Airbnb’s new renter-friendly policy should help stop host cancellations.
I like and use Airbnb. While I’ve never experienced a last-minute host cancellation, I know several people who have. For many, this is a risk that deters them from using the service.
The good news is, Airbnb has instituted a rule change that should significantly reduce host cancellations. As of August 22, 2022, hosts may have to pay up to $1,000 in fees if they cancel a reservation or are unable to deliver the product they promised.
This new policy goes a long way toward ensuring you’ll get the space you booked on the date you chose. Before the rule change, hosts who canceled prior to seven days before check-in were docked $50; for cancellations within the week prior to the reservation’s start date, the penalty was only $100. These sums were of little deterrence and unfair when compared to the assessment levied when a renter canceled, which can range up to the entire cost of the booking.
Now, host cancellation fees range from $50 to $1,000, depending on their timing:-10% of the reservation total is assessed for cancellations 30 days or more prior to check-in
-25% is assessed for cancellations between 48 hours and 30 days prior to check-in
-50% is assessed for cancellations within 48 hours of arrivalAirbnb says the increased charges are to offset the costs of relocating guests at the last minute. The penalties are also assessed if the renter arrives but the location is not what was promised or is uninhabitable.
Hosts are still protected if the reason for cancellation is unavoidable. Breaking a reservation for an unforeseeable event such as emergency repairs or natural disasters will not incur a penalty. And if the owner and customer both agree to cancel a reservation, they can do so without penalty by contacting Airbnb.
The new host cancellation policy is a necessary step toward restoring the balance between renters and owners. There’s nothing as frustrating for a renter as a last-minute host cancellation, especially as there’s no guarantee Airbnb will be able to find a comparable or better property near the original location. By adding an extra zero to the potential cancellation penalty for hosts, Airbnb is making it far more costly for owners to renege once a reservation is made.
Twist’s Take: Airbnb’s increased penalties should help stop host cancellations.
