Skip to main content

Cancellation Policy Airbnb Explained: 2025 Updates & Tips

Plans don’t always work out as expected. Bookings may need to be cancelled by guests or hosts, and when that happens, it’s helpful for Airbnb’s cancellation policies to be understood.

The cancellation policy Airbnb uses is designed to protect both parties and reduce confusion during unexpected changes. By being aware of the rules, unnecessary stress and surprise fees can often be avoided.

Different policies are provided by Airbnb depending on the length of stay, and hosts are allowed to choose the one that fits their needs. Guests are also expected to follow certain conditions to receive a refund.

In this article, the Airbnb cancellation rules will be explained, including what guests should know, what hosts need to be aware of, and what changes are being introduced in 2025.

Guest leaving a vacation rental, illustrating cancellation policy Airbnb scenarios

Source

Overview of Airbnb’s Cancellation Policies

Airbnb gives hosts flexibility when it comes to choosing how cancellations are handled. Depending on your location and the length of the stay, there are different rules in place, especially with some new changes coming in 2025.

Whether you’re a host or a guest, understanding the cancellation policy Airbnb offers for each listing is key to avoiding confusion and keeping expectations clear. If you’re new to the platform, check out our post on how Airbnb works for owners to get the basics first.

What’s new in 2025?

Starting January 20, 2025, all short-term stay bookings made in selected countries (like Canada, South Africa, the Netherlands, and others) will include a free 24-hour cancellation period. This means guests can cancel within 24 hours of booking for a full refund, as long as the booking is made at least 7 days before check-in.

Also starting in 2025, Airbnb is introducing a new “Limited” policy and retiring the “Strict” policy for new listings in affected countries. Hosts with existing Strict settings can either switch to a different policy or choose to keep it before the deadline.

Cancellation options for short-term stays

For stays under 28 nights, Airbnb currently offers several standard policies. These may vary by country, but here’s a general breakdown:

Airbnb Short-Term Cancellation Policies Table

PolicyFree Cancellation UntilGuest RefundHost Payout If Cancelled Late
Flexible24 hrs before check-inFull refund1 night + nights stayed
Moderate5 days before check-inFull refund1 night + 50% of unused nights
Limited (new)14 days before check-inFull refund50% if cancelled 7–14 days out, 100% if <7 days
Firm30 days before check-inFull refund50% if cancelled 7–30 days out, 100% if <7 days
Strict (phasing out)7+ days before50% refund100% within 7 days

Cancellation options for long-term stays (28+ nights)

Long-term bookings follow different rules. Hosts can choose from Firm or Strict policies:

  • Firm: Full refund if cancelled 30+ days in advance. If cancelled later, the host is paid for all nights stayed plus 30 more.
  • Strict: Guests must cancel within 48 hours of booking and at least 28 days before check-in for a full refund. Otherwise, the host is paid for all nights stayed plus 30 more.

A note about cleaning fees

Another change starting April 21, 2025: cleaning fees will be treated as part of the nightly price. Depending on the cancellation policy, you may receive all or part of this fee if a guest cancels late. For bookings made before this date, cleaning fees may not be paid out if a guest cancels before check-in.

By choosing the right policy and staying updated on the latest changes, you can avoid unexpected costs and provide a smoother experience for both sides of the booking. It’s all part of keeping the Airbnb process fair and transparent.

Airbnb homepage showing listings and filters, related to cancellation policy Airbnb

Source

Refund Policy for Airbnb Guests

If you’re booking a stay on Airbnb, it’s important to understand how refunds work. Every listing follows a specific cancellation policy, which decides whether you get your money back if you cancel.

Airbnb’s refund policy for guests depends on the timing of your cancellation and the type of policy set by the host. Most listings offer a full refund if you cancel early enough—some as late as 24 hours before check-in.

As of January 20, 2025, there’s a new 24-hour free cancellation window. For short-term stays booked at least 7 days in advance, you can cancel within 24 hours of booking and get a full refund, no matter what cancellation policy the host has selected.

Just remember, the “full refund” usually refers to the listing price. Airbnb guest service fees may be refunded in full or in part, depending on your specific case. To avoid surprises, always check the policy before booking, and confirm how much time you have to cancel without losing money. You can also read Airbnb’s official cancellation policy guide for the latest updates.

