Thoughts on moderate vs. strict cancellation policies?

[Ronnie-And-Allyson0]

Hi there,

I'm a brand new host and wondered if most hosts prefer the strict policy over the moderate. I chose moderate. I just had a guest

cancel less than 24 hours prior to check-in and was going to be here over the NYE weekend. I feel like I could have booked that out but may not be able to now. I guess that's just what happens sometimes. Just wanted to get thoughts on this from some seasoned hosts. Thanks!

[Gerry-And-Rashid0]

It's interesting because as a guest I never book somewhere with a strict cancellation policy (but I have never cancelled a reservation on a host either). I don't know if it affects how people view your property or not - certainly does for me. 

[Ronnie-And-Allyson0]

Thank you for your input Gerry. I want to be fair and also think about it from a guest's perspective so the moderate policy seems to be a happy medium. I was just curious as to what the norm is for most hosts. Happy New Year!

[Ernie0]

Hi Ronnie And Allyson,

We started out with a moderade policy and quickly changed to a strict policy (we've now done over 900 bookings in 28 months as hosts). We have increased revenues each year and can honestly say that having a strict policy has had no deleterious effect on the number of bookings received. I have never questioned the decision. Bear in mind, the host can always choose to refund the money at his or her discretion regardless of the cancellation policy put in place. 

Hope that helps!
Ernie Thayer

[Ronnie-And-Allyson0]

Thanks Ernie. That helps! It's good to get your perspective as a tenured host. Also good to know that a host can refund on a case by case basis if they choose to. I was worried that a strict policy may deter guests and affect our rentals. We're just two weeks in so we're still learning the ropes! Thanks again. Happy New Year!

[Chris-and-Britt0]

I feel the gap between Moderate and Strict is too big.

I run a business and depend on the income from my guest, and I cannot have people cancel 5 days ahead, I am unable to fill the gap.

So I had to switch to strict.

But on the other hand, I am not happy with guests always having to pay 50%.

If they cancel 30 days ahead they should get the full amount back, I still have enough time to fill the gap.

So a moderate 30 policy would be very good.