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This guide explains everything you need to know about Airbnb’s cancellation policy for guests and the consequences for you as a host.

Understanding Airbnb’s Cancellation Policies

Airbnb provides various policies, including Flexible, Moderate, Firm, Strict, Super Strict (30 Days), Super Strict (60 Days), and Long-term (both Strict and Flexible). Each policy has distinct terms and complete or partial refund structures.

The Flexible policy is the most accommodating, yet it poses a greater financial risk to hosts due to the increased likelihood of last-minute cancellations. Each Airbnb cancellation policy includes restrictions, penalties, and fees devised as safeguards for all involved.

While hosts cannot create custom policies, they can include specific terms in their house rules for long-term stays or large group bookings, provided they adhere to Airbnb’s guidelines.

Additionally, suppose you cancel a confirmed reservation; in that case, you incur a minimum cancellation fee of $50, with further penalties depending on the timing relative to the check-in date.

Types of cancellation policies

Airbnb presents eight unique policies, alongside a non-refundable option, designed to meet various hosting preferences and guest requirements. These policies available are Flexible, Moderate, Firm, Strict, Super Strict (30 days), Super Strict (60 days), and Long-term.

Selecting the appropriate cancellation policy can significantly affect host security and guest flexibility, ultimately influencing bookings, revenue, and ratings.

Flexible

The Airbnb Flexible Cancellation Policy allows guests to obtain a full refund if they cancel at least 24 hours before the local check-in time. Hosts under this policy forfeit the cleaning fee if a reservation is canceled.

For cancellations made within 24 hours of check-in, guests must pay for all planned nights plus an additional night. Those who cancel after checking in can receive a full refund for any unused nights of their stay.

Additionally, the Flexible policy may boost a host‘s ranking in Airbnb’s search results, increasing their visibility.

Moderate

The Moderate cancellation policy permits guests to receive a full refund only if they cancel their reservation at least 5 days before the check-in date. If this occurs within the 5-day window, they forfeit the first night‘s cost and can expect a reimbursement of only 50% of the total reservation fee.

This policy is highly favored among Airbnb hosts, striking an ideal balance between guest flexibility and protection against cancellations. Under the Moderate policy, hosts are assured payment for all reserved nights and an additional night if the 5-day cutoff is infringed upon.

Compared to the Flexible option, the Moderate policy reduces host exposure to last-minute cancellations while offering considerable leeway for guests.

Firm

The Firm Cancellation Policy entitles guests to a full refund when they cancel at least 30 days before check-in. For those made between 7 and 30 days before check-in, hosts receive a 50% refund. If a guest cancels less than seven days before the scheduled check-in, hosts will retain 100% of the payment for all nights booked.

Guests can also obtain a full refund if they cancel within 48 hours of booking, as long as the cancellation is at least 14 days before check-in. This policy effectively balances guest flexibility with host protection against last-minute cancellations.

Strict

The Strict cancellation policy allows guests to receive a full refund if they cancel at least 14 days before their check-in date, while a cancellation made at least 7 days in advance results in a 50% refund. This policy protects hosts from last-minute cancellations while granting guests enough leeway to cancel without incurring significant financial penalties.

Hosts who adopt the Strict cancellation policy often experience reduced cancellation rates and improved financial security, benefiting from heightened booking stability. This policy is particularly well-suited for seasoned hosts who have garnered positive reviews and have high-demand listings, frequently requiring a minimum stay of 3 nights.

Although it safeguards hosts against financial setbacks, it may also discourage bookings, potentially leading to diminished booking rates and lower visibility in search results.

Super Strict (30 days)

The Super Strict 30 Days cancellation policy permits guests to receive a 50% refund if they cancel at least 30 days before check-in. No refunds are provided for cancellations made afterward. This policy is exclusively by invitation and generally applies to premium listings with higher price points.

By adopting the Super Strict 30 Days policy, hosts can achieve excellent financial stability and protection against significant revenue losses due to last-minute cancellations. This approach can lead to a lower cancellation rate, enhancing the likelihood of hosts retaining their booking income.

However, the stringent nature of the Super Strict 30 Days policy may deter potential guests, potentially reducing overall bookings.

Super Strict (60 days)

The Super Strict 60-day cancellation policy is uniquely available to select Airbnb hosts and is practical under particular conditions. Guests who cancel at least 60 days before their check-in date are entitled to a 50% refund for their reservation.

However, if cancellations occur within 60 days before check-in, guests will be liable for the total booking amount. Generally, only premium listings that fulfill specific criteria established by Airbnb are eligible for the Super Strict 60 Days policy.

Long-term

The Airbnb Long-term cancellation policy is designed explicitly for reservations lasting 28 consecutive nights or more, superseding the typical cancellation policy chosen by hosts.

