How To: Refunding Your Guest After A Cancellation

7:00 PM angeLjamie 0 Comments



On my previous post, I've mentioned about a couple who cancelled because of the recent earthquake that happened in Mabini, Batangas that was felt all the way in Tagaytay.  And with my cancellation policy set on Moderate, only a portion of the payment was refunded to the guest by Airbnb.

Luckily, we're on peak season and the locals were not deterred by the quake.  I was able to fill up the cancelled dates and recoup a possible loss.  But somehow, the situation left a bitter taste in my mouth.  I felt bad for taking the couple's money, because

(a) earthquake is a real safety concern and it is in the guest's best interest to cancel
(b) I was able to fill up the empty calendar quickly

Hence, I've decided to return a bigger portion of the couple's payment, in a form of a refund.

Airbnb allows refund on cancellations made under moderate or strict conditions, thru the Resolution Center.

Simply open the cancelled booking and you'll see the Send Money option.  This can be done within 24 hours of guest cancellation.

Select the reason and put in the amount you wish to return.

Maximum amount is shown on the right; which is the money you're supposed to earn on the cancelled transaction, less the initial refund made automatically by Airbnb.  You can also add in a note on why you're refunding the guest.

A final notice of the amount and note would be displayed before sending the refund.  Note that after hitting the 'Send' button, you'll no longer be able to reverse the transaction.

I'm not saying that you should refund all guests who cancelled.  If so, then just set your Cancellation Policy to Flexible.  Also, guest who cancelled reservations are not allowed to leave reviews so you're not in any danger of a backlash.

However, being a considerate host is always a positive in the Airbnb community.  You may never know, but this simple act of honesty may in turn bring good karma.

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