Will changing my cancellation policy affect bookings?

[Michelle-and-Ray0]

I'd like to change my cancellation policty to strict from moderate, but I'm worried it will chase away potential bookings.

Has that been anyone else's experience? My inclination is that if they are actually serious about booking to begin with, it won't really matter.

[Fred13]

Perhaps it is a question for you to ask yourself. If you rather have 'serious' (aka committed) people booking, then Strict is for you. The 'costs', of potential lost bookings, between the two, others here are better suited to answer. It has been my impression that 'many' hosts are fans of the Strict policy to reduce cancellations.

[David126]

Survey your Guests as to if it would make a difference to them.

[Jann3]

With all due respect, I disagree, @David126.

Almost ALL guests would say they prefer the flexibility...BUT the ones you'd WANT to stay would actually book w/strict.

[David126]

Maybe they are also the ones that know they can claim Extenuating Circumstances so does not really matter what the policy is?

[Michelle-and-Ray0]

The point of me asking here is because it doesn't make sense to "survey" my guests. I would have to aks them AFTER they've booked, wouldn't I? How would I know if I've lost out on bookings or not due to my cancellation policy (which would have to already be in place)? I'm new and haven't had many to begin with. I want to know if it has affected hosts' bookings. Guests wouldn't know that information anyway.

[Kelly149]

@Michelle-and-Ray0 change it for awhile & see what happens. I personally have no expectations that ABB will uphold a cancellation policy regardless of what it is. So I’m on moderate. There are some hosts who have to pay a higher fee to have the higher cancellation policy, not sure if that would effect you or not

[Jann3]

@Michelle-and-Ray0,

I'm on strict, and have never been on anything except strict...

and my bookings range from 50% to 80-90% and I'm happy with that.

It's a trade-off. I like the people I get that choose "strict" cos they know what they want, are less expectant on things they did not know would NOT be there, and/or read the ENTIRE LISTING cos they know IF they book it, they are committed.

In my experience - it's worth it!

Oh, and all cancellations have been paid according to terms... ie: they know if they cancel they have a penalty that they DON'T get out of paying.

So, in my estimation, strict is worth it. 

Just my two cents...

Jann

[Paul154]

I know as a guest, I have an aversion to Strict . 

What if I read the listing wrong? Will the host be flexible if my dates change?

Hosts with Strick policy seem "mean" compared to more reasonable hosts.

I fear losing my money over something stupid.

So before I book with a Strict host I will search for moderate or flexible hosts first.

If I do decide to go with the strict host, I will wait days and reread just to be sure AND to hope for a better solution. Usually something opens up so I don't have to go with the strict host.

[Fred13]

Very enlightening post @Paul154. I am on Super-Strict 60 so I can only imagine how cautious potential guests will be before booking my place. I now can appreciate more, because of your post, why they DO ask so many questions before booking, which I always enthusiastically encourage them to do so. Even after they book, I allow them changes, return of their deposit (50%) immediately when personal calamities strikes them, and above all always with an attitude that 'Nothing is a Problem'. Excellent post - great to hear it from a potential guest's perspective. 

[Marzena4]

Imho, cancellation policy should correspond to the type of place and its location, e.g. competitors within a couple of meters, yards, miles, nautical miles - yes, @Fred13, that's at you ;). Not all hosts should jump at the strict one. If, as @Paul154 said, there are others around who are more appealing with their policy, guests will pick them up in the first place. So maybe, @Michelle-and-Ray0, do not survey your guests, but look around and compare yourself with competitors.

[Elizabeth429]

Hello all,

I do have the flexible cancellation policy and intend to keep it that way for the mean time.

In my experience, potential guests do not read the listing properly or at all, specially house rules.

So when I get a reservation, I always ask them to confirm to me they have read my house rules; and at least three times the reservation has been cancelled within minutes. I prefer to have a guest cancelling their reservation over my place than having them breaking my house rules.

Fortunally for me, every single time a reservation was cancelled by the guests, my place was reserved again in no time.

It actually makes me wonder whether Airbnb´s algorithm picks it up and puts me out there to be as visible as possible.

[Fred13]

What I appreciated foremost about Paul's post is his view as a guest.

@Elizabeth429You put much emphasis in making sure, as best you can, that the guest fits your place. I am also a proponent of this, in slightly another way, by being emphatic with my description - for who my place is best suited and is not. Recently however, I have adopted an experimental tack, mentioning that the 'reviews should tell you if it is for you' sort of approach. Funny, potential guests mention a ton of things (causing questions)  from the reviews more than 'Things to Know' (aka my version of House Rules), which gives me the impression they DO read the reviews thoroughly, yet appear to 'skim over 'Things to Know'/House Rules. In fact, many guest mention how they read most of the reviews, now over 100. Well, I be darn.

[Elizabeth429]

@Fred13,

Hello there,

I have just been looking into your listing and WOW  is the word. Using any other adjective wouldnt do any justice.

Please, tell us (maybe in another conversation window) how did you come across with that little piece of heaven?? Tell us everything, please!

[Mark26]

Why are you considering the change from moderate to strict?  Is it because you've experienced an  unacceptable number of last minute cancellations, after a guest has tied your calendar up for months?  Lost opportunity is a difficult number to quantify.  I'd rather exclude it.   A strict cancellation policy helps screen out those guests who have no difficulty changing their mind about a reservation they made four months ago, five nights before they are scheduled to arrive.

If a strict cancellation policy reduces my potential number of bookings, I'm OK with that.  I chose a strict cancellation policy when I put our listings on the AirBnB website, and I haven't ever considered changing it.

If a guest decides to cancel I explain to them that they need to do so from their end, and AirBnB will issue the appropriate refund.  I also promise to do my best to re-sell the nights they decided to cancel, and will make sure they get a full refund for any of those nights I successfully re-book.