Airbnb further expands its response to coronavirus, hosts complain, Vrbo makes no change

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Coronavirus threatens the global tourism sector 3:18

(CNN) - As the coronavirus spreads across the world, vacation rental company Airbnb expanded its mitigating circumstances policy yesterday, allowing almost all travelers to cancel their reservations without penalty.

Now most travelers who booked with the company will qualify for refunds with no reservation penalty, and thousands of travelers are canceling their reservations and choosing to stay home.

Here's what you need to know about booking with Airbnb:

What is the mitigating circumstances policy?

Airbnb bookings come with one of six cancellation policies set by the host, ranging from flexible to super-strict. These are established by the host.

The company can override those conditions with its Mitigating Circumstances Policy, and this is how Covid-19 related cancellations can qualify for refunds.

When the Airbnb website recognizes that customers are traveling to or from certain affected areas, an automatic message is generated offering the ability to cancel without penalty.

Even if travelers don't receive that automated message, they can still cancel their reservation and submit a refund request within 14 days of cancellation.

What areas are covered?

As President Trump's travel ban into the Schengen Area goes into effect, and confirmed Covid-19 cases in the United States increase, Airbnb has made the area covered by the extenuating circumstances policy global.

All reservations made before March 14, with registration dates from March 14 to April 14, qualify for cancellations without penalty. Both hosts and guests can choose to cancel the reservation.

Airbnb experiences, where travelers can book tours, classes, and workshops, are also covered by the new policy.

The only exception is for domestic travel in Mainland China. On April 1, the standard cancellation policies are effective again there.

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How about Vrbo?

Not all travel companies are offering exceptions for coronavirus cancellations. The Vrbo vacation rental properties page has not offered any Covid-19 related exceptions to its cancellation policy.

In a letter dated March 14, Vrbo President Jeff Hurst recommended that travelers contact the owners to request a cancellation without penalty.

Addressing the owners in a letter on March 12, Hurst suggested that they remain open to such requests. "In the spirit of good hospitality," he wrote, "we strongly recommend that you offer a full refund."

What about Airbnb hosts?

Travelers are not the only ones who feel the pain of canceled trips. Thousands of Airbnb hosts worldwide are grappling with lost revenue.

On the Airhosts forum, a popular platform for Airbnb hosts, users share their concerns about the financial impact of refunding money.

In some cases, 50% of deposits paid by guests to Airbnb (which holds deposits for up to 24 hours after check-in) could be in the hundreds or even thousands of dollars, money that hosts will never receive when travelers cancel their reserves, whether or not they are in an area that is already severely affected by the coronavirus. (CDC's global outbreak notice notes that sustained spread of coronavirus in the community is occurring globally.)

READ : Coronavirus March 16: Coronavirus deaths exceed 6,000 worldwide

On March 14, the short-term vacation rental group purchasing organization Host GPO published an open letter to Airbnb about the new refund policy.

"Extending the rebates to virtually everyone until April 1," they write, "will be absolutely devastating for the hosts." Arguing that the decision is a break with company policy, the letter asks Airbnb to reconsider.

"To prevent the hosts from losing their livelihoods, it is important to ensure that the hosts survive the onslaught of unprecedented cancellations."

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