I attempted to cancel my 7 night stay, the day prior to arrival, due to being caught in the New Zealand Covid-19 Level 3 and 4 lock down in late March 2020. I am a foreign traveler caught here, and stranded far from my family and home. I was asked to leave my hostel in Taupo (told on March 24th, asked to vacate on the 25th) which was closing like most accommodation in the country. I made this booking -- to begin the following night on the 25th -- prior to being made aware I could not travel due to government regulations against all non-essential travel. Thus, I could not travel to the hosts city 6 hours distant in Paihia, nor take up the booking, and did not stay, but they kept all my money for the full 7 nights plus fees ($693 NZD or $394 USD).
Within hours on the 24th I asked for a refund, and chose 'Covid-19' from the drop down menu, and was told my reservation would remain active until the hosts made a decision. Roughly 24 hours later, they declined to return my money, so I cancelled and asked for their understanding and explained my vulnerable financial and personal situation. They still declined to refund, despite there being no reason another guest could not stay (at least on 6 of the nights), and this whole process only taking less than a day. I was polite and respectful during all my communication with the hosts, and their responses were terse and sparse, with one saying 'we will reimburse you on arrival', only to be retracted. I feel this was an extreme action at a time where understanding was called for. I hope they are safe and healthy, and that they adopt a more compassionate stance for their future guests.