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I just opened the AirBnB app, and received a notification that our listing was going to be switched from strict to firm if we didn’t instruct Airbnb that we wanted to remain on the strict policy by October 1.
Just a heads’ up for those of you on the strict policy to watch your cancellation policy.
(Edit was to fix a major typo that made my post rather confusing)
They just sent an email on this. If you don’t confirm you want the Strict policy by Oct 1, you’ll never be able to select “Strict” again.
And no new listings will be able to be on the “Strict” policy.
This probably only affects a few of you, but we have a three-bedroom home in a fly-to location, and the vast majority of our guests book more than 60 days out. It’s not likely we’d get booked if we get a cancellation at 30 days prior to arrival.
I got this as well.
Currently as an API connected host. I still have:
Here is the pop up:
here is the choices:
-There is no way in hell I’m touching this until the end of September.
I wonder if API connected hosts will be exempt.
I wonder if house rules stating guest must sign a contract (like for management companies) will get around this.
The 'Firm" policy really doesn’t cut it for large houses on holiday dates that won’t get rebooked last minute. Let’s say a 1 week stay over Xmas/NY is booked at $10k. The guest can cancel for any reason 8 days before and the host loses $5k in revenue! Or 31 days before arrival and host potentially loses out on the best week of the year! Ski/Destination town luxury rentals won’t go for it. I would just block the holiday periods from OTAs and focus on direct bookings for those dates. Not worth the risk? Or charge double on ABB (facetious) and if they cancel, you make your normal amount anyway? So many angles here to think about. Let’s say guest books 2 weeks in Vail ski trip a year in advance, and 30 days out there is no snow in the forecast and warm temps. Guest could just cancel and go somewhere else with no penalty for blocking a calendar from other bookings for 11 months!
The options don’t even address my current super strict policy.
On the left you see my current settings and on the right their new explanation of the strict policy to come.
I’d prefer to stick to my currently used strict setting. Their 7 days period before check-in for a 50% is not what we’re looking for. Or is the current 14 day prior to check-in also only a 50% refund (thought it was 100%).
Apparently not wanting someone to book your place for 2 weeks for peak Summer or Xmas, 6 months in advance, then have them cancel a week before check in with no penalty, is not “meeting them in the middle”.
Good catch! They are changing the Strict policy to be 50% up to 7 days (it was 14 in most cases) but they are reducing the free cancellation window after booking from 48 hours to 24 hours.
I’m rethinking how I advertise on AirBnB. I’ll probably restrict how far out I make it open, black-out more dates, and raise prices compared to the other sites.
AirBnB is doing their best to lose the larger, higher-end vacation homes. That’s crazy, though - those are the places that have the highest nightly rates and usually the longest bookings.
Edited to add: AirBnB is making over $10,000US in service fees off our home this year. This change is “killing the golden goose” - lots of owners of larger homes are saying on other forums they’ll just stop advertising on AirBnB.
Just adding a comment from a ‘small time’ airbnb that hosts folks in a private home - we are so glad that airbnb is reversing course and making it a bit harder for ‘big guys’ on airbnb - we started 13 years ago here and it was really nice and very host-centric. As time moved on, and airbnb started looking for more hosts and opened up to hotels, property management companies, etc, public sentiment towards airbnb started to (correctly) shift to adversarial. The “big guys” didn’t have time to do things like check that the cleaning was done correctly, that the amenities were stocked, and of course, as they say “shit rolls, downhill” and soon we small operators who break our backs making sure that everyone stay is excellent were suddenly being compared to somebody who has a party house or 50 units in an apartment building.
Gotta love Airbnb’s spin. That they’ve noticed that hosts who use Firm earn 10% more. Therefore they are forcing new hosts to use Firm and probably catching out some established hosts who will maybe miss the Oct. deadline (and screwing hosts by changing to 7 days for 50% refund on Strict)
Because they care so much that hosts earn 10% more. Has nothing whatsoever to do with them earning more service fees, right?
The fault in this logic is: if all the listings switch to “Firm”, the “Firm” listings will no longer have an advantage. This is the beginning of a race to the bottom. Two years from now, they’ll do the same comparing the “Firm” (full refund until 30 days) with the new “Limited” (full refund until 14 days before check in) and move everyone to Limited.
IMO, their goal is that every listing offers full refunds at any time, even after the stay starts.
Yep, I figure they’re working up to Flexible across the board. Like putting a frog in cold water and slowly boiling it.
They say SuperStrict 30 and SuperStrict 60 will still be available to “certain hosts” after October 1: https://www.airbnb.com/help/article/475
After Oct 1 I do not see any difference between Firm and Strict. As I read it in both settings if the guest cancels between 7 and 30 days before arrival then they get 50% back. Too risky for me for my ski season bookings and also over Christmas and Easter. After 30 days prior to arrival for those periods your chance a full re-booking at full price drops steeply each day. If my understanding of the new rules is correct I will be loading Airbnb prices another 20% to cover my cancellation risk. I do across the board pricing. No matter how guests book direct or platform I get the same net amount. Already Airbnb is at a premium compared to direct and BDC. Where Airbnb is 17% more than direct and higher than BDC which is 14.7%. This year BDC has been absorbing the 8% state govt tax which has made them 10% cheaper for the guest but no effect on my revenue. I have seen a big proportional increase in BDC bookings this year.
Strict = full refund only for 24 hours after booking. Firm = full refund until 30 days before arrival.
I see the difference now.
Firm if they cancel more than 30 days before the guest gets 100% of money back (probably not Airbnb keeps their 15.5%) Strict guest gets 50%. Less than 30 days it is the same guests gets 50% back. On both we keep the money if cancels less than 7 days.
If seems that every change Airbnb makes is one that makes the platform less attractive for hosts. If is our policy that guests always get a better deal when they book direct in all respects, price cancellation conditions etc. We are happy to offer a full refund on last minute cancellations in the off-season but peak season want 30 days notice. I will need to put a high enough surcharge on Airbnb in peak season so no one books through Airbnb and if anyone does my risk is covered, but my objective will be to stop bookings by pricing us out of the market on Airbnb in peak season. No worry we will get peak season bookings on VRBO, BDC and our website. We can do without the hassle of Airbnb in peak season.
If guests cancel 7 or more days before check-in, but after the 24-hour cancellation period, you’ll be paid 50% for all nights
If they cancel less than 7 days before check-in, you’ll be paid 100% for all nights
That’s the one that would still work for us.
