Coronavirus - cancellaitons - and how to respond to guests

Up, down, could be better? How to get more bookings is our number one obsession. Talk shop here.
Sam V
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Post by Sam V »

OK, so a couple of scenarios cropped up for me now:

I have guests due to arrive from the US on 24 April, just for 3 nights. Obviously everything has shifted yet again and so now the Portuguese borders are closed and no flights are departing the US anyway.

I had not heard anything form these US guests so I emailed them this morning. They have come back to me that obviously they cannot stay, but have asked if I can re-book them for early September, I do have 3 nights available, but September is otherwise currently fully booked ~ and those dates would also cost them more(!)

Another direct booking for 23 May. Shes just emailed me that she doesn't want a refund but would like to move their booking to next year! Tricky one this as they have stayed now 3 times previously. I have a strict cancellation policy of no refund on deposit but her balance also hasn't been paid yet as it isn't due until 28th

....Ive got another returning guest, fully paid, due in this Thursday, I've not heard from him yet either....

...and another very frequent returner (2-3 times a year!) who did email me recently to say shes keeping an eye on things. She's fully paid and due 4 April


Ughhh! This is a nightmare!
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Sunbeam
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Post by Sunbeam »

Under "normal" circumstances and depending on the case presented by the guest, an owner can reasonably allow a booking to be moved to a date in the future.

But with the coronavirus situation owners have no idea what the future holds or how long this situation is going to go on for of if it will die down and then flare up again.

Some owners may have to find other ways of using their property to make a living, perhaps taking a long term let; or have had to have a complete change of job and will have the problem of dealing with a booking that was moved to a future date.

Also - if there is the possibility of the guest claiming on their insurance - this is a preferable solution as those future dates will be needed generate much needed income.

If it was a one-off it is managable - but all of them shifting dates could be an administrative nightmare - there will be enough stress to manage with this uncertain future.

Could it also affect a guest being covered by their insurance for the future dates - might there be a clause "if you booked your holiday after [date] there is no cover for any coronavirus related claims" - because they consider the re-booking a new booking? Insurance companies will be under lots of stress themselves and be looking for all sorts of loopholes.

Under these exceptional circumstances should Owners not be able to apply their cancellation terms without being made to feel bad about it.
Sam V
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Post by Sam V »

Firstly, huge thanks and please forgive me to Sunbeam and I think someone else here, who I’m very sorry but I can’t remember who and can’t find the post, but I have plagiarised your posts to create an email explaining my cancellation policy to my four fully paid guests booked to arrive from this Thursday up to 23 May, all had paid up in full. I’ll probably edit it further for the later bookings coming up and I also intend to email this to the ones booked via HA and Airbnb,

‘Dear Guest

Your holiday and the worldwide Covid-19 situation

I hope you and your family are well.
This is rapidly becoming a very difficult and worrying time for all of us and you are probably concerned about your holiday booking and any payments you have made. I am also very worried about the loss of income I will be facing. The villa has thankfully been self-supporting but with only a small profit (and that usually goes on maintenance and repairs anyway!). My personal situation has changed in the past couple of years, so I am reliant on the villa remaining self-supporting.
As with most countries, Portugal has now closed its borders, flights are still arriving from UK but are now extremely limited and no with idea how long this will continue.
I do not know if you have any plans in place to still travel, the villa has been prepared for the season and is ready to accept guests.

However, if you have made the decision or are unable to travel, please understand that although you may be missing a few days holiday, I am losing any income to fund the (Portuguese) mortgage, utility and Portuguese tax payments plus the livelihoods of those who are paid to help with management, pool and garden maintenance, cleaning, etc.
I must refer you to our booking and cancellation terms, sent to you at the time of booking. It is your responsibility for ensuring you have adequate travel insurance including cancellation insurance to cover any payments made. If your insurance does not cover this crisis or you decided not to take out any travel insurance, I don't feel I should have to shoulder the burden.

Under "normal" circumstances and depending on the case, I would reasonably allow a booking to be moved to a date in the future, as it would be highly likely the original dates could be filled with no financial loss to either. But with the coronavirus situation cancelled bookings are not going to be filled, I have no idea what the future holds or how long this situation is going to go on for or if it will die down and then flare up again. Plus, we will have no idea of the situation regarding flights, if or when there will be any schedules in place or if some airlines are even still operating.
In addition, if this was a one-off booking situation it would be manageable but shifting all bookings would be an administrative nightmare for me. There will be enough stress to manage with this uncertain future.

