Airbnb Cancellation Policy: Host's Guide to the Best Option
Choosing the right Airbnb cancellation policy is one of the most important decisions a host or property manager can make. It affects how appealing your listing looks to potential guests, how secure your income is, and even how your occupancy rate performs over time.
Starting October 1, 2025, Airbnb is introducing an update to its cancellation policies, adding more flexibility and clarity for both guests and hosts. With these changes, many new and experienced hosts are asking: Which policy is really best for me?
In this guide, we’ll walk you through all Airbnb cancellation policies for both short-term and long-term (monthly) rentals, compare the pros and cons, and share exclusive Airbtics data to help you make smarter choices based on real numbers – not just guesswork.
Key Takeaways:
- Airbnb allows hosts to choose from a few different cancellation policies, ranging from more Flexible to more Strict.
- Your Airbnb cancellation policy has a direct impact on the performance of your short-term rental.
- Airbtics data highlights that Airbnb listings with Strict cancellation policies are consistently able to generate higher average daily rate (ADR), occupancy, and revenue.
What Is the Airbnb Cancellation Policy?
Airbnb cancellation policy refers to the rules that determine how much of a guest’s payment is refunded when they cancel a booking, and how much protection a host gets in case of last-minute changes to reservations. Each policy type sets different rules for refund windows, notice periods, and host earnings.
Airbnb offers a range of cancellation policies, from very lenient (Flexible) to very restrictive (Super Strict 60 Days). Some are available to all hosts, while others are only accessible to selected hosts or specific listings.
Choosing the right one depends on your market, your listing type, and your business strategy.
The table below summarizes the cancellation policies provided by the Airbnb platform and the main things to consider for each one.
Summary of Airbnb Cancellation Policies (As of October 1, 2025)
| Policy | Terms | Available To | Best For |
|---|---|---|---|
| Flexible | Guests can cancel up to 24 hours before check-in for full refund (including taxes). If they cancel later, the host is paid for nights stayed + one extra night; unused nights refunded. | All hosts | High competition markets Hosts wanting maximum booking volume |
| Moderate | Guests can cancel until 5 days before check-in for full refund. If they cancel later (but >24h before check-in), the host is paid for nights stayed + one extra night + 50% of unused nights. | All hosts | Balanced protection + flexibility Moderate-demand listings |
| Limited | Guests can cancel until 14 days before check-in for full refund. Cancel 7–14 days → 50% refund Less than 7 days → the host keeps full payment (except pro-rated taxes). | All hosts | Middle ground between Moderate and Firm Hosts in competitive markets |
| Firm | Guests can cancel until 30 days before check-in for full refund. Cancel 7–30 days → 50% refund Less than 7 days → the host keeps full payment. | All hosts | Hosts with advance bookings Higher-value properties |
| Strict | Guests canceling 7+ days before check-in → 50% refund Less than 7 days → no refund | Not available for new listings after October 1, 2025 Legacy/opt-in hosts | Hosts in niche or luxury markets High advance booking properties |
| Super Strict 30 Days | Cancel 30+ days before → 50% refund Within 30 days → no refund (except pro-rated taxes) | Invitation-only | Premium listings Seasonal rentals Event-driven markets |
| Super Strict 60 Days | Cancel 60+ days before → 50% refund Cancel within 60 days → no refund (except pro-rated taxes) | Invitation-only | Luxury or rare listings booked far in advance |
Airbnb Cancellation Policies for Short Stays: Overview & Comparison
Short stays (fewer than 28 days) make up the majority of Airbnb bookings, and they face different policies from long-term stays. Here’s how each cancellation policies will work for short-term Airbnb rentals after October 1, 2025:Flexible Cancellation Policy
Guests get a full refund if they cancel up to 24 hours before check-in, and the host doesn’t get anything. After that, the host is paid for the nights stayed and one extra night, while the rest of the booking amount is refunded to the guests. Pros- Attracts hesitant or first-time Airbnb guests
- Makes your listing more competitive in high-supply markets
- Encourages more last-minute bookings
- High risk of last-minute cancellations
- Lower income stability
- Guests may “double-book” multiple listings and cancel later
Moderate Cancellation Policy
Guests can cancel a reservation up to 5 days before check-in for a full refund. If the cancellation happens after the 5-day window, the host is paid for the nights stayed, one extra night, and 50% of the remaining nights. Pros- Balanced protection for hosts and flexibility for guests
- Reduces cancellations compared to Flexible
- Works well in mid-demand markets
- Still leaves some income uncertainty