Airbnb Host Cancellation Policy: What Hosts Need to Know

While Airbnb gives guests some flexibility, hosts also need to follow certain rules when cancelling a reservation. Cancelling as a host isn’t taken lightly, it can affect your listing, your income, and your reputation.

Airbnb’s host cancellation policy is designed to protect guests from last-minute cancellations and ensure a smooth experience. If a host cancels without a valid reason, Airbnb may apply penalties.

Here’s what to expect if you cancel as a host:

  • Automatic review: A public cancellation notice is added to your listing.
  • Calendar blocked: You won’t be able to rebook the cancelled dates.
  • Fee charged: A cancellation fee may apply, depending on when the cancellation occurs.
  • Impact on Superhost status: Multiple cancellations could cost you your badge.

Valid reasons for host cancellations
You can cancel without penalties in certain situations, like:

  • The guest breaks house rules or tries to bring extra people
  • You feel unsafe or uncomfortable about the booking
  • An emergency or property issue makes the stay impossible

Still, Airbnb expects these cases to be rare. If you cancel too often, even for valid reasons, it could limit your ability to host.

So if you’re setting your listing’s cancellation policy, make sure it also works for you. Choose the one that balances flexibility with the protection you need. If you need help setting your cancellation policy or managing your Airbnb, then get started with Keey and let us do the hard work for you.

Airbnb Cancellation Policy Update 2025

Airbnb is rolling out important changes to its cancellation policies starting January 20, 2025, and it’s especially important if you’re hosting in specific countries like Canada, South Africa, the Netherlands, or the Philippines.

The biggest update? All short-term bookings confirmed at least 7 days before check-in will now include a free 24-hour cancellation window. This means guests can cancel within 24 hours of booking and get a full refund, no matter which policy is in place.

Another major change: the Strict policy is being phased out for new listings in the affected countries. It will be replaced by a new Limited policy, which allows full refunds up to 14 days before check-in, and partial refunds up to 7 days out.

If you’re a host with Strict already selected, you’ll need to opt in to keep it before the deadline—otherwise, your policy will switch to Firm automatically.

How to Choose the Right Cancellation Policy as a Host

Choosing the right cancellation policy that Airbnb offers can make a big difference in your hosting experience. The right policy helps you balance flexibility for guests with protection for your income.

Here’s a simple way to think about it:

  • Flexible is great if you’re in a high-demand area or attract lots of last-minute bookings.
  • Moderate gives you some peace of mind while still offering fair terms for guests.
  • Firm or Limited works well if you want to avoid last-minute cancellations.
  • Non-refundable options can help you secure income upfront, especially for shorter stays.

Tip: Consider your typical guests. Business travellers? Flexible might work best. Family holidays planned months in advance? Firm or Limited could be a better fit.

Also, make sure your policy aligns with local laws and Airbnb’s regional rules, especially if you’re in one of the countries affected by the 2025 update. 

And don’t forget: guests can now cancel within 24 hours of booking (if it’s 7+ days before check-in), so that applies to all short-term stays.

Taking a few minutes to choose the right policy can save you a lot of stress later on, and it helps build trust with your guests too. If you’re managing a rental in London, our Airbnb management service in London can help you stay on top of bookings, guest communication, and cancellation settings.

FAQs on Airbnb Cancellations

Can guests cancel their Airbnb booking and get a full refund?
Yes, but it depends on the cancellation policy Airbnb hosts have selected. If you cancel within the allowed window (usually 24 hours, 5 days, or 30 days before check-in), you may be eligible for a full or partial refund. Also, for bookings made after January 20, 2025, all short-term stays include a free 24-hour cancellation period if booked at least 7 days in advance.

What is Airbnb’s refund policy for guests?
The refund policy for Airbnb depends on how early the cancellation is made and which policy applies to the listing. Refunds typically cover the listing price and sometimes the service fee, depending on the situation.

What happens if a host cancels a reservation?
Under the host cancellation policy Airbnb applies, cancelling without a valid reason can lead to penalties like cancellation fees, blocked calendar dates, and a drop in your listing’s ranking. If it happens often, you could lose your Superhost status.

Can a guest or host appeal a cancellation or refund decision?
Yes. Airbnb can override policies in special situations like emergencies, safety concerns, or local law requirements. Both guests and hosts can contact support to open a case.

No Comments yet!

Discover how much your property could earn you

    Bedroom