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

[Ray-And-Vicki0]

Can someone explain the cancellation policy to me?

[Helen427]

Hello @Ray-And-Vicki0  & welcome to ABB CC from across the miles in Auckland, New Zealand

There's several different cancellation policies and also an Alteration to reservation Policy option which is perhaps lesser known which is very helpful to know.

The later allows one to alter/ modify an existing reservation by either Host or Guest with mutual agreement.

It gives one perhaps a better playing field balance to offer or decline to offer a Guest a refund of any kind for whatever reason dependent on the circumstances - say you have a Guest that's booked for several weeks or a month who despite chats is not agreeing to Terms of Service.

Hosts can send a request to alter/modify their reservation and shorten their stay and offer a partial or no refund for the rest of their stay, or maybe something has come up that a great guest has to leave early for unexpected reasons and you want to offer a refund.

Here's the link - use the "change" option if you want to open up your calendar.

https://www.airbnb.co.nz/help/article/166/how-do-i-cancel-a-reservation-as-a-host

There's much helpful info here in CC if you use related keywords in the search box.

All the best

Central To All Home & Location

[Sandra856]

@Helen427 When a guest cancels the calender will open up automatically and the guest will get a refund according to the cancellation policy accepted by the guest when the guest booked? If the host then afterwards gets rebooked it is possible to refund the guest - I do that if I get rebooked.

If a guest needs to cancel the guest will get refunded according to the cancellation policy you have selected @Ray-And-Vicki0 - it all happens automatically when the guest press the cancellation button and you don't have to do a thing. You can usually if you have an ordinary listing choose between 3 different policies - flexible, moderate or strict. You can read about the different policies if you search this community or under FAQ /airbnb. 

[Sandra856]

@Helen427 There is no such thing as an "Alteration to reservation Policy option"?!?

[Helen427]

@Sandra856 @Ray-And-Vicki0 

It's not the actual Policy name, it comes under "How Do I cancel a Reservation as a Host" in Help.

The word that I should have used is the word  "Change" which is what it is stated in the link - there is the option to alter/ "Modify" /amend or whatever word one uses with similar meanings to 'change' a reservation for an existing In House Guest as opposed to using the Option 'Cancel' as per line 3 in link below.

Try it with a current Reservation without actual clicking on the final cancellation to understand what it is and you will see the word 'Modify' under the  http  link @Sandra856 @Ray-And-Vicki0  and others

https://www.airbnb.co.nz/help/article/166/how-do-i-cancel-a-reservation-as-a-host

It tells you to go to the "Reservation' you want to "Change OR Cancel"and takes you to both Options on the same page, choose either Change OR Cancel, select "Change"

The next step comes up with, in my case, 'Private Room - Auckland- Modify' and a list of questions asking "What do you want to "Change" - "Dates, number of Guest and Price" and then Continue..you can go back a step before you click confirm.

Terminology @Sandra856 can trip us all up!!
All the best

[Sandra856]

@Helen427  But it will completely overrule the cancellation policy the host chose? 

[Helen427]

yes @Sandra856  it does, but it's also good to know this option for us Hosts exists...as I said have a look at it as it may be of benefit for you in future so you don't lose out financially with existing Guests who want to leave early - it gives you  as a Host the Option how much you wish to refund, which may be ZILCH!! so you don't lose a cent..Euro..

Some Guests will happily say, " Hey @Sandra856 I'm leaving early don't worry about any refund, it's your money because It's my decision to check out earlier & I've caused inconvenience to you"..It allows you the Option to have those nights booked by someone else and if they are not taken still get paid for the full or partial amount that YOU as a Host agrees to by your guest who has checked out early..and potentially another Guest who books those now available nights.

Does that make sense/ cents @Ray-And-Vicki0 @Sandra856 ?

[Sandra856]

@Helen427 I have chosen the strict cancellation policy so if a guest cancels he/she will get no money and the calender will open up the second he/she cancels. 

It has always been possible to modify/change a reservation but I don't see why I should modify a reservation of guests who wants to leave when they already agreed to my strict cancellation policy? 

[David5641]

The general rule of thumb with regard to the refund is that it is totally up to the host. Unless the reason for cancelling falls under the extenuating circumstances policy, Airbnb cannot really override it. However, there is a risk if you are really going to be strict in implementing your cancellation policy, and that is the review. Should the guest wants to check out early, and you didn't provide a refund for the remaining days of their stay, they might leave you a review this. You can write a public response for this review, but it may still deter future guests booking your listing if they see these kind of reviews. Also, Airbnb will not remove these kind of reviews as well. My advise, you kinda weigh it sometimes. 

[Sandra856]

@Helen427 They can say whatever they like. When they press the cancellation button they are refunded nothing as it is what the cancellation policy says. They booked, occupied the place so no one else could book and I don't have to refund anything so I don't understand why I should do anything? The calender opens when the guest cancels, I can choose to refund if I get rebooked. Why not just do that? The cancellation policies are made for ordinary cancellations why not just use the system as it is suppose to be used? 

[Helen427]

@Sandra856they  are all part of the systems in place that we have available so yes use them as they are designed to be in conjunction with that of our Cancellation Policy, in your case you have a Strict Policy, mine is Flexible.

I wasn't aware that Hosts had the Modify Option to use so am pleased to have learnt we can use it so we are not penalised with Cancellation limits

[Sandra856]

@Helen427 yours are flexible so there really isn't any reason to modify the reservation as the guest would get almost everything refunded for days not used just by pressing the cancellation button. 

[Helen427]

 @Sandra856  when using the "Change" and "Modify" Option they don't necessarily get refunded the full amount, why should they?
It's an agreed amount, that one can offer and or be accepted or declined.

The Guest accepted my partial refund and I made sure I was also covered with financial recompense from the Guest for some of my losses as I had lost bookings for the time they had their reservation for.

Win, win -as I said, ABB Hosts should have a look and play around of that Option.

Naturally it must be decided on a Case by case basis as to how much to refund, if at all, and Good Will goes a long way.

I could have allowed the Guest to Cancel and been paid for the night permitted with  24hours after they pushed Cancel but decided to have an explore of this Change/Modify Option available for us Hosts.

The Guest and I had talked about the situation and they accepted the offer.

[Sandra856]

@Helen427 your guests are entitled to a refund according to your cancellation policy - if you want to refund them less than that it is up to you - but they are entitled to whatever refund the cancellation policy promised when they booked.

Another thing is that most guests would just cancel when you have the flexible policy and then they are refunded automatically - there is no need to ask you for a refund as they are refunded automatically. 

[Sandra856]

.