Airbnb’s Booking Cancellation Policies Have All Changed! What Should You Do?

Airbnb has changed its policies again! This time, it is targeting booking cancellation policies, specifically the Strict cancellation policy.

If you are a host, read to the end. I will explain why hosts using Strict are advised to switch to Firm immediately.

Let’s first discuss the main changes. Previously, under the Strict cancellation policy, a guest could receive a 100% refund only if two conditions were met simultaneously:

1. Cancel within the 48-hour grace period after booking;

2. Check-in is still more than 14 days away.

For example, if a guest booked today for next year and wanted to cancel three days later, they could not receive a 100% refund! They could recover at most 50%. This cancellation provision was therefore particularly unfavorable to guests.

Why is Airbnb specifically changing the Strict cancellation policy? There are several reasons:

1. AirDNA data shows that Strict is the most commonly selected cancellation policy among hosts, accounting for more than 30%. Strict, Firm and Moderate together are the mainstream policies, covering more than 80% of listings. Directly changing Strict therefore has the largest impact.

2. The second reason is the most important. Hosts who follow our channel know that Airbnb’s direction over the past two years has been consistent: win guests from hotels. Almost all hotels allow cancellation at any time with a full refund.

Airbnb shared a figure: 40% of guests prioritize whether they can cancel at any time before booking.

It also shared that listings using Firm earn 10% more revenue on average than those using Strict. In simple terms, Airbnb believes substantially lowering barriers to cancellation can grow overall revenue and attract more guests from hotels.

What changes under the revised Firm cancellation policy? Let’s look at this chart together.

First, the example we just discussed—booking this year for next year and changing your mind three days later, when previously you could recover only 50% rather than 100%—has changed. Under Firm, guests can receive a 100% refund in two situations. (1) If check-in is more than 30 days away, they can cancel at any time for a full refund. Regardless of how long ago they booked, they can recover 100% of the accommodation charges as long as check-in is more than 30 days away.

(2) If check-in is between 7 and 30 days away, guests have a 24-hour grace period after booking. Canceling during that period yields a 100% refund.

If check-in is between 7 and 30 days away but the 24-hour grace period has passed, no refund is given when only one week remains before check-in. If check-in is still within the 7–30-day range, the refund is 50%.

Hosts, is that a little confusing?

That’s all right. The main point is that Airbnb is changing its strategy to attract more customers from hotels. As a host, what are my thoughts and recommendations?

They are simple and direct: move toward the more flexible Firm cancellation policy early. Do not keep the old Strict cancellation policy.

Why?

First, Airbnb has been moving toward a buyer’s or guest’s market in recent years. If you fail to recognize the trend and insist on fighting it, I believe you face a high risk of being eliminated.

Especially once Firm becomes mainstream, with so many alternatives available, how many guests will choose a listing with a stricter cancellation policy?

We also know that hotel rates are often much higher than the price of an Airbnb home.

One reason is that most hotels allow free cancellation at any time, whereas Airbnb does not. Guests therefore often hesitate to book Airbnb well in advance.

But if this booking habit changes, Airbnb may attract more guests from hotels, and a more flexible cancellation policy could ultimately bring hosts more income.

Hosts, what do you think? Join our WeChat group to share experiences and support one another with others operating short-term rentals!

If you:

Hope to increase rental income through short-term rentals;

Cannot spare a great deal of time to handle the small details;

Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

April is here, cherry blossoms are beginning to bloom, and Seattle’s short-term rental slow season is finally coming to an end!

Short-term rentals in peak season; mid-term rentals in low season.

Looking back at earlier large bookings, this strategy has achieved some results, allowing us to retain confidence even in a cold winter!

Although peak season has arrived, we still cannot let our guard down. Policies and broader conditions are full of changes and challenges. Making steady progress will remain the main theme going forward.

For the detached house in Bellevue below, Redfin shows an estimated long-term monthly rent of approximately $9536.

With the owner’s trust and support, we carefully furnished the home and immediately began short-term rental operations. Fortunately, because the home’s condition and location are both good, short- and mid-term bookings have continued to come in.

As shown in the booking screenshot below, a guest recently booked this house from July 1 to 31, a total of 30 nights, at an average monthly rent of $23536.

In summary, under Snowball Rentals’ management, this home’s monthly rental income rose from $9536 to $23536—described here as an increase of nearly 2.5-fold.

For homeowners, combining short- and mid-term rentals in this way can earn more in peak season and help them get through low season smoothly. Even if the low-season rental figures look less dramatic, they still outperform long-term rentals and give homeowners a strong sense of financial security.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

Here, we again thank the owner for placing trust in the Snowball Rentals team!

After nearly two years of Airbnb’s downturn, we at Snowball Rentals hope to help owners make steady progress in low season, navigate the challenges safely and lay a better foundation for next year’s peak season.

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

Here is what the detached home described above looks like after our careful furnishing:

When choosing a short-term rental on Airbnb, would this home’s appearance attract you?

If you would also like to make your home more attractive and earn more rent, please contact us at any time!

We also share practical vacation-rental styling plans and creative ideas to help you achieve more with less spending and keep rental income growing!

Referral Rewards

If you are already a Snowball Rentals homeowner, you receive a US$500 referral fee for each referral.

If you are not yet a Snowball Rentals homeowner, you receive a US$250 shopping voucher for each referral.

Snowball Rentals Management

1. Full service — We provide pre-launch rental design, furniture procurement, furnishing, professional photography, online marketing, copywriting, tenant service and sales, cleaning, supply purchasing and property repairs. You only need to be a hands-off owner; we handle the rest.

2. Multi-platform promotion — We promote the home on Airbnb, VRBO, HomeAway and other mainstream platforms for maximum exposure.

3. Dynamic pricing — Using big data, we adjust prices every day according to seasonal demand, holidays, last-minute vacancy offers, weekends and local activities, maximizing the owner’s income.

4. Income-improvement SOP — We follow 44 secrets for maximizing short-term rental income, optimizing each property’s online marketing, on-site operations and other aspects to work toward maximum income.

5. Flexible owner stays — Owners can flexibly choose when to stay themselves. This is especially suitable for owners with multiple residences around the world.

6. Terminate at any time — Management does not require an annual commitment. The owner can end the agreement with one month’s advance notice.

7. Corporate housing — In addition to nightly rentals, we work with insurers and assignment companies to provide executives with hotel-style managed accommodation for stays 30 days or more.

8. Transparent fees — For rentals 30 days or more, we charge 15% of accommodation revenue. For nightly rentals 30 days or less, we charge 20% of accommodation revenue.