Say you listed a converted garage in Austin two years ago and set its Airbnb cancellation policy to Super Strict, the strictest option on the list. Open that setting today and it may say Firm. At least one property management software company told its users Super Strict would end on September 15, 2026. The setting only matters on the day a guest cancels, and by then it's too late to change it for that reservation. A policy only pays you when the cancellation lands inside its window, so the one that protects your income is the one that matches how far ahead your guests book.
How Airbnb's Flexible, Moderate, Limited and Firm policies compare
For stays of 27 nights or fewer, the same cancellation on the same booking can pay you nothing or every night, depending on which of Airbnb's four standard policies you picked. All four start with the same 24-hour grace period, explained further down, and after that, they diverge.
| Policy | Guest gets a full refund until | After that, you're paid | Airbnb suggests it when |
|---|---|---|---|
| Flexible | 24 hours before check-in | Each night stayed, plus one more night | It's low season; it's high season and you're sure the dates will rebook; or you're in a competitive market |
| Moderate | 5 days before check-in | Each night stayed, plus one more night, plus 50% of the unspent nights (the nights not yet stayed) | You want to discourage last-minute cancellations or attract business travelers who need a refundable booking |
| Limited | 14 days before check-in | 50% of all nights from 14 to 7 days out, then 100% inside 7 days | You can handle cancellations with at least two weeks' notice and still want guests who like some flexibility |
| Firm | 30 days before check-in | 50% of all nights from 30 to 7 days out, then 100% inside 7 days | You can handle cancellations with at least 30 days' notice and your space is in demand year-round |
Limited is the newest of the four, available for bookings made on or after October 1, 2025. Airbnb's own advice is to start with the most flexible policy your business can support.
Airbnb also says listings whose free cancellation period runs longer than 48 hours after booking are highlighted in search results, and that 44% of guests in its 2024 survey of travelers in 11 markets named free cancellation one of their top needs. Firm keeps that highlight only for guests who book well over a month ahead, since for closer bookings its free period shrinks below 48 hours. That's the price of payouts that start a full month out.
What each policy pays you when a guest cancels
Here is what each policy pays a host on a 4-night, $200-a-night booking: $800 for the nights, with no cleaning fee included. Assume it was booked well in advance, so the 24-hour grace period has already passed. These figures are before Airbnb's service fee. Airbnb is moving all home hosts to a single host-only fee, 15.5% for most listings, taken out of the payout.
| Guest cancels | Flexible | Moderate | Limited | Firm |
|---|---|---|---|---|
| 45 days before check-in | $0 | $0 | $0 | $0 |
| 20 days before check-in | $0 | $0 | $0 | $400 |
| 10 days before check-in | $0 | $0 | $400 | $400 |
| 3 days before check-in | $0 | $500 | $800 | $800 |
| 12 hours before check-in (never arrives) | $200 | $500 | $800 | $800 |
Apply that booking to the Austin garage: 4 nights in September. If the guest cancels 20 days before, Limited pays nothing and Firm pays half. At 3 days out, Limited and Firm both pay the full $800, Moderate pays $500 (one night plus half the remaining three), and Flexible still pays $0. In the last row, Flexible's "plus one more night" kicks in: a guest who cancels less than 24 hours before check-in and never arrives still pays you for the first night, $200.
If you charge a cleaning fee, the guest gets it back in full when they cancel during the free cancellation window. After that window, Airbnb treats it as part of the nightly price, so it's refunded or paid to you by the same percentages as the nights. Airbnb's service fee then comes off whatever you're paid; see what the host-only fee costs.
Match your policy to how far ahead guests book
Lead time is how many days before check-in a guest makes the booking, which is a different count from the cancellation days in the payout table. For the Austin garage, that means opening the reservation list and counting, for the last 10 to 20 stays, the days between each booking and its check-in. A policy that pays from 30 days out does little for a listing whose guests book and cancel inside a week.
