Airbnb Cancellation Policy: Host Guide to Protect Your Revenue

For Airbnb hosts, cancellations often lead to lost income, calendar gaps, and added stress. Choosing the right Airbnb cancellation policy is essential. It helps protect your revenue, sets clear expectations with guests, and improves calendar stability.

This guide explains everything you need to know about Airbnb’s cancellation policies. You’ll learn how they work, how to choose the right one for your property, and what happens when a guest or host cancels.

Of course, cancellation is just one of many daily challenges hosts face. Hostex helps you manage all your OTA listings in one place and automates up to 70% of your daily tasks. Plans start from just $4.9 per month, saving you time for what matters most.

What Is the Airbnb Cancellation Policy?

An Airbnb cancellation policy defines the rules for changing or canceling a booking. These policies apply to both hosts and guests. They determine when refunds are allowed, how much the host earns after a cancellation, and how flexible the booking terms are.

Choosing the right policy helps hosts balance protection and flexibility.

Airbnb’s Standard Cancellation Policies (for Guests)

Here’s an overview of the main cancellation policies Airbnb offers. Each option comes with different refund rules and protection levels for hosts.

1. Flexible

• Refund rule: Full refund if canceled at least 24 hours before check-in. If canceled within 24 hours, the guest pays for the nights they stay plus one additional night.
• Host protection: Very low.
• Pros: Higher visibility in search results. Encourages more bookings. Appealing to last-minute travelers.
• Cons: Hosts risk frequent cancellations and empty calendar gaps.
• Best for: New listings, urban rentals, or highly competitive markets.
• Tip: Use this to boost occupancy, but monitor cancellation patterns closely.

2. Moderate

• Refund rule: Full refund if canceled at least 5 days before check-in. Within 5 days, the guest pays for the nights they stay and 50% of the remaining nights.
• Host protection: Moderate.
• Pros: Offers a balance between guest flexibility and host security. Filters out impulsive bookers.
• Cons: Gaps are still possible if guests cancel within a week.
• Best for: Standard vacation homes or hosts aiming for consistent occupancy.
• Tip: A good default choice for many listings.

3. Firm

• Refund rule: Full refund if canceled 30 days before check-in, or within 48 hours of booking and at least 14 days before check-in. Cancellations 7–30 days before check-in receive a 50% refund. No refund within 7 days.
• Host protection: Strong.
• Pros: Reduces last-minute cancellations. Gives hosts more time to rebook.
• Cons: Less appealing to travelers with uncertain plans.
• Best for: Seasonal rentals or high-demand destinations.
• Tip: Combine with longer minimum stays for better calendar control.

4. Strict

• Refund rule: Full refund only within 48 hours of booking and at least 14 days before check-in. Partial refund (50%) between 7–14 days before check-in. No refund if canceled within 7 days.
• Host protection: Stronger than Firm.
• Pros: Discourages casual bookings. Helps prevent revenue loss.
• Cons: May reduce conversion rate. Lower search visibility.
• Best for: Hosts with steady demand or luxury listings.
• Tip: Add appealing photos and detailed descriptions to increase guest commitment.

5. Long-Term (Strict or Flexible)

Applies automatically to bookings of 28 nights or more.

• Strict version refund rule: Full refund if canceled within 48 hours of booking and at least 28 days before check-in. If canceled later, host is paid for 30 nights or the remaining nights if fewer.
• Flexible version refund rule: Full refund if canceled at least 30 days before check-in. Otherwise, guest pays the first month.
• Host protection: High for both.
• Pros: Hosts receive long-stay income security. Easier financial planning.
• Cons: Less booking flexibility for guests. Higher risk of guest dissatisfaction if plans change.
• Best for: Mid-term rentals, remote work stays, and monthly discounts.
• Tip: Communicate clearly with long-stay guests before accepting the booking.

6. Super Strict (30 Days)

Invitation-only.

• Refund rule: 50% refund if canceled at least 30 days before check-in. No refund within 30 days.
• Host protection: Very high.
• Pros: Strong income protection. Low risk of empty dates.
• Cons: Guests may avoid listings with harsh terms. Reduced booking volume.
• Best for: Exclusive or event-driven properties.
• Tip: Use only if you have a stable demand and a loyal guest base.

7. Super Strict (60 Days)

Invitation-only.

• Refund rule: 50% refund if canceled at least 60 days before check-in. No refund otherwise.
• Host protection: Maximum.
• Pros: High revenue security. More serious guests.
• Cons: Very rigid. Likely fewer bookings.
• Best for: Large properties or high-cost bookings planned far in advance.
• Tip: Only consider if you operate a premium listing with steady demand.

8. Non-Refundable Discount Option

• Refund rule: No refund at all if guest cancels. Offered as a discounted rate in addition to your normal Airbnb cancellation policy.
• Host protection: High for bookings made under this rate.
• Pros: Attracts guests looking for deals. Host gets paid even if the guest cancels.
• Cons: Lower price per night. May attract deal-seeking travelers.
• Best for: High-season listings or short gaps in calendar.
• Tip: Use selectively to fill last-minute openings or low-demand days.

Airbnb Cancellation Policy for Hosts

Airbnb aims to provide guests with a smooth and pleasant experience, and the platform takes several measures to protect them from last-minute cancellations by hosts. In order to preserve the integrity of the platform and prevent disruptions to guests’ travel plans, Airbnb imposes specific penalties on hosts who cancel confirmed bookings.

