Most hosts pick a cancellation policy when they set up their listing and never touch it again. But it's one of the few settings that affects both how often guests book and how often your listing shows up in search. Most hosts are leaving both on the table.
This guide covers what each policy actually means, why it matters for your visibility, and one setting most hosts never turn on.
Your Airbnb cancellation policy affects the visibility of your listing
Airbnb wants to show guests listings that are likely to turn into actual stays. To figure that out, it tracks two things at the listing level: how many people who view your listing go on to book, and how often bookings get cancelled.
Your cancellation policy influences both. A more flexible policy tends to get more bookings. A stricter one tends to get fewer cancellations. Both push your listing higher in search results.
In fact, Airbnb now actively highlights listings that offer free cancellation beyond 48 hours in search results. That means a listing with a more flexible policy can show up above a higher-quality listing with stricter terms. Your policy doesn't just affect whether guests book — it affects whether they even see you.
What Airbnb cancellation policies mean
Airbnb offers four standard policies that any host can choose from, plus a handful of stricter options that are only available to certain hosts.
All standard policies include a 24-hour cancellation window. Guests can cancel for a full refund within 24 hours of booking, as long as the reservation was confirmed at least 7 days before check-in.
Flexible — Guests can cancel up to 24 hours before check-in for a full refund. If they cancel after that, you get paid for each night they stayed plus one additional night.
Moderate — Guests can cancel up to 5 days before check-in for a full refund. After that, you get paid for each night they stayed, plus one additional night, plus 50% for all remaining unspent nights.
Limited (available for reservations booked on or after October 1, 2025) — Full refund up to 14 days before check-in. Between 7 and 14 days out, guests get a 50% refund and you keep 50% of all nights. Within 7 days, no refund — you keep 100%.
Firm — Full refund up to 30 days before check-in. Between 7 and 30 days out, guests get a 50% refund and you keep 50% of all nights. Within 7 days, no refund — you keep 100%.
The following policies are only available to certain hosts — specifically professional hosts and property management companies connected to Airbnb via API, such as those using a channel manager like Your.Rentals. If you manage your listings through a platform like this, check your settings to see if these options are available to you. If you list directly on Airbnb as an individual host, you most likely won't see them.
Strict — If guests cancel 7 or more days before check-in, they get a 50% refund and you keep 50%. Within 7 days, no refund — you keep 100%.
Super Strict 30 days — If guests cancel at least 30 days before check-in, they get a 50% refund. Within 30 days, no refund — you keep 100%.
Super Strict 60 days — Same structure as Super Strict 30, but the cutoff is 60 days before check-in.
The Superhost dimension
To keep Superhost status, your cancellation rate needs to stay under 1%. That means no more than one host-initiated cancellation per 100 reservations.
This is about cancellations you make, not ones guests make. But it's still a reason to think carefully about your policy. A stricter policy tends to attract guests who are genuinely committed, which means fewer awkward conversations about last-minute cancellations from hesitant bookers.
How to choose the right Airbnb cancellation policy
Ask yourself two things: how quickly can you replace a cancelled booking, and how far in advance do your guests usually book?
If you're in a busy city and guests book a few weeks out, a cancellation is usually rebookable. If you're a rural cabin that fills up months in advance, a cancelled week
in peak season might not be replaceable at all.
A rough guide:
- Urban listings where guests book 2–4 weeks out → Moderate
- Seasonal or rural properties where guests book 6–8 weeks out → Limited
- Properties where guests book 1–3 months out → Firm
For a deeper breakdown of how to think through this decision, see our complete guide to Airbnb cancellation policies.
The non-refundable add-on: the most underused setting on Airbnb
Once you've picked your standard policy, consider turning on the non-refundable option. When you do, guests see two prices on your listing — one with normal cancellation terms,
one cheaper but non-refundable. They choose which one works for them.
The data makes a strong case for it. Across Your.Rentals' network, non-refundable bookings grew from just 4% in 2021 to 36% in 2025. Fully refundable has been declining steadily. Guests are willing to commit — as long as the price gap feels worth it.

Airbnb defaults the discount to 10%, but you can set it higher yourself. That's worth doing. At 10%, most guests don't feel the saving is worth
giving up the flexibility. Around 20% is where behaviour changes — the discount starts to feel meaningful enough to commit.
Guests who book non-refundable almost never cancel. That keeps your cancellation rate low and your listing easier to find in search. Think of it this way: your standard rate is higher because some of those guests will cancel. Your non-refundable rate is lower because they won't. It's not a giveaway — it's just pricing in the risk honestly.
In summary
Pick the policy that matches how easily you can replace a cancelled booking. Turn on the non-refundable add-on and set the discount yourself — 10% is the
default, but around 20% is where guests actually start choosing it. Guests who book non-refundable almost never cancel, so it's worth getting that number right.
Two settings, one review cycle — and your cancellation policy is doing real work instead of just sitting there.
If you manage your listings across multiple channels, keeping cancellation policies consistent is one of those things that's easy to get wrong. Your.Rentals handles it automatically — set your policy once, and the platform maps it to the right equivalent on Airbnb, Booking.com, Vrbo, and every other channel you're connected to. No logging into each platform separately, no risk of policies falling out of sync.
One policy setup, every channel
Your.Rentals maps your cancellation policies to Airbnb, Booking.com, Vrbo, and more automatically.
