Airbnb collects the full booking amount at the time of confirmation and charges service fees to both hosts and guests. Refunds are governed by the host's selected cancellation policy.
This analysis describes what Airbnb's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The provision defines the payment collection mechanism and timing, establishing that fees are due at the point of booking confirmation rather than at a later stage. It also clarifies that service fee revenue supports platform infrastructure costs and that refund processing is governed by individual Host cancellation policies subject to Airbnb's standard terms.
Interpretive note: The enforceability and adequacy of host-selected cancellation policies as the sole determinant of consumer refund eligibility may vary by jurisdiction, particularly in EU/EEA markets with statutory minimum refund rights.
Removal of specific payment collection timing and refund procedures eliminates transparency regarding when and how payments are processed and refunded, potentially obscuring fee structures and payment conditions from users.
View full change record →The agreement states that Airbnb collects total fees at booking confirmation and that refund amounts are determined by the host's cancellation policy, which may result in no refund or only partial refunds for cancellations made close to the check-in date.
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"Airbnb Payments will collect the Total Fees at the time of booking confirmation (i.e. when the booking request is accepted by a Host for instant bookings). In the event of a cancellation, Airbnb Payments will refund the Guest in accordance with the Host's cancellation policy, and any refund will be subject to Airbnb's Terms and Policies. Airbnb charges service fees (from both Hosts and Guests) to help cover the costs of running the platform.— Excerpt from Airbnb's Airbnb Terms of Service
1) REGULATORY LANDSCAPE: Payment collection at booking confirmation and refund policies dependent on host-selected cancellation terms engage EU consumer rights law, including Directive 2011/83/EU on consumer rights, which may require specific disclosure of refund terms before payment. The CFPB has authority over payment processing practices in the US, and state consumer protection laws may impose minimum refund standards for prepaid service contracts. 2) GOVERNANCE EXPOSURE: Medium. The reliance on host-selected cancellation policies as the determinant of consumer refund eligibility means refund terms are variable and may not meet minimum consumer protection standards in certain jurisdictions. The absence of a platform-wide minimum refund guarantee may draw regulatory attention in jurisdictions with mandatory consumer refund rights. 3) JURISDICTION FLAGS: EU/EEA consumers may have statutory rights to refunds that cannot be waived by the host's cancellation policy. California's Consumer Legal Remedies Act and other state statutes may impose minimum refund standards. UK consumers have similar protections under the Consumer Contracts Regulations 2013. 4) CONTRACT AND VENDOR IMPLICATIONS: Businesses using Airbnb for corporate travel programs should assess the financial exposure associated with variable cancellation policies and consider negotiating platform-level refund guarantees or selecting listings with flexible cancellation terms. 5) COMPLIANCE CONSIDERATIONS: Compliance teams advising corporate travel programs should ensure that booking procedures include review of applicable cancellation policies and that expense policy documentation addresses the risk of non-refundable bookings.
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The provision defines the payment collection mechanism and timing, establishing that fees are due at the point of booking confirmation rather than at a later stage. It also clarifies that service fee revenue supports platform infrastructure costs and that refund processing is governed by individual Host cancellation policies subject to Airbnb's standard terms.
The agreement states that Airbnb collects total fees at booking confirmation and that refund amounts are determined by the host's cancellation policy, which may result in no refund or only partial refunds for cancellations made close to the check-in date.
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