A lot of hosts especially new one have difficulty in figuring it it which Airbnb cancellation policy would be the best choice for their listings. There are several options to choose from, and it’s necessary for you to understand how each policy works before you start receiving your first bookings.
There are various types of cancellation systems so let us take them one after the other.
The Airbnb Flexible cancellation policy is the most lenient option for guests. In this policy, guests are eligible for a full refund when canceling a reservation at least 24 hours before check-in (local time of the property).
If the guest cancels a reservation less than 24 hours before check-in, they will still need to pay for the first night‘s stay, plus the Airbnb service fee.
If the guest decides to cancel his/her stay after arriving, he/she is eligible for a full refund for any remaining nights of the reservation.
The Moderate cancellation policy is the most popular option. It is a bit stricter than the Flexible policy but still gives guests a certain level of flexibility and an opportunity to receive a full refund. For Airbnb hosts, the Moderate policy offers less exposure to cancellations. Under this policy, to receive a full refund of the accommodation fees, the guest must cancel a reservation at least 5 days before the check-in date.
If the guest cancels within 5 days of the booking start date, the first night of their stay, as well as the Airbnb service fee, will not be refunded. They will also only receive 50% of the booking fees back. If the guest decides to cancel after checking in, they will receive a 50% refund of the accommodation fees for any remaining nights. However, they will still pay for any nights spent.
According to the Airbnb Strict cancellation policy, guests may receive a full refund if they cancel within 48 hours of booking and at least 14 full days before the listing’s local check-in time. After 48 hours, guests are only entitled to a 50% refund regardless of how far the check-in date is.
The guest will also receive a 50% refund of the accommodation fees if they cancel at least 7 days before the booking begins. They will also receive a refund for the cleaning fee but not the service fee. If the guest cancels a reservation fewer than 7 days in advance, they won’t be eligible for any refund.
The Airbnb Long-term cancellation policy applies to all reservations that are 28 nights or longer. Guests need to give a 30 day notice of cancellation to receive a full refund. If the guest cancels within 30 days of the check-in date, they will still need to pay the first month‘s reservation cost.
Additionally, if the guest decides to check out early during the stay, the guest will have to pay for 30 days following the date of the cancellation or up to the end date of the original reservation.
Super Strict 30 Days
This option is only available to seasoned hosts by invitation only. Under the Super Strict 30 Days cancellation policy, a 50% refund is given if the guest cancels a reservation at least 30 days before check-in.
If the Airbnb guest decides to cancel when there are fewer than 30 days left until check-in, they forfeit the accommodation fees. Finally, there is no refund given at all if the guest decides to cancel after checking in.
Super Strict 60 Days
The Super Strict 60 Days cancellation policy works roughly the same as the Super Strict 30 Days policy. This option is only available to seasoned hosts and it is also by invitation only. The only difference is that the guest must cancel the booking at least 60 days before check-in to receive a 50% refund on the accommodation fees.
If the Airbnb guest decides to cancel when there are fewer than 60 days left until check-in or after arriving, he/she will receive no refund.
*Both the Super Strict 30 Days and Super Strict 60 Days apply to special circumstances and are by invitation only.
Are you a host, what cancellation policy do you use for your homes?