I really don’t want to lose my lovely guests for bookings in the future over this so I would like to propose this; If you would still like to book again in the future I will ‘pencil-in’ a future date for you with no deposit up front. I’ll put a 10% deposit down for you as a gesture of goodwill towards your booking. When this is hopefully over, if you decide you want to confirm the booking and book flights, etc. then my usual booking terms will apply with a 20% deposit to pay followed by the final balance at the due time (eight week prior to arrival). However, I will only hold the dates for you with no payment from you up to the eight weeks prior, and the dates will be released, should you change your mind after this time and the dates are still available I will still honour the 10% discount on those dates only. Any usual discounts will also be applied and including a ‘Returning guest discount’.

But – please be aware of being covered by your insurance for the future dates – there may be a clause "if you booked your holiday after [date] there is no cover for any coronavirus related claims" - Insurance companies will be under lots of stress themselves and be looking for all sorts of loopholes.
I really do hope I have your support and understanding under these unique circumstances. It is going to be difficult for all of us one way or another. I am not comfortable with imposing cancellation terms, but I should not have to be made to feel bad about doing so.

Best wishes.’

-The first guest has fully accepted my email and had been holding out to still travel, but we spoke
today and agreed it best he doesn’t after all.
-The second guest is trying to get hold of her insurance company, she’s currently booked for Easter
and this summer and has asked to pencil in for next Easter and august
-Third guest was coming from US and understands, not mention yet of any future booking
-Fourth guest was due to pay the final balance at the end of the month but has actually already paid
and understands but would like the payment transferred to a future booking, which I will do, but my
policy on the deposit holds.
-I had another guest email me about their booking for August as they are related to the second
guests. I sent them the same email as the others but I’m a little confused about the reply, I’m
probably tired and just need to read it through a couple of times tomorrow. –
‘Thankyou for your reply, I fully accept your position and would not expect you to burden the cost of cancellations.
To this end is it possible to transfer our booking the summer of 2021??? If so please could you provide availability.
As stated in my previous email I am reluctant to cancel the booking but feel the situation is unprecedented and with the lack of truthful information postponing the holiday is my only viable option. ‘
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Sunbeam
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Post by Sunbeam »

Thank you for posting this Sam - it really helps to share - like you - very tired and will digest it tomorrow.
Debby K
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Post by Debby K »

This is worth thinking about. If you are selling a product (in our case a holiday) then the client has to be able to receive it. If the borders of your country are closed you can't sell your product and should refund your client. If the borders of the client's country are closed then they can't receive a product they have paid for (because they can't get there) and they should lose their money.

If both borders are closed then no idea what happens!

Here in France they are saying that if we don't earn anything then we can ask for help from the government.
Sunbeam
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Post by Sunbeam »

Debby K wrote:This is worth thinking about. If you are selling a product (in our case a holiday) then the client has to be able to receive it. If the borders of your country are closed you can't sell your product and should refund your client. If the borders of the client's country are closed then they can't receive a product they have paid for (because they can't get there) and they should lose their money.

If both borders are closed then no idea what happens!

Here in France they are saying that if we don't earn anything then we can ask for help from the government.
But if we are selling a stay at a property we are not making "crossing a border" an obligation. Someone local to the property is allowed to book the property and they do not have to cross a border. Is it not the guest choosing to cross a border (and perhaps buying a flight or booking a ferry to enable to do this) – they are after all fully responsible for getting themselves to the property to avail themselves of the property...?

In fact, isn't it the government deciding that a guest cannot cross a border - not the owner.
Renaud2
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Post by Renaud2 »

Property owners are not selling a physical product. When someone books a holiday property they are entering into a contract for someone to rent something to them for a limited period at a future date.
As a property owner my obligation is to provide what I advertised for the dates contracted. That is all.
If the renter can not, for whatever reason, arrive at the property on the dates agreed then that is not, ultimately, my concern.
I will always, of course, try to look sympathetically at anyones plight.
If a property owner wants to refund, that is up to them. It's at their sole discretion. But there is no legal obligation to do so.
Travel insurance exists to cover unforeseen circumstances. Without it your customer has decided to save money and take a risk. Why should the property owner be obliged to cover the risk?
Sam V
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Post by Sam V »

The only close comparable situation in recent years I can think of was the volcano eruption when all flights were grounded. Guests were expected/able to claim on insurance then.
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AndrewH
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Post by AndrewH »

There was a practical/legal point put out by someone on the BBC, although I didn't hear it at first hand myself. It indicated that if a guest takes the initiative and cancels his/her holiday because of virus related governmental restrictions in the destination country, or flight cancellations, then by doing so it could invalidate a holiday insurance claim.

