Australia bushfires: Holiday home refunds in focus after thousands evacuated

Holidaymaker Mayeule Graff was among those who had to cancel their planned trips to the NSW south coast due to bushfires – yet she enjoyed some good fortune amid the crisis.

The hosts of the Airbnb house she booked offered her a refund and a free night’s stay after she was trapped by road closures.

“It was raining ashes from eucalyptus leaves, the smoke was getting very thick and my partner was not very confident [about travelling further south],” said Ms Graff who had planned to stay in Batemans Bay for a few days before Christmas. 

“The Airbnb booking had a strict cancellation policy but they said no worries, you will get a full reimbursement.”

But she was trapped on the south coast after the Princes Highway was closed and the hosts put her up for the night despite cancelling. 

“I’ve been in contact with the hosts since to check in with them … it is terrible to see the situation in Australia,” she said.

This bushfire crisis has brought into focus the question of holiday refunds in the wake of thousands of people evacuating coastal towns and changing their summer plans.

Some travellers have faced uncertainty about whether they will get a refund after cancelling or been told refunds will be assessed on a case-by-case basis, amid the ongoing fires that have now burnt more than 6 million hectares around the country since fire season began.

Prime Minister Scott Morrison on Wednesday requested holidaymakers cut tourism operators a break on the issue of refunds.

“If you booked accommodation and you’re now seeking a refund, can you cut them a break?” Mr Morrison said. “These businesses have been hit very hard and their cashflow positions are not going to be in a position where they’re going to be able to meet every request.

“For Australians in particular, you want to help in these regions? Then cut these local tourism operators a break when it comes to what you might like to do.

“Even better: why not, if you’re in a position to do so – I know not everyone is – but if you’re in a position to do so, then why not even let them keep it or, indeed, arrange for another time when you can take it up and come back and visit, whether it’s Kangaroo Island or anywhere else.”

Short-stay letting platforms also charge booking fees, which travel and tourism lawyer Tony Cordato of Cordato Partners says should be refunded to customers in fire-affected areas. 

“Airbnb shouldn’t be debiting any booking fee so it should be a full refund,” Mr Cordato said. “It’s very common in the travel industry to have this kind of circumstances outside of control … it’s called force majeure … it’s quite standard.”

Mr Cordato said these companies should compile a list of areas where they will give automatic refunds based on bushfire activity.

He believed Airbnb was not prepared for the ongoing natural disaster that has ravaged large swathes of the east coast from Queensland down to Victoria.

“They’re not equipped for it. They haven’t said anything in their terms and conditions. They only have earthquakes, which Australia doesn’t have much of,” Mr Cordato said. “These terms were drafted in San Francisco where Airbnb is based … they have earthquakes and storms. They have to widen the terms.”

He said Mr Morrison’s suggestion to rebook for a later date instead of requesting a refund was reasonable.

“But both the booking platforms and the hosts owe a legal duty of care to provide safe accommodation.”

However, property lawyer Simon Libbis of Prior Law believed refunds depended on the circumstances of each booking.

He said if customers could establish a property could not be used for the purpose they intended then they should be entitled to a refund.

“Airbnb is really just a facilitator, they just put the two people together. All Airbnb does is act as a clearing house,” Mr Libbis said.

“There’s no simple answer … there’s a fairness answer,” he said. “It’s one of those unfortunate things, it’s not anyone’s fault.” 

Ms Graff said she was glad to get a refund as it was not a safe place to stay.

On the prime minister’s suggestion of hosts keeping the payment, Ms Graff said: “[Sure], if he is willing to pay for it.

“I know it was a strict cancellation policy but when I planned my trip I couldn’t have planned that would have happened.”

An Airbnb spokesperson said refunds were being given on a case-by-case basis to “ensure the full extent of each set of circumstances can be properly taken into account”. 

“Guests forced to cancel or avoid going on their trips due to the ongoing bushfires, or hosts who have been impacted, are encouraged to contact Airbnb for support.”

A Stayz spokesperson encouraged travellers to cancel their booking via their website “as the rental agreement is between the traveller and the homeowner”. 

Stayz also confirmed it would reimburse all traveller service fees for bookings that were cancelled due to the bushfires.

If you’re a Domain customer affected by the recent bushfire crisis, find out how we can help support you here.