The Ultimate Guide to Airbnb Cancellation Policy for Vacation Rental Hosts

Cancellations are an unavoidable part of hosting on Airbnb and they can throw a wrench in your plans if you’re not prepared.

Whether it’s a last-minute change from a guest or an unexpected event, knowing how to handle cancellations is key to keeping your business running smoothly. Airbnb offers a range of cancellation policies, each with its own benefits and risks, so choosing the right one for your Airbnb listing can be tricky.

In this guide, we’ll walk you through the different policies — from the flexible options to the more strict ones — and explain how each impacts your bookings and earnings.

Plus, we’ll cover how to deal with cancellations due to major disruptions and what to do if you need to cancel as a host.

Why Cancellation Policies Matter for Hosts

Cancellation policies aren’t just about protecting your bank account — they influence your visibility in search results, the types of guests you attract and your overall hosting experience.

Guests often weigh cancellation policies as much as price when booking a stay. A flexible policy can definitely boost your bookings, but it also means you’re more likely to get those dreaded last-minute cancellations.

On the other hand, stricter policies are perfect if you value consistent revenue and have confidence in the unique appeal of your property. Striking the right balance helps you protect your earnings while still keeping your listing attractive to guests.

Understanding Airbnb’s Cancellation Policies

Airbnb offers a range of cancellation policies, allowing hosts to choose the level of flexibility or protection that suits them best.

These policies specify how much notice guests need to give for a refund, the amount they’ll get back, and what hosts still earn if a booking is canceled. Here’s a quick summary:

• Flexible: Guests can cancel up to 24 hours before check-in for a full refund.

• Moderate: Guests must cancel at least five days before check-in to receive a full refund.

• Firm: Full refund if canceled 30 days before check-in — partial refund for shorter notice.

• Strict: Full refund only within 48 hours of booking (14+ days before check-in).

• Flexible Long-term: For stays of 28+ nights, guests need to cancel 30 days ahead for a full refund.

• Strict Long-term: Similar to Strict but applies to long-term bookings.

• Non-refundable: A discount offered in exchange for waiving cancellation rights.

• Super Strict 30 days/60 days: By invitation only, providing limited refunds for cancellations made far in advance.

Airbnb Cancellation Policies: Deep Dive

Here’s a closer look at how each policy works:

Flexible policy

This is the most laid-back option for guests. Guests get a full refund if they cancel at least 24 hours before check-in. If they cancel later, you still get paid for all the nights they booked, plus an extra night.

Something to keep in mind is that Airbnb's search algorithm favors listings with a flexible policy. This means you have a better chance of getting more bookings and keeping your rental calendar consistently booked.

On the downside, hosts with a flexible policy aren’t as protected against last-minute cancellations, so there’s a chance of lost revenue if guests cancel close to check-in.

Moderate policy

Airbnb's moderate cancellation policy strikes a balance between flexibility and protection.

With the moderate policy, hosts are less vulnerable to last-minute cancellations. Guests can only cancel and receive a full refund until five days before check-in. If they cancel later, you'll be paid for all nights they stay, plus an extra night and 50% of any unused nights.

Firm policy

A stricter policy, Airbnb's firm cancellation policy allows guests to cancel up to 30 days before check-in for a full refund, giving hosts an entire month to rebook the dates.

For cancellations between seven and 30 days before check-in, hosts will receive 50% of all nights and for cancellations less than seven days, the full payment.

The firm policy also allows guests to cancel with a full refund within 48 hours of first making the booking but only if the cancellation date is not less than 14 days before check-in, protecting hosts from last-minute cancellations.

Strict policy

This is Airbnb's strictest policy for short-term bookings. It offers guests less flexibility but gives hosts greater protection.

Under the strict policy, guests can secure a full refund if they cancel within 48 hours of booking if it is at least 14 days before the specified check-in time.

If a cancellation occurs past 48 hours of booking, the guest is only entitled to a 50% refund, regardless of how far off the check-in date is.

If a cancellation takes place at least seven days before the booking date, hosts will be paid 50% for all nights. Any cancellations after that will mean hosts received 100%.

Flexible Long-term policy

Airbnb's long-term cancellation policies can only be applied to stays of 28 nights or more.

With the flexible long-term policy in effect, guests need to cancel a full 30 days before their stay to get their money back.

Any cancellations after that will remit 100% for all nights spent plus 30 additional nights to the host. If there is less than 30 days remaining on the reservation, hosts will get full payment for the remaining nights.

