We do allow Hosts to cancel reservations, as we understand that sometimes things come up unexpectedly. However, we strongly encourage Hosts not to cancel reservations unless they absolutely have to. We allow one cancellation per Host with no penalty charged. Each time after that, there is a small penalty charged to Hosts for canceling a reservation that has already been accepted. The amount of the penalty varies depending upon how far in advance the Host cancels, and the dollar value of the reservation being canceled. See the table below for a breakdown of exactly how this works:
NOTE: Cancellation penalties DO NOT apply when a Host declines a reservation request, only when canceling a pre-existing reservation. To learn more see: Can I review and approve all reservations before they are confirmed?
A few other important things to know about cancellations
This part is kind of obvious, but just to be clear, when a Host cancels, that means they will not receive any earnings for that reservation. The Guest will always receive a full refund.
If you are a SuperHost and you cancel a reservation, you will lose your SuperHost status and won’t be able to get it back for at least 3 months. If you are not yet a Superhost and you cancel a reservation, you won’t be eligible to become a SuperHost for at least 3 months. Being a SuperHost can help you attract Guests and earn more money.
Possible negative ratings:
Canceling reservations can cause Guests to give you negative reviews and ratings, which can also affect your ability to get future reservations and earnings. If a Host cancels frequently, we may also post negative reviews to your account to inform users of the frequent cancellation activity.
Penalties DO apply to auto-approved reservations:
When you have your listing set to automatically approve all reservation requests, this means that you are pre-approving all requests and any Guest can automatically reserve your space during available hours. The policy and penalties laid out above also apply to cancellations of automatically approved reservations. If you don’t want to have requests automatically approved, you can turn this feature off in the Manage Listings section of the app.