Cancellation Fees for Hosts

When a host cancels a booking, Airbnb may charge a cancellation fee. This fee is calculated based on the reservation amount and depends on the timing of the cancellation. The fees are applied to the total booking cost, including the base price, cleaning fee, and any pet fees (excluding taxes and guest fees).

• Less than 48 hours before check-in or after check-in: 50% of the total booking cost for the nights not stayed.
• Between 48 hours and 30 days before check-in: 25% of the booking total.
• More than 30 days before check-in: 10% of the booking amount.

For long-term stays (28 days or more), cancellation fees are calculated as a percentage of the non-refundable portion of the booking.

Other Considerations

• Cancellation Dedication: Airbnb will deduct the cancellation fee from the host’s upcoming payouts, which could reduce future payouts.
• Blocked Calendar Dates: Once a booking is canceled, the dates are blocked on the host’s calendar, preventing them from filling those dates with other bookings.
• Multiple Cancellations: Frequent cancellations by a host can lead to stricter penalties and even suspension from the platform, as Airbnb prioritizes guest experience and trust.

Why Avoid Cancellations?

Canceling a booking can be costly for hosts. Aside from the financial penalty, it can also damage your reputation and affect your listing’s visibility. Cancellations are viewed negatively by Airbnb’s algorithm, which could result in fewer bookings and lower rankings in search results. Moreover, guests who experience cancellations may be less likely to trust your listing in the future.

Pro Tip: If you need to cancel a reservation, it’s best to do so as early as possible, allowing guests time to make other arrangements. Always consider communicating with the guest to resolve issues directly before resorting to cancellation. This approach can help preserve a positive relationship with your guests and minimize negative reviews.

Airbnb Guest Refund Policy and Dispute Scenarios

In addition to canceling a reservation, guests may also be eligible for a refund under certain circumstances. Airbnb has established specific guidelines for guests to cancel during their stay, which can protect both guests and hosts in case something goes wrong during the booking or stay.

Reasons for a Guest to Request a Refund

Airbnb recognizes the following reasons for a guest to request a refund:

1. Misleading Listing Information
   If the property description, photos, or amenities are inaccurate or incomplete, such as incorrect information about the number of bedrooms or missing amenities (e.g., no hot water, broken appliances), guests may qualify for a refund.
2. Failure to Check-In
   If a guest is unable to check in due to the host’s failure to provide proper check-in instructions, key, or access code, they may be entitled to a refund. This also applies if the host cancels the booking last minute.
3. Health and Safety Issues
   If the accommodation is not clean or contains health and safety hazards (e.g., mold, broken locks, exposed wires), guests can request a refund. Additionally, if pets or animals are present on the property without prior disclosure, the guest may also be entitled to a refund.
4. Unacceptable Conditions
   If the guest feels the property is uninhabitable (e.g., extreme noise, pests, or other disruptive conditions), they can submit a claim for a refund.
5. Disruptive Events or Major Problems
   If there’s a disruption caused by a third party, such as construction noise, or a situation like a natural disaster, guests may be eligible for a refund.

How Guests Submit a Refund Request

To submit a refund request, guests must:

1. Contact the host first and attempt to resolve the issue directly.
2. If the issue is unresolved, they can submit a claim to Airbnb within 24 hours of the problem occurring.
3. The guest will need to provide evidence supporting their claim, such as photos, videos, or documentation.
4. Airbnb will review the claim and make a final decision regarding the refund.

How Hosts Can Avoid These Disputes

While these situations are relatively rare, there are steps you can take to avoid refund requests and maintain a positive relationship with guests:

1. Accurate Listings
   Ensure your listing is detailed, accurate, and up-to-date. Include clear photos and descriptions of amenities. Always mention any limitations upfront, such as ongoing construction or accessibility issues.
2. Clear Communication
   Be responsive and proactive with guests. Provide clear check-in instructions, and ensure they have access to the property as soon as they arrive. Communicate any changes in advance.
3. Property Maintenance
   Regularly inspect your property and keep it well-maintained. Address minor issues before they become bigger problems. A clean and functional space is crucial for guest satisfaction.
4. Be Transparent About Rules and Amenities
   Clearly communicate house rules, such as pet policies, and make sure all amenities listed are present and in working order. Misunderstandings can often be avoided by providing detailed and honest information.
5. Be Prepared for Unexpected Events
   In case of disruptions, such as a power outage or plumbing issues, notify your guests as soon as possible and offer solutions or compensation where appropriate. Airbnb appreciates hosts who go above and beyond to assist guests in resolving issues.

By staying proactive and addressing any concerns promptly, you can minimize the chances of disputes and refund requests, keeping your business running smoothly and maintaining a good reputation as a host.

Final Thought

Each Airbnb cancellation policy offers a different level of protection for guests and hosts, but finding the right balance between protecting your revenue and providing a positive guest experience is key.

While no one can fully avoid cancellations:

• Maintaining good communication with your guests is essential to minimize the chances of cancellations. By keeping your guests informed and addressing any concerns in a timely manner, you can significantly reduce the likelihood of cancellations.
• Managing your calendar effectively is key to preventing cancellations caused by your own actions. Make sure to block dates properly and avoid any scheduling conflicts.
• Having a solid strategy for managing gap days, including setting appropriate booking policies and adjusting pricing. This way, even if last-minute cancellations do occur, you’ll still have a chance to quickly fill those gaps and keep your calendar full.

However, managing a vacation rental goes beyond cancellations; it involves countless routine tasks that can quickly become overwhelming. With Hostex, you can streamline the management of your Airbnb and other platforms, automating up to 70% of these daily tasks. This allows you to focus on growing your business without the administrative burden. Get started today for as little as $4.9/month.