Your cancellation policy is one of the most consequential settings on your Airbnb listing. Too strict, and you scare off potential guests. Too flexible, and you absorb the cost of last-minute cancellations during your busiest periods.
This guide walks through each policy option, when to use it, and how to handle the inevitable cancellation requests that don’t fit neatly into any policy.
The Five Standard Policy Options
Airbnb offers hosts five cancellation policies, each with different cutoff dates and refund amounts. Here’s what each actually means for you and your guests.
Flexible Policy
Best for: New listings building reviews, low-demand periods, properties with high last-minute booking rates.
| Cancellation Timing | Guest Refund | You Receive |
|---|---|---|
| 24+ hours before check-in | 100% | Nothing |
| Less than 24 hours | Nights stayed + 1 night | Remaining nights |
The reality: This policy maximizes booking inquiries but exposes you to significant revenue loss. A guest can book your peak-season weekend, hold your calendar, then cancel Thursday night—leaving you with an empty property and no time to rebook.
When it works: Markets where last-minute bookings are common and you’re confident you can rebook cancelled dates. Also useful when launching a new listing that needs reviews.
Moderate Policy
Best for: Markets with moderate lead times, hosts wanting balance between flexibility and protection.
| Cancellation Timing | Guest Refund | You Receive |
|---|---|---|
| 5+ days before check-in | 100% | Nothing |
| Less than 5 days | 50% of remaining nights | 50% + nights stayed |
The reality: Five days gives you a fighting chance to rebook, and you capture half the reservation value regardless. This is a reasonable middle ground for most markets.
When it works: Properties in tourist destinations with steady demand, where guests typically book 1-3 weeks out.
Firm Policy
Best for: Established listings with consistent demand, higher-priced properties, seasonal markets.
| Cancellation Timing | Guest Refund | You Receive |
|---|---|---|
| 30+ days before check-in | 100% | Nothing |
| 7-30 days before | 50% | 50% |
| Less than 7 days | 0% | 100% |
| Within 48 hours of booking (if 14+ days out) | 100% | Nothing |
The reality: This gives guests a reasonable window to change plans (30+ days) while protecting you from late cancellations. The 48-hour booking grace period prevents accidental bookings from becoming disputes.
When it works: Properties where guests book well in advance—beach houses for summer, ski condos for winter, event-proximity rentals.
Strict Policy
Best for: High-demand properties, peak seasons, properties with significant prep costs.
| Cancellation Timing | Guest Refund | You Receive |
|---|---|---|
| 14+ days before check-in | 100% | Nothing |
| 7-14 days before | 50% | 50% |
| Less than 7 days | 0% | 100% |
The reality: You’re protected from late cancellations, but some guests filter out strict-policy listings entirely. Your booking volume may decrease, but the bookings you get are more committed.
When it works: Proven listings with strong reviews and steady demand. Properties where cancelled dates are difficult to rebook (rural areas, specific-event locations).
Super Strict Policies (By Invitation)
Airbnb offers 30-day and 60-day super strict policies to select hosts. These provide:
- Full refund only if cancelled 30/60+ days before check-in
- 50% refund for cancellations after the threshold
- No grace periods
How to qualify: These policies are offered to hosts with established track records, typically those managing luxury or unique properties. Contact Airbnb support to inquire.
Long-Term Stay Policies
Reservations of 28+ nights trigger different cancellation rules designed to protect both parties in longer commitments.
| Situation | Rule |
|---|---|
| Guest cancels after check-in | 30 days notice required, or pay 30 additional nights |
| Host cancels after check-in | Must provide 30 days notice |
| Guest wants early checkout | Owes balance through notice period |
These policies recognize that long-term guests may have relocated, signed leases, or made other commitments based on the reservation.
