Cancellation

[Arnie115]

So, always a new AirBnB cancellation policy that refunds guests but never refunds the owner who had his/her calendar locked while the guests booked and the owners couldn't book those locked dates on their calendar and then the guest cancels.  Why don't we get cancellation payments.  They should offer us the option to add "cancellation insurance for owners" so for a few dollars for each booking that pays us in full should a guest cancel, don't you think???!!!!!

Here is what I have in my rental agreement:

Insurance
We expect that all members of your party be covered by travel insurance which carries adequate
protection against delays and cancellations and has adequate medical insurance for the USA and for
your luggage and personal belongings. This you will need to arrange and purchase for yourselves
through a reputable insurance company. In the unlikely event of a burglary, you must have adequate
insurance to cover your personal belongings. Our insurance only covers our home and our contents.
We strongly recommend that you take out Trip Insurance Coverage to protect against cancellation.
Cancellation for most reasons beyond your control will be covered by your travel insurance.
Cancellation due to financial reasons or simply 'no longer wishing travel' is usually not covered.

My concern is that a guest might book a few houses and then have a meeting with family and friends who are vacationing with them and somewhere down the road they hash it all out and cancel all the houses except for the one they all decided they want.  And of course, during that time they take to hash it all out between themselves my calendar shows "booked".  Does AirBnB let them book multiple houses for the same date or does it block that???  And if they block it then the other members of their traveling part can book those same dates and multiple houses and then cancel when they pick one.

My take has always been a "firm" cancellation where the guest books and gets no refund as if they booked a cruise or flight. 

If AirBnB gave me three prices to quote 1) basic = no refund  2) flexible = higher nightly rate and 7 day cancellation with no refund after that  or 3) premier = highest nightly rate and cancellation up to 24 hours before arrival.  Then I'm up for that so then the guest can pay for the privilege to cancel.

What do you all think about cancellations?   And do you believe the story that easier cancellation gets you more guests?  And what is the worst cancellation you had that cost you the most money?

[Nandini11]

Hello @Arnie115 
I totally get how frustrating it is when a guest books and then cancels—the calendar gets blocked, and you miss out on other potential bookings from guests who were genuinely interested. I've been there too.

Airbnb recently shared an update on changes to their cancellation policy aimed at reducing losses for both guests and hosts. They’re trying to find a better balance so no one is left at a disadvantage. Here’s what’s new:

• Guests now have 24 hours to cancel (for a full refund) if the trip is more than 7 days away and under 28 nights, regardless of the policy you set. This replaces the previous 48-hour grace period.

• Listings with more flexible cancellation (beyond 48 hours) will now stand out more in search, since many guests prioritize flexibility.

• A new “Limited” cancellation policy has been introduced—guests can get a full refund if they cancel at least 14 days in advance, giving hosts more time to rebook.

• The “Strict” policy is being phased out for new listings.

Airbnb’s goal is to support both sides, helping guests feel confident while making sure hosts don’t lose out completely.

Regards,

Nandini

[Arnie115]

Nandini,

Thanks for posting the "new cancellation policy". Not sure I agree with "Airbnb’s goal is to support both sides" as these changes surely favors the guest over the owner.

[Shelley159]

Hi @Arnie115 

With a more flexible policy you increase your chances of ranking higher in search results, and therefore also your chances of getting booked again after a cancellation. Many hosts also get the impression that the algorithm tends to boost canceled dates to help you get booked again, although this is hard to prove.

As cancellations are generally rare and high season prices increase closer to the dates, many may not worry much about this and just have a flexible policy.

[Arnie115]

Shelley,

I agree that ranking higher in search results increases ones chances of getting a booking. But each of our homes is just a single data point in a database. And that manipulation and sorting of the data is to optimize AirBnB's profits whether each of us wins or loses is irrelevant.

You note that "cancellations are generally rare" but if so why is AirBnB changing the cancellation policy to favor the guest? I'm guessing during these difficult times as global politics and markets change and affect travel decisions, guests are probably cancelling more now than before, hence the need to change cancellation policy which favor guests over the owners. If you give a guest a chance to cancel with no repercussions and then book a cheaper rental home (maybe because a home owner used AirBnB "smart pricing" and it lowered their rate and that home was on the guest's list and is now cheaper to book than when they compared it to your home some time back when they booked your home), then AirBnB still wins as they "got paid on the new booking" and the home owner who got canceled does not.

[Helen3]

Ive always used the strict policy since starting ten years ago and its always worked for me.

Airbnb are changing their cancellation policies to increasingly favour guests . 

it's likely true that more flexibility encourages more bookings but now these bookings can be much more easily cancelled without penalty .

letting guests cancel within 24 hours for bookings only a week in advance disadvantages hosts massively.

[Shelley159]

@Arnie115 @Helen3 

I've rarely had nights open because someone canceled, but perhaps I should add that if it's close to the time I do sometimes lower the price a bit to make sure it gets re-booked. Also, I'm exceptionally keen to avoid a fight over money, which is the main reason I'm eager to get the money back to the guest and move on. The chances of getting re-booked does depend on the season, and probably on the market as well. For example, I'm sure it could be more difficult for a large property to get re-booked very close to the date.