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Category: Guest Communication
By: Tony Russo
Reply by Nolan Peters:
Unfortunately, Airbnb overriding the Strict cancellation policy with "Extenuating Circumstances" happens more than hosts would like. Here's the reality: **Airbnb's Extenuating Circumstances Policy covers:** - Unexpected death of host/guest or immediate family - Serious illness requiring hospitalization (documented) - Government-mandated travel restrictions - Natural disasters making the property uninhabitable - Employment obligations disabling travel (military deployment, jury duty) **What it should NOT cover (but sometimes Airbnb allows):** - "Family emergency" without documentation - Flight cancellation (not an extenuating circumstance per policy) - Car breakdown - Change of plans - Feeling sick (without hospitalization) **What to do RIGHT NOW:** 1. **Respond to Airbnb's inquiry immediately.** State: "I've selected a Strict cancellation policy to protect my business. I request that my policy be honored. If the guest is unable to provide qualifying documentation under Airbnb's published Extenuating Circumstances policy, the standard cancellation terms should apply." 2. **Ask Airbnb to require documentation.** The guest must prove their claim. A vague "family emergency" without a death certificate, hospital record, or other qualifying documentation isn't enough. 3. **Open your dates immediately regardless.** Even while the dispute is pending, make those dates available. If someone books them, your financial loss is reduced (and Airbnb considers this in their decision). 4. **Accept the partial refund if offered.** Sometimes Airbnb offers a compromise: guest gets 50% back, you keep 50%. This is sometimes better than risking Airbnb giving the guest 100%. **My track record with Strict policy overrides:** - 12 extenuating circumstances claims in 3 years - 7 denied (my policy honored) — mostly cases where guest couldn't provide documentation - 3 partially refunded (50/50 split) — cases with some documentation - 2 fully refunded (policy overridden) — one actual hospitalization, one death in family **Long-term strategy:** - Keep your Strict policy — it IS honored more often than not - Consider trip interruption insurance for peak weekends (yes, hosts can buy this) - Maintain competitive pricing so last-minute rebooking is more likely - Accept that 1-2 overrides per year is the "cost of doing business" on Airbnb Also consider Hospitable (https://hospitable.com) for automated calendar management — it can instantly push cancelled dates to other platforms for faster rebooking.
Reply by Camille Dubois:
Alternative perspective: I switched from Strict to Firm cancellation policy and it actually INCREASED my revenue. The Firm policy: - 30+ days before: full refund - <30 days: 50% refund (you keep 50%) - No "free cancellation" window Why it worked for me: 1. More bookings overall — some guests won't book Strict at all 2. The 50% I keep on cancellations plus faster rebooking often exceeds the Strict policy payout 3. Fewer extenuating circumstances claims (guests feel the 50% is fair) 4. Better reviews (guests appreciate the less punitive policy) I A/B tested this across my properties for 6 months. Firm policy properties earned 8% MORE annual revenue than Strict policy properties. The increased booking volume more than compensated for the lower cancellation protection. Your mileage may vary depending on your market — resort/vacation markets benefit from Strict, urban markets may do better with Firm.