The stay’s a no-go. Refund?
IF YOU CANCEL a travelrelated reservation because of a pandemic, shouldn’t you get your money back?
Easy and logical question to ask, but hard to answer in this time of the coronavirus. Or is it? Let’s look at two vacation rental organizations that faced these hard questions.
Vrbo and Airbnb are different in their intent (or used to be). Vrbo, which grew out of the idea of vacation rentals by owner, helps match vacationers with cabins and cottages, houses and apartments, and yurts and villas, including those over water.
Airbnb, meanwhile, grew out of the sharing economy as a way for owners to take rooms or a higher-end property they weren’t using and turn them into cash. That spare room becomes a guest room for a visitor who pays to stay somewhere that’s sometimes less expensive than a hotel.
Besides the differences in dwellings, the two companies also have taken different paths with their customers as the coronavirus story has unfolded. Here’s what it means for the consumer.
AIRBNB
“It’s not like we had a pandemic playbook,” said Chris Lehane, vice president, global policy and communications for Airbnb.
But because Airbnb has properties in more than 220 countries and regions, its website noted, it has dealt with hurricanes and cities struck by terrorism, earthquakes and fires. And because it has properties in China, South Korea and Japan, the organization had experience with the novel coronavirus.
The World Health Organization declared the coronavirus a pandemic March 11, and President Trump declared a national emergency March 13. On its website, Airbnb noted that those who were renting between March 14 and May 31 and had booked on or before March 14 would receive a refund.
That may have pleased guests, but hosts were not happy about losing income. Airbnb then created a $250million fund for hosts hurt by the economic collapse and added $10 million more as a relief fund for “super hosts.”
VRBO
When The Times asked for reader feedback on how the pandemic had changed their travel plans, we received half a dozen responses from readers unhappy with experiences on Vrbo.
“The vast majority of homeowners and property managers (more than 95%) have provided credits or refunds to travelers even outside their cancellation policies,” said Melanie Fish, a Vrbo representative.
“The policy isn’t going to make everyone happy, and that’s hard to take for a travel brand, since we’re in the business of helping families find happy places.”
Homeowners are encouraged, in a variety of ways, to make refunds. Some took the encouragement to heart; others did not.
Matt Kashani of San Diego had back-to-back Vrbo condo rentals on Kauai and very different experiences, he said. The first owner refunded Kashani’s money. The second owner canceled the reservation, he said, and would not offer a refund. Vrbo eventually refunded Kashani’s money for the second stay plus all fees.
Janet Carson-Flamini didn’t fare as well. She had a family trip planned to London and had already paid $3,000.
“Even with Vrbo’s guidelines to hosts to at least refund 50%, ours has been totally inflexible,” she said in an email. At first, the host said the funds could be applied to a future trip. But, as Carson-Flamini noted, the place was booked through January 2022. “It’s nuts,” she said in an email.
CREATING A PLAN BEFORE THERE’S A PROBLEM
Edward Segal, who specializes in crisis management and is the author of the soon-to-be-released book “Crisis Ahead: 101 Ways to Prepare for and Bounce Back From Disasters, Scandals, and Other Emergencies,” knows that every company will need help.
“What we are seeing now underscores the importance for every company and organization, including those in the travel industry, to prepare and know how to properly manage a crisis situation,” he said in an interview.
But it also is important, he said, “to protect the people that helped make you a success.”
Giving credits instead of refunds “does not send a good message,” he said. Companies are “essentially holding their money hostage, getting an interest-free loan.”
And, he said, “If a consumer has been treated badly by anyone in the travel industry, that can influence their opinion of the entire industry going forward.”
It’s a piece of advice to remember as companies look ahead to recovery.