Government Crackdowns on Short-Term Rentals in Europe and Asia
Governments across Europe and Asia are taking a stricter approach towards short-term rental platforms, impacting the way travelers book accommodations. In Spain, authorities recently ordered Airbnb to delist 65,000 properties, signaling a growing concern over the impact of such rentals on local housing markets. Similarly, Thailand has issued warnings to foreigners that purchasing apartments for rental purposes may violate local laws. These measures are not isolated; other popular tourist destinations, including Italy and Greece, have also introduced similar regulations.
As the summer travel season approaches, these changes could leave some travelers in difficult situations, potentially leading to unexpected cancellations or unavailability of their booked accommodations. According to insurance provider Squaremouth, this can result in financial losses for travelers who may need to find alternative arrangements at short notice.
Understanding Traveler Rights and Insurance Coverage
When an Airbnb booking is canceled, travelers may wonder about their rights to a refund. Squaremouth notes that travel insurance can cover Airbnb stays and other holiday rentals, provided the policy includes trip cancellation or trip interruption coverage. However, it’s important to understand that most policies only reimburse travelers if they cancel due to covered reasons, such as illness or severe weather. Government restrictions typically do not fall under this category.
Airbnb and other rental booking companies have their own policies to protect travelers. Ernesto Suarez, CEO of insurance provider Gigasure, explains that if a host cancels or the listing significantly differs from what was advertised, Airbnb will assist in finding a comparable replacement or offer a refund.
Covering Additional Expenses
While Airbnb’s protection policy should ensure a refund for the accommodation itself, it generally does not cover other expenses such as travel, car hire, or incidental costs. Suarez emphasizes that standard travel insurance usually does not cover these additional costs if they arise due to government regulations or changes in travel arrangements.
To ensure comprehensive coverage, travelers should consider insurers that offer more customizable policies. This allows them to select specific protections based on their needs.
Choosing the Right Travel Insurance Policy
There are several steps travelers can take to protect themselves against the risk of an Airbnb booking being canceled. Suarez suggests considering booking a package trip, which doesn’t necessarily mean working with a tour operator. Booking travel and accommodation together through a travel agent can provide protection under package travel regulations, offering financial security if either the travel or accommodation provider changes the package or becomes insolvent.
Another option is to book flexible flights and travel arrangements. While this may cost more, it allows for last-minute changes. If travelers prefer to book travel and accommodation separately, they may not be covered by a standard policy if one component of their trip is canceled. In such cases, it’s advisable to look for a more comprehensive insurer.
Squaremouth recommends opting for a policy with ‘Cancel for Any Reason’ (CFAR) coverage. This type of policy provides partial reimbursement for prepaid and non-refundable trip payments if a traveler needs to cancel for a reason not otherwise covered by trip cancellation, such as government crackdowns on Airbnbs.
