The Ultimate Guide to Airbnb Cancellation Policy for Vacation Rental Hosts

Your Airbnb cancellation policy isn’t just admin, it’s strategy. The right policy can protect your revenue, shape your guest experience and even boost your listing’s visibility.

Now, with Airbnb phasing out the strict cancellation policy from October 1st, hosts are facing a shift that’s more than procedural. It’s a signal, a product and growth strategy that puts flexibility first and pushes hosts to rethink how they manage risk.

This guide is here to help. Whether you’re a first-time host or a property manager with multiple listings, we’ll walk you through the options, the recent changes and how to make your policy work for you, not against you.

From cancellation fees and refund rules to smart booking strategies and avoiding the need to cancel in the first place, we’ll cover what matters and what’s next.

Why Airbnb Cancellation Policies Matter for Hosts

A good cancellation policy doesn’t just manage risk. It influences how your listing performs, how guests perceive your reliability and whether your calendar fills with the right bookings at the right price.

The policy you choose impacts your business in three major ways:

1. Revenue protection

A poorly matched policy can lead to unpaid gaps, lost nights or refunds you didn’t budget for. Flexible terms may increase booking volume, but they can also lead to higher guest churn. Finding the right balance helps you avoid revenue dips without making guests feel boxed in.

2. Search visibility

Airbnb’s algorithm often favors guest-friendly listings with free cancellation, especially during early booking stages. That means your cancellation policy can directly affect how often your listing appears in search results. More visibility often leads to more confirmed reservations, which supports stronger financial performance.

However, more visibility doesn’t always equal better results. A highly flexible policy may attract guests who book impulsively or cancel last minute, leaving you with calendar gaps you can’t recover. The key is balancing visibility with the kind of guest behavior your business can realistically absorb.

3. Guest experience

Clear, fair cancellation terms help set expectations. When guests understand the refund rules before they book, it builds trust and minimizes misunderstandings if they need to cancel. This also supports a smoother guest journey and can reduce negative reviews.

If you're managing multiple properties or optimizing for strong direct booking channels, your policy you choose is a key part of a broader, thoughtful revenue strategy. It should align with your seasonality, audience and availability, not just platform defaults.

Understanding Airbnb’s Cancellation Policies (2025 Update)

Airbnb currently offers several standard policies that hosts can apply to short and mid-term stays. Each policy sets the rules for how and when a guest can cancel a reservation and what kind of refund they’ll receive.

Here’s a breakdown of the active options in 2025:

Flexible policy

Under the flexible policy, guests can cancel up to 24 hours before check-in to receive a full refund. If they cancel within 24 hours, the first night is non-refundable. However, Airbnb will always refund the cleaning fee if the guest did not check in. This policy is ideal for hosts in high-demand markets or those who frequently fill last-minute openings.

Moderate policy

The moderate policy allows guests to cancel up to five days before the stay and still receive a full refund. If a guest cancels fewer than five days before, they are charged for the first night and 50% of the remaining nights. As with all Airbnb policies, the cleaning fee is refunded if the guest never used the property. This option works well for hosts who want a balance between flexibility and security.

Firm policy

With the firm cancellation policy, guests must cancel at least 30 days before the date to receive a full refund. If they cancel between 7 and 30 days before arrival, they’ll receive a 50% partial refund, while cancellations made within 7 days of the stay are not eligible for any refund. This policy suits seasonal listings or hosts who rely on advance bookings to manage availability and pricing.

Super Strict 30 and Super Strict 60 Policies (Invitation Only)

These policies are no longer available to most hosts, but some professional property managers or long-time hosts may still have access through Airbnb's legacy programs or partnerships.

• Super Strict 30: 50% refund for cancellations made at least 30 days before check-in. No refund if cancelled less than 30 days in advance.

• Super Strict 60: 50% refund for cancellations made at least 60 days before check-in. No refund if cancelled less than 60 days in advance.

These policies are designed for luxury or high-commitment properties and come with a tradeoff limited visibility and lower booking volume due to their rigidity.

