Host Requires Direct Deposit for Confirmed Reservation

I have been traveling in New Zealand and using Airbnb. I have used Airbnb in the US, Europe and now New Zealand. Until now I have had good experiences with all my hosts, until I stayed with Richard in Rotorua. I made reservations through Airbnb and they were accepted by the host. On the day we were to arrive we texted to let him know what time we would come. He called back and told us that he had rented the property to someone else (seven people instead of two) who had paid a deposit into his bank account. To confirm, we called a second number given on Airbnb and talked to someone who said it was “no problem”: we should show up at the address and he would send someone with the key. When we arrived we found the seven other people had arrived five minutes before us and they had already been given the key. We then had to scramble to find a new place to stay at an inflated price. The people we talked to had strong Chinese accents and poor English, so it was very difficult to understand them. The only thing I can figure is to reserve with Richard you need to wire money directly to his bank account and not assume that the Airbnb reservation confirmation is real. I have never had this issue before and it was not evident from the Airbnb website or emails that there was an issue with the reservation or an additional deposit was required outside the Airbnb system. I have seen deposits required before but always paid what the Airbnb site charged, got my reservation confirmation, and had no further significant issues. After several attempted phone calls to Airbnb at +1 855 424 7262 I finally got through to a “Case Manager” at Airbnb who said they would refund our rental charges. I’m waiting for their final response to see if we should join Airbnb Hell’s class action lawsuit.

When Airbnb Cancels Your Reservation Without Checking

In late 2016 I made two reservations on Airbnb for a New Zealand holiday. In mid-January 2017 (i.e. one and a half months later) I discovered two unauthorised transactions dated January 14th and 15th using the same credit card for Airbnb in China and two non-Airbnb charges in the UK. I contacted my bank and told them which transactions were unauthorised; they cancelled the card. The bank notified Airbnb of the two unauthorised transactions and refused the two pending charges in the UK. Three weeks later Airbnb contacted me to tell me that their security team had identified suspicious transactions. They just cancelled the two earlier reservations in New Zealand without checking with me to see if they were legitimate. Then I had to try and contact them to get the problem fixed. Emails just bounced back as undeliverable. I couldn’t contact the hosts to try and let them know that we were still coming and what happened.

Finally, I located an Airbnb phone number and waited until someone answered. I explained the problem and was told how it would be fixed. I then received repeated email messages telling me the reservations had been cancelled, and there had been a problem with my card. I couldn’t reply by email, spent ages on the phone, and could not get transferred in their call centre to the person who knew about my case. They promised they would call back, which sometimes happens and often does not. I am recovering from cancer surgery and the New Zealand holiday was something to look forward to doing with my wife, but it is now a nightmare that I can totally do without.

To cut the story short, they still have not managed to fix the problem and are trying to charge my cancelled credit card, not using the new card in my profile. We had used Airbnb twice before without any issues and thought it was a good service. Now, I will never use them again and will tell all my friends to do the same. This is a classic situation in customer service. A customer who complains is giving the company an opportunity to fix the issue. If it is fixed promptly the customer will go away but still tell others about a good experience. If it is not fixed the customer goes away and becomes a negative walking and talking advertisement for the company, because not only did the company screw up, but they did not fix the problem or – in some cases – even try to fix the problem. Customer service like this damages the brand far more than any positive advertising can hope to repair. Airbnb really needs to up its game.

Airbnb Built on Institutionalized Fraud

Airbnb takes the full payment amount from guests when bookings are made. Then they keep the money for however many days, weeks, or months before the guests actually arrive and are supposed to pay the host as follows: “Airbnb releases your payout about 24 hours after your guest’s scheduled check-in.” What actually happens is that Airbnb sends an email to the host at the point when they should pay and suggests that the bank will take time to pay. This is a total lie. In New Zealand, payments are processed very quickly. The banks may sit on interbank payments for up to one day and do not process interbank payments on weekends and public holidays, but they do not just sit on the money for days as Airbnb suggests. What is actually going on is that Airbnb sits on millions of dollars of guests’ and hosts’ money for days. Meanwhile the guest has checked out and often even left the country before the host is paid. This is just another way that Airbnb is screwing the market. Remember, Airbnb does not have any property. In fact, they have nothing except an APP which causes frustration in communications, so they can keep the guests and hosts at arm’s length until they have got their money. I would strongly suggest that guests instead find a property outside of Airbnb, especially if it is a hotel or guest house and they can check the price directly. When there is no commission to Airbnb, hosts can often offer a better price. If you pay money out to a host who owns a hotel or guest house that has been in business for some time, you at least know where they are; they have a physical location. Whereas you struggle to even get Airbnb on the phone in some random foreign country. Best wishes from a host still waiting to get paid.