New cancellation policies... and increased host fees!

If you use flexible, the new policy situation is basically like the current one.
however, since Airbnb is now reimbursing all the guest service fees, the incentive to not cancel is much lower (as you don’t even lose that 12%)

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Exactly. So it means Air is shifting some of the loss of revenue they were getting from guests cancellations onto hosts with the higher fees. As I’ve said previously, Air is trying to get us to function like hotels/motels with their lax cancellation policies.

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They won’t be happy until we are like booking.com where everything is instant book and totally refundable at all times.

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That’s where it’s headed for sure…but still with that “live here” vibe. Choke. :slight_smile:

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Here is a quote from the new cancellation policy. I am not one of the people on this board who states my opinions as facts.

Guests that cancel pre-trip will not be charged the guest service fees, making cancellations truly 100% refundable.

Oh they will:
“I want to cancel this booking, because we found an AirBnB that suits us better.”

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Actually your statement is an opniion…believing they will be losing revenue is your opinion, not a fact. Assuming they aren’t going to accept “flimsy” excuses is your opinion. Don’t you think I am aware of the new cancellation policy? But thanks for the quote anyway.

The point of my comment is that they would like you to believe they are giving up revenue. It makes it slightly easier for some to swallow. Of course they will not continue along with their new policies if it causes their overall revenue to drop! It’s really easy to see the big picture - they don’t care about the indvidual hosts - their only concern is the number of total bookings that Air gets.

They are increasing their strict fees to 5%, while removing former protections. And now guest can cancel during the stay…and get 50% back. Say what??? I can see anyone near a ski resort delisting. No snow this weekend in the forecast so we cancel. Shaking my head…

Air is also going to keep the guest service fees when a guest cancels during their stay. The host will be giving up 50% of their revenue because Air is making is soooo easy for a guest to cancel.

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You can have no refundable policy on booking.com and guests can have money back…

I think AirBnB will start inviting holiday rentals into the strict 30 or strict 60.
Their footprint on that market is quite small, and there are a lot of alternatives. So if they want to grow they have to give better options. Owners of holiday homes just cannot take the risk working with AirBnB.

Around here I see only a few AirBnB rentals, compared to other channels. AirBnB is not considered a proper alternative, by most long time hosts. They considered AirBnB as a last resort for desperate home owners looking for scraps.
Around here, you can get a lot more money trough booking.com, Tiscover and HomeAway.
But still most money is made by direct bookings.

I am just surprised they say they want to attract more whole homes. I think you’re right about extending the stricter policies. I wonder if they plan to increase fees on the super strict ones also. 5% is still too high for me, when I can book someone direct for 2.9%, and have my own strict cancellation policy…no silly Dr. note policy. Air is already getting their 6-12%.

I will just increase all cleaning fee and rates by 2%. Just like booking.com - I increase rates by 15%. Only guests with money to burn book me through Air, FK. and Booking.com.

My Flipkey reservation for over Christmas paid FK over $250 booking fee for one week. That’s crazy! I think Mommy and Daddy are footing the honeymoon bill though.

If it happens, I am doing that too. Raising my rates. I’m in Hawaii and cannot have guests canceling wily Nily. New reservations will not jump in to take their place. Not,when we are 2500 miles from the US Mainland and the only way over here is by air.

Oh you mean you can’t have guests say “I am over this island…let’s leave early and stay at a different island that we can find on Air.”?? :smile:

I wonder if guest service fees will be prorated. For example - if guest pays $100 service and then cancels mid stay … Will guest forfeit the entire original service fee, or just the final prorated service fee that is adjusted?

Have you seen those booking.com commercials touting free cancellation. I cringe every time they come on. In one of the commercials they show a woman staying at some sort of resort or something, and outside she is watching the other guests behave strangely. But it’s a good thing she can just cancel and go somewhere else. Sigh…

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I just love how these companies boast “free cancellation” at the risk of those already risking everything. Since I’m new to the scene with STR and our current place, it’s going to take me a few years to be able to fully book on my own. I’m already roughly 5-10% direct booking though, so that’s exciting. And thankfully I’m in a place that tends to be booked within a month and I’ve even had next day bookings. So if they adjust the fees I’ll definitely switch to the flexible policy. It’s just ridiculous because with all the “rules” they have, they don’t stick to any of them. I think it was just last week there was a post on someone canceling near the end of the stay and getting half their money back! Like a host could even count on these policies being enforced even with the higher rates. These competitors need to hurry up, because I’m ready to diversify more, and most of the current sites don’t work for my place as well as air (as far as marketing/clientele).

I am now signing all my messages in the system with my name, and the name of my property.
If they google, they will find me.

It works very well. They save a lot of money. Often more than €300.
Guest transfer me a 25% down payment.
So less chance of cancellation for me.

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That’s a good idea. On the air side you’re just communicating and not asking for them to contact you outside the system. But if they choose to find you that way and find you cheaper, win win!

Having a unique property name or business name can help people book directly. I think I am the only “K9 Karma Casa” in the world.

In doing a google search just now I found an aggregator called AlltheRooms.com, I don’t think I’d heard of it before.

Necessity (usually due to change) is the mother of invention. You have zero to loose by having your own website and give your place a name, so it is easier to find you. In time who knows what added choices it gives you.

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I am sure that hosts have different requirements. I plan to keep the Strict policy because I often get requests for very long stays, sometimes a week, a few weeks or a month. If there is a last minute cancellation or early departure, I will get the full price for the whole period minus the new 5% fee. This is worthwhile to me. For shorter stays (we have a 3 night minimum), the potential loss of money is much less than it would be for the longer stays. Also, last minute cancellations mean that you won’t have enough time to get new guests. However, there is still an open question when a guest cancels and gives a specious reasons for cancelling, because AirBnB takes their word for it even if the host gives the real story and the facts. In this case, it would seem that the Strict cancellation policy is definitely preferable. I had a long argument with AirBnB about this very situation. At first they sided with the guest and asked ME to refund her long three week stay, saying they would deduct the money ($1800) from FUTURE bookings! THis infuriated me.
I refused because her reasons were just invented and had no basis and de-listed my guest room. Some months later AirBnB reversed themselves and said that they would not deduct anything from me, so I re-listed the room. Perhaps this new cancellation policy was intended to address this kind of problem. Let’s hope so.

The new policy (if it rolls out) is that guest will receive 50% back even if they cancel during the stay because it’s rainy weather.

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