Airbnb hosts, take note: Important updates to Airbnb’s cancellation policies are coming into effect, significantly affecting how you manage cancellations and refunds. If you’re using the popular “Strict” policy or considering how these changes will impact your hosting strategy, this comprehensive guide is essential reading.
Airbnb Cancellation Policy Changes: Summary & Opinions
- Strict Policy Defaulting to Firm: Airbnb is moving existing Strict policy listings automatically to the new Firm policy. Hosts can proactively opt-out and keep their existing Strict policy through grandfathering.
- New Limited Policy Introduced: Airbnb introduces a new “Limited” cancellation policy, positioned between the Moderate and Firm options, offering another choice for hosts to consider.
- Universal 24-Hour Cancellation Window: All standard cancellation policies, including grandfathered Strict, will now have a 24-hour grace period, allowing guests to cancel bookings within 24 hours of confirmation without penalty.
- Grandfathering Importance: Hosts who value predictable income must actively opt-out to maintain their existing Strict policy, recognizing that even grandfathered policies are now subject to the 24-hour cancellation grace period.
- Luxury and High-Value Listings: Historically, luxury or premium listings have had access to “Super Strict 30” and “Super Strict 60” cancellation policies. Hosts of high-end properties should consider negotiating for these policies for added protection and revenue predictability.
Airbnb Cancellation Policies: Details
1. Changes to the “Strict” Policy:
Phasing Out for New Listings:
- Effective October 1, 2025 (for most countries), Airbnb will no longer offer the “Strict” cancellation policy as an option for new listings.
Automatic Transition to “Firm” for Existing Listings:
- Listings currently on the “Strict” policy will automatically shift to the “Firm” policy by October 1, 2025.
Comparison: Current “Strict” vs. New “Firm” Policy:
- Current Strict Policy:
- Guests get a 50% refund if canceled 7 days or more before check-in.
- No refund if canceled fewer than 7 days before check-in.
- New Firm Policy:
- Guests get a 100% refund if canceled 30 days or more before check-in.
- Guests get a 50% refund if canceled between 7 and 30 days before check-in.
- No refund if canceled fewer than 7 days before check-in.
How to Opt-Out and Retain Your Strict Policy (Grandfathering):
- Log into your Airbnb hosting dashboard.
- A notification prompting you to confirm your updated cancellation policy will appear.
- Click “Review and Confirm.”
- Select “Keep Strict policy” before October 1, 2025, to retain your grandfathered status.
2. New “Limited” Policy Introduced:
Effective October 1, 2025, Airbnb is launching the “Limited” cancellation policy, positioned between “Moderate” and “Firm,” specifically designed for shorter stays.
Updated Policy Line-Up (for short stays under 28 nights):
- Flexible
- Moderate
- Limited (New)
- Firm
Refund Structure Comparison:
| Policy | Guest Full Refund Window | Host payout if guest cancels after full refund period |
|---|---|---|
| Moderate | Until 5 days before check-in | Paid for nights stayed + 1 additional night + 50% remaining nights |
| Limited | Until 14 days before check-in | 50% if canceled between 7-14 days, 100% if canceled less than 7 days |
| Firm | Until 30 days before check-in | 50% if canceled between 7-30 days, 100% if canceled less than 7 days |
3. Universal 24-Hour Free Cancellation Period:
From October 1, 2025, Airbnb introduces a standardized 24-hour free cancellation period across all standard short-stay policies:
- Applies to bookings confirmed at least 7 days before check-in.
- Replaces the previous 48-hour free cancellation window.
Special Note for Specific Countries:
Changes have already been in effect since January 20, 2025, for listings in Argentina, Canada, Chile, Colombia, Morocco, Netherlands, Philippines, Poland, South Africa, Sweden, and Turkey.
Important Considerations for Hosts:
- Hosts who prefer clear protection and predictable income might feel these changes shift power towards guests by providing them more flexibility.
- To maintain predictability, hosts currently using the Strict policy must actively opt-out to stay grandfathered before the October deadline.