Under this strict long-term cancellation policy, guests must cancel within 48 hours of making their reservation to qualify for a full refund or cancel at least 28 days before check-in. In contrast, the flexible long-term policy entitles guests to a full refund if they cancel at least 30 days before their stay.

Should a guest cancel a long-term booking within 28 days before check-in or during their stay, hosts are guaranteed compensation for 100% of the nights, plus an additional 30 nights.

Hosts gain an important financial buffer against late cancellations by opting for these long-term cancellation policies, promoting better booking stability.

Pros and Cons

Flexible offers the highest level of freedom without incurring penalties, potentially increasing bookings, yet it places hosts at significant financial risk due to last-minute cancellations.

In contrast, the Moderate cancellation policy strikes guest flexibility and booking safety for hosts.

Firm provides hosts with more revenue protection while sacrificing some guest convenience.

Stricter policies, like Firm or Strict, may deter potential guests but deliver hosts enhanced revenue stability and more robust safeguards against late cancellations.

Each cancellation policy is accompanied by specific penalties and fees designed to protect both parties, underscoring hosts’ need to select a policy that corresponds with their risk appetite and booking behavior.

If the accommodation does not meet the expectations

Under certain conditions, guests are entitled to a replacement accommodation or a refund. This comes when rentals do not match descriptions and photos, or the space is uninhabitable due to notable conditions like mold, damage, or unsafe conditions.

What happens in the case of an emergency?

A refund is available if a reservation is canceled due to emergency travel restrictions, disaster situations, and epidemics, but not sudden regular illnesses or accidents.

Learn more about the unique circumstances policy.

How to change your Airbnb cancellation policy

To modify your policy, follow these steps:

Click on “Listings” and choose the listing in question.
Select “Your space.”
Click on “Cancellation policy.”
Select “Edit.”
Choose your desired policy and click “Save.”

Impact on existing reservations

Any adjustments you make to your cancellation policy will only affect future reservations. Changes will not apply to any pending or confirmed bookings. The policy established at the time of reservation will remain in effect for those existing bookings.

What happens when you cancel an Airbnb booking?

Fees

Sometimes, you must cancel a booking as a host yourself. Since Airbnb wants to keep this rate as low as possible, you must pay cancellation fees in these cases. The cost depends on when you cancel the booking. The amount will be automatically deducted from your next checkout.

The Airbnb calendar remains blocked

Another significant consequence is that your booking calendar on Airbnb remains blocked for the period of the canceled booking. Airbnb does this, so you can’t accept new bookings instead of the ones you canceled.

Automatic rating in the listing

If you, as a landlord, cancel a booking before the check-in time, Airbnb will note it in your listing. You can’t remove this notice; just comment on why you had to cancel the booking. This way, you can make it clear to others that this was an exception, and they can book with you without hesitation.

Instant booking exception

If you have activated the “Instant booking” function, you may be able to cancel bookings without any consequences. This is possible, for example, if guests with several negative reviews have booked with you.

Also, if you have reason to believe that they may be unreliable and will not abide by your house rules, you can cancel free of charge to prevent any expected damage to your accommodation.

Major Disruptive Events Policy

Airbnb’s Major Disruptive Events Policy allows guests and hosts to cancel bookings without penalties due to significant unexpected incidents. Approved extenuating circumstances for cancellations include:

Declared public health emergencies and epidemics.
Government travel restrictions.
Military actions and other hostilities.
Large-scale and prolonged outages of essential utilities.
Natural disasters.

Best practices for managing cancellations

As we have seen, Airbnb hosts have several different policy options. However, you should also consider other key considerations.

Choose the right policy

The choice of cancellation policy is vital, as it influences guest satisfaction and revenue generation; many travelers favor listings offering more lenient cancellation options. It’s essential to note that any adjustments to a listing’s cancellation policy will only apply to future bookings and will not impact existing or pending reservations.

By comprehensively understanding each cancellation policy, hosts can make strategic decisions that enhance their booking attractiveness and safeguard their financial interests.

Learn how to issue refunds

Airbnb provides a range of cancellation policies that dictate the refund amount depending on how early a guest cancels their reservation. Under the firm long-term policy, guests are eligible for a full refund if they cancel at least 30 days before check-in.

However, cancellations made closer to the check-in date mean the host retains payment for the nights spent and the upcoming 30 nights. If a host decides to cancel a reservation or if there’s a disruption due to a Reservation Issue, their payout may be reduced, or they may receive no payout based on the refund issued to the guest.

Guests also have the option to modify their reservation dates rather than canceling, potentially allowing for changes without facing penalties, provided it adheres to the specified cancellation policy.

Establish good communication

Effective communication from the outset can significantly lower the chances of last-minute cancellations. If hosts have to cancel a reservation, they risk incurring penalties, including cancellation fees, underscoring the importance of addressing potential changes directly with guests.

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Understanding Airbnb’s Cancellation Policies