When traveling for business or leisure, one essential factor you need to consider is accommodation. While there are many hotels to choose from, Airbnb listings are popular with most travelers.
This is because they are cheaper and offer flexible terms. And to ensure efficient bookings, hosts provide different cancellation policies.
And one of them is the non-refundable policy. This policy provides less flexibility than others, meaning you have to check in at the desired date. Otherwise, you’ll forfeit your payment.
That said, it allows you to book a listing at a discounted price. This article covers everything you need to know about the non-refundable policy.
How Airbnb Non-Refundable Policy Works for the Host
Ideally, a host can offer a non-refundable cancellation policy with other policies such as strict, moderate, and flexible. In addition, you can include it in your list of discounts.
The host will offer a 10% discount on the base price. The non-refundable is available to hosts outside China only. Once you set your rate, it will appear in the search where guests can choose when checking out.
If the guest cancels their booking before check-in, you will receive the whole amount for the nights booked. Airbnb will however minus the cleaning fee.
How Airbnb’s Non-Refundable Policy Works for the Guest
As a guest, the non-refundable option allows you to book a listing at a discount. However, you won’t receive the full refund when cancel your booking. That said, extenuating circumstances can make you eligible for a full refund. They include the following:
Changes in travel requirements: These are government changes to passport or visa requirements that hinder you from traveling.
Travel restrictions: Sometimes the government might restrict you from traveling to the listing’s location. If so, you’ll receive a full refund.
Epidemics and emergencies: Should the government declare epidemics, pandemics, or emergencies that prevent you from traveling, you will receive a full refund.
War: Invasions, riots, bombings, terrorism, and other acts of war can warrant a full refund.
Natural disasters: Disasters such as tsunamis and volcanic eruptions are also considered extenuating circumstances.
The non-refundable option is however available for a limited period. For example, it is available until one day before check-in for listings with a flexible cancellation policy.
It is also available until 14 days before check-in for listings with strict and firm cancellation policies.
What Are the Advantages of a Non-Refundable Cancellation Policy
The non-refundable policy has its benefits and disadvantages affecting the host and the guest. Let’s look at the advantages.
Guests
Cost-effective: Non-refundable bookings often offer discounted rates. This makes accommodation more budget-friendly, especially for large groups or those who want to stay for extended periods.
Desirable options: Since the rates are discounted, you have access to listings that would otherwise be out of your budget.
Guaranteed reservation: Once you make your booking, you are sure you’ll enjoy your stay at the desired check-in date.
Hosts
Guaranteed revenue: The non-refundable policy helps the host rest assured of the confirmed reservation. Besides, the option reduces cancellations, ensuring a steady source of income.
Protection against cancellations: Often, guests will make last-minute cancellations. But this is a rarity with non-refundable bookings given the many benefits guests enjoy.
Improved booking management: Another benefit is that it facilitates efficient booking management since there are fewer cancellations with non-refundable listings.
What Are the Disadvantages of the Non-Refundable Policy?
Guests
Limited flexibility: While there are cost-effective, non-refundable listings offer little to no flexibility. If guests have to adjust their travel plans, they’ll have to do so with a penalty.
Potential loss of money: Guests are more susceptible to losing money if they opt for non-refundable listings. This is especially true for expensive bookings.
No refund for canceled stays: If guests cancel or shorten their stay, they risk forfeiting their payment without a refund.
Hosts
Potential loss of guests: Guests that prefer more flexible cancellation options may shy away from your listings.
Potential negative guest reviews: Guests who face unexpected circumstances and are unable to make changes to their bookings might leave a negative review. This can hurt your reputation on the platform.
Challenging: It is daunting to strike a balance between guest satisfaction and guaranteed revenue. In short, you’ll have to sacrifice one for the other.
When To Use Airbnb Non-Refundable Policy as a Host
So, when should you offer a non-refundable discount? Let’s find out.
Peak Travel Seasons
You may offer a non-refundable discount during high travel seasons such as the Christmas holidays. This can help ensure your listings remain booked hence guaranteed returns.
Long Stays
Some guests may want to stay at your property for over a month. In such cases, you can offer a non-refundable policy. Not only will your guests pay less than the base amount but also ensure steady income on your side.
Short Lead Lime Reservations
Another scenario you can offer a non-refundable is when you receive a last-minute booking. This discourages guests from canceling their booking ensuring your listing remains occupied.
Limited Availability
If you are receiving fewer bookings or your property is in high demand, offering a non-refundable policy can ensure consistent bookings.
How To Deal with a Non-Refundable Policy as A Guest
Before choosing to commit to a non-refundable booking, ensure to do the following:
Read The Listing Details
The last thing you want is to book a listing that does not meet your needs. As such, we recommend reading the listing’s details thoroughly, including its location, amenities, rules, and regulations.
Confirm Your Travel Plans
Non-refundable bookings provide little to no travel flexibility, meaning you need to be sure you’ll be traveling on the exact date. Double-check your travel dates, check-in times, and other situations that may cause conflict.
Communicate With the Host
Communicate with the host before making a booking. It will help clear any doubts you have about the listing.
Discuss the policy, what does and doesn’t warrant a full refund. This will also help build trust between you and the host.
Consider Contingencies
Life happens and plans change. And while non-refundable bookings discourage cancellations, you need to be prepared for unexpected events. Have a backup plan in case your travel plans change.
Maybe having an alternative accommodation or rescheduling your trip will do.
Opt For Shorter Stays
If you are unsure of your travel plans, consider shorter bookings. This way, you’ll minimize the financial risk while enjoying your stay.
Alternatives To the Non-Refundable Policy
Fortunately, there are other policies and ways that facilitate flexibility in your travel plans. They include the following:
Flexible Cancellation Policy
Consider looking for listings offering flexible cancelation policies since they offer more lenient cancellation terms.
As such, you have the freedom to change your travel schedule if the need arises. Besides, you will receive a refund for your booking cancellation.
Moderate Cancellation Policy
Like the flexible option, the moderate policy provides much-needed flexibility.
There’s also security for your money since you can receive a partial or full refund within a specified period before check-in. you can also receive a refund if you cancel a booking after check-in.
Book With Superhosts
Superhosts are highly-rated hosts that tend to offer more flexibility. Most have more accommodating cancellation policies making your stay a breeze.
Besides they are reliable and you are less likely to have disputes with them.
Have A Travel Insurance
Whether you book with Airbnb hosts or hotels, travel insurance comes in handy when unexpected situations arise. It not only covers booking cancellation but also lost luggage, medical expenses, and other losses.
Conclusion
Airbnb’s non-refundable policy allows guests to book listings at a discounted price, meaning they can stay at properties that would otherwise be outside their budget.
It also gives the hosts a guaranteed source of income. As you can see, it is a “win-win” for both parties.
If you are a host, you should consider offering a non-refundable policy during peak travel seasons, when there’s limited availability and last-minute bookings.
As a guest, if you are not sure of your travel plans, avoid non-refundable listings since you stand to lose your money should you cancel your booking.
