Airbnb Stealing Discount Amount after booking cancelled

Be very careful about using a discount code when booking with Airbnb. If you cancel, they will steal the amount of the discount from you.

I booked a room with Airbnb using a discount coupon - I think it was PAYPAL40.

The total cost for the room was $563, which is $502 plus an Airbnb service fee of $61, which is non-refundable. The Airbnb discount coupon was $42, which took my total cost down to $521.

A few weeks later, I had to cancel the booking. The host agreed to a full refund, and yet the amount I was refunded was only $418, which left me $103 out of pocket.
I contacted Airbnb, and tried to explain that they had made a mistake. They tried to explain that I paid $521 and that the Airbnb service fee of $61 was non-refundable which takes the cost down to $460. Then they said that the voucher was voided so that they reduced this by a further $42, which leaves me with $418 as a full refund.

I did see the following on the Airbnb website after receiving the full refund from the host:
“The coupon of $42 AUD you used for this reservation is non-refundable”

I told them that I understood that the discount coupon was non-refundable but that I didn’t expect to actually have the pay this amount to them if I cancel. I said that the refund should be based on the net cost of the room, which is $502, and when the $42 voucher is taken off this, the refund should be $460.

I tried a few other ways to explain this:
1. I tried to explain that the $42 coupon should be taken off the gross amount when calculating the refund, not the net amount (it is already taken off the gross amount to get to the net amount).
2. I added the amounts and showed that
$418 + $61 + $42 + $42 = $563.
This was to show them that you had to add the $42 twice to the refunds and service fee to get the full cost.
3. I said that if I had not used a coupon I’d have paid $563 in total and would have received a refund of $501. Yet now because I got a $42 discount, my refund is $84 less, which is not right.
4. I explained that I paid Airbnb $521 originally and now they’re refunding me $418, leaving me $103 out of pocket, even though the only non-refundable amount was the $61 service fee. They tried to explain that this was a sum total of the $61 fee plus the $42 voucher. But they didn’t seem to understand that I never received $42 so they can’t take it away – it was a discount.

I also made the point that when I made the booking and used the discount code, I didn’t see any warning that said that if I cancel, that I would then be charged the amount of the discount. They didn’t understand this.

They did offer to restore my voucher so that I could use it again, but I made it clear that I don’t want to pay $42 to get a $42 discount coupon and I just wanted my money back.

It looks like Airbnb refund process doesn’t work when the customer has used a coupon. I don’t think that they are trying to steal from me, as they really didn’t seem to understand what they were doing wrong.

It was an unfuriating conversation that took about an hour, as they didn't seem to understand the basic maths. I'm going to consumer affairs but not really sure if that will help. Airbnb is a multi-national company so it may be hard for a Victorian consumer body to force them to act. But I'll also try to get Paypal to help if necessary. Seems like a lot of effort for $42 but they have probably done this to many other customers and it has to be stopped.

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Comments

  • +3

    TL;DR when cancelling a booking with AirBNB, they won't refund the value of any vouchers used, meaning you'll be out of pocket by their 'service fee', plus the value of the voucher

    • +1

      AirBnB won't refund double the value of the voucher. Which means they aren't refunding some cash paid as well

      • Where'd you get double from? They refunded op the total minus their service fee and the discount voucher

        • +4

          Total room charge = $502 + $61 = $563
          Paid after voucher = $563 - $42 = $521

          He was refunded $563 - $61 - $42 - $42 = $418

          In other words.. they took the voucher amount twice from the refunded amount

        • -1

          @Thrawn:

          True. Tbh it's all a bit of a head fk in amongst that essay

  • yes, so they actually are pocketing the value of the voucher used. This is why it is theft.

    • +3

      Yes, I know, I thought a summary was in order, since your post waffles on quite a bit

    • I think Thrawn has laid it out very clearly, in a very easy to understand manner. Use this and show them, that you want the $42 refunded.

      • I tried that - they were actually pretty dumb mathematically. I laid it out to them just as thrawn put it and they couldn't understand.
        Sorry about the essay - I was trying to list all the ways I tried to explain it to them, none of which they could understand.

        • +1

          I am beginning to suspect they are playing dumb. They cannot "not" understand this.

  • +4

    Sorry to hear about your misfortune with AirBNB. What they have done is wrong in every aspect, as they have already recouped their losses by keeping their service fee. I can understand forfeiting the voucher when you cancel, but why on earth would they charge you for the value of the voucher when you haven't even used it? I have not had the misfortune to personally experience this, but I suggest that you contact consumer affairs to find out where you stand in this situation. Please keep us informed and thanks for posting this.

  • Is a credit card charge back an option?

  • +3

    Post it on their FB and twitter account. Let other people be aware about this problem.

  • I may do that but at the moment I'm playing nice and requesting that they reinstate the voucher for me, as they promised to do. When I get the discount coupon from them, then at least I will have got something for the money they stole from me, and then I can take action - I think through paypal (buyer protection), consumer affairs and social media.

  • Very keen to hear how you go with this.

    I have an 8 night booking next year. Due to flight changes I need to shorten it to 7 nights. I went to amend the booking and when I do so I get next to no refund because they don't refund the credit.

    Seems totally ridiculous.

    • I'll keep you in touch. Still waiting for a call back on my voucher reinstatement before I ruffle any feathers by lodging with consumer affairs.

  • +1

    i rang again to follow up on the reinstatement of the voucher but got no result. So I've submitted the claim with consumer affairs.

    • All the best with the claim. Let us know how you go.

  • No result from consumer affairs. My options are now:
    1. Raise a case with VCAT. Sounds like throwing good money after bad.
    2. Send a letter of demand and threaten to go to VCAT. I may do this but I don't have their address. Anyone have a postal address for Airbnb? I can't seem to find it with a google search. I know they're in Surry Hills, NSW.
    3. Submit a case through paypal, which I'm doing.
    4. Rubbish them on social media, which I'll do also.

    • So sorry to hear you could not get results. Hope paypal side with you.

  • That sucks.

    I am growing to hate airbnb. They make a fortune skirting and breaking laws around the world, distort the housing market, provide little to no assistance when there's a problem and provide no flexibility in travel arrangements.

    I think I'm just going to stick to using points with hotels & best rate guarantees etc.

  • Here's a link to my change.org petition to try to pressure them to stop this practice. It is not just for my $42, but for many others that they will steal from using this method.

    https://www.change.org/p/airbnb-force-airbnb-to-stop-stealin…

    Please sign and share.

    Thanks.

  • No word from paypal yet. Airbnb have until 26th December to respond. My guess is that they still scratching their heads trying to work out what went wrong. :)

  • +4

    Airbnb failed to respond by the due date, so Paypal refunded me the whole amount - all $103, including both the stolen $42 plus the Airbnb service fee of $61. Looks like for Airbnb, it doesn't pay to steal in this case. The petition continues, as not all people will be as successful as me and Airbnb shouldn't be allowed to get away with this.

    So I'd really appreciate it if you could sign and share the petition.

    https://www.change.org/p/airbnb-force-airbnb-to-stop-stealin…

    Cheers.

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