So...because I'm such a die-hard and couldn't live with the way things were, I didn't let this go. After much talking and waiting and pleading and explaining and worrying and agonizing over the situation, I got a case manager at customer service to understand and help us out in this situation. I was able to cancel 5 of the 10 reservations we had without penalty. Of course, there was some blow-back--as I fully anticipated there would be: some very disappointed and upset guests. I did feel terrible canceling on them, but we are talking about reservations that were 6 weeks out or more. I explained our situation to each and every one of them. Some were more understanding than others.
Now here's what I'm struggling with: one guest wants to re-book at the new appropriate rate, and two others are asking for discounts. I am worried about re-booking them because I fear they are soured on us as hosts and will ultimately end up leaving us bad reviews in the end (as some of you have said might happen if they were to rebook at higher rates.) If they're being fair, they could see that the rate they WERE getting was %50 (or more) less than what anyone else is charging for a similar (or even smaller) place, but of course I understand they are disappointed in the situation. They were no doubt stoked to have gotten such a good deal.
One woman in particular seemed pretty bitter--she's the one who is now asking to book at full price, not even asking for a discount. Should I do it? And should I accommodate these other two who want discounts? I don't think it's unfair that they're asking and I'd be inclined to do it, but I worry that bad feelings may be harboring...Ideally better to start with a clean slate, I'm imagining...What's the wise thing to do here?