Airbnb's new cancellation policy for hosts: What's changed and how to choose
- Jun 16
- 7 min read
SEO meta title: Airbnb's New Cancellation Policy for Hosts (2026): The "Limited" Option Explained Meta description: Airbnb has reshaped its host cancellation policies, including a new "Limited" option for bookings from 1 October 2025. Here's what changed, how each policy pays out, and how to choose the right one. Suggested slug: /airbnb-cancellation-policy-change-hosts Primary keyword: Airbnb cancellation policy for hosts Secondary keywords: Airbnb Limited cancellation policy, Flexible Moderate Firm Strict, 24-hour cancellation period, non-refundable Airbnb option, host payout on cancellation
If you let a property on Airbnb, your cancellation policy is one of the most important settings you control. It decides how much you keep when a guest cancels, and it quietly shapes both your booking conversion and your protection against last-minute drop-outs.
Airbnb has reshaped its host cancellation policies, and the headline is a new "Limited" policy available for reservations booked on or after 1 October 2025. Alongside it, the self-serve line-up now runs Flexible, Moderate, Limited, and Firm, with the stricter tiers reserved for invitation only. If you set your policy a couple of years ago and haven't looked since, it's worth a fresh review. Here's exactly what each option does, what changed, and how to choose.
How Airbnb cancellation policies work
You actually set two policies on your listing: one for short-term stays (reservations of 27 or fewer consecutive nights) and one for long-term, monthly stays (28+ nights). They behave very differently, so it's worth understanding both.
A few ground rules apply across the board:
"Full refund" means the full price you set, including taxes. Guest service fees are refunded separately based on Airbnb's own rules.
All times are based on the listing's local time zone.
Your chosen policy must comply with local laws and regulations, which matters increasingly in the UK and elsewhere as short-term let rules tighten.
The 24-hour cancellation period (applies to every short-term policy)
This is the rule that trips up the most hosts, so understand it first. Every standard short-term policy includes a 24-hour cancellation window. A guest can cancel for a full refund (including taxes) up to 24 hours after they confirm the booking, provided the reservation was confirmed at least seven days before check-in.
In other words, even a "firm" policy doesn't lock a guest in the instant they book. The main exception is certain non-refundable hotel listings. This window even applies to the non-refundable discounted option (more on that below).
The standard short-term cancellation policies
These apply to all stays of 27 nights or fewer. Here's what each one means for your payout when a guest cancels.
Flexible guests can cancel up to 24 hours before check-in for a full refund (you're not paid). After that, the guest gets pro-rated taxes back, and you're paid for the nights stayed plus one extra night.
Moderate guests can cancel up to five days before check-in for a full refund (you're not paid). After that, they get pro-rated taxes back, and you're paid for nights stayed, plus one extra night, plus 50% of all unspent nights.
Limited (new, for bookings on or after 1 October 2025)
Cancel up to 14 days before check-in: full refund including taxes, you're not paid.
Cancel between seven and 14 days before (after the 24-hour window): guest gets a 50% refund including full taxes, you're paid 50% for all nights.
Cancel less than seven days before: guest gets pro-rated taxes back, and you're paid 100% for all nights.
Firm
Cancel up to 30 days before check-in: full refund including taxes, you're not paid.
Cancel between seven and 30 days before (after the 24-hour window): guest gets a 50% refund including full taxes, you're paid 50% for all nights.
Cancel less than seven days before: guest gets pro-rated taxes back, and you're paid 100% for all nights.
Standard policies at a glance
Policy | Full refund cut-off | Mid-window outcome | Late cancellation (you're paid) |
Flexible | 24 hrs before check-in | — | Nights stayed + 1 night |
Moderate | 5 days before | — | Nights stayed + 1 night + 50% of unspent |
Limited | 14 days before | 7–14 days: you get 50% | <7 days: 100% of all nights |
Firm | 30 days before | 7–30 days: you get 50% | <7 days: 100% of all nights |
Notice where Limited sits: it's a genuine middle ground between Moderate and Firm. It gives guests a reasonable two-week window for a full refund (which helps conversion), while still protecting most of your revenue once you're inside a week of check-in.
Invitation-only policies: Strict and Super Strict
Three stricter policies exist, but Airbnb only makes them available to certain hosts by invitation:
Strict – cancel 7+ days before (after the 24-hour window) for a 50% refund; less than seven days, you're paid 100%.
Super Strict 30 days – 50% refund only if cancelling 30+ days out; otherwise you're paid 100%.
