Best cancellation policy for a large group property?

[Mary1523]

I've been considering changing the cancellation policy on my large property that takes 12 as a group.

It's currently 'firm' and we've had a few cancellations this year already where the guests cancel just before the 30 day window. 

The problem for us is that people book this type of property at least 3 months in advance so there is no way I will get another large group booking replacement. People organising large friend or family groups need a few months notice. (I might get a half house booking for a much reduced price but thats a maybe)

I used to have strict for many years, but Airbnb keeps sending hosts messages around, be as flexible as you can be yadah yadah.... but I think it's not working for us to be more flexible? I've had this 'firm' policy since covid pandemic.

By the way, we've never had someone cancel within the period where we keep ANY money.

So, what do others with large properties do for a cancellation policy? Should I try the reduced 10% policy where at least we keep something?

[Mike-And-Jane0]

@Mary1523 the 10% reduction doesn't save you from an extenuating circumstance cancellation. We have always used Strict except for a short time during Covid and feel it is the best policy especially where there is oversupply in the market. My guess is that the guests cancelled when they found a better option just before the end of the free cancellation period.

[Mary1523]

Thanks I think i'll go back to strict policy. It didnt seem to stop my bookings before I moved to firm despite Airbnb telling us guests liked flexibility. Perhaps thats true for bookings that have a travel purpose behind them like and 1 family is in control of the dates.