I have been surprised by the total lack of concerned emails from this year's future guests, all of whom have paid me a 25% deposit and a few the full amount. I even emailed an April guest (who has paid in full) offering to transfer his (disallowed) holiday to dates in October 2020, and very much to his financial advantage, but after 4 days I still have not received a 'yes or no' response from him. I suppose to take up my offer would in effect mean that he has cancelled April, and he is being canny about it.
Sunbeam
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Post by Sunbeam »

HomeAway reply to angry guest wanting a refund - taken from TrustPilot:

"We understand the recent COVID-19 situation brings uncertainty to travel.
We sincerely hope that traveler insurance is an option and recommend that you contact the policy provider.

In the spirit of good hospitality, we have strongly encouraged owners and managers to offer full refunds. However, HomeAway does not manage or own the properties listed on our site. Therefore, all cancellations are still subject to the cancellation policy agreed to at the time of booking. Please understand that this is out of HomeAway's control and is in the hands of the property management company with whom you booked with.

We encourage you to reach out to both the insurance policy holder of your reservation (if trip insurance was purchased) and the property manager to determine your options."
b_javea
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Post by b_javea »

Sunbeam wrote:HomeAway reply to angry guest wanting a refund - taken from TrustPilot:

"We understand the recent COVID-19 situation brings uncertainty to travel.
We sincerely hope that traveler insurance is an option and recommend that you contact the policy provider.

In the spirit of good hospitality, we have strongly encouraged owners and managers to offer full refunds. However, HomeAway does not manage or own the properties listed on our site. Therefore, all cancellations are still subject to the cancellation policy agreed to at the time of booking. Please understand that this is out of HomeAway's control and is in the hands of the property management company with whom you booked with.

We encourage you to reach out to both the insurance policy holder of your reservation (if trip insurance was purchased) and the property manager to determine your options."
That's reassuring to know. Unlike AirBnB's stance which was just to roll over. These platforms need to remember - 'don't bite the hand that feeds you' (i.e. us property owners, because without us they have nothing).
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CSE
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Post by CSE »

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Never try to out-stubborn your guests.
Gazpacho
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Post by Gazpacho »

That's reassuring to know. Unlike AirBnB's stance which was just to roll over. These platforms need to remember - 'don't bite the hand that feeds you' (i.e. us property owners, because without us they have nothing).
Actually all that has changed since HA announced their new policy on 18th March. You'll probably have received their recent email? This is how HA intend to 'enforce' (their own words!) the policy:

"HomeAway will reward partners with additional visibility in traveler searches. The more partners do now for travelers, the more we will reward them moving forward (so a 100% credit/refund will count more than 50% refund).
Partners who do not abide by these standards (offering a 100% credit/refund of at least a 50%) will be disadvantaged vis-a-vis those who act within our policy."

In other words, refund the guest or we will hurt your business if you continue to rely on your (legal) contract terms. The intention is to protect their brand, not our livelihoods.
Sunbeam
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Post by Sunbeam »

Gazpacho wrote:
That's reassuring to know. Unlike AirBnB's stance which was just to roll over. These platforms need to remember - 'don't bite the hand that feeds you' (i.e. us property owners, because without us they have nothing).
Actually all that has changed since HA announced their new policy on 18th March. You'll probably have received their recent email? This is how HA intend to 'enforce' (their own words!) the policy:

"HomeAway will reward partners with additional visibility in traveler searches. The more partners do now for travelers, the more we will reward them moving forward (so a 100% credit/refund will count more than 50% refund).
Partners who do not abide by these standards (offering a 100% credit/refund of at least a 50%) will be disadvantaged vis-a-vis those who act within our policy."

In other words, refund the guest or we will hurt your business if you continue to rely on your (legal) contract terms. The intention is to protect their brand, not our livelihoods.
I know - they are applying it to bookings up to 30 April. They also suggest moving the dates - for us this is a preferable option.

But what they don't do in their big email sent out to guests is mention insurance as an option - they imply a refund is the way to go with owners.

The HomeAway response above is their standard reply to people complaining about them on TrustPilot. They used it 4 days ago for responses - but have obviously given up for recent complaints.

https://www.trustpilot.com/review/www.homeaway.com




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Nigel Goodwin
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Post by Nigel Goodwin »

I just posted my two cents on trustpilot.

i recently sold my remaining holiday property, so am out of the business, but have every sympathy for independent holiday property owners who don;t know how to pay their mortgages and bills. Maybe the government will provide help :roll:
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