Super Strict 60 days – 50% refund only if cancelling 60+ days out; otherwise you're paid 100%.
If you previously relied on Strict as a self-serve option, this is the practical shift to be aware of: the everyday lineup now tops out at Firm, with the stricter tiers gated behind an Airbnb invitation.
Long-term cancellation policies (monthly stays of 28+ nights)
Monthly stays follow their own rules, with just two choices:
Firm (long-term) Guests must cancel at least 30 days before check-in for a full refund. Cancel after that, and you're paid 100% of nights spent plus 30 additional nights (or 100% of the remaining nights if fewer than 30 remain).
Strict (long-term) Guests must cancel within 48 hours of booking and at least 28 days before check-in for a full refund. After that, you're paid 100% of nights spent plus the next 30 nights (or 100% of remaining nights if fewer than 30 remain).
The non-refundable option (a discount lever worth knowing)
For stays under 28 nights, you can offer guests a non-refundable rate alongside your standard policy. The guest books at a discount in exchange for giving up their refund if they cancel. It's a useful tool for capturing price-sensitive bookers while protecting your revenue, just remember the 24-hour cancellation period still applies (except for certain non-refundable hotel listings).
When your policy can be overridden
Your cancellation policy isn't absolute. Airbnb can override it and refund the guest in two main situations:
A Major Disruptive Event (Airbnb's version of force majeure, covering things like natural disasters or major travel disruption).
An issue covered by Airbnb's Refund and Rebooking Policy for Homes (for example, the listing being significantly not as described or a serious cleanliness or safety problem).
Crucially, if you've already been paid and your policy gets overridden, Airbnb can claw the money back: an adjustment is automatically deducted from your next payout. It's worth budgeting for this possibility rather than treating every payout as final.
How to choose the right policy for your listing
There's no universally "best" policy, it's a trade-off between booking volume and revenue protection.
Looser policies like Flexible and Moderate tend to convert more bookings because guests feel safer committing, which suits new listings building reviews, or markets with plenty of competition. Tighter policies like Limited and Firm protect more of your income from late cancellations, which suits high-demand properties, peak-season dates, and event-driven markets where a late cancellation is hard to re-sell.
Many professional hosts don't pick one and forget it, they match the policy to the situation. The new Limited option is a particularly useful default for hosts who found Moderate too generous but Firm too off-putting at the point of booking.
Key takeaways
Airbnb added a new Limited policy for bookings from 1 October 2025, sitting between Moderate and Firm.
The self-serve lineup is now Flexible, Moderate, Limited, and Firm; Strict and Super Strict are invitation-only.
A 24-hour free cancellation window applies to every standard short-term policy (if booked 7+ days before check-in).
Monthly stays (28+ nights) use separate Firm or Strict long-term policies.
You can offer a non-refundable discounted rate to capture price-sensitive guests.
Your policy can be overridden for Major Disruptive Events or Refund and Rebooking issues, and Airbnb may reclaim paid funds via a payout adjustment.
Review your policy now, especially if you last set it before the Limited option existed.
Frequently asked questions
What is Airbnb's new Limited cancellation policy? Limited is a standard short-term policy available for reservations booked on or after 1 October 2025. Guests get a full refund if they cancel 14+ days before check-in, a 50% refund between seven and 14 days out, and no refund (you're paid 100%) within seven days of check-in.
Did Airbnb remove the Strict cancellation policy? Strict and the Super Strict policies still exist, but they're now available only to certain hosts by Airbnb invitation. The standard self-serve options are Flexible, Moderate, Limited, and Firm.
Can guests still cancel for free even on a Firm policy? Yes. Every standard short-term policy includes a 24-hour cancellation window, allowing a full refund within 24 hours of booking, as long as the reservation was confirmed at least seven days before check-in.
What's the strictest standard policy I can set myself? Without an Airbnb invitation, Firm is the strictest standard short-term policy you can select yourself.
Will I always keep my payout if a guest cancels late? Not necessarily. If a Major Disruptive Event or a Refund and Rebooking Policy issue applies, Airbnb can override your policy and refund the guest, then recover any money owed by deducting an adjustment from your next payout.
Which cancellation policy is best for a holiday let? It depends on demand. High-demand and peak-season listings usually benefit from Limited or Firm to protect revenue, while newer or highly competitive listings may convert more bookings on Moderate or Flexible.
This article summarises Airbnb's published host cancellation policies as of 2026. Always check your live listing and Airbnb's Help Centre for the terms that apply to a specific booking, as Airbnb sometimes tests new policies and regional rules can differ.
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