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In this Rev Up Monday episode, Jasper dives deep into one of the most overlooked aspects of revenue management: cancellation policies. Learn why your strict cancellation policy might be costing you thousands in lost bookings and discover the optimal policy for your specific market and property type.

Key Topics Covered:

The Hidden Cost of Strict Policies

Why strict cancellation policies discourage early bookings
How policies impact your booking window and revenue
The psychology behind guest booking decisions (44% of guests prioritize free cancellation)

Breaking Down Every Airbnb Policy

Super Strict 30/60 (avoid)
Firm: 30-day cancellation window
Limited: 14-day cancellation window (NEW)
Moderate: 5-day cancellation window
Flexible: 24-hour cancellation window

Market-Specific Strategies

Short booking window markets (like Miami): Go flexible
Seasonal markets (ski/beach): Consider firm for peak season
Stable mid-tier cities: Moderate or limited works best
Large homes vs. small units: Different policies for different property sizes

Advanced Tactics

Using flexible policies to recover from bad reviews
Temporary policy changes to boost momentum
The "last man standing" strategy for 100% occupancy markets
Balancing protection vs. booking velocity

Action Items:

Check your current cancellation policy immediately
Review your market's booking window patterns
Consider loosening your policy if bookings are slow
Test different policies for different property sizes

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Airbnb's New Cancellation Rules: What Every Host Needs to Know (October 2024 Update)

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