@Nicole2623 What Covid-related issue? And how you handle it depends on whether you actually want to refund or partially refund them or stick to your cancellation policy.
If you give a bit more detail, you might get some useful answers.
Thank you Sarah for the response. They had a tournament they were going to attend but because of the recent spike in covid cases the league decided to cancel the tournament.
@Nicole2623 They chose the nonrefundable to get a 10% discount, correct? So, if they don't have travel insurance and their event was cancelled so they want to cancel their trip, then that's on them. Personally, I would not refund them. Airbnb still might give them a refund, you really can't trust 'nonrefundable' in my view.
@Nicole2623 I wouldn't volunteer to refund them in that case. They could still come and enjoy a holiday, even if their tournament is cancelled. If they don't want to, that's just too bad.