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Airbnb has different booking cancellation policies; one of them is moderate cancellation. In any form of travel, unexpected events can arise that may lead to the need for the cancellation of your reservation.
To help guests and hosts manage these situations, Airbnb has established different cancellation policies that can affect refunds and earnings.
This article will focus on Airbnb’s moderate cancellation policy. It explains what it means for guests and hosts and provides tips for avoiding cancellation issues.
Understanding the policy before booking a stay is essential, as it can significantly impact your travel plans and budget.
What is the Moderate Cancellation Policy?
Airbnb’s Moderate cancellation policy is one of the cancellation policies available to hosts. It offers a balance between flexibility for guests and protection for hosts.
Under this policy, guests can receive a full refund if they cancel their reservation at least five days before check-in.
If the cancellation occurs within five days of check-in, the first night’s stay and the cleaning fee are non-refundable. But guests can receive a refund for the remaining nights of their reservation.
Hosts can receive a percentage of their expected earnings, depending on when the cancellation occurs.
If a guest cancels at least five days before check-in, the host will receive a full refund of the guest’s payment. The Airbnb service fee will be refunded or credited to the host’s account.
However, if the cancellation occurs within five days of check-in, the host will receive the guest’s payment for the first night. And the cleaning fee, while the remaining nights will be refunded to the guest.
One of the main benefits of the moderate policy for guests is that they cannot cancel at the last minute without financial penalties.
It encourages guests to be more committed to their reservation, reducing the likelihood of cancellations and no-shows.
Additionally, the Moderate policy may attract more serious guests willing to commit to their travel plans.
For hosts, the moderate policy offers more excellent protection against losses resulting from cancellations.
While hosts are still exposed to cancellations within a week of the reservation, they are less likely to experience last-minute cancellations.
Hosts require guests to cancel at least five days before the check-in date to receive a full refund of accommodation fees. It gives hosts more time to find alternative bookings to fill the space.
Pros:
- The guest can’t cancel at the last minute without penalties.
- It offers hosts a higher degree of protection from losses incurred due to cancellations.
- It appeals more to more committed guests to their travel plans. It results in a higher likelihood of severe and responsible bookings.
Cons:
- Hosts remain vulnerable to cancellations occurring within a week of the reservation.
- It is challenging to find a replacement of bookings to fill the vacant.
- The refund received by hosts for cancellation under the Moderate policy is typically lower than the original booking fee.
How Does the Moderate Cancellation Policy Work for Guests?
For guests, the moderate cancellation policy means they can cancel their reservation. Also, receive a refund based on the timing of their cancellation.
If the guest cancels at least five days before check-in, they will receive a full refund of the reservation cost minus the service fee.
If the cancellation occurs within five days of check-in, the first night’s stay and the cleaning fee are non-refundable. But the guest will receive a refund for the remaining nights of their reservation.
It is important to note that guests can only cancel their reservations through the Airbnb platform. The refund will be processed based on the payment method to book the stay.
Airbnb recommends that guests carefully review the cancellation policy before booking and contact the host with any questions or concerns.
Here are several situations in that guests might receive a refund from Airbnb upon cancellation:
Guests Cannot Access the Accommodation
It may occur if the host cancels the reservation within 24 hours of check-in and changes the reservation without the guest’s consent.
Or if a host fails to provide the keys or access code for check-in. In such cases, guests may be eligible for a refund from Airbnb.
Health and Safety Concerns
Suppose the accommodation has not been cleaned and contains health and safety hazards. Or, if the host did not disclose the presence of pets or animals, the guest might be eligible for a refund.
Incorrect or Improper Listing
The Airbnb refund policy also covers situations where the listing information is incorrect or incomplete.
It needs to include more accurate details on the property’s size, location, number of bedrooms, and amenities. The refund policy also applies if any listed amenities or appliances malfunction or are broken.
To receive a refund, guests must submit a claim to Airbnb within 24 hours. Also, provide evidence supporting their claim, and demonstrate that they attempted to resolve the issue with the host directly.
Airbnb will then review the claim and decide whether to provide reimbursement or alternative accommodation.
How Does the Moderate Cancellation Policy Work for Hosts?
Airbnb’s Host cancellation policy was effective on August 22, 202. It aims to minimize disruptions to guests’ plans and uphold trust within the Airbnb community.
Although cancellations by hosts are uncommon and sometimes unavoidable, Airbnb imposes fees and other consequences if a host cancels a confirmed stay reservation.
Or if the host is found to be responsible for cancellation under this policy. These fees and outcomes reflect the costs and impacts of such cancellations on guests, the wider host community, and Airbnb.
Airbnb will waive the fees and other consequences in certain situations to ensure that hosts are not unfairly penalized.
For instance, the costs and other consequences will be waived if a host cancels due to extenuating circumstances. Or host specific valid reasons beyond their control.
This policy incentivizes hosts to honor their commitments and promotes accountability within the Airbnb community.
Airbnb’s host cancellation policy ensures a positive experience for guests. It also maintains the trust and integrity of the platform.
By holding hosts accountable for cancellations and offering protection to guests, Airbnb strives to provide a safe and reliable service for all.
Cancellation Fees
The minimum cancellation fee for any reservation is $50, and the maximum is $1,000. The actual fee charged depends on the timing of the cancellation and the amount of the reservation.
A reservation canceled less than 48 hours before or after check-in incurs a cancellation fee. The cancellation fee is 50% of the reservation for the nights not stayed.
If a reservation is canceled between 48 hours and 30 days before check-in, the fee charged is 25% of the reservation amount.
If a reservation is postponed more than 30 days before check-in, the fee charged is 10% of the reservation amount.
The reservation amount used to calculate the cancellation fee includes the base rate, cleaning, and pet fees.
Taxes and guest fees are not included; if the computed cancellation fee is less than $50, it will be adjusted to $50. If the calculated cost is more than $1,000, it will be adjusted to $1,000.
Conclusion
The Airbnb moderate cancellation policy provides protection and flexibility for both guests and hosts.
Guests and hosts can avoid cancellation issues by understanding the policy and following the guidelines. Also, ensure a smooth and stress-free experience.
Guests should review the policy before booking, communicate with hosts, and consider travel insurance. Hosts should share with guests, be flexible, and follow the procedure if a cancellation occurs.
By working together and following the policy, guests and hosts can enjoy the benefits of the Airbnb platform. While also minimizing the risk of cancellations and disputes.
