Picture this: you’re a host with a packed summer calendar, counting on those bookings to pay the bills. Then, bam—a guest cancels last minute, leaving your property empty during peak season.
Airbnb’s new cancellation policy changes are coming fast, with key updates starting October 1, 2025, for most hosts. The Strict policy is gone for new listings, a new Limited policy is here, and every booking now comes with a 24-hour free cancellation window.
Don’t panic—Triad Vacation Rentals is here to help you navigate this shake-up with smart Airbnb management strategies. Let’s dive into what’s changing, how it compares to the old rules, and how to protect your income.
Airbnb’s cancellation policies for short-term stays (under 28 nights) got major changes starting October 1, 2025. Here’s the big news for the Airbnb Policy Update:
24-Hour Free Cancellation: Guests can now cancel within 24 hours of booking for a full refund (including taxes), as long as check-in is more than 7 days away. This applies to all policies, replacing the old 48-hour grace period for some bookings.
New Limited Policy: Guests get a full refund if they cancel 14 days before check-in. Between 7-14 days, they get a 50% refund. Within 7 days, you keep the full payment. It’s a middle ground for hosts and guests.
Strict Policy Gone for New Listings: As of now, new listings can’t use the Strict policy. Existing hosts can keep it if they opted in before the deadline (check your settings ASAP), but Airbnb’s pushing everyone toward Firm or more flexible options.
Search Boost for Flexibility: Listings with free cancellation periods longer than 48 hours (e.g., Moderate or Limited) get a visibility boost in Airbnb’s search results, as 44% of guests prioritize flexible policies.
For bookings made before October 1, 2025, the pre-2025 Airbnb cancellation policies (Flexible, Moderate, Firm, and Strict) apply, based on your listing’s local time zone. At Triad Vacation Rentals’ Airbnb property management expertise can help you navigate these rules to protect your income.
The new policies for short-term stays include:
Flexible allows full refunds up to 24 hours before check-in;
Moderate offers full refunds 5 days out, with partial refunds after; Limited provides full refunds 14 days out, 50% between 7 and 14 days, and no refunds within 7 days.
Firm gives full refunds 30 days out, 50% between 7 and 30 days, and no refunds within 7 days.
Strict (for opted-in hosts) offers 50% refunds 7+ days out, with full host payouts within 7 days.
Before these changes, hosts had more control. Flexible, Moderate, Firm, and Strict policies were available for stays under 28 nights. Free cancellations were typically allowed within 48 hours of booking, but only if check-in was at least 14 days out. Strict policies let hosts keep full payment for cancellations within 7 days, offering strong protection. The new rules tilt toward guest flexibility, which could mean more bookings but also more cancellations.
For bookings made before April 21, 2025, hosts won’t receive the cleaning fee if guests cancel before check-in, so factor this into your pricing. The new rules tilt toward guest flexibility, which could drive more bookings but also risks more cancellations.
Here’s a breakdown of the updated Airbnb cancellation policies for short-term stays, so you can choose the best fit for your Airbnb management:
Flexible Policy: Guests can cancel up to 24 hours before check-in for a full refund (including taxes). After that, you’re paid for nights stayed plus one extra night, with pro-rated taxes refunded to guests.
Moderate Policy: Guests must cancel 5 days before check-in for a full refund. After that, they get a 50% refund for unspent nights (plus pro-rated taxes), and you’re paid for nights stayed, one extra night, and 50% of unspent nights.
Limited Policy (New!): Full refund 14 days out, 50% refund (including full taxes) between 7 and 14 days, and no refund (except pro-rated taxes) within 7 days. You’re paid 50% for nights between 7 and 14 days and 100% within 7 days.
Firm Policy: Full refund 30 days out, 50% refund (including full taxes) between 7 and 30 days, no refund (except pro-rated taxes) within 7 days. You’re paid 50% for nights between 7 and 30 days and 100% within 7 days.
Strict Policy: Only available to existing hosts who opted in by October 1, 2025. Guests get a 50% refund (including full taxes) if they cancel 7 or more days before check-in (after the 24-hour period), and no refund (except pro-rated taxes) within 7 days, with hosts paid 100% for all nights.
For long-term stays (28+ nights), Firm or Strict policies apply. Firm offers a full refund 30 days before check-in; after that, hosts are paid for nights spent plus 30 additional nights (or all remaining nights if fewer than 30).
Strict requires cancellations within 48 hours of booking and 28 days before check-in for a full refund; otherwise, hosts are paid similarly. Some hosts report Strict is still selectable for long stays—check your settings to confirm.