Strict Long-term policy

The stricter option for long-term stays, guests can obtain a full refund if they cancel within 48 hours of booking as long as it is 28 days or more to check-in.

Cancellations after this period will see hosts paid 100% for the nights already stayed as well as the next 30 nights. If the reservation has less than 30 days left, you will get paid 100% for the number of the remaining nights.

Non-refundable policy

More of an option rather than a policy, this works in concert with a discount.

When a host offers a non-refundable discount, guests can choose the standard rate which works with the cancellation policy you have chosen. Or they can choose the discounted rate which is non-refundable. In this case, if a guest cancels, the host is remitted the entire payout sans the cleaning fee.

The non-refundable rate is valid only until your cancellation policy kicks in. That is, up to one day before check-in date for Flexible, up to 5 days for Moderate and up to 14 days for Firm and Strict options.

Super Strict 30 days policy

This is only available to certain Airbnb hosts and under special circumstances.

Guests who cancel 30 days or more before check-in will be refunded 50% and charged in full for later cancellations.

Super Strict 60 days policy

This too is an invitation-only policy available to certain hosts.

Guests who cancel 60 days or more before check-in will be refunded 50% and charged in full for later cancellations.

Special Cases: When Different Airbnb Cancellation Policies Apply

In some situations, Airbnb’s standard cancellation policies may be adjusted based on regional rules or specific circumstances. Here are a few key examples:

• Stays in Italy: Airbnb applies different cancellation policies for bookings within Italy, tailored to comply with local regulations.

• Stays in South Korea: For guests from South Korea staying at listings with a Strict cancellation policy, specific rules may apply to offer additional flexibility.

• Germany: Unique guidelines may influence cancellation terms for stays in Germany. Be sure to review the details specific to this region to stay informed.

• California bookings: Guests booking in California benefit from a 24-hour free cancellation window, offering them a brief period to change their plans without penalty.

Does Airbnb Recognize Extenuating Circumstances for Cancellations?

Airbnb recognizes certain unavoidable disruptions under its Major Disruptive Events Policy (formerly the Extenuating Circumstances Policy). This policy applies to both guests and hosts, allowing cancellations without penalties when significant, unforeseen events occur.

In these cases, guests can cancel their reservation for a refund or travel credit and hosts can cancel bookings without fees.

The extenuating circumstances recognized by Airbnb are:

Public health emergencies and epidemics

This is activated when a government declares an epidemic, pandemic or public health emergency and does not include the flu, disease commonly associated with an area such as malaria in Thailand and COVID-19.

Government travel restrictions

When a government agency imposes a mandatory travel restriction. It does not include non-binding travel advisories or other guidance.

Military actions and hostilities

Acts of war, hostilities, invasions, civil war, terrorism, explosions, bombings, rebellions, riots and insurrection are all recognized as extenuating circumstances for cancellations under this category.

Large-scale outages of essential utilities

This applies if a prolonged outage of one or more essential utilities such as water, electricity or heat occurs and impacts the vast majority of homes in an area.

Natural disasters

Unforeseen weather events are recognized but not those that occur periodically like hurricanes during hurricane season in Florida are not.

How does Airbnb’s policy work?

When Airbnb decides that the Major Disruptive Events Policy applies, it activates the policy for all listings in the impacted area.

Hosts can also cancel if the recognized event leaves them unable to host even after the determined timeframe. For example, if an earthquake has left the property unsuitable for residence.

The policy does not cover common events such as:

• Flight cancellations or delays

• Unexpected injury or illness

• Government obligations like jury duty

• Cancellation or rescheduling of the event for which the guest is traveling

• Transportation disruptions like strikes and road closures

Airbnb hosts can cancel without fees or other consequences under this policy but the canceled dates will be blocked. Hosts can also similarly cancel a booking if they have property damage that does not allow them to host the guest as they expect.

Airbnb always aims to minimize host cancellations. But there are always circumstances in which you, as a host, might have no choice but to cancel a booking.

Airbnb Cancellation Penalties

Depending on the timing and number of cancellations you have made recently, Airbnb will charge you a fee if you cancel a booking.

• Airbnb will deduct $50 from your next payout if you cancel a booking over seven days before the guest's check-in.

• You'll have to pay $100 to Airbnb if you cancel less than seven days before check-in.

• Once you have made at least ten consecutive bookings without canceling, you will not be charged a cancellation fee

• The corresponding days in your calendar will remain blocked if you cancel a reservation.