- Guests may hesitate if they want maximum flexibility
Limited Cancellation Policy
Airbnb is introducing the Limited cancellation policy for the first time as of October 2025. Guests can cancel up to 14 days before check-in for a full refund. If they cancel between 7 and 14 days before check-in, they get 50% back. In case of a cancellation less than 7 days before arrival, the host keeps the full payout. Pros- More host protection than Moderate
- Still gives guests some flexibility up to two weeks before arrival
- Reduced last-minute cancellations
- Less guest-friendly than Flexible and Moderate
- Lower booking appeal in highly competitive markets
Firm Cancellation Policy
Guests can cancel up to 30 days before check-in for a full refund. If they cancel 7–30 days before arrival, they get 50% back. In case they cancel within 7 days, the host keeps the full amount. Pros- Stronger income security for hosts
- Best suited for longer or higher-priced stays
- Reduces risk of sudden cancellations
- Less attractive to guests booking on short notice
- May reduce conversion rates in competitive urban markets
Airbnb Cancellation Policies for Short Stays Available to Some Hosts: Overview & Comparison
In addition to the Airbnb cancellation policy options available to all hosts listed above, the platform offers some additional cancellation types to select hosts. They are typically invitation-only, reserved for luxury, unique, or high-value listings. Here are the options accessible for some hosts and the rules that apply to them:Strict Cancellation Policy
As of October 1, 2025, the Strict Airbnb cancellation policy is a legacy policy, with opt-in only. Guests get a 50% refund if they cancel at least 7 days before check-in. In case of a cancellation less than 7 days, there is no refund. Pros- Hosts retain earnings for last-minute cancellations
- Strong protection for high-demand markets
- Works well during peak travel seasons
- May discourage some guests from booking
- No longer available for new listings after Oct 1, 2025
Super Strict 30 Days Cancellation Policy
Guests get a 50% refund and full taxes if they cancel 30+ days before check-in and after the 24-hour cancellation period. The host gets 50% of the booking amount. Otherwise, guests get a refund of pro-rated taxes, and the host gets 100% of the daily rates for all nights. Pros- Excellent revenue security
- Ideal for seasonal or event-driven markets
- Strong deterrent against casual bookings
- Very limited flexibility for guests, potentially driving your Airbnb occupancy rate down
- Invitation-only policy
Super Strict 60 Days Cancellation Policy
The Super Strict 60 Days Airbnb cancellation policy is the most restrictive type for guests. In case of a cancellation at least 60 days before arrival, they get a 50% refund of the booking amount plus full taxes, while the remaining 50% go to the host. If they cancel less than 60 days prior to check-in, guests only get back pro-rated taxes, and the host receives the full payout. Pros- Maximum income protection
- Perfect for luxury, long-term, or once-a-year rentals
- Helps hosts plan far in advance
- Very guest-unfriendly
- Harder to attract first-time Airbnb users
- Invitation-only
Airbnb Cancellation Policies for Monthly Rentals: Overview & Comparison
When hosting stays of 28 nights or longer, Airbnb applies slightly different cancellation structures. If you plan to run an Airbnb monthly rental business, you need to be aware of these. Here are the policies that apply for long-term rentals via the platform:Firm Cancellation Policy
Guests must cancel at least 30 days before check-in to receive a full refund. In this case, the host doesn’t receive any payment. For cancellations after this cut-off point, guests get back a full refund on taxes, while the host is paid 100% for nights spent plus 30 additional nights, unless there are fewer than 30 nights remaining on the reservation. Pros- Protects hosts from last-minute cancellations on high-value bookings
- Provides stability for long-term income
- Guests may hesitate if they’re worried about long-term commitment
- May reduce demand compared to more flexible terms
Strict Cancellation Policy
If guests cancel at least 28 days before check-in and within 48 hours of booking, they receive a full refund including taxes. For later reservations, guests get a full refund on taxes, while the host is paid 100% of revenue for the nights already spent plus the next 30 days unless there are fewer than 30 remaining nights. Pros- Gives hosts strong revenue protection
- Filters out less committed guests
- Limited appeal for digital nomads or relocations needing flexibility
- Higher cancellation penalties for guests
Why the Airbnb Host Cancellation Policy Is Important
The cancellation policy that you set matters for the performance of your vacation rental and your success as a host. The most important reasons why you should be careful when selecting the best option for your Airbnb listing include:- Income Security: Policies define how much money you keep if a booking cancels.
