I did everthing in my power to accomdate guest (per Airbnb instructions) in March 2019 and they declined. I only have 5 weekends in the entire year that I can ask a higher price and I even offered to reduce that price for these guest. They declined so a cancellation was required now Airbnb has blocked these dates and they are for Mardi Gras weekend. Why am I being penalized? The dates were not know to me until recently.
If you cancel they do block the dates. This is to prevent hosts from cancelling just because they can get more money or a longer stay from somebody else. Did you ask the guest to cancel from their side? What caused you to initiate the cancellation? Why was the guest unhappy with the accommodations but unwilling to cancel?