Here’s a practical guide to handling Airbnb cancellations—both when you need to cancel as a host and when guests cancel on you:

1. Understand Airbnb’s Cancellation Policies

Airbnb offers several preset policies (Flexible, Moderate, Firm, Strict, etc.).

• Guests canceling: Refunds depend on which policy you’ve chosen, so review it in your listing settings and make sure it matches your comfort level.

• Hosts canceling: Airbnb discourages host cancellations and may impose penalties unless it qualifies as an extenuating circumstance.

2. When a Guest Cancels

a. Check the reservation details
Confirm dates, the policy in effect, and whether the cancellation is within the free-cancellation window.

b. Communicate promptly
Send a short, courteous note:

“Thanks for letting me know. I hope everything is okay. Airbnb will process any applicable refund based on the cancellation policy.”

c. Reopen your calendar
As soon as the booking is canceled, your dates become available again.

• Adjust pricing dynamically to attract last-minute guests (e.g., use Airbnb’s “Smart Pricing” or a slight discount to fill the gap).

3. If You Must Cancel

Try to avoid it—penalties can include:

• A fee (often $50–$100 or more depending on timing)

• A public “host canceled” note on your listing

• Impact on Superhost status

If it’s unavoidable:

• Contact Airbnb Support immediately through the Resolution Center or phone.

• Provide documentation if it qualifies under extenuating circumstances (e.g., serious property damage, natural disaster).

4. Minimizing Future Cancellations

• Clear, accurate listing to reduce mismatched expectations.

• Prompt communication with guests after booking so issues surface early.

• Maintenance buffer: Avoid back-to-back bookings if you need time for repairs or deep cleaning.

• Strict or Firm policy if last-minute guest cancellations are frequent.

5. Financial & Reputation Tips

• Keep a small emergency fund to cushion lost income.

• Encourage guests to reschedule instead of canceling entirely if possible (they can modify the reservation).

• Stay professional in messages—future guests read reviews and see how you handle hiccups.

Bottom line:
Know your chosen policy inside out, respond quickly and courteously, and keep your calendar flexible enough to rebook. That combination helps protect your revenue and your reputation when cancellations happen.