Strict vs. Flexible: Which Airbnb Cancellation Policy Should I Choose?

Choosing the right cancellation policy for your Airbnb listing can feel like a high-stakes decision. Go too strict and you risk losing bookings. Go too flexible and you may lose money when guests cancel last minute.

In this episode, we’re unpacking the real-world implications of Airbnb’s cancellation policy options—from Flexible to Super Strict—and sharing how we approach guest refund requests in our own hosting business.

If you’ve ever been unsure how to respond to a cancellation request or struggled with what’s “fair,” you’re not alone. We’re sharing examples of actual guest messages, the internal decision trees we use, and how we balance compassion with protecting our bottom line.

What Are the Airbnb Cancellation Policy Options?

Airbnb offers several cancellation policy tiers:

• Flexible – Full refund up to 24 hours before check-in
• Moderate – Full refund up to 5 days before check-in
• Firm – Full refund up to 30 days before check-in (partial after)
• Strict – 50% refund up to 7 days before check-in (with limited full-refund window)
• Super Strict – Application-only, specialty properties only

Does Your Policy Affect Your Visibility on Airbnb?

Many hosts wonder if choosing a more flexible policy will get them more bookings—or a better spot in Airbnb’s search results. While there’s no confirmed “boost” from Airbnb for any specific policy, what does matter is how well your cancellation policy aligns with your property type, your market, and how easily you can rebook canceled nights.

What Happens When Guests Ask for a Refund Anyway?

Spoiler: they always do. Regardless of your chosen policy, guests will sometimes ask for exceptions. That’s why it’s so important to:

• Decide in advance how strict or flexible you want to be
• Create a decision tree for your team so they’re not stuck waiting for your input
• Be consistent, but also human—some scenarios may call for compassion

We walk through scenarios we’ve experienced ourselves—from a canceled concert that impacted our entire portfolio to a guest threatening to launch a smear campaign online. These moments can be tough, but they’re part of running a hosting business—and we’re here to help you prepare.

Tips for Navigating Guest Cancellations

• Consider offering travel insurance options
• Offer to rebook instead of refund
• Let guests know you’ll refund if you’re able to rebook the nights
• Always acknowledge the guest’s situation before explaining your policy
• Decide what your policy is, and be ready to stand behind it

Real Messages, Real Responses

We’re also sharing real guest messages in this episode—word for word—and walking through how we responded and why. Whether we stuck to our policy or decided to bend the rules, each example is meant to help you think through how you want to approach these tricky situations in your own business.

Download a transcript of this episode.

Resources:

• Hostfully | Use Code TFV500 for $500 off!
• Minoan | Visit MinoanExperience.com and tell them TFV sent you!
• The Airbnb Instant Book Mistake YOU Might Be Making That Is Costing You $$$!!!! | Subscribe to our YouTube Channel
• #STRShareSunday: @elalmaaframe
• Submit your property for our next #STRShareSunday at strshare.com

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@elalmaaframe

El Alma A-Frame is a cozy, thoughtfully designed escape high in the Rockies, blending vintage charm with modern comfort. Just 13 miles from Breckenridge, this cabin is all about slowing down and soaking it in—whether that’s sipping coffee while watching wildlife, spinning vinyl on the record player, or unwinding in the hot tub with panoramic mountain views. The mix of beautiful still shots and lifestyle photos makes it easy to picture yourself here, wrapped in a blanket by the fireplace after a long day of skiing, hiking, or just relaxing. If you’re craving that quintessential cozy mountain retreat, follow @elalmaaframe and start planning your stay!

We would love to feature YOU! Submit your property for our next #STRShareSunday at strshare.com.