Are hosts penalized for not fully refunding last minute cancellations?

[Michelle142]

Our guests were expected to arrive tomorrow.  They let me know this afternoon they would be cancelling due to a sore throat.  They say they are expecting a full refund.

Our cancellation policy is moderate, and they booked the trip 3 weeks ago.

Am I obligated to provide them with a full refund?  Will I be penalized if I don't?  I've read through all of the airbnb articles and am not clear whether any covid policy overrides my moderate cancellation policy.  I do not want to lose my superhost status, but can not afford to be out several hundred dollars worth of income.

I told them I would refund them any portion of their fees that I can recoup should someone else request a last-minute booking.  At this point, they have not cancelled, so the days are still blocked on my calendar.

Thank you!

[Katrina79]

@Michelle142 @Sore throat is a symptom of Covid so I’m guessing they would be able to cancel their reservation and receive a refund. If I were you I would urge them to cancel now and you may get another booking. When they cancel they should select Covid as the reason for cancelling. What if they don’t cancel but wait for days to contact Airbnb and end up with a full refund anyway? You’ll be out the opportunity to possibly rebook those dates. Or what if they check-in and get more symptoms and test positive? You may have them in your space for longer than you planned. 

[Michelle142]

Thank you @Katrina79     After my second round of urging they have finally cancelled, and received their refund, as per the moderate cancellation policy.  The dates are now open on my calendar and I'm hoping they will get booked, at least for part of the time.  After reading all the messages, I'm still unclear on how the process works for receiving a 'covid refund'.  Hopefully they are not sick and will feel better soon!