Plans, like all things in life, change. Sometimes with little to no notice. Most people understand. As an Airbnb host, however, extending such grace isn't an option. Guest cancellations represent a major pain point and source of loss to rental properties of all sizes. Just like with pet policies and party policies, it's important to have one for this inevitable occurrence in place. Today, we're going over everything that goes into creating and managing an Airbnb cancellation policy for peace of mind and risk mitigation over your own listing.
Airbnb Cancellation Policies vs. Hotel Cancellation Policies
Part of Airbnb's appeal as an alternative to traditional hotels lies in its flexibility. Where operators like Hilton and Four Seasons generally impose policies that can't be changed, no exceptions. They're characteristically rigid and corporate-driven; non-refundable, tied to specific promotional rates, or paired with ridiculous fees. Airbnb, meanwhile, gives individual hosts the option to decide whether they want to be so evil.
How Airbnb Cancellation Policies Work
Airbnb offers several standardized cancellation policy types that determine how and when guests can cancel and receive a refund. As a host, selecting the right one for your listing directly influences your booking patterns, cash flow, and guest satisfaction.
Flexible
Guests can cancel for a full refund up to 24 hours before check-in. After that point, the first night becomes non-refundable, and the remaining nights are refunded at 50% if the guest cancels mid-stay.
Best for: Hosts in high-demand urban areas or those who rely on frequent, short-stay bookings and want to attract last-minute travelers.
Moderate
Guests receive a full refund if they cancel at least five days before check-in. If they cancel after that window, they’ll be charged for the first night and 50% of any remaining nights.
Best for: Hosts who want a balanced approach with some protection that doesn’t discourage cautious travelers.
Strict
Guests receive a 50% refund if they cancel at least seven days before check-in. Within seven days, the booking becomes non-refundable.
Best for: Hosts operating in seasonal or remote markets where each booking is critical and cancellations are especially costly.
Long-term
For reservations of 28 nights or more, Airbnb’s long-term policy automatically applies. Guests are charged the first month upfront and must give at least 30 days’ notice for any changes or cancellations.
Best for: Hosts offering monthly stays or working with digital nomads.
Super Strict
Airbnb's “Super Strict 30 Days” or “Super Strict 60 Days” policies are for professional hosts or property managers with lots on the line. These require guests to cancel 30 or 60 days in advance for a partial refund.
Best for: High-end or event-driven properties where large deposits and advance commitments are standard.
The Costs of Cancellation
It doesn't matter if you're a major hotelier or independent short-term rental operator - cancellations cost money. Consider all of the reparation and resource allocation necessary before guest arrival.
Professional cleaning, supply purchases, and of course, payment for each night itself, only scratch the surface of inconveniences that come with a single cancellation.
Even when Airbnb’s automatic policies issue partial refunds to guests, the real loss for hosts often lies in opportunity cost. The days reserved for that guest could have been sold to someone else. Not a huge deal when you're talking about a few nights here or there. A major blow with longer stays, though.
Here's an example scenario to put it into perspective:
Let's say you operate a mid-range listing in a popular vacation destination. A guest books a 5-night stay at $150 per night, totaling $750 in expected revenue. Two weeks before arrival, they cancel. Those five nights are now dark on your calendar. In a competitive market, filling those dates again might take days – or they might not fill at all. If you do rebook them, you've likely lost momentum and may need to discount to attract a last-minute guest.
The math goes as follows.
Under Airbnb's Moderate cancellation policy, the guest receives a partial refund (typically 50% of the nightly rate for cancellations made 5-7 days before check-in).
Expected earnings: $750 (5 nights × $150/night)
Airbnb's partial refund to guest: $375 (50% of total)
What you receive: $375
Your direct loss: $375
What a Reasonable Airbnb Cancellation Policy Looks Like
For most hosts, a Moderate cancellation policy strikes a solid balance. It provides guests enough flexibility to adjust plans while protecting your income if they cancel too close to arrival. This policy also helps ensure your listing remains attractive to travelers who appreciate a bit of leeway.
However, if you manage luxury, remote, or highly seasonal properties where every booking counts, a Strict policy may make more sense. On the other hand, if you rely on steady, short-notice bookings to fill your calendar, a Flexible policy can help maintain momentum.
Whatever you choose, always make your cancellation terms clear in your listing and reiterate them in your pre-check-in messages. Transparent communication prevents surprises and builds trust – two of the most reliable ways to earn repeat guests and strong reviews.
New Airbnb Cancellation Policy Options
The already easy-to-control options hosts had for managing Airbnb cancellation policies just got more robust. In October of 2025, Airbnb announced it would expand its capabilities by introducing dynamic settings that allow hosts to customize their cancellation terms based on specific check-in dates, rather than applying a one-size-fits-all approach to their entire calendar.
The move conceivably makes managing unforeseen changes easier amidst fluctuations in seasonal demand and market conditions.
For instance, during peak seasons – such as holidays, summer months, or local events – hosts can maintain stricter cancellation policies to protect their revenue. Conversely, during slower periods or off-peak seasons, hosts can offer more flexible cancellation terms to attract price-sensitive guests and maximize occupancy rates.
A greater level of granular control promises financial protection while putting more power in hosts' hands.
Airbnb's dynamic cancellations feature rolled out to a limited number of accounts beginning in November 2025, with full availability expected to expand to everyone by early 2026. The phased rollout has allowed Airbnb to refine its strategy based on feedback and real-world use.
Forget check-out – check-in itself is a meaningful milestone in every Airbnb stay. But given the fact that not all bookings get there, smart Airbnb cancellation policies are a must. As dynamic options become available to all hosts in early 2026, now is the time to evaluate your current approach.
