I would highly appreciate any comments on the situation I have with guests that contact me 3 weeks before arrival and tell me that the airline has cancelled their direct flight to Iceland - saying all flights are now much higher - they are asking me for a refund but with such short notice I will not be able to book my place... should I refund them fully, partly or not ??
You never know how Air BNB is going to use the extenuating circumstances policy if the guest seeks Air BNB help, @Audur0. You have a strict cancellation policy so you should get 50% unless guest is allowed to use extenuating circumstances. I think you could respond to the guest with understanding and promise to refund the additional 50% should you be able to book other guests. Then I suggest you call Air BNB and discuss the situation with the representative just to get the issue in the notes. Worth a try. Good luck and let us know how this plays out.
Yikes! That would be a sistuation beyond the guest's control or expectation. But surely travel insurance would cover that sort of thing? Assuming the guest has travel insurance...