The end of the strict cancellation policy

As of October 1, Airbnb is retiring its strict policy. This policy previously let hosts keep 50% of the reservation total if a guest cancelled at least 14 days in advance and 100% if within 7 days. The move reflects a broader industry shift toward more guest-friendly booking experiences. Hosts currently using strict cancellation will need to choose a new policy before the change takes effect. If no action is taken, Airbnb may automatically reassign the listing to the firm policy.

What to Know About Airbnb’s Long-Term Cancellation Policies

For Airbnb reservations of 28 nights or more, a dedicated long-term cancellation policy applies. This policy is designed to protect hosts from the financial risks of last-minute cancellations or early departures, especially since long stays are harder to rebook on short notice.

What many hosts don’t realize is that Airbnb actually offers two versions of this policy: the Standard Long-Term and the Firm Long-Term option. Here's how they differ:

Standard long-term policy (Default)

This is the most commonly applied policy for extended stays.

Before check-in:

• If a guest cancels 30 or more days before the booking date, they receive a full refund, including the first month’s payment (which Airbnb collects at the time of booking).

• If they cancel fewer than 30 days before check-in, the first month’s rent becomes non-refundable. They are not charged for the remaining months.

After check-in:

• Guests must give 30 days’ notice to shorten or end their stay early.

• If they leave without notice, they are still responsible for paying for the next 30 nights.

Firm long-term cancellation policy

Some hosts have access to a firm version of the long-term policy. This adds an extra layer of protection for hosts who want firmer terms upfront.

Before check-in:

• Full refund if the guest cancels 30 or more days before check-in.

• 50% refund if the guest cancels between 7 and 30 days before check-in.

• No refund if the guest cancels within 7 days of check-in.

After check-in:

• Just like the standard policy, guests must give 30 days’ notice to shorten their stay. Otherwise, they’re charged for the next 30 nights.

Note: Not all hosts will see the Firm long-term cancellation policy in their settings. Availability may depend on your region, listing type or whether you're connected to a property management system (PMS).

Both policies help protect Airbnb hosts from the financial impact of cancellations on long bookings. But they also come with stricter rules for guests, which means clear communication is critical. Ensure that your listing description, house rules and pre-booking messages clearly explain the cancellation terms in simple language.

How to Update or Change Your Cancellation Policy on Airbnb

Now that you know more about how Airbnb’s cancellation policies work and how they affect your revenue, visibility and guest experience you might be ready to adjust your settings.

Step-by-step guide to changing your Airbnb cancellation policy

1. Log in to your Airbnb account and go to your Host Dashboard.

2. Click on “Listings” in the top menu and choose the listing you want to update.

3. Scroll down to the “Policies” section and find “Cancellation Policy.”

4. Click Edit, then choose from the available policy options:

   • Flexible

   • Moderate

   • Firm

   • (If applicable) Super Strict 30/60 or Firm Long-Term

5. Click Save to confirm your changes.

Note: Some cancellation policy types, like Super Strict 30 or Firm Long-Term, may only be available to select hosts, depending on region, listing category or if you're using a property management system (PMS).

Tips before you make a change

• Check existing reservations. Policy changes only apply to new bookings. Existing confirmed reservations will still follow the policy in place at the time of booking.

• Consider guest experience. Sudden changes to a limited cancellation policy might impact booking volume or guest trust.

Changing your policy can be a small move with a big impact. When used strategically, it helps improve your financial performance, reduce disputes and support a smoother guest journey, especially when paired with strong communication and reliable automation tools.

When Can Airbnb Guests Request a Refund?

While your cancellation policy sets the general rules, guests may still be eligible for a refund under certain conditions, especially when Airbnb’s broader Guest Refund Policy comes into play. Understanding when and why guests can request a refund helps you stay prepared and avoid unpleasant surprises.

Here are the most common refund scenarios:

1. Cancellation within the policy window

If a guest cancels within the allowed timeframe based on your policy (for example, five days before check-in under the moderate policy), Airbnb will issue a refund automatically.

