I have a guest that wants to cancel because of the weather. My policy is 5 days. It is now 2 days away. He contacted AirBnB and was told that if agree to the cancellation there will be no penalty on either of us. I don't want to let him cancel. There is no time to get another reservation. I do not want to lose the income. What are your thoughts on this.
You can't prevent him from canceling, but you don't have to agree to a refund. I would tell him to cancel, he will be refunded (or not) according to your policy, and you will refund any additional amount you can recoup by rebooking. (You don't need to comment on the likelihood of that.)
A strange answer from CS, as there is no penalty anyway for you if the guest cancels the reservation.
You and the guest loose some money, but you are not "penalized"
The moderate policy states:
"If the guest cancels less than 5 days in advance, the first night is non-refundable but 50% of the accommodation fees for remaining nights will be refunded."