Flexible vs Moderate Cancellation: Does this affect bookings??

[Frances52]

Hello fellow hosts, I was wondering if anyone has changed from flexible to moderate cancellation policy or vice versa and experienced any notable differences to the number of bookings received?

Since Covid, I have changed to flexible policy as I was subjected to penalties of USD50 cancellation when I initiated cancellations. 

However, flexible means full refund up to 1 day before check-in and I'm starting to get the feeling that thus is too easy for guests as I've received a spate of last minute cancellations. 

But I'm also aware that flexible cancellation policy may make the listing more attractive. 

Does anyone have a take on this? I'd love to hear your views.

Many thanks on advance! 

Fran

[Mike-And-Jane0]

@Frances52 Firstly the cancellation policy applied to guests is not reciprocal. As such it will not affect in any way the fines you get if you cancel a booking.

Now to your question. We operate a Strict cancellation policy and still get bookings. My view of the Flexible policy is that it allows guests to bank a stay. They can then see if anything better/cheaper is available in the weeks/days coming up to the booking and switch to that place. Obviously a last minute cancellation is hard to fill. I suspect this behaviour is more prevalent in areas oversupplied with Airbnbs.

[Frances52]

Thank you @Mike-And-Jane0 for your considered reply. You are likely correct regards guests 'banking' and also in locations which are competitive. This gives me food for thought, do thank you. 🙏