Starting October 1, Airbnb will roll out a set of revised cancellation policies that offer guests significantly more flexibility—changes that may ruffle feathers among some hosts.
What’s Changing?
Here is a quick rundown of what's changing with the new AirBnB cancellation policy.
Firm Cancellation Becomes the New Norm
Airbnb is phasing out its "Strict" cancellation policy for new listings, transitioning affected properties to the more guest-friendly "Firm" policy. Under the old Strict terms, guests could only receive a full refund if they canceled within 48 hours of booking. Beyond that window, refunds were partial or nonexistent.
AdvertisementAdvertisement#_R_4pokr8lb2mav5ubsddbH1_ iframe AdvertisementAdvertisement#_R_8pokr8lb2mav5ubsddbH1_ iframeThe new Firm policy gives guests a full refund for cancellations made up to 30 days before check-in and a 50% refund if they cancel between seven and 30 days in advance.
As of July 1, hosts can no longer choose the Strict policy for new listings, though they can opt out of the change for existing properties. Airbnb says hosts were notified weeks ago to prepare for the shift.
New: Limited Cancellation Policy
Airbnb is also introducing a Limited cancellation option, allowing guests to cancel up to 14 days before check-in for a full refund.
24-Hour Grace Period Expansion
For stays shorter than 28 nights, guests will now be able to cancel for a full refund within 24 hours of booking, provided the reservation was made at least a week before the stay begins. Personally, I'm really excited about this policy, which is the same that many airlines offer.
Why is the AirBnB new cancellation policy hitting now?
According to reporting by Skift, Airbnb says flexibility is a top priority for travelers. “Over 40 percent of guests say free cancellation is one of their top needs when choosing to book a stay...and globally, hosts who switched from Strict to Firm policies saw an average 10% increase in earnings.” Most hosts globally will have the option to opt out of the migration.
AdvertisementAdvertisement#_R_5tokr8lb2mav5ubsddbH1_ iframe AdvertisementAdvertisement#_R_9tokr8lb2mav5ubsddbH1_ iframeThe platform is also piloting a “Reserve Now, Pay Later” option for select bookings in the U.S. and Canada, allowing guests to book without immediate payment if eligible.
Industry Reaction
While some industry has expressed approval, not everyone’s on board. Hospitality executive William Graf voiced frustration on LinkedIn over losing the ability to secure non-refundable high-value bookings. “No point in confirming a $50k Christmas to New Year’s booking on Airbnb if the guest can cancel without penalty 30 days out,” he posted. “Why take this lever away? Why not let guests vote with their wallets?”
Yahoo CreatorCassandra BrooklynI'm Cassandra, a freelance writer, guidebook author, and photographer who loves all things outdoors. I've written for The New York Times, National Geographic, Wall Street Journal, Lonely Planet, Travel + Leisure, and dozens more. My work tends to focus on sustainability, accessibility, and the outdoors and I have a special love for hiking, biking, and kayaking. I started as a solo traveler, now do a lot of family travel, and also multi-gen and accessible travel.FollowFollow
