How to choose the right cancellation policy?

Choosing a cancellation policy can be a balancing act. You want to avoid cancellations while also attracting guests—and today’s guests want more flexibility as they plan their upcoming travels.

Because every Host is unique, we have created several cancellation policies to help you find one that works for you.

It depends on how a cancellation would impact you and your listing. Below we’ve included a few tips to help you choose the policy that works best for your hosting business.

Consider choosing a flexible policy if:

• It’s the low season, and you want to attract guests interested in flexibility.
• It’s the high season, and you feel confident that your space will get rebooked if a cancellation occurs.
• Your listing is in a competitive location, and you aren’t concerned about late cancellations

Consider choosing a moderate policy if:

• You want to discourage last-minute cancellations.
• You want to have some time to get another booking if a guest cancels.
• You still want to attract guests whose plans require more coordination

Consider choosing a firm policy if:

• You want to avoid cancellations but still keep your listing attractive to guests.
• You like having more time to get another booking if a guest cancels.
• Your space is in demand.

Consider choosing a strict cancellation policy if:

• You want to avoid cancellations and don’t have time to find or manage replacement bookings.
• You host by yourself, and last-minute cancellations are very disruptive to your schedule.
• Your space is in high demand, and a strict policy won’t deter guests hoping to book in the area.