| Most of your guests book | What each policy does with that booking | A sensible starting point |
|---|---|---|
| More than a month ahead (holiday weeks, summer, event dates) | Flexible and Moderate refund almost any cancellation. Limited starts paying 14 days out, Firm 30 days out, and guests still see a free cancellation period when they book. | Firm if those dates reliably fill, Limited if you want to look a little easier to book |
| 2 to 4 weeks ahead | Under Firm, the booking is already inside the 30-day window, so once the first 24 hours after booking pass, a cancellation pays you 50% of all nights. Under Limited, a cancellation more than 14 days out pays nothing, and one 14 to 7 days out pays half. | Limited, which keeps a free cancellation period on the listing and still pays inside two weeks |
| Within a week of check-in | The 24-hour grace period needs at least 7 days' notice, so it never applies here. Limited and Firm both pay 100% of all nights from the moment of booking. Moderate pays once you're inside 5 days, and Flexible only inside 24 hours. | Moderate or Flexible, since a short-notice guest who sees no refund option may simply book elsewhere |
The last column is a starting point drawn from Airbnb's own guidance and the math above. Your rebooking odds matter as much as the policy: a cancellation 20 days out costs little if the dates usually refill.
You can also give your busiest weeks their own rules. Airbnb lets you set a date-range policy, a different cancellation policy for specific calendar dates, right from your calendar, so you can run Firm over your highest-demand weeks and something looser the rest of the year. These date-range policies are optional and sit on top of whatever standard policy covers the rest of your calendar.
Airbnb's 24-hour free cancellation rule (and California's version)
Every standard policy for stays under 28 nights opens with the same rule: guests can cancel for a full refund, taxes included, up to 24 hours after booking, as long as they booked at least 7 days before check-in. Book a listing 3 days out and that grace period never applies at all; the guest lands straight in the policy's normal terms. Cancellation and booking times are always measured in the listing's local time zone.
California runs its own version on top of this. State law effective July 1, 2024, gives guests a full refund if they cancel within 24 hours of booking, regardless of the listing's policy, as long as they booked at least 72 hours before check-in. Airbnb applies this to every California stay automatically. If a guest uses it, you get no payout for that reservation, but the dates unblock right away so you can relist them.
Airbnb long-term stay cancellation policy (28 nights or more)
Once a reservation runs 28 consecutive nights or more, the standard short-stay policies stop applying. Two long-term options take over: Firm and Strict. Any host can pick either one, no invitation required.
Firm refunds a guest in full if they cancel at least 30 days before check-in; miss that window and you're paid for every night already stayed plus the next 30 nights of the booking, or for all remaining nights if fewer than 30 are left. Strict refunds in full only if the guest cancels within 48 hours of booking and at least 28 days before check-in. After that, the payout works like Firm's.
So Strict gives a guest a 48-hour window right after booking to change their mind, while Firm gives them until 30 days before arrival regardless of when they booked.
Other settings that shape what guests can do
A few settings sit alongside your main policy and change what a guest can get back. The non-refundable option gives guests a discount, typically 10% off, in exchange for giving up almost all cancellation rights; if a guest cancels after the 24-hour window, you keep the entire payout. It's still subject to the 24-hour free cancellation window, and guests can book it only until a cutoff that depends on your main policy: 1 day out under Flexible, 5 days under Moderate, 14 days under Limited, Firm or Strict. Since the discount comes straight off your nightly rate, it's worth weighing against your overall pricing, covered in how to price your Airbnb.
With the extended cancellation option, a guest pays Airbnb an extra fee to get a full refund up to 24 hours before check-in, even on a stricter listing. It's available on eligible listings in the US and several other countries, and most listings running Moderate, Limited, Firm or Strict are automatically eligible to offer it, though you can opt out at any time. If a guest uses it, you're still paid according to your normal policy, the dates reopen immediately, and it has no effect on your cancellation rate or Superhost status. Changes to any of these settings apply only to future reservations.
Airbnb host cancellation fees when you cancel
Your cancellation policy covers guests who cancel. When you are the one who cancels, a separate fee schedule applies, and it's also based on how close to check-in you cancel. Cancel 48 hours or less before check-in, or after check-in has already happened, and you're charged 50% of the reservation amount for the nights not stayed. Between 48 hours and 30 days out, it's 25%. Cancel more than 30 days out and it's still 10%.
The reservation amount includes the base rate, cleaning fee and any pet fees, but not taxes or guest fees, and the minimum fee is $50. Airbnb typically withholds it from your next payout, and you get no payout at all for the canceled reservation itself.