• Airbnb will notify other users that you have canceled a reservation if you cancel before the check-in day. Although you cannot remove this review, you can write a response and explain your side of the story.

Booking reservations must be canceled on time to give guests enough time to adjust their plans, should you be unable to meet them. If you wish to cancel the reservation within 24 hours of the check-in time, you must contact Airbnb directly and will not be able to cancel online.

How to Change Your Airbnb Cancellation Policy

Updating your cancellation policy is simple:

• Log into your Airbnb account.

• Go to Listings and select the property you want to update.

• Navigate to Listing editor > Your space > Cancellation policy.

• Choose your new policy and save your changes.

Remember, changes only apply to new bookings. Existing reservations remain under the original terms.

Airbnb Guest Refund Policy and Cancellations

Airbnb has specific instances where guests may qualify for a refund, all tied to particular issues or problems they might encounter. Here’s a breakdown of situations that could make a guest eligible for a refund:

Accommodations not accessible

If the host cancels within 24 hours of check-in, changes the reservation details without the guest's consent, or fails to provide essential check-in information — like keys or an access code — the guest may be entitled to a refund.

Inaccurate listing information

Refunds may be granted if the listing description is inaccurate or misleading. This could include incorrect information about the property’s size, location, bedroom count or amenities. Issues like broken appliances also fall under this category if they affect the stay.

Health and safety concerns

If the accommodation hasn't been properly cleaned, contains undisclosed pets or presents any health or safety hazards, guests may have grounds for a refund.

Guests must notify Airbnb within 24 hours if they experience any of these issues. They’ll need to provide proof, such as photos, videos or other documentation and show that they tried to resolve the matter directly with the host.

From there, Airbnb will review the case and work toward an appropriate resolution.

Practical Tips for Managing Airbnb Cancellations

Keep an eye on trends

Check out how your booking and cancellation patterns shift over time.

If you're seeing more last-minute cancellations or specific seasons with high demand, it might be time to reconsider which Airbnb cancellation policy best fits your property.

Use discounts wisely

When demand drops, the Non-Refundable option can help fill your calendar.

Offering a small discount with a no-cancellation policy can entice budget-savvy travelers and keep those bookings rolling in.

Plan policy changes carefully

Remember, any change you make to your Airbnb cancellation policy only applies to new bookings, not ones already in place.

So, think ahead and avoid last-minute adjustments unless necessary — this can help avoid any surprises for both you and your guests.

View cancellations as opportunities

A cancellation might open the door for a better booking. Whether it’s a longer stay or a guest who pays a higher rate, rebooking can sometimes be a blessing in disguise.

Use dynamic pricing tools like Hostaway to capitalize on last-minute demand and turn cancellations into unexpected wins.

Finding the Perfect Balance with Airbnb’s Cancellation Policies

Airbnb’s cancellation policies aren’t one-size-fits-all. Each policy offers unique advantages and trade-offs, so the best choice depends on your hosting style, property type and local market.

Whether you prefer the reliability of a Strict policy or the flexibility of a Moderate one, understanding how these policies work ensures you’re prepared for cancellations without disrupting your business.

By choosing wisely, you can strike a balance that keeps both you and your guests happy — rain or shine.

FAQs

1. What factors should I consider when choosing a cancellation policy for my Airbnb listing?

Consider the typical guest booking behavior for your area such as last-minute vs. advanced bookings, local events that could affect cancellations, your level of comfort with financial risk and competitor policies in your area. Also analyze your past booking and cancellation trends.

Flexible policies can attract more bookings but can lead to more cancellations while stricter policies may deter some bookings but provide more revenue security.

If you are confident of being able to rebook last-minute without significantly reducing your rates, then you can take advantage of the positive impacts of flexible policies like higher search rankings to make an informed decision.

2. What should I do if a guest cancels under the flexible cancellation policy and it affects my earnings?

If a cancellation under a flexible policy harms your earnings, consider implementing strategies to mitigate losses, such as offering last-minute discounts to attract new bookings quickly. Adjust your future rates to balance between attractiveness and profitability.

Additionally, you can explore setting up minimum stay requirements during high-demand periods to maximize the likelihood of longer, more stable bookings.

3. Can I offer my own custom cancellation policy outside of Airbnb's standard options?

Airbnb does not allow hosts to have custom cancellation policies. But you can add specific terms to your house rules, like special requirements for long stays or bookings by large groups.

Make sure these custom conditions comply with Airbnb's policies and are communicated clearly in your listing description. You can also mention it in a post-booking message.