As an Airbnb host or property investor, one of the most important things to consider is the cancellation policy. Airbnb has several different cancellation policies, and each policy has its own set of rules and regulations that hosts must follow. In this article, we’ll take a closer look at Airbnb’s cancellation policy, how it works in Australia, and why it’s so important for hosts to choose the right one for their property.
What is Airbnb’s Cancellation Policy?
Airbnb’s cancellation policy is a set of rules and regulations that determine how much money guests receive back if they cancel their reservation. There are three main types of cancellation policies offered by Airbnb:
- Flexible Cancellation Policy: This policy allows guests to cancel their reservation up to 24 hours before check-in and receive a full refund. If a guest cancels less than 24 hours before check-in, they will receive a 50% refund.
- Moderate Cancellation Policy: With this policy, guests can cancel their reservation up to 5 days before check-in and receive a full refund. If they cancel less than 5 days before check-in, they will receive a 50% refund.
- Strict Cancellation Policy: This policy is the most restrictive of the three, as guests can only receive a full refund if they cancel their reservation at least 14 days before check-in. If they cancel between 7 and 14 days before check-in, they will receive a 50% refund. If they cancel less than 7 days before check-in, they will not receive any refund.
How Does the Policy Work in Australia?
Airbnb’s cancellation policy works the same way in Australia as it does in other parts of the world. However, it’s important to note that Airbnb’s policies are subject to local laws and regulations, which can vary from one jurisdiction to another. For example, in some areas, hosts may be required by law to offer more lenient cancellation policies, while in others, they may be allowed to impose stricter policies.
Why is Choosing the Right Cancellation Policy Important?
Choosing the right cancellation policy is essential for Airbnb hosts, as it can have a significant impact on their revenue and occupancy rates. For example, hosts who choose a more lenient policy may attract more guests, but they may also be more likely to experience cancellations, which can result in lost revenue. On the other hand, hosts who choose a stricter policy may have fewer cancellations, but they may also struggle to attract guests, especially in highly competitive markets.
Hosts should consider several factors when choosing a cancellation policy, including their property type, location, seasonality, and competition. For example, hosts who operate in a popular tourist destination during peak season may want to choose a stricter policy, as they may have no trouble filling their property with guests. However, hosts who operate in a less popular area or during the off-season may want to choose a more lenient policy, as they may have a harder time attracting guests.
Need any help?
Airbnb’s cancellation policy is an essential aspect of hosting on the platform. Hosts should carefully consider their options and choose a policy that best suits their needs and circumstances. It’s also crucial for hosts to understand that Airbnb’s policies may be subject to local laws and regulations, which can vary from one jurisdiction to another.
If you need help with your Airbnb vacation home, contact Mydeerhome. Our team of experienced professionals can help you manage your property and maximise your revenue, while ensuring that your guests have a comfortable and enjoyable stay.