Host can cancel anytime. Airbnb sent me a $25 coupon as a sorry but I have to spend $60 more than my original booking price in order to use the coupon. How does that make anything right for the customer? To be canceled on 7 days before my trip and recieve nothing but "sorry, please spend more money". Ridiculous.
@Monica2725 This is a bit rough given that the host has probably been fined significantly more than $25 (the minimum is $50) unless the cancellation was beyond their control. I would ask Airbnb again to pay the additional cost of a new reservation.