New Airbnb Cancellation Policy Update October 2025

Airbnb introduced a mandatory 24-hour free cancellation window for guests starting October 1, 2025. This update affects every host and applies regardless of your chosen cancellation policy. Understanding how it works helps you protect your revenue and adjust your booking strategy accordingly.

What Changed in Airbnb's Cancellation Policy

Starting October 1, 2025, guests who book at least seven days before check-in can cancel within 24 hours of making the reservation and receive a full refund. This rule applies automatically in eligible countries, and hosts cannot opt out.

The 24-hour window sits on top of your existing cancellation policy. Whether you use Flexible, Moderate, Firm, or the new Limited terms, guests still get this initial cancellation period. After the 24 hours pass, your standard policy takes effect.

This targets early bookings. A guest who reserves your property two weeks in advance can cancel the next day with no penalty. Your payout disappears before you've scheduled a cleaning or blocked out the calendar elsewhere. Airbnb designed this rule to reduce booking hesitation and encourage guests to commit earlier.

Airbnb has also added a new cancellation tier called the Limited policy, which sits between Flexible and Moderate. Under the Limited policy, guests can cancel up to 14 days before check-in for a full refund. This gives hosts more booking security than the Flexible policy (which allows cancellation up to 24 hours before check-in) while offering guests more flexibility than the Moderate policy (which requires five days' notice).

The Limited policy is designed to appeal to hosts who want to offer reasonable guest flexibility while maintaining stronger booking confidence for reservations in the two-week window before arrival.

Airbnb will also phase out the Strict policy and will be switching old listings using it to the Firm policy.

Who The New Cancellation Policy Affects Most

The impact varies based on booking patterns, property location, and how far in advance guests typically reserve.

Seasonal properties face the biggest disruption. Beach houses, ski lodges, and vacation rentals near major events often fill months ahead. When a guest books in September for a December stay and cancels within 24 hours, you lose time to rebook during what should have been a locked-in period.

Urban listings see less impact. City properties near business districts or tourist hubs typically fill closer to check-in. Guests booking three days out don't trigger the 24-hour rule because the reservation doesn't meet the seven-day threshold.

New hosts and smaller operators might feel it more. Managing one or two listings means a single cancellation can disrupt your entire week.

How the 24-Hour Window Works

Let's say a guest booked on Monday for a Friday arrival two weeks out. They have until Tuesday at the same time to cancel and receive a full refund. Your cancellation policy doesn't apply yet, regardless of what it is. However, if they wait until Wednesday, your chosen terms take over and are applied to the reservation.

The seven-day cutoff is firm and doesn't change, regardless of how close the reservation dates are. If someone books on Thursday for a Saturday same week check-in, the 24-hour rule doesn't apply. They're already inside the seven-day window when making the reservation, so your standard cancellation policy is in effect immediately.

Airbnb processes the refund automatically. The system cancels the booking, returns the payment to the guest, and reopens the dates on your calendar. You receive a notification after the transaction is complete.

What Doesn't Change

Your standard cancellation policy still applies after the 24-hour window closes. If you run a Firm policy, guests who cancel after that first day follow your terms. The update doesn't weaken your protection—it delays when that protection starts.

Host penalties for canceling on guests remain the same. You still face fees, calendar blocks, and potential Superhost status hits if you cancel a confirmed booking.

Major Disruptive Events still override everything. If Airbnb invokes its Major Disruptive Events Policy due to natural disasters, government restrictions, or other qualifying events, both your standard policy and the 24-hour window become irrelevant.

Performance metrics tied to cancellations remain unchanged. Superhost criteria, listing rankings, and search placement still factor in your cancellation rate, but only for cancellations you initiate. Guest cancellations, including those within the 24-hour window, don't count against you.

Current Cancellation Policy Options for Short-Term Stays

As of October 2025, hosts can choose from the following standard cancellation policies for stays under 28 nights:

• Flexible: Guests can cancel up to 24 hours before check-in for a full refund. If they cancel within 24 hours of check-in, the first night and cleaning fee are non-refundable.
• Limited: Guests can cancel up to 14 days before check-in for a full refund. Cancellations made within 14 days are non-refundable.
• Moderate: Guests can cancel up to 5 days before check-in for a full refund. For cancellations made within 5 days, the first night and cleaning fee are non-refundable.
• Firm: Guests can cancel up to 30 days before check-in for a full refund. Cancellations between 7-30 days before check-in receive a 50% refund. Cancellations within 7 days are non-refundable.

Remember that all of these policies now include the 24-hour grace period mentioned earlier, giving guests an additional layer of protection immediately after booking.

Hosts still have the ability to offer a non-refundable booking option at a discounted rate. This allows guests to book at a lower price in exchange for committing fully to the reservation. If guests choose this option and cancel, they won't receive a refund, except during the 24-hour grace period if the booking was made at least seven days before check-in.

The non-refundable option can be attractive for budget-conscious travelers who are certain about their plans and want to save money, while giving hosts guaranteed revenue.

Final Thoughts

These policy changes reflect Airbnb's ongoing effort to refine the platform experience and remain competitive in the evolving short-term rental market. Airbnb's rules and policies will keep changing. Hosts who stay informed, test adjustments, and track results will have the advantage when the next policy change arrives.

For now, the message is clear: Airbnb is prioritizing guest flexibility, and hosts will need to adapt their strategies accordingly. Whether through adjusted pricing, strategic use of other cancellation policies, or simply accepting a slightly higher level of booking uncertainty, success on the platform will increasingly require hosts to work within new and ongoing changes.