In the world of online travel bookings, flexibility and convenience are highly valued by both hosts and guests. However, striking the right balance between offering cancellation flexibility and maintaining booking reliability is a challenge. This is where Airbnb’s strict cancellation policy comes into play. In this blog post, we’ll delve into the details of Airbnb’s strict cancellation policy, its implications for hosts and guests, and how to navigate it effectively.
Table of Contents
Understanding Airbnb’s Strict Cancellation Policy
Airbnb offers hosts a range of cancellation policies, each catering to different levels of flexibility and certainty. The strict cancellation policy is one of these options, designed to protect hosts’ income and encourage commitment from guests. Under this policy,
- To receive a full refund, guests must cancel within 48 hours of booking. However, the cancellation must occur at least 14 days before check-in.
- Hosts will be paid 50% for all nights if guests cancel between 7 and 14 days before check-in.
- Hosts will be paid 100% for all nights if guests cancel after that time.
Strict Long Term Cancellation Policy
If you choose this policy as a host, it will apply to all stays of 28 days or longer and overrides your standard cancellation policy for those stays.
- To receive a full refund, guests must cancel within 48 hours of booking. However, the cancellation must occur at least 28 days before check-in
- Hosts will be paid 100% for all nights spent, plus 30 additional nights, if guests cancel after that.
- Hosts will be paid 100% for all of those remaining nights, if fewer than 30 days remain on the reservation when the guest cancels.
Super Strict 30 Days Cancellation Policy
This policy is invitation-only and available only to certain hosts under special circumstances.
- Guests must cancel at least 30 days before check-in to receive a 50% refund for all nights
- Hosts will be paid 100% for all nights, if they cancel after that.
Super Strict 60 Days Cancellation Policy
This policy is invitation-only for certain Hosts under special circumstances.
- Guests must cancel at least 60 days before check-in to receive a 50% refund for all nights
- Hosts will be paid 100% for all nights, if they cancel after that.
Benefits of Airbnb’s Strict Cancellation Policy for Hosts
For hosts, the strict cancellation policy provides a higher level of predictability and protection against last-minute cancellations. This policy ensures that hosts will receive compensation for their time and effort in preparing the property for a stay, even if a guest cancels shortly before the reservation date. This can be especially valuable for hosts who rely on steady rental income to cover their expenses.
Challenges of Airbnb’s Strict Cancellation Policy for Guests
While the strict cancellation policy offers hosts peace of mind, it might present a challenge for guests who face unexpected changes in their travel plans. Guests who encounter unforeseen circumstances within 48 hours of check-in might find themselves unable to receive a refund. Therefore, guests should carefully consider their travel plans before choosing a property with a strict cancellation policy.
Offer a Non-refundable Option
Some hosts earn more money by adding a non-refundable option to their listings. A non-refundable option is a discount you can offer on top of other discounts and cancellation policies that gives you greater protection against cancellations.
This is how it works:
- First, you set your desired discount, which is typically 10% off the base price everywhere except for China.
- Your discounted rate appears in search results.
- At checkout, guests either select your standard rate – subject to your cancellation policy – or the discounted, non-refundable rate
- If they cancel before check-in, you’ll retain your full payout for all reserved nights, except for the cleaning fee
- A booking qualifies if the check-out date falls within a 60-day window.
- The discount is applicable if the reservation is not booked with a pre-approval or special offer.
Navigating the Policy Effectively
It is essential for hosts to openly communicate the cancellation policy to guests before booking. This helps manage guest expectations and provides them with the information required to make an informed decision. Hosts can also offer guests the option to purchase travel insurance to mitigate the risk of unexpected cancellations.
For guests, it’s crucial to thoroughly review a property’s cancellation policy before confirming a reservation. If there’s uncertainty about travel plans, opting for a more flexible cancellation policy might be a safer choice. Guests should also consider travel insurance to safeguard their investment against unforeseen circumstances.
Concluding Remarks
Airbnb’s strict cancellation policy serves as a valuable tool for hosts seeking booking reliability and stability. By understanding the policy’s nuances and implications, both hosts and guests can make informed decisions that align with their preferences and circumstances. As the travel industry continues to evolve, striking a balance between flexibility and certainty remains essential for a seamless booking experience on Airbnb.
Image by pch.vector on Freepik.
