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We have a strict cancellation policy and one our our guests just cancelled a nine day booking for September. He asks if we would consider refunding him the total amount since there is a good chance that the house will be rebooked very soon. I believe that he is right and I´m not unwilling to refund him all the money since I dont want to be unfair. but I am considering writing to him to let him know that I will reund the money when the 9 days have been rebooked. Somehow I think that is most fair to me, so I make sure I dont loose my income on his cancellation.
Is that a doable way of handeling the situation or have I missed important issues?
Yes. Not only should you not refund unless you get rebooked (and then only for the dates that are rebooked that overlap with the original booking), never refund until you have actually received the money for both the cancelled reservation and the replacement bookings. Until then, you have nothing to “refund”. Guests have convinced CS reps to refund them, and if you have already refunded, you would be out that money.
Many hosts think you should never refund in contravention of your cancellation policy, because guests agreed to abide by the policy by booking, and it sets a bad precedent for guests expecting to get refunded.
Other hosts feel it’s fair to refund if you can rebook the cancelled dates. Which camp you are in is up to you.
The Airbnb strict cancellation policy, which we each agreed to, applies regardless whether the property is re-booked. I agree with you that there is a good chance that the property will be rebooked for your September reservation. So any refund is made in our sole discretion. Our policy in these situations is to authorize Airbnb to refund the cancelled days (less any charges, price changes or Airbnb fees) 15 days at the end of a re-booked stay that includes those cancelled dates. So I will be happy to agree for Airbnb to issue any refund then. I hope you agree that our policy is more than fair and that you find another time to visit our property.
A few things to note:
I agreed to the refund not when the cancelled dates are re-booked (which could be tomorrow) but after the Host has been paid for such stay AND after that subsequent guest (who could be a shill for the cancelling guest) has gone through the time-frame to make any claims against the Host.
I noted that Airbnb fees will not be refunded. You don’t want to get into an argument with the cancelling guest on this.
You should keep contact information for the guest so you can easily contact them at the time of any refund. Keep phone number as it will soon go away.
I make clear that Airbnb makes the refunds, not the Host. But the Host can authorize an amount to be refunded by Airbnb.
In your situation I would only consider a partial refund (less airbnb fees) once the new guest has actually stayed and you’ve been paid or you could find yourself in the same situation where you at risk of the second guest cancelling too. @ViKaCr
Don’t send the canceling guest any money until you have actually received the money for any dates you rebook. The guest will need to wait until September to receive any money from you. You’ll need to make that clear to him. If you refund him before you have, in your hand, the money from the rebooked dates, anything could happen (another cancelation, a forced refund, etc) and you’d be out of the money.
You are not obligated to provide a refund. Isn’t that why you have your strict cancellation policy.
But if you are so inclined, make sure of the following:
a) That you are clear with the guest that you can only refund the moneys that you would have been paid not airbnb service fees.
b) DO NOT REFUND until the guests have actually stayed at your place, your money is in your bank and there has been 14 days so that you are pretty sure Airbnb won’t claw back the money due to some complaint from the guest.
c) Also, be sure to state that you will refund them the money that you get from the new guest not the rate that he paid. Sometimes you have to discount.
It’s very risky to promise this guest any refunds but you are so inclined you need to make sure that it doesn’t happen until you get the money.
I’ve had reservations that were booked, cancelled, rebooked, cancelled, etc.
As far as I understand I wont be getting the money from the cancelled booking until the day after tehy were supposed to check in in Spetember, so it makes good sence not to refund anything untill then.
But sometimes you can increase the prices too. So when I’ve done this I’ve phrased it as, “what I would’ve been paid for your dates or what I get paid for rebooking your dates, whichever is less”.
I looked in my quick replies, and I had this in case you think this language friendlier. It’s intended to be the same substantively of my previous post.
All refunds are handled through Airbnb. We do honor our cancellation policy.
However, we go further than required by that policy you and I agreed to. If the property is re-booked for the cancelled dates, then in our sole discretion we will authorize a refund for what we received for those dates, net of Airbnb fees and any other charges, 15 days after a reservation that includes the cancelled dates has ended, but no more than your cancellation charge (less Airbnb fees, which generally Airbnb does not refund).
I hope you feel that we’re being more than fair and will think of us when you return to the area.
If there is a charge or damages that the Host wishes to charge the guest, the guest and Host have fourteen days from the checkout date to resolve this. So, at that point, the Host knows whether the guest has agreed to pay whatever is being charged (but does not yet know if Host Protection will kick in).
The guest actually has 60 days to make a claim, but usually the Host would know by 15 days after checkout.
To avoid too much legalese or language covering (or attempting to cover) every possible contingency I use the words “in our sole discretion.” By that I mean that I intend to honor this voluntary policy – this gift I’m choosing to make – but if there is debate about it my bottom line is that I’m not obligated to provide anything.
I also used the language “any other charges,” which is pretty broad and to me would include things like unreimbursed damages.
That is exactly how I would handle it. No reason you should lose revenue due to someone else’s actions. But if you can still rent your place and make up some or all of that revenue, it seems fair to refund the guest that canceled the amount you make, up to the amount they were going to pay.
“Hi Guest, so sorry that you won’t be here to see us in September. Please contact Airbnb regarding your refund - they have your money as hosts don’t get paid until the stay is underway. I hope that everything is okay with you and we look forward to seeing you here in future. Looking forward to meeting you. Best wishes etc.”
I always wonder,though, if telling guests that Airbnb has their money and to contact them re refunds makes it more likely that they will come up with some sob story and an Airbnb rep will refund them against the policy.
It almost seems better to explain to the guest that Airbnb only releases the money to the host after the original check-in date, so if you get those cancelled dates filled, you’ll refund them when you get paid.
(I know Ken wouldn’t agree )
The last part you suggest would be my way to explain it. I dont expect them to know how Airbnb works in details in matters like this. I mean - I dont even myself
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I always wonder,though, if telling guests that Airbnb has their money and to contact them re refunds makes it more likely that they will come up with some sob story and an Airbnb rep will refund them against the policy.
It almost seems better to explain to the guest that Airbnb only releases the money to the host after the original check-in date, so if you get those cancelled dates filled, you’ll refund them when you get paid.
(I know Ken wouldn’t agree )
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