- Historically, Airbnb has offered “Super Strict 30” and “Super Strict 60” day policies selectively to luxury properties and high-end hosts. Hosts with luxury or high-value properties may explore options to obtain these exclusive policies for additional protection.
- Airbnb states hosts moving from Strict to Firm may earn 10% more on average. While this figure could indeed reflect global averages, Airbnb has not clearly explained the calculation or provided underlying data for transparency.
1. Changes to the “Strict” Policy:
Phasing Out for New Listings:
- Effective October 1, 2025 (for most countries), Airbnb will no longer offer the “Strict” cancellation policy as an option for new listings.
Automatic Transition to “Firm” for Existing Listings:
- Listings currently on the “Strict” policy will automatically shift to the “Firm” policy by October 1, 2025.
Comparison: Current “Strict” vs. New “Firm” Policy:
- Current Strict Policy:
- Guests get a 50% refund if canceled 7 days or more before check-in.
- No refund if canceled fewer than 7 days before check-in.
- New Firm Policy:
- Guests get a 100% refund if canceled 30 days or more before check-in.
- Guests get a 50% refund if canceled between 7 and 30 days before check-in.
- No refund if canceled fewer than 7 days before check-in.
How to Opt-Out and Retain Your Strict Policy (Grandfathering):
- Log into your Airbnb hosting dashboard.
- A notification prompting you to confirm your updated cancellation policy will appear.
- Click “Review and Confirm.”
- Select “Keep Strict policy” before October 1, 2025, to retain your grandfathered status.
2. New “Limited” Policy Introduced:
Effective October 1, 2025, Airbnb is launching the “Limited” cancellation policy, positioned between “Moderate” and “Firm,” specifically designed for shorter stays.
Updated Policy Line-Up (for short stays under 28 nights):
- Flexible
- Moderate
- Limited (New)
- Firm
Refund Structure Comparison:
| Policy | Guest Full Refund Window | Host payout if guest cancels after full refund period |
|---|---|---|
| Moderate | Until 5 days before check-in | Paid for nights stayed + 1 additional night + 50% remaining nights |
| Limited | Until 14 days before check-in | 50% if canceled between 7-14 days, 100% if canceled less than 7 days |
| Firm | Until 30 days before check-in | 50% if canceled between 7-30 days, 100% if canceled less than 7 days |
3. Universal 24-Hour Free Cancellation Period:
From October 1, 2025, Airbnb introduces a universal 24-hour cancellation window for all standard short-term policies:
- Guests can cancel without penalty within 24 hours of booking confirmation.
- Applies only to bookings made at least 7 days before check-in.
- Replaces the previous 48-hour cancellation window.
Impact of the 24-Hour Cancellation Window:
- This universal change provides guests with immediate flexibility after booking, potentially impacting hosts who rely heavily on confirmed reservations for predictability and financial security.
- Hosts must factor this additional flexibility into their booking management and communication strategies.
Special Note for Specific Countries:
Changes have already been in effect since January 20, 2025, for listings in Argentina, Canada, Chile, Colombia, Morocco, Netherlands, Philippines, Poland, South Africa, Sweden, and Turkey.
FAQs:
1. Can I still select the Strict cancellation policy when creating new Airbnb listings after October 1, 2025?
No, starting October 1, 2025, Airbnb will remove the Strict cancellation policy as an option for any new listings. Hosts who currently use this policy for existing listings may choose to keep it through an opt-out process.
2. How exactly can I keep my current Strict cancellation policy active after the upcoming Airbnb policy changes?
To retain your Strict cancellation policy, you must actively opt-out by logging into your Airbnb hosting dashboard, clicking on the notification about policy changes, and selecting the option to “Keep Strict policy.” Make sure to complete this action before October 1, 2025.
3. Does the new universal 24-hour cancellation policy affect grandfathered Strict policies as well?
Yes, the newly introduced universal 24-hour free cancellation policy applies to all Airbnb standard cancellation policies, including grandfathered Strict policies. Guests can cancel any reservation without penalty within 24 hours of booking, provided the booking was confirmed at least 7 days prior to check-in.
