I always have a strict cancellation policy since I started hosting on airbnb. Fortunately, it has been working very well for me.
Recently, I noticed there are some hosts in the forum with a dilemma for *not being able* to give a full refund for guest who cancel under the strict cancellation when they want to. To hosts with strict cancellation policy, YOU CAN GIVE a FULL REFUND to your guests with your STRICT CANCELLATION POLICY if you want to. Please note to not cancel any reservations from your end.
There are great penalties that hosts can get from cancelling a reservation.
If the guest is the one who wants to cancel, then let them do it from their end. Please also make sure that you do not accept of guests request to cancel as you will also be penalize for it, please read > https://community.withairbnb.com/t5/Hosting/BEWARE-of-quot-Guest-requests-that-you-cancel-quot/m-p/4...
*If it is really necessary for you to have a reservation canceled, contact airbnb right away and ask for their assistance to help you cancel it from their end (of course this is depending on what is the reason for you to cancel).
*If you are a host with strict cancellation policy and willing to give 100% refund for guest who cancel the reservation, you can do this! Go to Host > Your Reservations > Issue Refund , that way you can refud the remaining balance of the reservation. Please read > https://www.airbnb.com/help/article/165/how-do-i-refund-my-guest
I hope this post helps new hosts/hosts who do not know that this is possible and have been penalize for trying to help guest to give them a full refund by doing the cancellation.