A lodging offering platform, Airbnb has extended its full cancellation policy due to COVID-19

Coronavirus has become a worldwide crisis. Due to this pandemic, many mega-events are either canceled or postponed, visits are negated, and people are canceling their pre-booked tickets and travels. In the beginning, most of the people were panicked because of the refund complications on their ticket bookings and lodging but now they are relived as the terms are relaxed. Many companies have changed their policies amid coronavirus breakdown. Every sector, every industry, and every human is worried due to coronavirus pandemic. In this situation, Airbnb gave relief to the customers. A lodging offering platform, Airbnb has extended its full cancellation policy keeping this corona pandemic in mind. They have also kept $250 million aside for the hosts who are affected because of these canceled bookings.

Airbnb company’s old policy

Airbnb’s old policy allowed guests to get a full refund if they void their booking within 48 hours of booking their trip, or a 50% refund if they do within seven days. This policy is canceled on Saturday and it is replaced by extenuating circumstances policy.

Who can get a full refund? – New extenuating circumstances policy 

The guests who have booked their stays on Airbnb with the check-in between 14-31st March will get a full refund. This is under Airbnb’s extenuating circumstances policy. With the money that is set aside, Airbnb will ensure that hosts get some of the lost money.

Before this announcement was done, Airbnb expanded its extenuating circumstances policy to refund bookings between the fixed period of 14th March to 31st May. The policy does not talk about the refund terms for hosts though. Some of the Airbnb are upset because the company did not provide any fix financial net to them. As the cancellations are allowed and no new booking is being made, hosts have their calenderer empty. The change in policy has affected the hosts in California, Florida, Kansas, Utah, Michigan and the state of Washington. They have lost thousands of dollars.

Some hosts said that they empathize with the guests as the current situation is not under anyone’s control, but their business and livelihood are at risk. Whereas, some of the hosts are extremely angry and have put the entire blame on Airbnb for the loss of business.

The change is policy is a relief for guests, but the hosts are upset with the company. Airbnb is taking further steps to strengthen the relationship between hosts and them to ensure the unchanged partnership in the future.

Airbnb’s action on hosts’ disappointment

Airbnb is ready to extend help for hosts and the CEO Brian Chesky asks for forgiveness for the chaotic messaging around the policy changes in recent times. He said, “I deeply regret the way we communicated this decision, and I am sorry that we did not consult you — as partners should. We have heard from you and we know we have let you down. You deserve better from us.”

The company has donated $10 million to help its “super hosts” and the ones who’ve been contributing to Airbnb’s tour guide-style practices. Other hosts can apply for $5,000 help from the fund starting from April. The CEO of Airbnb has requested hosts to trust into the company as the trust is the foundation of a partnership.

Airbnb at loss because of travel restrictions

As the entire business of Airbnb depends on travel and tourism, the past few months have been difficult for the company. Because of the restrictions on overall global travel, many small and big companies like Airbnb facing problems with their business, as the countless countries have advised people to stay home and follow the lockdown.

In the US, the guidelines for social distancing have extended until April 30th as the COVID-19 cases are increasing rapidly. As per recent reports, the US has crossed 160000 cases so far and has the highest number in the world. Major population countries like India are under complete lockdown to prevent from getting into community transmission phase.

Bottom line

Not only travel and hotel businesses at risk but also other businesses are facing the impact of coronavirus spread all over the world. In some countries, the situation is gone out of control and some are in the stage of community transmission. Let’s hope this shall pass soon and everything comes back to normal.

Meanwhile, for any information head to WHO’s site to avoid the spread of misinformation.