Which cancellation policy to chose?

[David-and-Annie0]

What do you all recommend in terms of cancellation policy? We just started hosting on Airbnb in late November and at first, had the flexible policy (just by default). Then I changed it to moderate, but just had someone cancel next holiday wkend and was disappointed to realize we get no $ b/c they canceled more than 5 days from the dates.
Wondering if we should go to strict policy, but am worried it will deter people from booking. I wish there was something in between moderate and strict. 
—Am looking for your input and opinions.

Thanks!

Annie 

[Helen3]

I have strict since I started four years ago and have all the bookings I want @David-and-Annie0 

Having said that I live in an area that doesn't get a lot of last minute bookings and I don't need to have my airbnb full every day as it's not my main source of income.

[David-and-Annie0]

Thanks for your response. Yeah, we also don’t get a lot of last minutes, and don’t need it booked every day, so maybe we should switch to strict. It’s very upsetting that this guest cancelled for this busy Martin Luther King wkend. At first I thought we’d re-book it no problem, but I think most people have already made their arrangements by now. There’s still a bit of time, but I’m worried we won’t get it booked now. So we’re just out a substantial amount (about $1600). Oh well, live and learn. 

[Emilia42]

@David-and-Annie0 If I were you I would choose the strict policy. I wouldn't foresee you getting a ton of last minute bookings. You are likely catering to larger groups/families who are planning out their weekend/vacation. 

However, I'm skeptical of all Airbnb's cancelation policies because if a guest really wants their money back, they will get it. It's pretty easy to get a doctors note even if you have a cold. 

[David-and-Annie0]

Thanks for responding—yeah, I’ve been reading through posts here about how even when you have “strict” people can still pretty easily get out of it. But maybe it ultimately deters them more? They still have to jump through some hoops to get out of it.