As Christian said, it's going to depend on the host. I know that I have a strict cancellation policy because I used to have issues with no-shows and last minute cancelations. If you're group is renting out multiple beds or rooms, it might cost your host money to alter the reservation. While these are our homes, there is a business aspect to it. As for me, if a guest has to cancel last minute, I usually tell them that if the room is booked by another guest, they can get a refund.