Do you allow guests to eat food in a private room? If so, do...
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Do you allow guests to eat food in a private room? If so, do you provide a table, or let them eat on the bed. New to Airbnb, ...
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Do you mean you would like the guest to arrive a day later or leave a day early? If so, whilst your offer might seem generous to you, it might not actually fit in with the guest's plan, therefore not a generous offer to them.
If you are both unable to reach an agreeable solution and the alteration as is as a direct result of your making, then I'm afraid you might be left with no choice but to cancel and take the penalties; if the guest can't accommodate your changes and they cancel they will be stung by your strict cancellation policy which is unfair to them.
I hope you can sort out something between yourselves.
Ama
I am wondering if you could offer to find and pay for alternative accomidations that are equal to or better than your place for the one night?
Not really as that would be third party booking which Airbnb do not allow.
@Valentine6 If they don't want to accept your refund, you cannot force them to do so. Just enjoy the extra cash.