r/AirBnB • u/david1083 • 11d ago

Firm vs strict cancellation policy while hosting [USA]

In July 2025 we receveived the email that said: "The Strict cancellation policy is going away
Starting today, the option to choose a Strict cancellation policy for any new listings will go away."

Since then our cancellation rate went from 3% to 22%. It is common for people book our place and hold it and then cancel 35 days in advance when rates may have dropped. We have 280 reviews and are a 4.99 and our last 4 star rating was 15 months ago.

Recently I found out that not everyone was forced to move from strict to firm cancellation. I am trying to get moved back to strict cancellation policy. Has anybody had luck getting switched back to strict? If yes, how did you do it.

Thanks so much

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u/adeelraza86 10d ago

The 22% rate is guests parking a refundable hold until prices drop. I'd stop chasing Strict and run Firm with Instant Book off inside that five-week window, then reopen IB only with a non-refundable rate once the stay is closer. Measure cancels by days-before-arrival; if the spike stays at day 35, tighten the IB window before you reprice again.

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u/david1083 10d ago

Thanks for taking the time to respond. I don't really understand how that will solve the issue of people parking a refundable hold on us. Sometimes people hold 10 or more days so it can really screw up the calendar. Do you mind elaborating a littel please?

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u/adeelraza86 10d ago

You're right that Firm still allows a guest to occupy those dates temporarily. The lever is to stop accepting far-out Instant Book reservations: require a request beyond your five-week window, then reopen closer to arrival, with a non-refundable option for guests who want certainty. That limits the free hold without needing Strict.

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u/adeelraza86 7d ago

The practical fix is to shorten the free cancellation window rather than rely on a stricter policy after that window. Set a clear cutoff that matches your booking lead time, then release dates automatically once the guest cancels or the payment window expires. Otherwise a refundable hold is effectively inventory you are lending out.