What are the main reasons guests cancel their reservations?

[Paula]

Hello everyone 👋

Unexpected situations are a part of life, and this is also true in the hosting journey. We’ve noticed conversations in our community that revolve around guests needing to cancel their reservations for different reasons.

Have you faced particular situations where a guest canceled a reservation? Do you have a communication strategy to respond to these requests? Are there any tips you would like to share for new Hosts when facing these situations?

Please share your tips , recommendations and guidance in the comment section, so our Host community can learn from your experiences.

Regards 🌻

[Karen114]

@Paula OK I will go first 😬. Being in the space for 14 years of course I have had to deal with cancelations that are outside of the cancelation window.

This is always very tough for all involved. I have used different strategies to help the guest such as offering to refund booked dates, letting them book for a future date.

Then offering of refunding booked dates or letting them book a future date was not without problems. Rebooking dates I was on the hook to get those dates rebooked often at fire sale prices so I could offer a refund when one was not really due. This created a lot of stress and I was constantly being asked by guest if the dates rebooked. 

Then there was the rescheduling to a future date. In theory it sounds fair but the guest  is really getting two stays for the price of one. Then there is the guest that wants to reschedule the rescheduled dates. Then I was the bad guy because I couldn’t keep rescheduling the reschedule 🙃

When a guest needs to cancel it’s typically within days of arrival due to a death in the family, sudden illness or a weather event.

About a year and a half ago I created an automatic message that goes out after booking touting the benefits of trip insurance and why it’s really a necessity in these times. I give them a few online providers and hope they take me up on the suggestion. More and more guests have been purchasing the protection which is nice. What is really really nice is I don’t feel bad about denying a refund request when outside of the cancelation window as they were given the opportunity multiple times to insure their investment. If they chose not to, than it’s on them. 

[Paula]

Hello @Karen114,

Thank you so much for taking the initiative to be the first one to participate in this thread! You have shared very important points with us, and we really appreciate it 🌻

I would like to highlight your initiative of creating an automatic message about the benefits of trip insurance. Do you send this same message for both short and long stays, or do you send it for just one of those?

Your insightful answer will surely help many new Hosts in our community. Thanks so much for this! 😊

[عماد-شعبان0]

There are many factors that cause guests to cancel their reservation, for example: Sudden illness. Or the guest found a place at a lower price or a better place .I had a confirmed reservation, and then the guest canceled the reservation, and when I contacted him to find out the reason, he told me that he had found a place close to and better than the area he wanted.

[Paula]

Thanks for sharing your experience @عماد-شعبان0,

What kind of cancellation policy do you have? Has it been working well for you?

Best regards,

[عماد-شعبان0]

I operate a flexible cancellation policy for the convenience of guests 

[Richard2257]

In my experience, the main reasons guests cancel their reservations on Airbnb include:

1. Change of Plans: Guests may have changes in their travel plans, such as altered schedules, finding different accommodations, or deciding not to travel.
2. Unexpected Events: Emergencies or unforeseen circumstances, such as health issues, family emergencies, or natural disasters, can lead to cancellations.
3. Negative Reviews or Better Options: Guests might cancel if they encounter negative reviews about the property or find better accommodations elsewhere.
4. Travel Restrictions: Changes in travel restrictions or visa issues can prevent guests from being able to travel to their destination.

Understanding these reasons can help create flexible cancellation policies and improve the guest experience.

Cheers,

Ricardo

[Paula]

Hello @Richard2257, Thanks so much for sharing this. These are all very good examples of reasons why guests cancel their reservations. How do you handle these scenarios? What cancellation policy do you offer?

Looking forward to hearing from you 😊

[Rose422]

Hi Paula, 

Great question! I can speak from a personal experience. I can approach this question from how hosts should prepare for or handle cancellations. Most guests that cancel due to unfortunate events, such as family or medical reasons usually should be treated differently than those that just change their mind and find another listing. I believe from the nature of communication hosts can always judge and tailor their response. With my listings in the past 7 years I have always opened my calendar 1-3 months in advance which is not feasible for a guest to cancel or host to change their mind due to the short timeframe, unless extenuating circumstances. If I take bookings for spring break now, there will be more possibility things will change than if I was to open my calendar early next year. For this reason my two cents would be that guests cancel if hosts have an increased timeframe to allow the cancellation to happen. I have been very specific with my hosting strategy and that is the reason I have been a super host continuously with no breaks. Only once or twice guests booked whereas they were supposed to send a message to ask a question by mistake. One suggestion I have for airbnb is to have a dedicated option to Message Host and Not to be forced to select dates for enquiring. This is unfair to guests as Reserve option is direction under this feature. You know what I mean if you have ever contacted a host in a message. Some people just have a question to ask and they get tricked into a booking. This is unfair as sometimes guests click on reserve and get themselves into a problem and the hosts have to ask them to cancel if they booked by accident. It is worth bringing this to the attention of Airbnb which I mentioned a few times before. Other than this, there must be many other reasons guests cancel for change of circumstances but it would be impossible to predict anything unless they explain. Thankfully I haven't had many cancellations but if I get a blank stare after such event, I would follow up with a message asking if there was anything you could have done better for the guest to have stayed with you :), at least something to learn from moving forward. 

Rose. 

[Paula]

Hello @Rose422, thank you so much for your insightful answer.

As you mentioned, every case is different, and communication is key to offering a solution. Regarding your suggestion for Airbnb, here is a link where you can share this feedback directly with them.

Best regards,

[Irina675]

From my experience the main reasons was schedule changes and illness. I personally think a lot of them find cheaper options.

[Paula]

Hello @Irina675, interesting, thank you so much for sharing your opinion 😊

With all your experience on Airbnb, which cancellation policy do you think is the best for handling these unexpected situations?

Best regards,

[Kate2192]

Hi Paula

Recent cancellation issues were centred around an airline who went into administration and left guests either stranded or their flights no longer available. Happened recently in Australia when Bonza went into administration. After a lot of stress for guests realising their trip was in jeopardy and their options few traveling to Darwin (NT), Qantas and JetStar honoured the flights so their Airbnb bookings were not affected. 

Aside from the above episode I’ve only ever had one guest attempt to cancel with an excuse which was unreasonable, which was declined.
Has Airbnb considered offering very reasonably priced travel insurance to guests? Protects both parties. 

Thanks Kate

[Paula]

Hello @Kate2192,

Thank you so much for your participation in this thread. What kind of cancellation policy do you offer?

As Community Managers, we do not have an answer for your questions. I recommend reaching out to the support team for their advice.

Best regards,

[Steve2584]

It's not exactly a "cancelled" reservation, but it ends up not being booked after inquiring because the platform glitch/bug is wrongly adding hundreds of dollars to their total to pay. I have a current guest that's owed a $300.00 refund for overcharged taxes. I shouldn't have to tell potential guests that a system problem is probably giving them the wrong total, because I've gotten NO word that the glitch has been corrected, and sadly, probably won't be given that proper consideration. I spent 7 hours over 5 days dealing with "support" who obviously were not even close to being capable of such an issue, and only added insult and angry frustration to my efforts to do right for my guests.