The notice of cancellation email I got asked if I will approve a refund to the guest who canacelled.

[Saundra7]

It’s 8 days before the reservation and my instinct is to approve the refund.  What would you experienced hosts do?  I’m so new to this.  Thanks in advance.

[Ana1136]

@Saundra7 what is the reason for the cancelation? I would stick to my cancelation policy and wouldn't issue a refund. You can refund them if you get rebooked for those days, but not now. 

[Emilia42]

@Saundra7

You have a moderate cancelation policy. So I am not sure why you are getting a prompt asking if you'd like to refund the guest when the guest should automatically get a refund via Airbnb if canceling eight days out. Did you recently change your policy?

[Saundra7]

Hi.  Thank you   Yes I did recently change it based on one of the “tips” posted in my Airbnb app.   I went with the change because honestly I wasn’t sure what was best.

[Emilia42]

@Saundra7 

Which cancelation policy you choose really depends on your listing and what you can forgo as a host. If I were in a very seasonal area where I relied on week-long rentals that guests booked months in advance tying up my calendar then I would probably have a strict cancelation. But a moderate policy works for me since people book shorter stays and I am usually able to rebook the nights.

But I noticed you have non-fundable option when a guest book. Did the guest choose this option? You will always get an e-mail prompt from Airbnb but you might wait and see if the guest even asks you for a refund. Some people actually respect policies and aren't demanding. But we read a lot of the opposite here.

[Saundra7]

Thank you so much.  This all is really helpful.  There’s a lot more to this than one might initially think!  I do love having people in my home though.  Thank you again for the help.  Sandy

[Christine615]

For repeat guests with whom I’ve had a good experience, I work with them. For new guests or those clearly gaming the system I don’t.  I switched to strict cancellation after three people tied up popular weekends months in advance and then conveniently cancelled a day before the deadline.

Airbnb is a booking service. Hosts should have more flexibility to set appropriate rules for their spaces.