Guests are getting more flexibility with Airbnb’s new cancellation policies.
Starting Oct. 1, 2025, the standard cancellation policies for stays less than 28 nights will allow guests to cancel up to 24 hours after the reservation is confirmed for a full refund, as long as the reservation was confirmed at least seven days before check-in.
Airbnb is also introducing a new Limited cancellation policy, which allows guests to cancel reservations up to 14 days before check-in and be eligible for a full refund.
In this Limited policy, if a guest cancels between seven and 14 days before check-in, but after the given 24-hour cancellation period, the host will be paid 50% for all nights. If they cancel less than seven days before check-in, the host will be paid 100% for all nights.
Additionally, Airbnb’s Strict policy will no longer be available for any new listing.
In the Strict policy, there was no possibility of a full refund. If a guest canceled seven days or more prior to check in but after the 24-hour cancellation period, the host would’ve been paid 50% for all nights. If they canceled less than seven days in advance, the host would be paid in full.
Current listing with a Strict policy will be automatically changed to their Firm policy unless the host opts out and chooses to keep Strict by Oct. 7.
Now, with the Firm policy, guests can cancel up to 30 days before check-in for a full refund.
If they cancel between seven and 30 days before check-in but after the 24-hour period, with the Firm policy, the host would be paid 50% for all nights. If they canceled less than seven days in advance, the host would be paid in full.
Despite the changes, Airbnb hosts still have the option to choose which policy works best for them and their renters.
An Airbnb spokesperson told Newsweek that they are updating their cancellation policies because “over 40% of guests say free cancellation is one of their top needs when choosing to book a stay.”
They added that globally, hosts who switch from Strict to Firm earn 10% more money on average for their properties.
“The vast majority of hosts have the option to opt out of the migration.”
As of Oct. 1, the Strict cancellation policy will be “only available to certain hosts,” though it’s not immediately clear who qualifies to opt out.
The non-refundable option with a discount for shorter stays will still be available. Hosts can still choose to offer a non-refundable option that will allow guests to book their Airbnb at a discounted rate that’s not subject to the standard cancellation policy. If the guest cancels, they won’t be refunded.
These new policies apply to reservations booked on or after Oct. 1.
Hosts on Reddit are not happy with the change, lamenting that Airbnb doesn’t care about the hosts.
“I hate this. Airbnb and VRBO are always trying to get us to loosen our cancellation policies. I get it for small properties, but we have a couple 7-8 bedroom cabins and our guests almost always book 3+ months out. Big groups like that aren’t booking 1-2 months out. I’d be fine with a policy that offers almost 100% 90 days out, but that’s not available,” one wrote.
“Just more proof that they are all about the guests and couldn’t care less about the hosts,” another commented.
“I stuck with strict. Guess I’m losing out on 10% of guests. Oh well,” someone shrugged.
However, Amber Carpenter, vice president of product and growth strategy at enterprise revenue management platform Wheelhouse, told Skift that she believes the change will pay off for hosts in the long run.
“Airbnb’s latest policy updates reflect a broader industry shift toward guest-first experiences, starting at booking and rooted in trust and flexibility,” she said.
“Rather than resisting this trend, individual hosts and property managers have an opportunity to elevate the guest journey through diverse marketing efforts — including strong direct booking channels — and thoughtful revenue strategies. When trust leads, financial performance follows.”
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