Strict versus Moderate Cancelation policy

[Daniel597]

Hi All,

I have been using a Strict Cancelation policy since starting on Airbnb last march and have had great success so far.  I am contemplating on changing it to a Moderate Cancelation policy to see the effect.  I'm wondering if anyone has had any experience with it and can offer any insight.

Thank you,

Daniel

[Cormac0]

@Daniel

Make the switch and be inundated with time wasters and the impetuous, genuine guests should have no problem with a strict cancellation policy.

I moved mine from moderate to strict based on what I've read in these blogs...

Regards

Cormac

The Explorer's Club Krakow III

[Matthew285]

We are relatively new, but we have been on Flexible from the very beginning and cancellations have not been too bad for us.

Just one person a month before their stay, and one person with a medical emergency (extenuating circumstances).

I know our experience might not be typical, but I wanted to provide an example of someone who is not totally against less strict cancellation policies...

(Which is apparently somewhat rare on this board.)

[Linda108]

In my area, there are several highly attended sport and music events, @Daniel597.  Guests often book up to a year in advance.  When these events are booked, I change from strict to moderate cancellation.  If a guest cancels for one of these events, with the strict cancellation policy I will get at least 50%, but I let the guests know I will refund the remaining money if the dates are booked. Usually the dates are booked.  Hope this helps

[Marzena4]

I have been on Moderate since I started almost two years ago and have only had one cancellation so far.

[Kelly149]

@Daniel597 it seems as if it is not too difficult for a guest to claim extenuating circumstances cancellation which gets them fully refunded regardless of your cancellation policy. May not really matter which one you choose

[Matthew285]

This is so true!

[Fred13]

Astute observation @Kelly-And-Dan0. The extenuating circumtances if/when it allows the guest to easily use as a cancellation excuse, oftentimes makes the choice between policies by the host a moot point.

[Kevin-s0]

I went from the most accommodating to strict in stages.  I`m happy to have GONE TO STRICT.   There are very few cancellations now!

I love it!

I have a staff.  So I rarely have to retell them the schedule etc.

Plus as others have stated, it`s cut down on the procrastinators.

[Klompa0]

I'm new here.

How do I change cancellation policy, where? 

[Matthew285]

@Klompa0, to change your cancellation policy:

1. Go to your Host Dashboard and select the "Listings" page.
2. Choose the listing you want to edit and press "Manage listing" for that listing.
3. In the Manage listing page, choose the "Booking settings" tab.
4. In the "Booking settings" tab, scroll down. There should be a "Policies" section. Press the "Edit" button for the "Policies" section.
5. While editing the "Policies" section, look for the "Cancellation" policy section. You have the choice of "Flexible", "Moderate", or "Strict". Once you have made your selection, press the "Save" button.

[Klompa0]

Matthew

Thank you

It is probably possible when I finalise and activate my advertisment

[Huma0]

I started with moderate and generally it was all fine. I had one guest cancel the day before her stay and get a partial refund. She then tried to harrass me for a full refund. Otherwise it was fine until I got three cancellations in a row, all in high season and all right before the five day cut off for a full refund - and by right before, I mean hours before. That left me with unbooked days at the last minute at a time of the year when I am normally fully booked.

So, I decided on strict, but the very first guest who enquired after that (for a stay a few months down the line) did not book specifically because of this. Otherwise, I think it worked okay, but it's hard to say if it affected bookings or not. As it's low season and bookings have become slow, I've put the policy back to moderate for now just in case the strict policy puts off potential guests.

I wish there was something inbetween strict and moderate though as I feel that the strict is a bit hard on guests and moderate a bit risky for hosts.

[Linda108]

Deciding on a cancellation policy is a lesson in marketing/business.  @Huma0 I think Air BNB presents this opportunity is simple terms but it is really a more complex business.  Kudos to BNB's, hotels and motels.  We think we can just sign up and make money.  Not so much.  Actually that is just how I started but have become more educated over the last couple of years.  As my previous posting stated, I use strict for those events that have high interest and people will book a year in advance.  After those events are booked, I go to moderate.

I think the "in between" is the host.  I have a policy of refund if the dates are booked.  

[Huma0]

@Linda108

Yes, it makes sense to set it to strict for very busy periods and moderate otherwise.

The problem is that it really varies how far in advance guests book. Some book months in advance, others weeks and some only days, so how do you allow for that? As far as I'm aware, you can't set one policy for specific dates and another for other dates, which might be a useful feature if it was available.

I really don't mind giving a full refund if guests cancel well in advance, but most of my cancellations have been right before the 5 day cut off, with not enough time for me to book those dates (even though I know they would have gotten booked with a bit more notice).

As for using strict, and then offering an additional refund, yes that's possible, but when I did this for a guest who cancelled nearly two months in advance, I noticed that Airbnb took the money from my next payout, not her payout, so I was out of pocket for two months.