Which cancellation policy did you choose for your listing? Why?

[Paula]

Hello Hosts, I hope you're all doing well 😊

Cancellation policies are a topic that often sparks discussion within the hosting community. While some hosts prefer a more flexible approach, others choose stricter policies.

Which cancellation policy do you use? What led you to choose it, and how has it worked out for you so far?

We'd love to hear about your experience—share your thoughts in the comments! ✌️

[Paula]

Hello @Helen3106,  Yes, I totally hear you. Please keep us posted on how bookings go with this new change.

Thanks for sharing.

[Gregg89]

Hello Paula,

We have used a moderate cancellation policy for our 4 BR, 3 Story in the Heart of MPLS for over two years because it seemed to provide a fair baseline for everyday guests while protecting my business from extreme calendar blocking.

In our experience over the past 2 years, we have had a handful of standard cancellations, usually with at least a couple of weeks' notice before the reservation, allowing us to provide a full refund and still have time to rebook at a discounted rate.

However, firmer boundaries can be effective in preventing costly cancellations. 

For example, I recently had a guest (who was also listed as an Airbnb host) book a 7-week stay, unlocking deep long-term discounts, only to check out after 4 weeks with a sudden 7-day notice. Our Guest openly stated they only booked those final 3 weeks as a safety 'cushion' in case they needed extra time to process personal legal matters, leaving my calendar completely stranded. 

Our guest's long-term stay cut short  triggered a double financial loss:

 The guest secured a steep monthly/multi-week discount tier for the entire 7 weeks, applied it to the 4 weeks they actually stayed, and avoided paying the higher standard nightly rate

 Giving only a 7-day notice and receiving a full refund makes it almost impossible to rebook the remaining 3 weeks, resulting in zero income for nearly a month. 90 percent of our bookings are 60 or more days in advance.

If we had structured firm policies in place, the guest would be responsible for paying out the remaining 3 weeks or at least the non-refundable portion of it, effectively saving you from absorbing the cost of their "cushion" safety net

To my surprise, the guest asked if they could book day-to-day after their cancellation in case of an unexpected disruption.

We still have the moderate booking policy in place.

[Gena94]

The cancellation policy I choose was flexible. This is the case for myself and for the customers.

[Paula]

Hello @Gena94, thanks so much for sharing this. How has your experience been so far? Do you get many cancellations?

Regards,

[Patricia2526]

Hi @Paula 

I use the Flexible cancellation policy throughout most of the year because it gives guests more confidence when booking. However, during December and January our peak season I use the Moderate cancellation policy to help protect bookings during this high-demand period.

[Paula]

Thanks for sharing your strategy, @Patricia2526. Have you ever considered using the Firm policy, or tried it for a few months to see how it impacts your bookings?

[Geraldine359]

I always have firm switched on because I gave private rooms not an entire property available. When a room is booked it automatically blocks the other rooms. Therefore I only want genuine bookers instead of tyre kickers.  I had to create a duplicate listing so that I could free up the other available rooms. 

[Shelley159]

Hi @Geraldine359 

For your setup, each available room should have its own listing (with photos and amenities of that specific room, and the calendar for that specific room).

You can then also create combination listings if you want to, for example a listing that includes two of the rooms (and so on). If you do this, you need to link the calendars on Airbnb so that both individual rooms are blocked when the 2-room option is booked (and the other way around). Of course, the linking of the calendars has to be 100% correctly set up to avoid double bookings.

Presently it looks like you only have 2 listings in total.

[Paula]

Hello @Geraldine359, experienced host Shelley has shared some very helpful information. Have you had a chance to read her comment? It could help you improve your Airbnb business.

Please keep us posted.

[Erly1339]

@Paula I use the Firm cancellation policy for the first time. I chose it because most guests book well in advance, sometimes more than a month ahead. In the past, I’ve had guests cancel at the last minute after holding those dates for a long time. When that happens, it can be difficult to fill the vacancy, especially during quieter periods. I feel the Firm policy provides a fair balance it gives guests some flexibility while also offering hosts a level of protection. If those dates hadn’t been blocked by the original booking, other guests may have booked my place instead. 

[Paula]

Hello @Erly1339, thanks for sharing your experience here. If I understand correctly, did you use the moderate policy before?

Regards,

[Glenn-and-Mara0]

Hello Paula, 

I've chosen a "Firm cancellation" policy.  We get most of our reservations within a 30 day window and If I don't have a firm policy I could miss out on substantial number of reservations. I hope this helps! 

[Ginette77]

Hi Paula, 

I have the strict cancellation policy but I give refunds based on real emergencies and proof of those emergencies. I had a guest who wanted to leave early because of a death in the family, I gave a refund because she told me prior she was coming down to be there for the surgery so I know she was telling the truth. I also had a guest who couldn’t check in because she broke her foot, I didn’t refund but I did give her a chance to reschedule because she was coming to house hunt in town. I think for me this has been the best approach. 

[David10981]

I have always used strict. It stops a lot of messing about, you get genuine not speculative guests. But I have fully refunded a few times because of very genuine reasons for cancellation, plus goodwill works/is appreciated and they will often re-book at a later time. I also do not use instant booking, I like to know who is booking and check their feedback. It also means we start a conversation and can discuss their needs.

[Dinamarta-Jose0]

I currently use the Strict cancellation policy.

I previously used a more flexible policy because I wanted to make cancellations easier for guests. However, after hosting for some time, I realized that last-minute cancellations can leave hosts with empty calendar dates and lost income that is difficult to recover.

The Strict policy provides more predictability and helps protect both my business and my booking calendar, while still allowing guests to review the cancellation terms before they book.

Every host has different priorities, but for my listing, the Strict policy has been the better choice.