On Tuesday, Airbnb told KVUE it would be refunding a man who filed a lawsuit over the do-it-yourself hospitality company's cancellation policy.
The Austin man sued Airbnb, claiming the company wrongfully kept his money after he canceled an extended booking within 10 minutes of making his reservation.
“After reviewing the specific circumstances of this case, Airbnb will be fully refunding the guest," said Airbnb spokesperson Laura Rillos. "In the very unusual event that a guest or a host ever has an issue, our global Customer Service and Trust and Safety teams are on call 24 hours a day, 7 days a week. We work hard to make sure every guest has a great experience and want to make it right when things don't go as expected."
The mishap began when Roger Oberg and his wife were looking for a place to stay in London for an upcoming trip in March. Oberg said he was on Airbnb's website for more than an hour and had several windows opened.
"All those options on Airbnb, there's so many," Oberg said.
He finally found a flat near the Big Ben clock tower, booked it and put $7,479.03 on his credit card. But 10 minutes later, he realized it was the wrong property and canceled the reservation.
He also emailed the host, a total of three times.
"Hey, I haven't heard anything? Any trouble with my refund? I expect a 100 percent refund, no problem right? Didn't hear anything," said Oberg.
After not having any luck with the host, Oberg contacted Airbnb. He didn't get far with them either.
"Long story short, they just kept telling me there's nothing they can do and they kept $6,708.00, and I was just floored that this could be their policy," said Oberg.
But it is.
According to Airbnb's cancellation policy for long-term rentals, the first month is nonrefundable.
Oberg booked his stay for 43 days.
He was refunded $771. But that was a cleaning fee, according to an Airbnb spokesperson.
Airbnb also offered Oberg $1,000 to resolve the issue. He turned it down.
"This makes no sense. You always assume, eh, you're going to be reasonable, businesses have to be reasonable," Oberg said.
And that's why Oberg filed a lawsuit last week to get his money back. He also wanted Airbnb to adopt a 48-hour grace period that allows customers to change their minds without being punished.
"You walk up to the store, you say 'I'm buying a $7,000 thing,' they charge you. Before you leave the store, you say 'I don't want the $7,000 thing,' you turn around, you go back. Who doesn't say 'oh, well sure, no problem, you never even left the store, here's your $7,000,'" said Oberg.
The lawsuit alleges that Airbnb failed to live up to "any acceptable standards" when the plaintiff's money was misappropriated by the application of "convoluted, misleading, vague, ambiguous, inconsistent, arbitrary and plainly illegal policies and procedures."
According to an Airbnb spokesperson, there are seven cancellation policies from which hosts can choose.
The only exception is the long-term cancellation policy. It is as follows, according to Airbnb's website:
Long Term: First month not refundable, 30-day notice for cancellation
- Note: The Long-term cancellation policy applies to all reservations of 28 nights or more.
- Cleaning fees are always refunded if the reservation is canceled before check-in.
- Accommodation fees (the total nightly rate you're charged) are refundable in certain circumstances as outlined below.
- If there is a complaint from either party, notice must be given to Airbnb within 24 hours of check-in.
- Airbnb will mediate when necessary and has the final say in all disputes.
- A reservation is officially canceled when the guest clicks the cancellation button on the cancellation confirmation page, which they can find in Dashboard > Your Trips > Change or Cancel.
- Cancellation policies may be superseded by the Guest Refund Policy, extenuating circumstances, or cancellations by Airbnb for any other reason permitted under the Terms of Service. Please review these exceptions.
- Applicable taxes will be retained and remitted.
The lawsuit points out the following policies.
Airbnb allows hosts to choose among three standardized cancellation policies (Flexible, Moderate, and Strict) that we will enforce to protect both guest and host alike. The Super Strict cancellation policies apply to special circumstances and are by invitation only. The Long-Term cancellation policy applies to all reservations of 28 nights or more. Each listing and reservation on our site will clearly state the cancellation policy. Guests may cancel and review any penalties by viewing their travel plans and then clicking 'Cancel' on the appropriate reservation. A host will be able to see the number of reservations a guest has canceled over the previous 12 months when the guest submits a request to book.
Long-Term: First month not refundable, 30-day notice for cancellation
Note: The Long-Term cancellation policy applies to all reservations of 28 nights or more.
Cleaning fees are always refunded if the reservation is canceled before check-in.
Accommodation fees (the total nightly rate you're charged) are refundable in certain circumstances as outlined below.
If there is a complaint from either party, notice must be given to Airbnb within 24 hours of check-in.
Airbnb will mediate when necessary and has the final say in all disputes.
A reservation is officially canceled when the guest clicks the cancellation button on the cancellation confirmation page, which they can find in Dashboard > Your Trips > Change or Cancel.
Cancellation policies may be superseded by the Guest Refund Policy, extenuating circumstances, or cancellations by Airbnb for any other reason permitted under the Terms of Service. Please review these exceptions.
Applicable taxes will be retained and remitted.” (Emphasis added).
Rillos wanted to make it clear that Airbnb didn't have Oberg's money, but rather the host did. She also said that the company's cancellation policy is seen twice by the customer before a booking is confirmed and a third time after.