At Airbnb's insistence and threat of blacklisting, I have tried Instant Booking (IB)
I like the higher placement, the ease of booking and the "feeling" that I was doing what airbnb wanted and I would be treated well.
(specifically, I could cancel a guest who would be a poor fit)
I now have been damaged by IB and it sucks. I have just cancelled a reservation from a previous guest who had broke my rules.
My cancellation was immediate - within 10 minutes. Because the reservation was made within 24 hours of the checkin date, I now have a terrible public automated response "Host cancelled reservation within 24 hours of check-in" . While techically correct, I am now painted as an abusive host, even though I was above-board and cancelled immediately allowing guest to search elsewhere in a timely manner.
I now am realizing the damage of IB
Yes - airbnb allows you to cancel penalty-free within 24 hours.
Yes. booking is easier
Yes. search is better
BUT if you cancel you will have a public scarlet letter A - "Host cancelled reservation"
BUT if reservation was made within 24 hours of check in you'll get a worse public punishment "Host cancelled with 24 hours of check-in"
AND airbnb will block off the cancelled dates and prevent you from earning revenue.
I like IB, but I wish Airbnb would be reasonable in their punishment of immediate cancellations.
Most hosts cancel for a legitimate reason - poor fit, inappropriate greeting, bad prior experience. It is not in a host's interest to lose out on a guest's revenue.