Just thought I would share this terrible experience that happened today for other hosts for future reference...I knew hosts should not cancel bookings from their end, but I really didn't have any other healthy options, and Airbnb made it sound like I wouldn't have any loss. And of course, I did.
This guest was supposed to stay at my place for five days since yesterday (Monday). We had confirmed her check-in time. The night before her arrival I sent her a message, and she goes "I'm stuck in Montreal, so I will check in on Tuesday". I was surprised but accepted it. I messaged her today explaining the self check-in instructions and asked her to message me when she has checked-in or has any trouble. I was checking my phone all day to make sure she was okay. At 6:30pm, she told me she "may be" here at 11pm, which is after my check-in hours, without any explanation. I tried to confirm with her what time she would be actually arriving, but no response. I was worried if she would show up really late and wander around my neighbourhood, so I called Airbnb and explained the situation. The customer service rep was very understanding. We discussed possible options, and since it was not my fault, she said she can cancel it on my behalf and I would not get any penalties or loss. She advised me to send her a message saying "I can no longer accommodate your stay", which I did. She escalated the case to a case manager.
Now, I see the cancellation has happened and my dashboard says my earning is $0, and the money was fully refunded to the guest. My calendar is still blocked for those five days, and I can't even take other guests for the rest 3 days. I waited for two days, prepared her room for her arrival, was checking my phone all day, and they refunded 100% to the guest?! Then, this case manager Hayden contacted me and said he can waive the penalties for this one time only as a "courtesey" but will not refund me as the cancellation was made because I could not accommodate the guest's stay. I told him I was only advised by the rep to send that message and was assured I wouldn't get any penalties. He still insists that he's very sorry that their rep advised that, but that was still my decision. I lost about $200 for an irresponsible guest and a customer rep who told me a conflicting advice with their case manager's policy.
Looking at other hosts' posts I knew I shouldn't have made the cancellation. It was stupid of me to trust Airbnb agents and followed their advice. But honestly, if I hadn't canceled, I would have had a guest who kept telling me she would arrive later and later, who might even show up when my neighbours and I are asleep. I'm still not sure what the best thing to do here was, but to other hosts, try not to cancel as much as you can. Even if a rep from Airbnb tells you it's going to be okay, it's not. You will lose.