Airbnb’s updates aim to balance guest flexibility with host security, aligning with industry trends where travelers favor flexible booking options, similar to hotel policies. The 24-hour free cancellation window and new Limited policy cater to guests’ need for planning flexibility, while the search boost for flexible listings encourages hosts to adopt Moderate or Limited policies. These changes also comply with consumer laws, like California’s 24-hour free cancellation mandate, and regulations in countries like Canada and the Netherlands.
California cancellation policies, effective from July 1, 2024, allow guests to cancel any reservation for a full refund within 24 hours of booking, provided the booking is made at least 72 hours before check-in. This applies regardless of your chosen cancellation policy, and hosts receive no payout for such cancellations, though canceled dates are automatically unblocked for rebooking.
Other countries like Canada, Netherlands, Argentina, and others have unique rules, and stays in Italy before October 1, 2025, or for South Korean guests with Strict policies may follow different terms. Policies can also be overridden for extenuating circumstances, so check Airbnb’s cancellation updates page for details. Triad’s Airbnb property management ensures compliance across diverse markets, keeping your listings competitive.
USA-based Airbnb hosts are sharing mixed reactions online about the 2025 changes.
Hosts in seasonal USA markets like Florida’s coastal towns or Colorado’s ski resorts are concerned. One host noted that a cancellation two weeks out on a two-week rental is nearly impossible to rebook, potentially costing significant seasonal revenue, per Triad’s market analysis.
Hosts in busy urban markets like Austin or Charlotte have used Flexible policies for years, often rebooking at higher rates with no issues. Those using Moderate rarely face problems, thanks to Airbnb’s search boost for flexible listings.
USA guests often skip Strict policies for planning flexibility, rarely canceling but wanting the option. This leads to “whimsical” bookings that leave calendars empty, hosts argue. Some suggest Airbnb show cancellation rates to flag frequent cancelers, a fix hosts support to protect Airbnb reviews.
Some hosts are turning to Vrbo or direct bookings for peak seasons, where stricter policies are possible. Others recommend travel insurance to balance guest flexibility and host security. Hosts in last-minute markets like cities are less worried, but those with seasonal or large properties feel the pinch. Triad’s Airbnb management expertise can help you adapt with AI-driven pricing to keep your calendar full.
Don’t let these changes sink your Airbnb management. Here’s how USA hosts can adapt with Triad Vacation Rentals’ expertise:
Log into Airbnb to confirm settings.
Opt in for Strict by October 1, 2025, if desired, or choose Limited or Firm for balance in markets like Florida or California.
Add a nonrefundable option for a discounted rate, especially in California where cancellations within 24 hours yield no payout.
It attracts committed guests and secures income, as seen in fully booked urban listings.
In high-lead-time markets like Colorado ski towns with 6-month bookings, Firm minimizes losses.
For last-minute markets like California’s urban centers, Moderate or Limited boosts bookings with Airbnb’s search bump, and automatic unblocking helps rebook canceled dates.
Triad Vacation Rentals uses AI-powered pricing and marketing to optimize listings across Airbnb and Vrbo.
These strategies help rebook faster, maximizing revenue even with cancellations.
Spell out your cancellation policy in listings and messages, especially for California guests who may expect a 24-hour free cancellation.
Transparency reduces disputes and protects Airbnb reviews, critical in competitive markets.
Explore Vrbo or Booking.com for stricter policies during peak seasons like summer.
Triad’s Airbnb management company manages listings across platforms for maximum exposure.
Nobody wants a bad Airbnb review messing up their bookings, especially in hot USA markets like California or Texas. If guests feel confused about your cancellation policies, they might leave a low rating that tanks your search ranking. Be super clear about your policies and give guests an awesome stay to score those 5-star Airbnb reviews. It’s also key to leaving reviews for your guests as an Airbnb host—kind, honest feedback encourages them to return the favor, keeping your ratings high.
With Airbnb’s 2025 cancellation policies favoring guests, professional Airbnb property management is crucial. Triad Vacation Rentals, an expert Airbnb management company, uses AI-driven pricing to rebook quickly in markets like California, where a 24-hour free cancellation rule applies, or Florida’s seasonal destinations. Our strategies optimize listings across platforms like Vrbo, ensuring your income stays secure. With expertise in managing STRs, Triad keeps your calendar full, even with cancellations.
Airbnb’s 2025 cancellation policies—a new Limited option, no Strict for new listings, and a 24-hour free cancellation window—are a game-changer. While they aim to boost bookings, they’re a headache for hosts in seasonal or unique markets. By acting now, choosing the right policy, and partnering with an Airbnb management company like Triad Vacation Rentals, you can protect your earnings and thrive. Their AI-driven tools and expert insights can turn cancellations into opportunities, keeping your listings competitive.
Take control of your Airbnb success! Book a free consultation with Triad Vacation Rentals to optimize your STR and maximize earnings now!
