Refunds - How would you handle this?

Question

I have the moderate cancellation policy through AirBnB, and our guest did not cancel 5 days out, so they are being charged a fee.  Based on the policy, I understand that.  However, the nights they cancelled have already been completely filled by other guests, so I didn't really lose the opportunity to generate income.  The nightly fee was higher when the original guest booked due to how far out they booked it, but that's not a serious amount of money.  I feel bad taking money from the guest who cancelled when those nights have been booked and covered by other guests.  Would you refund the guest who cancelled (claims it was due to illness), or take what the cancellation policy allows me to take on top of the money I will get from the nights being booked?

Michael Baum · Answer

Hey @Denis Ponder, once again I am in agreement with @John Underwood. If I rebooked the dates, no harm no foul. I would refund minus any differences.

Frankly, I have refunded folks for medical emergencies without getting a full rebook.

An older couple book the lake house for 4 days for the whole family, but her husband had a pretty bad stroke and would be unable to navigate the stairs. Super nice folks and I actually met them as they wanted to see the house to make sure it was accessible enough.

I refunded their entire amount. I did get a 3 day booking so I only lost one day.

I then offered them a 3 day stay later in the year once the gentleman had recovered no charge.

He never did recover enough to take advantage of my offer.

Personally, you have to look out for others when you can. I could tell it was a lot of money for them as a couple, so if I can take a bit of a load off, all the better.

John Underwood · Answer

I would refund especially if you rebooted for those dates.

Bruce Woodruff · Answer

If I could re-book the dates I would always refund the guest. It just seemed wrong to have 2 different people pay for the same date......just my .02....

Mike Grudzien · Answer

I like to preserve my karma and grow my business.  If I get the cancelled dates rebooked, then I refund half and offer a standing credit of the other half for whenever they book in the future!  And this has worked and I gave the credit.

Kind of "have your cake and eat it too".....

Jeremy Jareckyj · Answer

I always follow whatever the cancellation policy is. Same as when you book a flight and have to cancel, they never differ from what the policy is agreed upon.

If I end up rebooking the dates I can have a conversation with the guest but that is my rule. follow the cancelation policy and don't let emotions get involved.

Tim J. · Answer

I would treat it how I would like to be treated.

I have refunded in situations like these.

Trent Reeve · Answer

thats all how you feel about karma. they didnt cancel when they could have gotten refund and sounds like they didnt get travel insurance. I never do a full refund, i always take a small amount for CC charges. i guess i would say it depends on how much. if it was over say $5-600, i would probably refund.

Nathan Gesner · Answer

Best practice is to have a solid policy that addresses the various scenarios, then stick to it. Here's an example:

50% of the total price due at the time of booking.

If they cancel 30 days prior, I refund the entire amount.

If they cancel 15-29 days prior, they lose half of their reserve payment.

The total price of booking is required 14 days prior to check-in.

If they cancel within 14 days of check-in, the forfeit all funds collected.

If I am able to rebook at any time during this process, then I refund their money, minus a processing fee.

If they booked six days and I can only book three days, I will refund three days of their money.

If they booked at $250 a night and I can only fill those days at $200 a night, then I refund $50 a night.

Think through the process, start to finish. What could go wrong? Write it down, develop a policy in writing, create a simple checklist to summarize/follow, and stick to it. Refine as you go.

And hopefully you are publishing this where the guests see it up front so they aren't caught by surprise.

JD Martin · Answer

I would refund after recapturing whatever amount I had to take as a reduction as a result of the cancellation and I would cover any real costs I incurred as well (credit card fees, etc). Beyond that I wouldn't feel right keeping an entire stay even though policy allows it. Doing what's right usually means doing things when visibility or the law doesn't require it.

Andrew Steffens · Answer

As a Property Manager, I have a fiduciary obligation to the owner to act in their best interest.  When we were small and essentially self managing our own properties I used to do something different for each person depending on their attitude, the situation, etc.

Since we have grown and have employees we had to make standard operating procedure and have to stick to it.  Especially now since all of our platforms offer trip insurance, the guest has the option to protect themselves.

Refunds - How would you handle this?

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