Airbnb broadens its response to the coronavirus crisis, hosts express frustration, Vrbo remains unchanged

With the global spread of coronavirus, many travelers are opting to cancel their bookings and stay at home instead.

More travelers will now be eligible for penalty-free cancellations. Here's what you should know about booking with Airbnb:

Here's what you should understand about booking with Airbnb:

What exactly is the extenuating circumstances policy?

When booking with Airbnb, travelers are subject to one of six cancellation policies, ranging from flexible to super strict, as determined by the host.

The company has stated that certain cancellations related to Covid-19 may be eligible for refunds under the Extenuating Circumstances Policy.

If the website detects that travelers are departing from or heading to affected areas, an automatic message will be sent offering the option to cancel without penalty.

Even if travelers don't receive an automatic message, they can still cancel their booking and submit a refund request within 14 days of cancellation.

Bookings made in the United States and Europe

As President Trump's Schengen Area travel ban takes effect and confirmed Covid-19 cases increase in the U.S., Airbnb has expanded the extenuating circumstances policy to cover the entire globe.

All bookings made before March 14th with check-in dates from March 14th to April 14th are eligible for penalty-free cancellations. Both hosts and guests have the option to cancel.

Airbnb Experiences, including tours, classes, and workshops, are also covered by the new policy.

The only exception is for domestic travel within mainland China, where standard cancellation policies resume on April 1st.

What is Vrbo's stance on this?

Not all travel companies are providing exceptions for coronavirus-related cancellations. Vrbo has not introduced any Covid-19-related changes to its cancellation policy.

In a letter dated March 14th, Vrbo president Jeff Hurst advised travelers to contact homeowners directly to request penalty-free cancellations.

In a letter to homeowners on March 12th, Hurst encouraged them to consider these requests, writing, 'In the spirit of good hospitality, we strongly recommend offering a full refund.'

What is the situation for Airbnb hosts?

Airbnb hosts are also facing challenges as many struggle with the loss of income due to trip cancellations worldwide.

On the Airhosts forum, a popular community for Airbnb hosts, users are expressing concerns about the financial impact of refunding bookings.

In some instances, the 50% deposits paid by guests (held by Airbnb until 24 hours after check-in) can amount to hundreds or even thousands of dollars—money that hosts will never recover when travelers cancel, even if they are in areas heavily affected by coronavirus. (The CDC's Global Outbreak Notice highlights the widespread community transmission of the virus worldwide.)

On March 14th, the Host GPO, a short-term vacation rental group purchasing organization, published an open letter to Airbnb addressing the new refund policy.

In the letter, they state, 'Extending refunds to virtually everyone through April 1st will be devastating for hosts.' They argue that this decision goes against company policy and request Airbnb to reconsider.

The letter also emphasizes, 'To protect hosts from losing their livelihoods, it is crucial to ensure that they survive this unprecedented wave of cancellations.'