Guest alteration request and request for refund

[Renee291]

I have a guest arriving in 2 days and have moderate cancelation policy, so no refund within 5 days of reservation.  He wants to reduce his stay from 2 nights to 1 night, with one night being the first night of a holiday weekend.  My property does not book well last minute so if I let him alter his reservation, I will be out one night of income.  I am considering sending him an alteration request to alter the dates of his stay by one night and giving him a 50% refund for the cancelled night as a customer service measure.  I am looking to other hosts for opinions or similar experiences as insight as to what I should do.  

[Emiel1]

@Renee291 

Yes, you can sent alteration request and update price-fleld in the changeform in a way guest payes 50% more for the 1 night stay.

But according to cancellation policy guest is not entitled to have any refund, so no obligation to refund anyway.

[Renee291]

I understand I do not have an obligation to refund, but was wondering if it is a smart customer service practice. I have seen some comments on other posts about concern of getting a negative review.

How would you handle this issue?