An Airbnb host who cancelled a reservation and told the guest, "One word says it all. Asian", has agreed to pay a $US5,000 fine and attend a college course in Asian-American studies, officials with the California Department of Fair Employment and Housing said.

Key points: Dyne Suh had booked the home at Big Bear in February, when her reservation was cancelled

Dyne Suh had booked the home at Big Bear in February, when her reservation was cancelled Host Tami Barker said she would not rent to her, and sent the message: "One word says it all. Asian"

Host Tami Barker said she would not rent to her, and sent the message: "One word says it all. Asian" Barker's attorney said she was "regretful for her impetuous actions and comments"

The guest, Dyne Suh, had booked the home as part of a ski trip with her fiance and friends in Big Bear in February, The Guardian reported.

When she was close to the house, Ms Suh messaged host Tami Barker through the Airbnb app, but the host cancelled the reservation after a dispute over additional guests.

Ms Barker told Ms Suh in a series of messages she would not rent to her if she "were the last person on Earth".

"One word says it all. Asian," one of the messages said.

When Ms Suh told Ms Barker she would complain to Airbnb, Ms Barker wrote: "It's why we have Trump ... I will not allow this country to be told what to do by foreigners."

Ms Suh, who posted an emotional video about the incident on YouTube, said she had agreed to pay $US250 per night to rent the home and later asked Ms Barker if two other friends could also stay at the house, which Ms Barker agreed to.

Ms Suh sent Ms Barker screenshots of text messages where she agreed to the additional guests, but Ms Barker cancelled the reservation.

"It stings that after living in the US for over 23 years, this is what happens," Ms Suh said in the video.

"No matter how well I treat others, it doesn't matter. If you're Asian, you're less than human. People can treat you like trash."

Airbnb says behaviour was 'Abhorrent and unacceptable'

As part of an agreement with state officials, Ms Barker also agreed to personally apologise to Ms Suh and perform community service at a civil rights organisation.

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A message left at a number listed for Ms Barker was not immediately returned.

Her lawyer, Edward Lee, said his client was "regretful for her impetuous actions and comments" and was pleased to have resolved the matter.

Airbnb spokesperson Nick Papas told Mashable the behaviour was "abhorrent and unacceptable".

"We have worked to provide the guest with our full support and in line with our non-discrimination policy, this host has been permanently removed from the Airbnb platform."

Ms Suh said in a statement posted on Facebook that she was pleased the settlement included Ms Barker's agreement to attend an Asian-American studies course and hoped the settlement would encourage others to report discrimination.

"I hope that more victims of discrimination will feel encouraged to come forward with their own stories," Ms Suh wrote.

"Your pain is not insignificant and you are not alone."

ABC/AP