2. Problems with the Listing

Guests may be eligible for a refund if your listing:

• Is significantly different from the description

• Is unsafe or unsanitary

• Doesn’t allow check-in (e.g., lockbox doesn’t work, wrong address, etc.)

In these cases, Airbnb can override your selected your policy and issue a refund directly to the guest. These decisions are often made quickly, so accurate listing details and strong communication are key.

3. Major Disruptive Events

Airbnb’s Major Disruptive Events Policy allows guests to cancel and request a refund if they are affected by events beyond their control. This includes natural disasters such as earthquakes or floods, government-imposed travel restrictions, public health emergencies and sometimes military action or civil unrest.

These events must be officially verified and must directly impact the guest’s ability to complete their reservation. Airbnb may step in to process a refund even if the host's policy would normally prevent it.

4. During the Stay

If a guest reports a serious issue after check-in, Airbnb may issue a refund for the remaining nights, depending on the severity of the issue. This could apply to unresolved maintenance problems, safety concerns or violations of Airbnb’s guest-first experiences standard. In these cases, documentation and prompt host response are critical.

What hosts should know

• Refund decisions often come down to communication and documentation. Respond quickly, provide proof where needed and keep your listing information up to date.

• Guests may also be refunded cleaning fees, service fees or other charges depending on the situation.

• Airbnb always reserves the right to override your cancellation policy in exceptional cases, particularly when the guest experience is at risk.

Being proactive, transparent and solution-oriented helps you avoid refund disputes and maintain control over your hosting experience

Understanding Host Cancellation Penalties

Airbnb’s cancellation penalties aren’t just there to protect guests, they’re designed to maintain trust across the platform. When Airbnb hosts cancel confirmed reservations, especially without a valid reason, it can disrupt travel plans and damage Airbnb’s guest experience. That’s why hosts are subject to a range of penalties depending on the circumstances.

Here’s what you need to know.

What happens when you cancel an Airbnb reservation

If you cancel a booking as a host, Airbnb may apply one or more of the following:

• Financial penalties: A cancellation fee is deducted from your next payout. This is typically between $50 and $100, depending on how close to check-in the cancellation occurs.

• Calendar block: Airbnb will block the canceled dates from being rebooked, which can limit your income.

• Superhost status: If you cancel too many bookings, you may lose your Superhost eligibility.

• Reduced visibility: Airbnb’s algorithm may lower your listing in search results if you cancel frequently.

These penalties apply even if the booking was inconvenient unless the cancellation meets Airbnb’s criteria for a penalty-free exception.

When can hosts cancel without a penalty

While canceling a confirmed reservation is never ideal, Airbnb understands that some situations are out of a host’s control. In certain cases, you can cancel without facing financial penalties, calendar blocks or losing your Superhost status, as long as the reason meets Airbnb’s official criteria and you provide proper documentation.

Here are the most common situations where hosts may cancel without penalty:

1. Health or family emergencies

If you or someone in your household experiences a medical emergency that affects your ability to host, Airbnb may waive any cancellation penalties. You will need to provide documentation, such as a doctor’s note or hospital record and notify Airbnb as soon as possible.

2. Serious property damage or maintenance issues

If your listing becomes uninhabitable due to things like fire, flooding or a major plumbing failure, you are allowed to cancel. Airbnb typically requires supporting evidence, such as photos or repair estimates, to confirm the issue.

3. Safety or security concerns about a guest

If a guest appears unverified, behaves in a suspicious way or gives you reason to believe they intend to host a party or violate your house rules, you can cancel without penalty. In this case, you must provide documentation to Airbnb, such as screenshots of messages or anything that demonstrates your concern.

It’s important to know that you can’t cancel simply because a guest seems “off,” forgot to include full details or gave you a bad feeling without evidence.

