to refer to dictionary to see if it even existed.
Holy cow she's a hard core woman when she wants to be.
If ya don't ask, then the guaranteed answer will be NO. Travel credits are fun, but cash as agreed is appropriate.
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Post by cc on Sept 27, 2016 2:41:21 GMT
Aloha Rhonda, you are a hoot!
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Post by Deleted on Sept 27, 2016 2:44:08 GMT
Giggles....that's not the first time I'd been called that.
I've been waiting for you girls to pick up on it.
I just don't have a clue where I'd be without my deranged sense of humor.
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Post by High Priestess on Sept 27, 2016 2:51:57 GMT
I've just experienced my first imposition of this new policy. Just now, Airbnb contacted me by phone saying that the party has sudden "concerns" about my request to not mention Airbnb to my neighbors, in the name of privacy and discretion, as although it is completely legal for me, it is also highly controversial in my city right now. Due to this "concern", the guest would now like to cancel. The customer service agent stated that he felt the "concern" warranted a full refund even though I have a "strict" cancellation policy. Really sorry to hear about that, Grace. This makes me think that whatever "hook" we in advertently offer a guest to hang their excuses for cancelling on, they are likely to find and exploit. If this is the only time this has ever happened to you, then I suppose count yourself lucky in that respect. I am in the process of signing up with www.homeescape.com and their cancellation policies are much preferable to those of Airbnb. I dont' know though if I will ever get a single booking through them...they have very few listings on their site. I have had Airbnb fully refund a guest over and above my objections, but I have also had guests cancel, and was paid 100% of their booking payment, and then I rebooked the space for all the dates they cancelled, and so got paid double for the space for the dates involved. I consider that these "double" booked spaces do outweigh the amounts essentially "stolen" from me by Airbnb so all in all I am still ahead in the game. IF the cancellation policy changes go through and become worldwide, I will cease offering to refund any guests if I can rebook the dates, knowing that I will need that income to make up for other instances where I am not paid what I am owed.
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Post by Deleted on Sept 27, 2016 2:53:54 GMT
Grace, I checked, there is spell check when I type. Therefore, apprised was a correct spelling, as well as a choice of apprized which I would have done, as I recon I'm 'a real prize'. LOL
At least to my cat. He can whine like he's flippin dying to get his own way for his prize.
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