New Airbnb cancellation policy for hosts

Airbnb’s cancellation policy changed on August 22, 2022. This new legislation only concerns cancellations initiated by the owner, or in Airbnb jargon, the host. In certain cases, the vacation rental platform may impose cancellation fees to be paid by the owner. In addition to these fees, Airbnb may also apply other consequences that impact various aspects of the rental and the listing. Regulations on this subject already existed, but the company decided to toughen them because it believes that owner-initiated cancellations significantly disrupt travelers' plans and damage the platform's relationship with its guest customers.

Changes to the calculation and amount of cancellation fees

Until now, the definition of cancellation fees to be paid by owners was based on a single criterion: whether the cancellation was made more or less than 7 days before the travelers' arrival. In the first case, $50 USD was deducted from the host's payout. In the second case, $100 USD was deducted from the host's payout.

With the arrival of the new cancellation policy, Airbnb has made the calculation of cancellation fees more complex by adding criteria. If the owner cancels a reservation or is considered responsible for the cancellation, fees may be deducted from the payouts made by the platform to the owner. As before, the amount of the cancellation fee depends on when the cancellation is made. However, from now on, the amount to be paid also depends on the total price of the reservation in question (excluding tourist tax). These criteria are:

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• If the cancellation is made 48 hours or less before the start of the reservation, the fee is 50% of the reservation amount. If the cancellation is made less than 30 days and more than 48 hours before the start of the reservation, the fee is 25% of the reservation amount. If the cancellation is made more than 30 days before the start of the reservation, the fee is 10% of the reservation amount.

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The platform does, however, impose a minimum and maximum amount that the fees cannot exceed. Thus, even if the reservation amount is lower, the cancellation fee is at least $50 USD. And even if the reservation amount is higher, the cancellation fee is at most $1,000 USD.

What are the other consequences of a host-initiated reservation cancellation on Airbnb?

In addition to cancellation fees, other consequences may apply to owners. For example, the reservation calendar for the listing in question may be blocked, which prevents the host from generating another booking for the dates of the cancelled reservation.

If it is a repeat cancellation by the host, further consequences may be added. These include the suspension or even removal of the listing in question and/or the host's account. It is also possible to lose Superhost status.

It is also important to note that owners who cancel a reservation do not receive the payout for the booking and must pay the cancellation fees. If the amount paid by the travelers has already been collected, the sum is deducted from future payouts.

Under what conditions can cancellation fees be waived?

There are certain conditions under which cancellation fees can be waived or avoided by hosts. The booking platform is aware that sometimes owners have no other choice, that they have valid reasons for cancelling, and that, conversely, a cancellation is sometimes even beneficial for the traveler. These are cancellations due to "extenuating circumstances." Here is a non-exhaustive list:

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• water damage preventing the traveler from enjoying the accommodation in good conditions, a gas leak, a natural disaster, health reasons that prevent the owner from leaving the accommodation, government travel restrictions, military conflicts, etc.
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Nevertheless, even if the fees are waived in these cases, other consequences may still apply, such as blocking the calendar. This is logical, because under these conditions no traveler can stay in the accommodation, and the cancellation is not made with the goal of hosting travelers, but to prevent people from booking the accommodation under unfavorable conditions.

Hosts who want to waive the fees must demonstrate to Airbnb that the cancellation was made for one of the reasons stipulated in the extenuating circumstances policy. They can provide proof by submitting documents and various supporting materials that show the cancellation was made against their will. The platform reserves the right to approve the request or not.

How can owners avoid Airbnb cancellation fees?

It is difficult for owners to avoid paying cancellation fees when they are the ones initiating the cancellation. However, certain actions can be taken to avoid finding yourself in this situation, or at least to reduce the amount to be paid back.

To avoid having to cancel a reservation, property owners should properly configure their Airbnb calendar and block off dates in advance when they do not want to allow travelers to book their short-term rental. This prevents having to cancel a reservation during a period when you wanted to stay in your own home, for example.

Another way to minimize the need to cancel a reservation is to constantly ensure that your property is in good condition and to carry out repairs as soon as signs of wear or breakage appear. This avoids having to cancel a reservation due to sudden water damage or a heating malfunction in the middle of winter.

And if you are forced to cancel, it is important to try to do so as quickly as possible to avoid significant cancellation fees. However, sometimes it is not possible to avoid the cancellation, but the platform advises against encouraging the traveler to cancel themselves, as this could lead to further consequences for the host.

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