Disappointing AirBNB cancellation policy

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charles cawley
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Post by charles cawley »

Given an easy cancellation regime, some guests tend to stack bookings so they can then pick their favourite from a selection that will not be affected by someone else reducing their choice booking in front of them.

Something similar is causing massive upset in the UK housing market where, in an attempt to avoid gazumping, the law insists that once a verbal offer is accepted and steps have started in a house purchase, the house must be taken off the market. Time wasters and dreamers often take a vendors close to exchange date before withdrawing. An increasing number of these people are making offers on more than one property to stack alternatives and eliminate competition from other buyers.

A well intentioned law has resulted in greater disruption to the market offering the opportunity for some purchasers to behave in a poor manner. Some vendors have lost months or even years with two or more sets of time wasters abusing law intended to end gazumping.

In holiday letting, agents will never take a booking until a non-returnable deposit is made. (There are a few exceptions, such as armed forces people who may be called away at short notice where the deposit can be returnable). This tends to stop time wasting in its tracks.

A large number of cancellations could be a sign of a market in disarray caused by purchasers exploiting loop-holes to reduce competition. It is a sign that Air BnB may assume supply is such that it is a buyer's market so it focuses on keeping buyers happy at the expense of owners.

In the long run, an even handed attitude towards guests and owners is critical to avoid quality issues. If stacking bookings is going on, this is not a healthy sign.
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apexblue
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Post by apexblue »

Something similar is causing massive upset in the UK housing market where, in an attempt to avoid gazumping, the law insists that once a verbal offer is accepted and steps have started in a house purchase, the house must be taken off the market.
what law Charles?
It is better to remain quiet and have one think you are stupid, than to open your mouth and remove all doubt....

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charles cawley
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Post by charles cawley »

Apologies. I had failed to double check on info received. I was labouring under an illusion. It appears that the habit of insisting houses are taken off the market has increased but there is no such law. If the vendor ignores that stipulation then some legal remedy could well be available.

However, the habit of stacking offers and waiting for the first vendor to buckle is, according to my source in the Estate Agency world, on the increase.

Thank you for this. Nothing worse than repeating misinformation.
Last edited by charles cawley on Wed Sep 16, 2015 9:01 am, edited 1 time in total.
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apexblue
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Post by apexblue »

I think this may apply in Scotland.
It is better to remain quiet and have one think you are stupid, than to open your mouth and remove all doubt....

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charles cawley
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Post by charles cawley »

Thanks Apex Blue.

Saved loss of face!
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Sam V
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Post by Sam V »

charles cawley wrote:Apologies. I had failed to double check on info received. I was labouring under an illusion. It appears that the habit of insisting houses are taken off the market has increased but there is no such law. If the vendor ignores that stipulation then some legal remedy could well be available.

However, the habit of stacking offers and waiting for the first vendor to buckle is, according to my source in the Estate Agency world, on the increase.

Thank you for this. Nothing worse than repeating misinformation.
Five years ago, when selling our house, we got so fed up with being messed about by purchasers 'changing their mind', putting offers on other properties, etc. That when we got to the fourth purchasers and having lost a house we were buying, we insisted that if they were genuinely interested they pay us a £5k deposit to be withheld if they pulled out of the sale. Estate agent and solicitors said 'you can't do that!' But we told them tough, we've had enough. Our purchasers were happy to pay us the deposit as they were serious about buying our house and the sale went through. We'd do it again if it meant forming a genuine purchase.
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charles cawley
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Post by charles cawley »

I admire your guts. It also brings things back to the Air BnB situation where it appears people can manipulate and reduce competition by, in effect, stacking 'offers'.

This is one source of upset we agents do not suffer from with the cast iron rule no non-refundable deposit, no booking. It sounds tough, but it works. We do, sometimes of course, use discretion and refund and there are legal exceptions that must be adhered to.

It is little draconian but, in most cases, if people really want to book, they will.
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Post by pepsipuss »

Very disappointed to read this thread. Having watched ABB evolve to the point where the system works for rental we listed our last for the first time in June with great success. Like LV we find the profile bto be identical to our other guests. We have now listed bthe big house as well and were optimistic about the bresults as already bhad a couple of enquiries.

However if this is how they handle cancellatios we may need to rethink the villa listing. Losing €650 a week is bád enough but €2000 a complete no-no.
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