Why aren't Airbnb cancellations the end of the world for hosts? Many of our Airbnb coaching clients ask this question when we advise them to set a flexible cancellation policy for their Airbnb listing(s.) The answer lies in the fact that new hosts are imagining the worst case scenario, and are not aware of how Airbnb mitigates cancellations for hosts.
What is the worst case scenario for hosts with a flexible cancellation policy? A guest books their Airbnb and then cancels right before the 5-day mark leaving them without a booking and very few days to rebook. The second worst case scenario is that the host has a dynamic pricing tool that automatically drops the cancelled nights' rates - making any rebooking much lower than the original.
Great news! Neither of these scenarios happen often, AND Airbnb works on behalf of the cancelled host to rebook their listing. Curious how? After experiencing near instant rebookings of some of our Airbnbs we started to investigate. Switching our browser to incognito mode we searched online (via Google) for rentals in the cancelled listing's location. The image that showed up for the Airbnb search result was our listing! That's right - Airbnb used our listing image to make sure anyone searching for a stay in our area would see a photo of our cabin first thing. This definitely helps rebookings occur rapidly.
Another way to avoid losing money on cancellations is to be aware of your pricing. If you are using PriceLabs, login in and change the pricing for the newly cancelled dates. You will want to adjust the price back up to what the rates were on the original booking, or 10% less. By quickly resetting your pricing, you avoid guests booking at a discounted rate.
Still a little concerned about your cancellation policy setting or dynamic pricing tools? Book a free Airbnb coaching call with Culin or Danielle We're delighted to help you succeed as a host and/or Airbnb investor. Want more information without a phone call or zoom session? Check out our step-by-step Airbnb Investing book on Amazon or Audible today!