AUSTIN, Texas — Airbnb is making changes to its cancellation policy, which the company said will now better accommodate hosts and guests.
The short-term rental company is replacing its existing Extenuating Circumstances Policy and introducing the Major Disruptive Events Policy. It will allow guests to cancel and get a refund for a reservation when unexpected weather events occur and let hosts cancel reservations without fees.
Mid-trip cancellations will also be permitted.
Under its current policy, a guest wouldn't be able to get a refund even if there was a mandatory evacuation because of hurricane.
According to Airbnb, the new policy will cover:
- Natural disasters
- Declared emergencies and epidemics
- Changes to government travel requirements
- Government travel restrictions
- Military actions and other hostilities
Listed below are things it won't cover:
- Events that impact a guest or their ability to travel, but not the reservation location
- Unexpected injury or illness
- Government obligations like jury duty or court appearances
- Non-binding travel advisories or other government guidance that fall short of a travel ban or prohibition
- Cancellation or rescheduling of an event for which the reservation was made
- Transportation disruptions unrelated to a covered Event, such as airline insolvency, transportation strikes, and road closures due to maintenance
Juniper Downs, Airbnb's Head of Community Policy, released the following statement regarding its reasoning for the upcoming change:
“The changes to this policy, including its new name, were made to create clarity for our guests and Hosts and ensure it’s meeting the diverse needs of our global community. Our aim was to clearly explain when the policy applies to a reservation, and to deliver fair and consistent outcomes for our users. These updates also bring the policy in line with industry standards.”
Blake Carter operates over 60 short-term rentals in the Austin area and welcomes the upcoming change.
"I think the more that Airbnb can do to build trust between the two parties will help a lot with hosts and guests relationships," Carter said.
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Texas is no stranger to massive weather events, especially with the fear of ice storms. Carter noted during those weather events is when his short-term rentals saw those cancellations come in. He thinks it's fair to allow people to get their money back under circumstances out of their control.
"I think a lot of hosts may see this as a negative because it's affecting or it's you have everybody kind of sticking their hands and trying to control them more. But in my opinion, it will bring more users to the site," Carter said.
Airbnb noted that the policy will not apply to all emergencies, and it encourages guests that make a reservation to have travel insurance.
The policy will take effect on June 6.