I am new to hosting.
Assume I have a guest who booked 3 days at some point in the future, say in January. I have accepted the booking.
Another potential guest wants to book for a week or 10 days, but can't because the requested/needed days include the 3 days that have already been booked by the previous guest. (Obviously those 3 days show as not available on my calendar.) The guest who wants to stay longer messaged me about this within the AirBnB system and asked if he could stay those days. I would have to cancel the reservation of the first guest to accommodate the longer stay guest.
What are the penalties, if any, if I cancel the 3 day guest to be able to book the longer stay guest. Is this allowable?
I am asking this, because this situation actually happened with my very first guest. At this time I did not have "booking without requesting approval" checked yet. A guest wanted to book for 2 days, and less than a minute later a guest, who I was already in communication with, wanted to book for a week. I canceled the first request without any penalties. I assume the AirBnB system could see all the communications happening, because they all took place within the system.