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My ethics now (different than in my youth) preclude me from taking money and giving no product or service in exchange. To me that is no different than a scam or theft. I see this as a financial transaction first, an emotional one second. Feelings of competition, contempt, anger at being manipulated, a desire to get revenge on a guest who tried to outsmart me are all negative emotions that I find exact a cost far greater than the monetary one.
Other people take a different path and are perfectly happy to do so.
I agree and since the OP did give something of value she should not refund a penny. The item of value of course was having her calendar blocked for a busy month for 4 months. The guest agreed to a contract which has a refund policy spelled out. However the guest decides to honor the contract is on the guest.
hi, i had a guest for a week who wanted to cancel the final day. i wrote to her that any changes to the reservation are to be addressed with airbnb. she contacted them & i received a request on line to alter the reservation. i could accept or decline. it showed the amount of refund too