Airbnb to Introduce More Guest-Friendly Cancellation Policies

Key Points

• Airbnb is replacing its Strict cancellation policy with a more flexible Firm policy for new listings, making it easier for guests to receive refunds.
• The company is also launching a Limited cancellation policy, a 24-hour cancellation grace period, and testing a 'Reserve Now, Pay Later' feature for select guests.
• Industry reactions are mixed, with some seeing benefits for hosts and guest experience, while others are concerned about potential booking risks for high-value stays.

Summary

Airbnb is updating its cancellation policies to be more guest-friendly, transitioning from Strict to Firm policies for new listings, which allow guests to cancel for a full or partial refund up to 30 days before check-in. Additional changes include a Limited cancellation policy, a 24-hour grace period, and a pilot 'Reserve Now, Pay Later' feature. While Airbnb believes these changes will boost bookings and trust, host reactions vary, with some welcoming the flexibility and others worried about the impact on high-value reservations.