@Marjorie213 There is another approach.
We purchased an identical listing to one we already had on the platform (cute beach A-Frame) and decided to "test" a more generous cancellation policy to see what happened (we are old school, so we have always used "strict" like every other traditional vacation rental at the beach). We found that our listings are so popular, people would hoard our dates so they'd have a place at the beach "just in case" and then strategically cancel when they still would lose no money. After crunching numbers, we'd have to raise our prices 150-200% and make STAYING guest pay MORE to cover the CANCELLING guests to have the same income at the end of the month.
So,
-adopt a strict policy
-include in your rules that your policy is "strict" and guests need to buy trip insurance for any change in plans.
-enforce it and don't apologize.
If you want to be nice, you can explain that the only way to cover cancellations is to raise your price on the guests who do stay, and that isn't fair to your actual customers who actually show up.