Showing posts with label earthquake. Show all posts

How To: Refunding Your Guest After A Cancellation



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.

Of Earthquake And Airbnb Cancellations


There were a slew of earth shaking last weekend, that was felt in Tagaytay City because of its proximity from Mabini, Batangas, the epicenter of the 5.9 magnitude quake.



Guest staying at Tagaytay Prime Residences were temporarily evacuated at the open grounds as part of safety protocol.  And as expected, there were some cancellations of guest bookings.


I had one such cancellation that cited the earthquake as the cause.  They're a Filipina and American couple visiting the Philippines and would have made a 3-nights stop at Tagaytay before they went back to the US.


Cancellation of booking in Airbnb can be done by accessing your booking reservation and clicking 'Cancel Reservation'.  Depending on the host cancellation policy, the guest would be eligible for a full refund less Airbnb booking fees.

For host, we have full control of the cancellation policy and can choose from any of the following, during set-up of listing.  This can be changed anytime after your unit has been listed.  For a more detailed reading on Airbnb's Cancellation Policy, drop by here.

Flexible - Full refund 1 day prior to arrival, except fees
Moderate - Full refund 5 days prior arrival, except fees
Strict - 50% refund up to 1 week prior arrival, except fees 

I've started my listing with a Flexible cancellation policy.  Being a new host, I think it gives a message to potential guests looking at my list, that I'm easy to deal with and like the policy name, flexible.
 
As I started to fill up my calendar with bookings and rake stars on my review, I've changed the policy to Moderate.  Experienced host shouldn't be afraid to use Moderate or Strict cancellation policy since it's normal in the hotel industry that only a portion of the payment would be refunded during cancellations.

The couple had their reservation under Moderate cancellation policy.  As soon as they cancelled the reservation, Airbnb refunded them  the cleaning fee plus a portion of their payment since their expected arrival was less than 5 days. The calendar would be re-opened for the host and can be booked again by other guests.  Depending on your location, getting a booking less than 5days might not be too easy hence the reason for the partial refund.  As for the guest, they won't be allowed to leave a review.

However, host and Airbnb can still override the policy and issue a full refund depending on what Airbnb calls extenuating circumstances; which includes the following:

  • Unexpected death or serious illness of a host, guest or immediate family member. 
  • Serious injury that directly restricts a guest’s ability to travel or a host’s ability to host. 
  • Significant natural disasters or severe weather incidents impacting the location of destination or location of departure. 

  • Urgent travel restrictions or severe security advisories issued after the time of booking, by an appropriate national or international authority (such as a government office or department). 
  • Endemic disease declared by a credible national or international authority (such as the US Center for Disease Control or the World Health Organization) 
  • Severe property damage or unforeseen maintenance issues that directly impact the ability to host safely. 
  • Government-mandated obligations issued after the time of booking (ex: jury duty).

Luckily, I was able to fill up the cancelled dates and had decided to issue a bigger refund to my guest, which I would talk about on my next post.


Photo credit: earthquake.usgs.gov, Shuttershock, Airbnb