My guest booked using instant book. However after we both spoke a little we realised this wasn't right for him. I have a flexible cancelation policy - great.
However when he goes to cancel it looks like he will be charged £500 air B and B service fee.
I can see that he should be able to get the service fee back, and that the following reasons might be why he can't:
he is within 48 hours.
he hasn't cancelled 3 reservations in the last 6 months
The reservation doesn't overlap
the listing has a flexible cancellation policy
The 48 hours free cancellation option is not part of the "flexible cancellation policy".
Guest can cancel for full refund at least 24 hours before the listing’s local check-in time (shown in the confirmation email).
BTW If the Service Fee is GBP 500,-, then according to your listing booking is for approx 3 weeks.
Is your listing not clear or did the guests not read it ?
Why do people not sent an inquiry before booking instantly ?