Booking places to stay on websites similar to Airbnb has become very common these days. However, there are some inevitable problems in the process, and one of the most important ones is the matter of cancellation. This matter is important both to the guests and the hosts. Guests worry about how and when to cancel their booking in order to get an Airbnb refund. On the other hand, hosts are primarily concerned about cancellations because of the financial problems they might face. To help both sides, Airbnb has set some cancellation policies which all hosts and guests need to know. In this article, we will explain different types of cancellation policies provided by Airbnb so that you can choose one which suits your business. These policies can protect your rights:
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Flexible
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Moderate
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Strict
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Long term
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Super strict 30 days
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Super strict 60 days
Flexible:
In this kind of policy, guests can have a full refund if they cancel at least 24 hours before the time of check-in. If they cancel less than 24 hours before, they need to pay for the first night of the stay. By choosing this policy, you will be more popular among guests, you will get a better rank, and the chances of people booking your place will be higher. But, on the other hand, it is very risky, and you might face some financial issues.
Moderate:
It is a bit stricter than the previous one, but also very popular. By this policy, there is still a chance of getting a full refund for the guests, but they need to cancel at least five days before check-in. If they cancel within five nights, they need to pay for the first night, and if they cancel after checking in, they will take back 50 percent of the money they paid for the remaining nights. Many hosts recommend this cancellation policy because guests will have to pay if they cancel at the last minute, so the chances are lower.
Strict:
In this policy, guests will get a full refund if they cancel at least 14 days before check-in. If they cancel less than seven days before check-in, they will receive no refund at all. By choosing this policy, you will have more days to find a new guest. However, you might get a lower ranking.
Long term:
If the guests are booking your place for 28 days or more, you can use this policy. The guests need to cancel at least 30 days in advance to get a full refund. If they want to check out before their time, they need to pay for 30 days of staying at your place. Because this policy covers longer days, you might face more problems.
Super strict 30 days:
This policy is available for seasonal hosts. Under it, the guests will receive half of their money if they cancel 30 days before check-in. If they decide to cancel after checking in, there will be no refund. By this policy, the chances of cancellation will be meager, but your booking rate might as well get lower.
Super strict 60 days:
This cancellation policy pretty much works the same as the previous one. The only difference is that in order for guests to get their 50 percent refund, they have to cancel at least 60 days in advance. Because this policy is so strict, it is not recommended.
All in all, the more strict you are in setting policies, the lower number of bookings you will get. Choose an approach that is not very strict but not too easy either. Let your guests know that you are serious but flexible.