What cancellation policy do you use?

[Stephanie1933]

Hi everyone,

What cancellation policy do you use? We are based in Christchurch, New Zealand and started our Airbnb journey in August.

Due to Covid we thought it was only fair to have a flexible cancellation policy. Last night a guest who had booked for 30 nights just cancelled because she couldn't afford the booking anymore (not Covid related).

I am fine with it but have started contemplating if I need to be a bit stricter with my cancellation policy. 

I would appreciate your feedback...

[Amanda660]

I’d been on a strict cancellation policy since 2016 but swapped to moderate last year when we were permitted to begin hosting again.  

We had 3 or 4 cancellations but fortunately they were during a really busy summer and the empty dates were snapped up quickly.  

Moving forward I’m considering swapping back to strict again. 

[Stephanie1933]

@Amanda660 thanks so much. Interesting hearing others opinions 🙂

[Cheryl---Cheri0]

We use the new Firm policy.  

[Debra300]

@Stephanie1933,

We use Firm with Non-refundable, guests have until 30 days before arrival for a full refund, unless they book within the 30 days.  Then they have 48 hours, or 14 days before arrival for 50%.  I allow only a 90 day advanced booking window on my calendar, because I don't want a refundable reservation to block the dates for several months in advance.  Also, with ever changing travel restrictions, testing/quarantine requirements, curfews and lockdowns, I find that most reservations are being made within a month of planned arrival.  Our place attracts returning locals, regional travelers, and visitors who want to experience living among the locals.  So, we're not getting honeymooners who've booked a package a year in advance.

Since Airbnb converted my account to host only service fee payment, I removed the cleaning fee, and raised the standard rates to cover the higher service fee, cleaning fee, and 10% non-refundable discount.  We've had only two Airbnb guests since re-opening in July.  The rest have used Booking, or contacted us directly through our FB listing or personal website/phone number.

[Stephanie1933]

@Debra300  thanks Debra that is really good advice. Do you use FB as a marketing tool? Twitter? Just starting to use Twitter @airbnbchchhome 

[Debra300]

@Stephanie1933,

In St. Lucia, FB Marketplace is a very popular place to shop online.  I just post promotions for locals on their regularly, and generally receive a good response rate.  We also have a FB page, but need to update the photos and content.

[Laurelle3]

Hi @Stephanie1933 I have flexi cancellation with 24 hrs notice. Because of covid and our frequent hard lockdowns, so I give 100% refund but I do inform guests that Airbnb keep their fee and offer them to change their dates.

I believe that we are both in this together and no one can travel because we have stay at home.

[Stephanie1933]

@Laurelle3 thanks for your response. It certainly has been tough going. You will be pleased Int travel is resuming soon! Hopefully in NZ it happens before 2022 but I doubt it. 

[Helen427]

Hello @Stephanie1933 
You may like to include a piece about people booking longer term, maybe over 7-10 days or longer to send an Enquiry and go through all the pros and cons first with bookings over that time-frame.

It gives a little better protection so you don't get caught out with those who may perhaps change there minds for whatever reason.

Did you see some are now offering to transport people back in their Sailing Vessels which is in accordance with the Spirit and Intent of Quarantine Regulations?

I say, Good on them because it's about time we had a return to Humanities.

We need accountability from those in charge.

Do remember the Andrew Borrowdale Judicial Review, among others, are still sitting in the background.

We have Rule of Law for a reason.

All the best and I'm sure you will fill up those dates.

[Stephanie1933]

@Helen427  Hi Helen, thank you for your message. With the lady who cancelled her booking, I spoke to her on the phone and had a lengthy conversation before the booking. It was a sudden financial situation which changed as to why she had to cancel. Unfortunate but it is what it is! 

I just hope it isn't too late for Nov/Dec bookings!! EEEK

We just need to get on with life!

Take care,

Steph

[Sarah977]

@Stephanie1933  First of all, I'll say that I have had my home share closed since March 2020 due to Covid and guests sharing my kitchen. So I haven't had to deal with cancellations due to ever-changing Covid lockdowns, travel restrictions or guests testing positive and cancelling.

But as far as cancellation policies go, I have always used moderate. I chose that when I first started hosting, based on what I felt I would find reasonable to commit to if I were a guest.

I also didn't want to have to deal with irate guests who can't believe they're forfeiting 50% for cancelling under a strict policy. A lot of guests don't even read the terms of the policy they committed to, or fully understand it.

And I never wanted flexible because I don't want to spend time cleaning and preparing for a guest who cancels last minute. Where I live in the dusty, buggy tropics, the room isn't just going to stay clean for days waiting for the next guest. I would have to clean it again.

That moderate policy has worked out fine for me and here is why:

1. My guests all come here on vacation, most fly in internationally. No guest has ever driven here, even within the country, they have flown or bussed. They have booked flights, time off work, maybe some surf lessons. Therefore, they aren't apt to cancel on short notice, they have too many things in play.

2. I have one home-share room for 1 guest. So it's never been a huge money maker for me, I'm not dependent on the income. If a guest cancels 5 days before and gets a full refund, it doesn't really fuss me. I may be able to rebook the dates, I might not, either way it's not a huge deal for me. 

And the reality is, in the 3 and a half years I hosted before Covid hit (and I plan to reopen hopefully in Dec.) I only once had a guest cancel after the 5 day cut-off, so I did get paid 50%, and only one other cancellation before the 5 day cut-off. 

[Stephanie1933]

Thanks @Sarah977  your place sounds so tropical! A lot different from Christchurch where I live.

Your points are really valid and some good ideas to think about.

I appreciate you taking time to respond. All the best when you reopen!