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...

[Dora486]

We use strict cancellation policy.  I personally think if you go to the expense of booking travel, you should have appropriate travel insurance.

[Mike-And-Jane0]

@Stephanie1933 We also changed to flexible at the beginning of the year but soon changed back to Strict as a similar cancellation happened to us. We did put a note on our account that we would refund if it became illegal for the guest to travel to us or if we couldn't legally host the guest. With flexible a guest can actually choose to go home early because of the weather and get a partial refund - No it is Strict all the way with us going forwards.

[Stephanie1933]

@Mike-And-Jane0 thanks for your feedback. It certainly is frustrating when all of a sudden you get a big gap 6 weeks out! 

Thanks

[Deb216]

I've always used the STRICT policy.

[Brian2036]

@Stephanie1933 

We’re using Firm/Nonrefundable at the moment.

 I like the “nonrefundable” option because people could take the discount and use it to buy travel insurance.

Unfortunately I doubt that most guests know what the cancellation policy is, except, perhaps, the  ones that are planning to try to use it to cheat the host.

[Nicole2223]

We tried the beta last year which was a combo of strict and moderate with the non-refundable discount option.  When the beta completed, we went with strict/non-refundable.  About half of our guests choose the latter.  We’ve had only two cancellations within the 7 day period before checkin - neither for health or travel reasons.  One of these cancellations was for a guest that chose the non-refundable rate and the other was not

   The latter guest cancelled 5 days before check in and insisted on a refund despite agreeing to the policy and house rules which he decided to violate -  I was lucky to find out in advance that he planned to bring 9 people to our 2 bedroom house.  I chose to refund him to avoid conflict - which I could block him too!

[Stephanie1933]

Thanks @Nicole2223 I wonder whether guests will still argue about getting a refund regardless. 

[Brian2036]

@Stephanie1933 

You can be sure some will, because the rules never apply to them.

They’re special.

[Stephanie1933]

@Brian2036 haha oh yes there are some special people out there! 

[Sarah977]

@Stephanie1933  There have been reports here from hosts wbose non-refundable policy was oveerridden by some CS rep pandering to guests. As long as Airbnb gives its reps the power to do that, the non -refundable policy isn't anything you can count on.

And yees, guests still argue about it.

[Mike-And-Jane0]

@Stephanie1933 Further to @Sarah977 's post the Extenuating Circumstance cancellation still applies to non-refundable bookings. I wonder if Airbnb's concept of non-refundable breaks the advertising standards.....

Unless people just raise their prices by 10% and then accept non-refundable at their original price it feels like a good way of losing revenue to me.

[Stephanie1933]

@Sarah977 that is what worries me! 

[Elena87]

@Stephanie1933 

If the booking was for 30 days it flips from your chosen cancellation policy to the long term cancellation policy - this means guests are on the hook for a 30 days payment to the host.

[Stephanie1933]

@Elena87  yes, sorry it was actually for 27 days which just missed the long term cancellation policy.