- Guest Attraction: Flexible policies attract more bookings but may reduce host protection.
- Market Positioning: Strict policies may work well in high-demand markets, but they are likely to hurt your bookings in oversupplied areas.
- Occupancy Management: Cancellation terms affect how often your booking calendar is left empty, which has a direct negative effect on your rental income.
- Reputation & Reviews: Guests may leave lower ratings if they feel cancellation terms are unfair, which may result in a lower average rating for your listing. This, in turn, has a negative impact on your ability to bring guests in the future.
Optimal Airbnb Cancellation Policy: What Airbtics Data Says About It
There are numerous arguments in favor of both more strict and more lenient cancellation policies. To help you understand how the cancellation policy affects Airbnb performance in reality, we looked at Airbtics data for the United States Airbnb market. Airbtics Airbnb data that covers nearly 300,000 active listings in the United States reveals some important trends that can guide your choice of the optimal cancellation policy for your short-term rental. Following are the key conclusions about the impact of Airbnb cancellation policy on performance:- Supply: More than half (52%) of Airbnb listings in the US market have a Strict Airbnb cancellation policy, while only 13% have Flexible and 20% Moderate.
- Average Daily Rate (ADR): Strict cancellation policy listings have the highest ADR at $251, compared to $181 for listings with Flexible and $201 for those with Moderate.
- Airbnb Occupancy Rate: Airbnb listings with Strict (62%) and Flexible (60%) cancellation policies have similar average occupancy rates, which indicates that guests do not necessarily avoid stricter terms as long as the property offers top amenities and is priced competitively.
- Annual Revenue: Airbnb rental properties with Strict policies earn the highest average annual revenue of $58,924 as a result of strong ADR and occupancy. For comparison, Flexible Airbnb cancellation policy listings make $40,193 on average, and Moderate – $44,335.
Impact of Airbnb Cancellation Policies on Performance, United States
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 36,402 | 13% | $181 | 60% | $40,193 |
| Moderate | 57,803 | 20% | $201 | 60% | $44,335 |
| Strict | 150,866 | 52% | $251 | 62% | $58,924 |
| Unknown | 46,242 | 16% | $231 | 61% | $51,807 |
Impact of Airbnb Cancellation Policies on Performance, Austin, TX
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 226 | 11% | $179 | 60% | $39,279 |
| Moderate | 419 | 20% | $203 | 59% | $43,978 |
| Strict | 1,043 | 50% | $200 | 64% | $47,654 |
| Unknown | 393 | 19% | $189 | 63% | $42,895 |
Impact of Airbnb Cancellation Policies on Performance, Chicago, IL
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 197 | 12% | $190 | 64% | $42,921 |
| Moderate | 379 | 22% | $196 | 69% | $49,648 |
| Strict | 767 | 45% | $191 | 69% | $48,077 |
| Unknown | 357 | 21% | $205 | 68% | $50,773 |
Impact of Airbnb Cancellation Policies on Performance, Houston, TX
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 321 | 18% | $158 | 59% | $35,803 |
| Moderate | 328 | 18% | $147 | 62% | $33,370 |
| Strict | 720 | 40% | $150 | 64% | $36,599 |
| Unknown | 430 | 24% | $152 | 59% | $32,631 |
Impact of Airbnb Cancellation Policies on Performance, Jacksonville, FL
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 274 | 10% | $172 | 63% | $40,928 |
| Moderate | 540 | 19% | $199 | 59% | $43,333 |
| Strict | 1,655 | 58% | $241 | 64% | $59,226 |
| Unknown | 402 | 14% | $221 | 63% | $51,524 |
Impact of Airbnb Cancellation Policies on Performance, Los Angeles, CA
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 415 | 17% | $248 | 62% | $56,670 |
| Moderate | 359 | 15% | $288 | 71% | $76,199 |
| Strict | 1,057 | 44% | $283 | 67% | $71,224 |
| Unknown | 573 | 24% | $290 | 70% | $74,186 |
Impact of Airbnb Cancellation Policies on Performance, Miami, FL
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 201 | 11% | $217 | 67% | $54,103 |
| Moderate | 375 | 21% | $256 | 70% | $67,632 |
| Strict | 893 | 49% | $251 | 70% | $64,714 |
| Unknown | 359 | 20% | $281 | 66% | $66,917 |
Impact of Airbnb Cancellation Policies on Performance, Nashville, TN
