Understanding Airbnb’s Cancellation Policies: What Hosts Need to Know

Guests rarely WANT to cancel, but life happens.

Managing short-term rentals means navigating how to balance guest flexibility with your own financial security. Airbnb offers various cancellation policies to help hosts set clear expectations and safeguard their income. Knowing which policy works best can make a significant difference in your hosting success. Here’s a detailed overview of the current options, with an emphasis on why the Firm policy stands out as the top choice for many hosts.

These policies apply to reservations of 27 nights or fewer, with a 24-hour cancellation window that allows guests to cancel for a full refund shortly after booking, provided the reservation was confirmed at least 7 days before check-in (local time).

Airbnb is making changes to these policies on October 1, 2025, so we’ll go over the current cancellation policy options as of July 2025, as well as the upcoming changes.

Current Airbnb Standard shorter-stay cancellation policy options for homeowners

Your standard cancellation policy applies to all reservations of 27 or fewer consecutive nights. You can choose one of the following standard cancellation policies (pulled directly from Airbnb):

Cancellation and booking confirmation times are always based on the local time zone for the listing.

For reservations booked before April 21, 2025, you won’t be paid the cleaning fee if the guest cancels before check-in.

• Flexible

• Guests can cancel until 24 hours before check-in for a full refund, and you won’t be paid

• If they cancel after that, you’ll be paid for each night they stay, plus one additional night

• Moderate

• Guests can cancel until 5 days before check-in for a full refund, and you won’t be paid

• If they cancel after that, you’ll be paid for each night they stay, plus one additional night, plus 50% for all unspent nights

Firm

• To receive a full refund, guests must cancel at least 30 days before check-in

• If they cancel between 7 and 30 days before check-in, you’ll be paid 50% for all nights

• If they cancel less than 7 days before check-in, you’ll be paid 100% for all nights

• Guests can also receive a full refund if they cancel within 48 hours of booking, if the cancellation occurs at least 14 days before check-in

• Strict

• To receive a full refund, guests must cancel within 48 hours of booking, and the cancellation must occur at least 14 days before check-in

• If they cancel 14 or more days before check-in but not within 48 hours of booking, you’ll be paid 50% for all nights

• If they cancel between 7 and 14 days before check-in, you’ll be paid 50% for all nights

• If they cancel after that, you’ll be paid 100% for all nights

The following standard cancellation policies are available by invitation only to certain hosts:

• Super strict 30 days

• Guests must cancel at least 30 days before check-in to receive a 50% refund for all nights

• If they cancel after that, you’ll be paid 100% for all nights

• Super strict 60 days

• Guests must cancel at least 60 days before check-in to receive a 50% refund for all nights

• If they cancel after that, you’ll be paid 100% for all nights

Why we love the Firm policy for many of our home owners

• It strikes a balance between guest service and flexibility and allows you to rebook your listing to protect your income.

• You receive some income and the ability to rebook the property if a guest cancels within 30 days of their reservation.

• You receive your full payment and can choose whether or not to relist your property if a guest cancels within 7 days of check-in.

• The Moderate and Flexible policies are more guest-focused, which allows them to cancel closer to their check-in date, but does not provide ample time for you to effectively rebook your property, and these policies do not compensate you well for that cancelled booking.

• The current Strict policy doesn’t cover cancellations that happen more than 14 days from the first day of the reservation, whereas the Firm policy allows for cancellation and compensation within 30 days.

Good news!

Berkshire Vacation Rental can walk you through Airbnb’s cancellation policies, set-up, and booking management.

You won’t have to worry about bookings, cancellations, or re-bookings!

Here’s what changes on October 1, 2025

Airbnb is only offering the “Strict” policy to certain accounts, but is adding the “Limited” policy and modifying the “Firm” policy:

• Limited (available for reservations booked on or after October 1, 2025)

• Guests can cancel until 14 days before check-in for a full refund, and you won’t be paid

• If they cancel between 7 and 14 days before check-in, but after the 24-hour cancellation period, you’ll be paid 50% for all nights

• If they cancel less than 7 days before check-in, you’ll be paid 100% for all nights

• Firm

• Guests can cancel until 30 days before check-in for a full refund, and you won’t be paid

• If they cancel between 7 and 30 days before check-in, but after the 24-hour cancellation period, you’ll be paid 50% for all nights

• If they cancel less than 7 days before check-in, you’ll be paid 100% for all nights

Our Recommendation:

We still believe that the Firm policy is the best balance of income protection and guest flexibility, and you can rebook the property for a cancelled reservation with 30 days or more notice.

After that, you receive some income and can still potentially rebook too.

Here’s how to set your listing’s cancellation policy. Learn more about Airbnb’s long-term cancellation policies.

There’s one more option for homeowners!

You can offer guests a non-refundable option with a discount for shorter stays. 

Here’s Airbnb’s policy:

When you set your standard cancellation policy for stays of fewer than 28 nights, you can choose to offer a non-refundable option. The non-refundable option lets guests book at a discounted rate that’s not subject to your standard cancellation policy. If they cancel, they won’t be refunded.

• We don’t love this option as much because you are essentially discounting your property. This can be a great option for a quick-turn-around booking, but since cancellations within 2 weeks are actually pretty rare, it’s generally more beneficial for homeowners to use market pricing and a Firm cancellation policy.

Find out more about how to offer your guests a non-refundable option for a discounted rate.