What is the best cancellation policy? I really do not understand how the cancellation policy works.

Ray-And-Vicki0
Level 1
Tuscaloosa, AL

What is the best cancellation policy? I really do not understand how the cancellation policy works.

Can someone explain the cancellation policy to me?

18 Replies 18
Sandra856
Level 10
Copenhagen, Denmark

@Helen427 And I don't understand what the cancellation policies has to do with host cancellations? 

@Sandra856they are tied in together.

@Helen427 No, if you as a host wish to modify a reservation you can do so but it has absolutely nothing to do with ordinary cancellations made by guests. 

Sarah977
Level 10
Sayulita, Mexico

@Ray-And-Vicki0  I have a feeling no one really gave you an answer to your question here. You really just have to look at the terms of each cancellation policy and decide which one works for you. I don't know that anyone could say which one is "best"-it depends on your circumstances, what your listing is, etc. I have a moderate cancellation policy myself- if a guest cancels 5 days before check-in, they'll get a full refund (minus the Airbnb fees), if they cancel less than 5 days before, they'll only get 50% back. This works fine for me, as the guests I get are coming on vacation, usually for a week or two-most fly here, so they've had to book airline tickets, arrange time off work, etc,- they're not likely to cancel unless they they have some unavoidable emergency. Also, I don't do Airbnb for the purpose of making as much money as I possibly can- I had a spare room sitting empty and figured why not. But meeting interesting people from all over has been as much of why I do it than the money-making part. So I'm not going to be devastated if someone cancels 5 days before their booking date.