4. Instant Book cancellations

If a reservation was made using Instant Book, Airbnb gives hosts some flexibility. You are allowed to cancel up to three Instant Book reservations per year without penalty provided you have a valid reason. These include:

• A guest with no profile photo or completed profile

• Suspicious communication or unclear booking intent

• Negative reviews from other hosts

• Concerns about potential parties or rule-breaking behavior

After three cancellations, Airbnb may disable Instant Book for your listings or apply penalties. If you cancel more than what Airbnb considers reasonable, it may also impact your visibility in search.

5. Major Disruptive Events

If a natural disaster, government travel restriction or public emergency makes it unsafe or impossible to host, Airbnb may waive cancellation penalties.

How to reduce the risk of needing to cancel

The best way to avoid the stress, penalties and potential guest issues that come with cancellations is to prevent them in the first place. While no hosting experience is completely risk-free, there are clear steps you can take to reduce the likelihood that you’ll need to cancel a reservation.

Here’s how to stay ahead of problems and protect your calendar.

1. Keep your calendar up to date

One of the most common reasons hosts cancel is because the calendar wasn't properly updated. Make it a habit to regularly review your availability, especially if you're also listing on other platforms. If you use a property management system like Hostaway, you can sync calendars and automate availability across platforms to avoid double bookings.

2. Use clear and accurate listing details

Unexpected cancellations often start with a mismatch in expectations. Make sure your listing description, amenities and house rules are completely up to date. Include specific details about things like parking, stairs, Wi-Fi speed, pet policies and quiet hours. The more transparent you are, the more likely you are to attract the right guests and avoid misunderstandings.

3. Set smart boking requirements

Adjust your booking settings to filter out guests who don’t meet your standards. You can:

• Require profile verification and government ID

• Block last-minute bookings if you’re not ready to accommodate them

• Use the “trip purpose” question to learn more before accepting

With Hostaway, you can add automate guest screening early and clarify expectations before a reservation is confirmed.

4. Trust your gut, but back it up

If something about a booking feels off, look for specific evidence. Are the guest’s messages vague or inconsistent? Do they avoid answering questions or have poor reviews? If so, it’s better to flag the issue early or contact Airbnb Support before it becomes a bigger problem.

5. Have a backup plan for emergencies

Things happen, plumbing fails, cleaners cancel, weather takes a turn. Keep a short list of trusted local contacts (cleaners, handymen, keyholders) who can step in last-minute if something goes wrong. Even just having a plan for emergencies can help you avoid needing to cancel.

Practical tips for managing Airbnb cancellations

Whether a cancellation is initiated by the guest or required on your end, how you manage it can shape everything from your reviews to your visibility in search. Even when a cancellation is unavoidable, you can still turn it into a positive guest experience or at the very least, a neutral one.

Here are some tips to help you stay calm, clear and in control when a cancellation comes up.

1. Respond quickly and professionally

Guests often feel stressed when plans change. A fast, courteous response helps reduce tension and shows that you’re committed to helping. Use friendly, human language and avoid anything that sounds defensive or impersonal.

“Thanks for reaching out. I understand your situation and I’ll do what I can to help clarify the next steps.”

This kind of tone keeps guests cooperative, even if a refund isn’t guaranteed.

2. Clarify the refund terms early

Refer back to your cancellation policy as soon as the issue comes up. This helps manage expectations and keeps the conversation aligned with Airbnb’s official terms. If a partial refund is possible, let the guest know clearly. If the booking is non-refundable but you’re still offering a goodwill gesture, communicate that directly.

Being transparent early helps prevent misunderstandings later.

3. Use messaging templates

If you receive frequent cancellation or refund requests, save time by using message templates. This helps you keep a consistent tone and makes it easier to respond quickly. Airbnb allows you to create these in-platform. If you're using a property management system like Hostaway, you can automate these replies based on reservation status.

4. Always document the conversation

Keep all communication on the Airbnb platform. If a dispute arises, Airbnb Support will review your message history as part of their decision. Documenting everything ensures you’re protected.

5. Offer alternatives if possible

If you have another unit or know a nearby host with availability, offering an alternative shows that you care about the guest's experience. Even if they don't take the offer, the gesture matters and may positively affect how they review the situation.