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 223 | 13% | $210 | 62% | $46,567 |
| Moderate | 326 | 19% | $195 | 61% | $43,841 |
| Strict | 902 | 52% | $216 | 62% | $48,938 |
| Unknown | 297 | 17% | $228 | 65% | $54,193 |
Impact of Airbnb Cancellation Policies on Performance, New York, NY
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 239 | 16% | $229 | 65% | $55,413 |
| Moderate | 244 | 16% | $242 | 65% | $58,533 |
| Strict | 815 | 55% | $281 | 6% | $69,986 |
| Unknown | 193 | 13% | $286 | 71% | $74,849 |
Impact of Airbnb Cancellation Policies on Performance, Phoenix, AZ
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 154 | 13% | $154 | 65% | $37,367 |
| Moderate | 252 | 22% | $164 | 69% | $42,140 |
| Strict | 525 | 46% | $171 | 68% | $43,916 |
| Unknown | 211 | 18% | $162 | 67% | $39,144 |
Impact of Airbnb Cancellation Policies on Performance, San Diego, CA
| Airbnb Cancellation Policy | Number of Listings | % of All Listings | Average ADR | Average Occupancy Rate | Average Annual Revenue |
|---|---|---|---|---|---|
| Flexible | 177 | 8% | $247 | 68% | $62,608 |
| Moderate | 370 | 16% | $263 | 71% | $69,315 |
| Strict | 1,473 | 63% | $307 | 71% | $81,637 |
| Unknown | 327 | 14% | $292 | 67% | $72,137 |
7 Tips for Choosing the Right Cancellation Policy for Your Airbnb
The selection of the cancellation policy type for your short-term rental should be based on a few factors to optimize performance. Here are some proven tips to help you set up an optimal policy for your property:-
- Check Your Market Demand: In tourist hotspots, stricter policies often work best, while less popular Airbnb destinations might require more flexible options.
- Consider Competitors: Have a look at the Airbnb cancellation policies that listings in your market have. Airbtics helps you access this information quickly and easily when analyzing the potential of short-term rental markets.
Boca Raton, FL Airbnb Cancellation Policy Distribution
Source: Airbtics app
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- Match Policy to Stay Length: Use Firm or Strict cancellation policy for longer stays and Flexible or Moderate for short city stays. Airbtics shows you the average Airbnb length of stay per month of the year for all US and international markets.
Average Length of Stay per Month of the Year in Boca Raton, FL
Source: Airbtics app
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- Balance Occupancy & Revenue: If your occupancy rate is low, try switching to Flexible. If demand is strong and steady, go for Strict or Firm.
- Consider Your Property Type: Luxury homes benefit from stricter terms, while budget apartments need more flexible cancellation policies to be competitive.
- Test & Adjust: Experiment with policies for a few months and track results for adjustments down the road.
- Factor in Seasonality: Stricter policies work better in peak seasons when guests book far ahead. Airbtics helps you assess the impact of seasonality on occupancy to choose the optimal cancellation policy based on trends.
Seasonality Impact on Occupancy Rates in Boca Raton, FL
Source: Airbtics app How to Change the Airbnb Cancellation Policy on Your Listing
Setting up your cancellation policy is easy and can be done by listing. This means that your listings can have different options to reflect local market conditions. Here are the steps to edit your cancellation policy on Airbnb:- Log into your Airbnb host account.
- Go to Listings and select the property.
- Go to Policies & Rules.
- Go to Cancellation Policy.
- Select your preferred policy.
- Click on Save.
Airbnb Cancellation Policy Exceptions
While Airbnb policies are generally global, there are some exceptions that hosts and property managers need to be aware of:- Country-specific rules: Airbnb listings in Argentina, Canada, Chile, Colombia, Italy, Morocco, Netherlands, Philippines, Poland, South Africa, Sweden, and Turkey are governed by different rules. Hosts and Airbnb managers in these locations need to familiarize themselves with available policies to select the best one for their properties.
- Extenuating circumstances: Guests may cancel with full refund for reasons like illness, travel restrictions, or emergencies.
- Major events: Airbnb may override existing policies during natural disasters, pandemics, or government restrictions.
