I've never got this at all. Why should you pay 5x price for AirBnb's risk?
If I showed up to a hotel and they didn't have a room available, they would rebook me at a different hotel. Airbnb just seems to say, "well, that's not our problem".
It makes me wish that there was a tenant bill of rights similar to EU Regulation 261/2004 about canceled flights.
Don't be so sure about that. I had a Marriott reservation but apparently they overbooked a whole bunch of us and tried to rebook us at Motel 8 without refunding any of our money. Luckily I had booked through Priceline.com and called their support and they rebooked us at the nearest hotel that's comparable to or better than Marriott, which ended up being a five start boutique hotel. I've been pretty loyal to Priceline every since.
The construction issue was pretty valid and shitty of them.
Why they have gotten away with these behaviours for so long is likely due to forced arbitration.
Their business plan is likely to show as much profit as possible, IPO/get on stock market, exit early investors and founders, and leave the mess and risk associated with their unconscionable protocols to the public markets - offloading it to society as what will inevitably be a loss, as they're not going to realize these nuances.
The forced arbitration is going to stop sooner or later, and cities are going to start to crack down heavily - going through the counter appeals of landlords and commercial hosts with many properties.
I believe this is rolled up in hotel pricing, and why Airbnb's are still overall cheaper.
Why should AirBnb have to not only waive their free but pay several times what they would have earned off the transaction to another party? It is wholly unreasonable for them to put you up in a place that costs 5x(+) as much.
They aren't a hotel chain, they are a booking agent. They don't own the properties, the connect a party that has a space and a party that wants a space. It's not like when you're at a hotel and a pipe bursts and they just put you in another unit that they already own. If the rental was 500 unitofcurrency and the only thing available in their system is 2500 unitofcurrency, they're now hemorrhaging money where a hotel would have virtually no extra expense moving you to another room.
If they made a practice of putting people in considerably more expensive places than they have agreed to pay for it would be absurdly easy to abuse the system from both ends. You could relatively easy manufacture a situation in which what you were renting was unusable getting you a free upgrade or property owners could potentially game the system during high peak times by listing a cheap space, having someone in on it get it, manufacture unusable conditions and then dump one or more properties into the system just under the price of the next cheapest unit and now they have 2 empty locations and are getting paid for the expensive one and can then dump both on vrbo/booking.com/flipkey etc.
At best they should refund your entire stay (unless you've already been there a considerable amount of time then prorate accordingly) and help you find a hotel.