What to avoid

• Don’t create a false reason to cancel. Airbnb can detect this and may apply penalties.

• Don’t encourage the guest to cancel so that you avoid penalties. This violates Airbnb’s policy and can lead to account restrictions.

• Don’t respond emotionally. Even if a request seems unfair, stay calm, stick to the facts and communicate professionally.

What Airbnb’s 2025 Policy Updates Mean for the Future

Airbnb’s decision to retire the Strict policy marks a shift toward a more guest-friendly platform experience. It reflects broader trends across the travel industry, where flexibility, consistency and trust are becoming the standard. For hosts, this means adapting to a system where more lenient cancellation terms are no longer optional, they’re expected.

This is a good time to review your cancellation policy, strengthen your direct booking channels and use tools like Hostaway to automate availability, messaging and pricing. The hosts who succeed in this new landscape will be the ones who offer clarity, communicate well and build systems that support flexibility without sacrificing control.

Making Airbnb’s Cancellation Policy Work for You

Understanding Airbnb’s cancellation policies isn’t just about avoiding penalties, it’s about taking control of how you run your business. From platform-wide changes to refund scenarios and guest behavior, the hosts who succeed are the ones who know how to set clear boundaries, communicate well and use the right tools.

Whether you're managing one listing or a growing portfolio, your policy can be a quiet driver of revenue, trust and long-term success. With the right strategy and systems in place, you're not just protecting your calendar you’re strengthening your entire hosting experience.

Airbnb Cancellation Policy – Frequently Asked Questions (FAQs)

1. What are the main Airbnb cancellation policy options for hosts in 2025?

Airbnb offers several cancellation policies:

• Flexible:

  Full refund if canceled at least 24 hours before check-in.

• Moderate:

  Full refund if canceled at least 5 days before check-in.

• Firm:

  Full refund if canceled at least 30 days before check-in; partial refunds for cancellations 7–30 days before.

• Super Strict 30/60:

  (Invitation only) Partial refunds for cancellations 30 or 60 days before check-in. Note: The Strict policy is being retired as of October 1, 2025, so hosts must choose a new policy if they currently use it.

2. How do Airbnb’s long-term cancellation policies work?

For stays of 28 nights or more, Airbnb applies a long-term policy:

• Standard Long-Term:

  Full refund if canceled 30+ days before check-in; first month’s rent is non-refundable if canceled less than 30 days before.

• Firm Long-Term:

  (May not be available to all hosts) Full refund 30+ days before, 50% refund 7–30 days before, no refund within 7 days of check-in. After check-in, guests must give 30 days’ notice to shorten their stay, or they are charged for the next 30 nights.

3. What happens if Airbnb overrides my cancellation policy?

Airbnb may override your policy and issue a refund to guests if there are serious issues with the listing (e.g., safety, major inaccuracies), or if a Major Disruptive Event (like a natural disaster) occurs. In these cases, Airbnb may also waive host penalties, but you may not be compensated for lost income unless you have your own protection in place.

4. What penalties do hosts face for canceling a reservation?

If you cancel a confirmed reservation, Airbnb may apply financial penalties ($50–$100), block your calendar for the canceled dates, reduce your listing’s visibility, and affect your Superhost status. Some exceptions apply for emergencies, property damage, or safety concerns, provided you supply documentation.

5. How can I reduce the risk of cancellations and disputes?

Keep your calendar up to date, use clear and accurate listing details, set smart booking requirements, document all communication on Airbnb, and have a backup plan for emergencies. Using messaging templates and automation tools can also help you respond quickly and maintain a professional tone.

6. How does Hostaway support Airbnb hosts with cancellation policies?

Hostaway helps you manage and automate your Airbnb cancellation policies by syncing calendars across platforms, automating guest communication, and providing tools to track and update your policy settings. This reduces the risk of double bookings, missed updates, and helps you stay compliant with Airbnb’s latest policy changes—all from a single dashboard