As people cancel their holiday plans in droves and demand refunds, hosts say the house-sharing platform has left them stranded | Joel Saget/AFP via Getty Images Airbnb landlords feel the pain as the coronavirus hits tourism The coronavirus crisis has left Airbnb rushing to convince its hosts they aren’t expendable.

Summer is canceled — at least for the thousands of Airbnb hosts who have seen their entire year’s income disappear due to the coronavirus crisis.

As people cancel their holiday plans in droves and demand refunds, hosts say the house-sharing platform has left them stranded, and responsible for covering cancellation costs.

“We have people threaten us, saying they hope the pandemic affects our family ... At the moment, Airbnb has put all the pressure on the host. We try to refund guests when we can, but it's overwhelming,” said Joanna Andersson, who manages two old hotels in West London that her employer has converted into 40 studio flats.

Andersson is one of thousands of Airbnb hosts who rely on the platform as a crucial source of income and say it has a duty to help them through the crisis.

But Airbnb, which Europe's top court has defined as an internet service company, offers limited help for cancellations and has reserved extra aid to its top-rated hosts who rent out their primary or secondary residences.

The platform’s status as an “information society service” allows Airbnb to operate with more regulatory freedom across the European single market.

That's not good enough for the thousands of hosts who rent out more than two properties and argue that the bounty of supply they offer is a key reason for Airbnb's global success.

It also underscores the risks taken on by people who invest heavily in platform services, only to discover when a crisis hits that there is no safety net.

"Right now it's everyone to fend for themselves," said Andersson.

Cancellation nation

When the coronavirus crisis hit, Airbnb said that guests would be able to receive full refunds for trips between March 14 and April 14.

The policy overrode any cancellation policies hosts may have had, which Andersson said prompted a flood of messages from people wanting to cancel and asking for their money back for dates outside the window Airbnb has provided — which has now been extended to May.

Some hosts say that Airbnb's decision to impose such a policy without discussing with them first shows so much disregard to hosts, they are threatening to leave the platform entirely.

"If I have the possibility to switch, I would prefer to use Expedia and Booking,” said John, who rents out several holiday apartments in the Belgian countryside.

At the end of March, Airbnb announced it would reserve $250 million to help hosts cover cancellation fees by paying a quarter of what they would have received normally through their cancellation policies.

In a letter to hosts, Airbnb CEO Brian Chesky apologized for the way the company had first announced their cancellation policy, saying the approach was chosen for health and safety reasons.

Airbnb also promised $10 million extra funding for its “superhosts,” or people with higher-than average ratings and a one-percent cancellation rate.

But this extra money applies only to hosts who rent out their primary residence or secondary home, those with no more than two listings and those who “demonstrate the most need" — excluding people like John or Andersson's employer who rent out multiple properties.

In an attempt to stay afloat, Airbnb’s competitors, such as Booking.com and Expedia, have called on the European Union to include them in any bailouts for the tourism sector.

But Airbnb defines itself as an internet company, a label reaffirmed by a 2019 ruling by the Court of Justice of the European Union.

The platform’s status as an “information society service” allows Airbnb to operate with more regulatory freedom across the European single market. As an online platform, Airbnb’s role is to work as an intermediary between hosts and guests.

Professional hosts disagree.

This group, who run their house-sharing schemes like small businesses, argue that Airbnb has a financial responsibility toward them because of the sheer number of properties they provide the company.

“Airbnb could have been more prepared without putting hosts into such a position. Without hosts, Airbnb will not survive,” said Toni, who has two central London apartments listed on the site.

Return to long-term rental

Toni does not own the apartments, but rents them from someone else, and then sublets them to tourists through Airbnb. These types of scheme are becoming increasingly popular in the sharing economy. Uber drivers are another example, often leasing out fancier cars in order to meet the platform's entry standards.

Hosts are calling for better insurance, or at least a better opportunity to negotiate with guests about postponing travel dates and sharing the cost of cancellations.

Airbnb has promised trip insurance for hosts and guests, “programs to deliver demand to help rebuild your business," and is setting up a fund that allows former guests to send donations to hosts.

But such measures may not be enough to ensure the loyalty of professional hosts, who are facing serious financial pain, with mortgage and rent payments often conditioned on bookings that have now disappeared.

In the first three weeks of March, prior to the U.K.’s strict coronavirus lockdown, British real estate site Rightmove saw a 45 percent increase in listings in central London.

Rightmove’s Housing Market Analyst Miles Shipside says this is “likely, as landlords who normally rent out their properties as holiday homes look to find another income route by offering [them] to long-term tenants instead.”

An Airbnb spokesperson said the company’s data shows that there are as many listings available on the Airbnb platform as there were prior to the pandemic.

That might well change as the pandemic wrings hosts dry.

“If I can’t pay my rent, my landlord can’t pay their mortgage,” said Toni.

During an average year, Toni expects to make a profit of between £12,000 and £15,000 after tax. Usually at this stage of the year, her apartments would be half full until the end of December.

“If things don’t change by June, I might give up,” said Toni.

UPDATED: This story has been updated to clarify Airbnb's role as an internet service company.

This article is part of POLITICO’s premium Tech policy coverage: Pro Technology. Our expert journalism and suite of policy intelligence tools allow you to seamlessly search, track and understand the developments and stakeholders shaping EU Tech policy and driving decisions impacting your industry. Email pro@politico.eu with the code ‘TECH’ for a complimentary trial.