Vrbo Refund Reversal in Maui Was an Exception

06.12.2023 - 04:28 / skift.com / Brian Chesky / Dennis Schaal / Sean Oneill

Vrbo reversed its longstanding guest-refund policy for the wildfires in Maui – for the first time, guests would be entitled to full refunds. But that won’t be the case with Hurricane/Tropical Storm Hilary, which this week ripped through Baja California, Mexico, and then turned to Southern California and elsewhere in the U.S. Southwest.

A Vrbo spokesperson told the Skift STR Report Monday that “there is no change to the Vrbo policy for Southern California right now.”

That means that guest refunds tied to Hilary’s disruptions will be dictated by each host’s stated policy. For example, a booking search Monday for a stay starting Tuesday night at a home with a pool in Palm Springs, California, stated that guests would be ineligible for refunds because of their chosen dates. On the other hand, a potential booking under consideration Monday at the same property for September 18-24 allows for a 50% refund — excluding the service fee — for cancellations made by September 4, and no refund after that date. So, according to the Vrbo endorsed host’s policy, if a hurricane or earthquake takes place on September 5 or thereafter, then no refund would be forthcoming.

The Vrbo spokesperson declined to say why the Maui wildfires and Hurricane/Tropical Storm Hilary refund policies are different. The death toll in the Maui wildfires was at least 114, and rising; published reports said 850 people were still missing.

Refund policies are a hot-button issue. During the beginning of the pandemic in 2020, Airbnb mandated guest refunds under its extenuating circumstances policy, and that triggered a stiff backlash from hosts, many of whom missed out on expected payments, and felt abandoned. Airbnb CEO Brian Chesky apologized, and implemented a $260 million relief package for hosts. At that time, Vrbo did not follow Airbnb’s lead, and stuck with its more host-friendly policy, enabling hosts to decide on whether to provide guest refunds based on their properties’ refund policies.

That policy was in place until the Maui wildfires, and reversed, albeit just for Maui to date.

Vrbo Reverses Long-Standing Guest Refund Policy in Maui

Many investors stay attuned to companies’ share “unlock” dates, the period after an IPO when employees are free to start trading their stock options. For example, on October 31, 2012, Facebook’s (now Meta’s) share price tumbled 4% when its employees got the green light to cash in their shares. Likewise, on the day following the Uber unlock date, which was November 5, 2019, its shares opened at what was then a record low of $25.58.

It was apparently Selina’s turn on Friday, the company confirmed to Skift’s Sean O’Neill. Selina, which offers hotel beds, hostel rooms with bunk beds, and co-working spaces,