Cancellation Policy question

[Carolyn1049]

Hi, I'm new to Air BNB. I'd love to know your strategy or thinking around offering a flexible cancellation policy -- basically where people can cancel up to the last day -- or 5 or 14 days out.  What's working for you? I am trying to get as many bookings as possible -- yet not get creamed on last minute cancellations. Your thoughts?  Many thanks! Carolyn

[Shelley159 · Accepted solution]

As your home sleeps only 4 guests @Carolyn1049 , my advice would be free cancellation.

1) Your place is small enough to realistically get a replacement booking at short notice

2) Free cancellation can help with better placement in searches

3) You get to avoid all the fights with your guests over cancellation refunds, that we see in many posts here

4) You get to avoid all the bad reviews from guests due to them not getting a full refund, that we see in many posts here

5) You get to avoid getting angry because Airbnb refunded the guest anyway, after you refused the refund, as we see in many posts here

6) Guests don't really cancel all that much anyway.

That's my opinion, now I'll let others make the case for a stricter policy 😀

I've noticed that free cancellation is definitely not everyone's first choice - especially hosts with large homes.

[Carolyn1049]

Thank you Shelley. I also have a 7 day minimum so that plays into it. But I think since I am just starting, I will try that. I got my first guest that book for 2 weeks with a free cancellation just 2 days after I posted my home. Then i changed it to 15 days cancellation and crickets. 

[Shelley159]

Yes fortunately we can always try and change things back that don't work @Carolyn1049 !

If you do try free cancellation and someone cancels very close to the time, it may be good to split only that week into smaller bits (in other words, override the minimum stay to increase your chances of getting re-booked for that period only). 

[Carolyn1049]

Thanks Shelley and all who replied. This is helpful. I changed my cancellation policy to "moderate" and not sure that helped much because my next guest cancelled too. I went ahead and changed my pricing for that time period to help with rebooking that time. So here's my question now...it seems that some guests do multi-bookings and when the time comes, cancel those that they held as placeholders. Any tips on how NOT to be a placeholder booking?

[Shelley159]

Hi @Carolyn1049 

I'm afraid I don't have advice for how not to be a placeholder, but I'll follow the thread to see if someone else has a good idea.

For me it's not so bad for me when someone does end up canceling, even if it's close to the time (I have free cancellation, so it can happen up to 24 hours before arrival). I think it's mostly because at the moment a large percentage of my bookings are very close to the arrival date anyway, so I'm used to scurrying around to fill gaps just in time 😀

[Joan2709]

@Carolyn1049 

I would try Limited Cancellation policy as your default.

Then apply moderate to weekdays manually on the calendar if not filled last minute. I would keep Limited for weekends.

You might consider using Firm for all holidays. Be sure to extend to a few days before and after the Holiday if doing that (not just one date of a holiday). Otherwise, if a reservation touches the more relaxed policy, that is what the guest will get instead of firm.

[Shelley159]

Great to see you back @Joan2709!🍾🥳👏

That's a good point @Carolyn1049 , one can now set different policies for different calendar days.

[Joan2709]

@Carolyn1049 

@Shelley159 and I disagree on flexible cancellation policy 😊

I usually never recommend it and suggest moderate for new Hosts; especially since you have a longer min stay.  

Eventually, extended cancellation policies will probably be available everywhere (being tested right now) and will make this a moot point (somewhat). Guests can purchase the extended cancellation and cancel 24hrs prior. I still would suggest Hosts with larger listings that book far in advance to opt out of extended cancellation option though, as it is difficult to get re-booked last minute for larger properties.

[Emilie]

Thank you Joan and Shelley for sharing your views on this, two sides of the coin! 

@Carolyn1049 Which policy have you been using so far, and how have you been finding it? Did you make a decision on what to do going forward for now? 

Just in case it is of interest, I wanted to share as well this article on 👉Choosing cancellation policies - it covers what each policy means exactly and has some tips on identify which one might be most suited to your needs and goals. 

I hope this helps 🙂

Emilie
 

[Carolyn1049]

Hi @Emilie, I changed my cancellation policy to "moderate" and not sure that helped much because my next guest cancelled too. I went ahead and changed my pricing for that time period to help with rebooking that time. So here's my question now...it seems that some guests do multi-bookings and when the time comes, cancel those that they held as placeholders. Any tips on how NOT to be a placeholder booking?