Airbnb offers four categories of cancellation policies for hosts and guests to use. These policies vary from Flexible, Moderate, Firm and Strict. It is important to understand each one in order to make sure that both the guest and host are kept safe in the event of a cancellation. Let’s break down each policy in detail.
4 Property Categories in AirBnb Cancellation Policy
1. Flexible Policy
The Flexible policy allows guests to cancel up to 24 hours before check-in for a full refund and the host will not be paid for this booking.
If a guest decides to cancel after this time window, then the host will still be paid for each night that the guest stayed plus one additional night. This policy is advantageous for both hosts and guests because it gives them some breathing room if their plans suddenly change due to unforeseen events.
2. Moderate Policy
The Moderate policy works similarly to the Flexible policy except the cancellation window is 5 days before check-in instead of 24 hours before check-in.
As with the Flexible policy, if a guest cancels after this window then they will still be responsible to pay the host for each night they stayed plus one additional night as well as 50% of all unspent nights. This slightly more strict cancellation policy incentivizes people who are looking for long term stays by offering them more financial security in case something comes up that prevents them from staying.
3. Firm Policy
The Firm policy is reserved for special circumstances where either the guest or host needs added assurance that their booking will go through without any issues. With this policy, guests can get a full refund if they cancel within 48 hours after booking (if booked at least two weeks ahead) or at least 30 days before check-in.
If a guest decides to cancel between 7 and 30 days before check-in then they will only have to pay 50% of all nights spent while cancelling less than 7 days before check-in means that they are required to pay 100% of all nights spent regardless of whether or not they actually stayed in your property.
4. Strict Policy
The Strict policy is reserved for hosts who want to ensure that they receive payment at all costs. With this policy, guests can get a full refund if they cancel within 48 hours after booking (if booked at least two weeks ahead) or at least 14 days before check-in.
If a guest decides to cancel between 7 and 14 days before check-in then they will only have to pay 50% of all nights spent while cancelling less than 7 days before check-in means that they are required to pay 100% of all nights spent regardless of whether or not they actually stayed in your property.
If they cancel anytime after that, the host gets 100% for all nights. This policy is very strict and should only be used if you are certain that the guest will be able to stay for the duration of their reservation.
Which Category is My Airbnb Property?
It is important to understand the different types of cancellation policies available so that you can choose the most appropriate one for your property. If you are looking for added assurance, then a Firm or Strict policy might be the best option for you.
However, if your goal is to attract long term guests and encourage repeat business, then a Flexible or Moderate policy might be more suitable. Ultimately, it is up to you to decide which policy best fits your needs and the needs of your guests.
By understanding the various categories of cancellation policies available, hosts can better serve both their business needs as well as their guest’s needs in the event that they need to cancel a reservation. This can help to ensure that everyone is satisfied with the outcome and allows both parties to make informed decisions about their accommodation reservations.