@Brandon55
The free cancelations are if you have Instant Book and they are to be used if you feel uncomfortable with a guest.
You can find more on this here: https://www.airbnb.com/help/article/2022/how-do-penalty-free-cancellations-work-for-instant-book-hos...?
Also, I am not sure if you are aware of the other penalty of having automated reviews which are posted on your profile has a high chance of guests shying away from booking.
By you cancelling, it can impact other guests and hosts as you can see with Morwena who is a fellow host. It appears by looking at her profile, she did not end up staying at an Airbnb once here trip was cancelled. It also appears that Fran and Abbie also did not rebook their August trips with Airbnb so you can see why Airbnb does charge the fees to hosts who cancel. Not only do they lose revenue from your cancellations but they also can lose future bookings.
David
Superhost Ambassador ~ Host Club Community Leader ~ Experienced Co-Host