What Happens When You Cancel as a Host
Life happens. You might need to cancel a reservation. Here’s what it costs you:
Financial Penalties
| Notice Given | Penalty |
|---|---|
| 30+ days | 10% of reservation total |
| 48 hours to 30 days | 25% of reservation total |
| Less than 48 hours | 50% of remaining nights |
Non-Financial Consequences
- Automated review: Cancelled reservations appear in your review history
- Calendar blocking: Cancelled dates may be blocked from rebooking
- Superhost impact: Host cancellations count against Superhost status
- Search ranking: Repeated cancellations can lower your listing’s visibility
How to Cancel Without Penalties
In some cases, you can cancel without consequences:
- Extenuating circumstances: Documented emergencies, natural disasters, serious illness
- Guest violations: If the guest violates house rules before check-in
- Reservation modifications: If the guest agrees to cancel on their end
Important: Always contact Airbnb support before cancelling. They may offer solutions that don’t trigger penalties—like helping the guest rebook elsewhere.
Extenuating Circumstances: When All Policies Are Overridden
Airbnb maintains an extenuating circumstances policy that allows penalty-free cancellations regardless of your chosen policy. This includes:
- Government-declared emergencies affecting the destination
- Travel restrictions preventing guest arrival
- Natural disasters rendering the property unsafe or inaccessible
- Serious illness or death of guest, host, or immediate family
- Military deployment with documentation
What’s specifically not covered:
- Weather that doesn’t prevent travel (rain, snow that doesn’t close roads)
- Personal financial changes
- Work schedule conflicts
- “I found somewhere cheaper”
Guests sometimes misuse extenuating circumstances claims. Document everything and contest claims that don’t meet the criteria.
Strategic Policy Decisions
Seasonal Adjustments
You can change your cancellation policy at any time for future bookings (existing reservations keep their original terms).
Consider:
- Peak season: Stricter policy when you know you can’t rebook cancelled dates
- Shoulder season: Moderate policy to encourage bookings
- Off-season: Flexible policy to maximize bookings when demand is low
Market Comparison
Research what competing listings in your area offer. If every comparable property uses Flexible, you may lose bookings with Strict—but if most use Firm, you won’t stand out by matching them.
The Refund Request Dilemma
Regardless of policy, you’ll receive refund requests that fall outside the terms. How you handle these affects reviews and repeat bookings.
Situations where flexibility pays off:
- Guest cancels at 6 days on your 7-day Firm policy—you offer 50%
- A genuine emergency occurs just outside extenuating circumstances definitions
- You successfully rebook the dates and can afford to refund without loss
When to hold firm:
- Guest is clearly gaming the system
- You cannot rebook and need the revenue
- Granting the refund would set a precedent you can’t maintain
The middle path: Offer a refund if and when you rebook. This is fair to both parties—you’re not out the revenue, and the guest gets their money back if someone else books.
Setting Up Your Policy
In Airbnb Settings
- Go to your listing → Policies section
- Select Cancellation policy
- Choose from the available options
- Click Save
Changes apply to new bookings only. You can use the “Show all options” toggle to see policies you may not have previously considered.
Communicating Your Policy
Your policy appears automatically on your listing, but consider:
- House rules reference: “Please note our [X] cancellation policy before booking.”
- Pre-booking message: Mention the policy when answering inquiries
- Booking confirmation: Remind guests of the policy terms
This reduces “I didn’t know” disputes later.
Making the Right Choice
There’s no universally correct policy. Your choice depends on:
- Your market’s booking patterns (last-minute vs. advance planners)
- Your ability to rebook cancelled dates (high-demand area vs. quiet location)
- Your financial flexibility (can you absorb cancelled nights?)
- Your competitive landscape (what do similar listings use?)
Start with Moderate or Firm for most properties. After 6-12 months of data, adjust based on:
- How many cancellations you receive
- How many cancelled dates you successfully rebook
- Whether guests cite your policy as a reason for not booking
Managing cancellations and policies is one of many operational details that add up. Learn how professional management handles these decisions for you.
