Coronavirus Outbreak
Coronavirus outbreak has affected the US Travel industry especially since countries have reinstated draconian measures such as imposing lockdowns and closing of borders. Statically around 4.6 million people will lose their jobs within the industry.
Amid the coronavirus pandemic, the travel industry has been greatly impacted such that online marketing companies like Airbnb are faced with inconveniences. Various hotel and lodging reservations made by Airbnb were canceled. However, the previous month Airbnb assured full cash refund to its customers. Nonetheless, the process hasn’t been effective because most of the customers are complaining of a failed refund.
Guests protest over travel credits instead of cash.
Airbnb customers and rental companies remain the greatest victims of travel cancellations. This is because unlike hotel service, Airbnb guests pay for lodging and accommodation before the trip.
Most of the customers are lamenting over the failed refund. The industry is offering them travel credits in lieu of cash. Consequently, the company is demanding the customers to produce documents as proof of restricted travels.
However, the fight sent social media buzzing with critics as hundreds of customers have resorted to attacking the company through twitter and Reddit or by emailing execs. This level of inconvenience has left many questioning the company’s transparency.
Airbnb spokesperson dismisses the alleged claims of failed refunds.
Airbnb spokesman told CNBC that their support staff is putting extra effort to help the guests during the corona pandemic. It has been challenging but despite that, they are trying to solve the situation at hand. He said they had activated their Extenuating Circumstance policy so guests could access full refunds or credits.
Great loss.
Airbnb presumed initially as the hottest tech IPO is currently facing condemnation. The crisis began just after the corona was declared an outbreak. The industry is facing multiple challenges with its profits plunging deeply. According to The Wall Street Journal, the company suffered a loss of $322 million in February. This decline accumulated within the previous 9 months last year.
The company is at risk of a bad reputation.
Travel industry analyst, Henry Harteveldt says failure to make full refunds to the complaining customers, the company stands a risk of a bad reputation. Hence Airbnb will lose its customers to its rivals.
“Airbnb needs to rest this problem before it becomes a larger and more expensive problem for them to solve,” Harteveldt said.
Controversies over documentation.
Following March 14th announcements, Airbnb offered to refund a full repayment to its customers who canceled their reservations around 14th April. A rather generous offer compared to its competitors like VRBO which offered a minimum refund of 50%. In a post, the company said it denied no one a refund but provided options for its customers.
Nevertheless, what the company preaches contradicts the customers’ views. The guests shared some screenshots with CNBC in which the company refused to offer full refunds without documentation. The documents were to contain government restriction of leaving an area, and health recommendation i.e. no travel because of sickness.
Successful refunds after CNBC intervenes.
Amid the chaos, some customers have however successfully received their refunds. For Instance, after CNBC reached out to Airbnb on Galvan’s case, she managed to receive her cash. Wei Shi from Brooklyn, New York had also canceled her Airbnb reservation and received a full cash refund. Shi condemned Airbnb for their response before the intervention. As much as their revenue stream is suffering the company needs not to blame the pandemic on customers.
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