487. Strict vs. Flexible: Which Airbnb Cancellation Policy Should I Chose?
Thanks For Visiting
Airbnb Superhosts Annette Grant & Sarah Karakaian
4.9 • 590 Ratings
🗓️ 7 August 2025
⏱️ 28 minutes
🧾️ Download transcript
Summary
If you’ve ever second-guessed your Airbnb cancellation policy—or gotten a refund request that threw you off—this episode is for you.
We’re diving into the pros and cons of each Airbnb cancellation policy option (from Flexible to Super Strict), what they actually do to your listing’s visibility and booking velocity, and how to decide which one is best for your business. We're also sharing real-life guest messages, how we responded, and when we’ve chosen to bend the rules—or stand firm.
Whether you’re a solo host or running a Co-hosting or property management team, you’ll leave this episode with new ideas for making cancellation decisions more confidently, protecting your revenue, and empowering your team.
In this episode, we cover:
- What each Airbnb cancellation policy really means
- How cancellation policies may (or may not) impact the Airbnb algorithm
- What to consider before switching to Strict or Flexible
- Real guest messages and how we handled them
- How to set up a cancellation decision tree for your team
- Creative alternatives to full refunds that can protect your revenue
Resources:
- Subscribe to our YouTube channel | The Airbnb Instant Book Mistake YOU Might Be Making That is Costing You $$$!!!!
- The doors to our private group coaching membership are open—but not for long! Learn more here: thanksforvisiting.com/business It’s time to invest in yourself and your hosting business.
Mentioned in this episode:
Hostfully | Go to https://www.hostfully.com/tfv and use TFV500 to get $500 off your subscription.
Minoan | Visit MinoanExperience.com and tell them TFV sent you!
Transcript
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| 0:00.0 | You're listening to the Thanks for Visiting Podcast. |
| 0:07.8 | We believe hosting with Heart is at the core of every short-term rental. |
| 0:12.8 | With Annette's background in business operation. |
| 0:15.1 | And Sarah's extensive hospitality management and interior design experience, we have welcomed |
| 0:20.3 | thousands of guests from over 30 |
| 0:22.3 | countries earning us over a million dollars and garnering us thousands of five-star reviews. |
| 0:28.4 | We love sharing creative ways for your listing to stand out, serve your guests, and be profitable. |
| 0:34.9 | Each episode, we will have knowledgeable guests who bring value to the short-term |
| 0:38.7 | rental industry. Or we will share our stories of our own experiences so you can implement |
| 0:43.7 | actual improvements to your rentals. Whether you're experienced, new, or nervous to start your own |
| 0:50.3 | short-term rental, we promise you'll feel right at home. |
| 0:57.5 | Before we dive into the content, let's hear a word from our sponsor. |
| 1:01.3 | Choosing the right property management system is a big deal. |
| 1:02.7 | And we did our research. |
| 1:04.1 | Try different platforms. |
| 1:08.0 | And for years, hostily has been the best fit for our business. It's not just a PMS. |
| 1:10.2 | It's how we run everything. Managing listings across |
| 1:13.5 | Airbnb, Verbo, and Booking.com, easy. No double bookings, no stress. And let's talk about guest |
| 1:20.6 | experience. The custom guidebooks, they are game changer. Guests get check-in details, your house |
| 1:26.9 | rules, and even favorite restaurants |
| 1:28.7 | before they have to ask. Plus, it integrates with everything. Guest screening, direct booking payments, |
| 1:35.0 | and even in-house damage waivers, which you know we love. And their new inbox AI, it pulls |
... |
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