Airbnb Refunds & Cancellations: How to Protect Your Income

How Airbnb Refunds Work (And How Hosts Should Respond)

Refunds should be the exception, not the norm.

If you’ve dialed in your Airbnb strategy, set clear expectations, and run your operations through a professional system like Guesty, refund requests should be rare.

But even the best hosts run into situations that are out of their control.

Inside BNB Guardians Airbnb coaching, we teach hosts how to:

• Minimize refund risk

• Protect income with the right cancellation policies

• Respond correctly when Airbnb steps in

This guide breaks down when Airbnb refunds apply, how cancellation policies actually work, and exactly how to issue a refund without hurting your business.

When Can Guests Request an Airbnb Refund?

Under Airbnb’s policies, guests typically have 24 hours after check-in to report an issue that may qualify for a refund.

They’re required to:

• Submit photos or videos as evidence

• Contact the host first

• Allow the host a short window to resolve the issue

If the issue isn’t resolved quickly, Airbnb may step in and determine whether a refund or travel credit is issued.

Common Situations That Trigger Refund Requests

1. Guest Can’t Access the Property

If a guest can’t get in because:

• No key was provided

• A smart lock code wasn’t sent

• Instructions were unclear

They may qualify for a refund.

This is why we teach hosts to automate check-in instructions and access codes inside Guesty, especially for same-day or Instant Book reservations.

2. Inaccurate Listing Description

Your listing must match reality—period.

Refunds may apply if:

• A “private home” turns out to be shared

• Bedroom or bed counts are inaccurate

• Accessibility features (like elevators) are misrepresented

BNB Guardians rule:If it’s filtered on Airbnb, it must be accurate in your listing.

3. Missing or Broken Essential Amenities

Guests may request refunds if critical amenities don’t work and aren’t fixed promptly, including:

• Heat or air conditioning

• Toilets or showers

• Kitchen appliances

• Hot tubs (if advertised as a feature)

If something breaks mid-stay, clear communication + fast action can often prevent a refund altogether.

4. Cleanliness or Safety Issues

Cleanliness is non-negotiable.

Refunds may apply if:

• The property wasn’t properly cleaned

• There’s mold, pests, or construction hazards

• The space is unsafe or unsanitary

This is why BNB Guardians hosts build cleaning SOPs, photo verification, and cleaner communication directly into Guesty.

Airbnb Cancellation Policies (And How Refunds Apply)

Your cancellation policy determines how much income you keep when a guest cancels.

Here’s a simplified breakdown hosts should actually remember:

Airbnb Cancellation Policies Explained

Flexible

• Full refund if canceled 24+ hours before check-in

• High demand, higher cancellation risk

Moderate

• Full refund if canceled 5+ days before check-in

• Balanced option for many hosts

Strict

• Full refund within 48 hours of booking (if far enough out)

• Partial refund closer to check-in

• Better income protection

Long-Term (28+ nights)

• Full refund only within first 48 hours

• After that, guests owe at least 30 days

Super Strict (30 / 60 Days)

• Limited refund windows

• Only available to software-connected hosts

• Strongest income protection

BNB Guardians insight:

Stricter policies often outperform flexible ones long-term when paired with strong Airbnb SEO, pricing, and listing optimization.

What Happens If You Cancel as a Host?

Host cancellations are serious, and Airbnb tracks them closely.

If you cancel:

• The dates are blocked (you can’t rebook them)

• Airbnb posts an automated public review stating you canceled

• You lose Superhost eligibility for up to one year

Cancel too often and Airbnb may:

• Penalize your listing visibility

• Suspend or remove your account

Exception:

Hosts using Instant Book can cancel without penalty if there are legitimate safety concerns, but this should never be routine.

How to Issue an Airbnb Refund (Step-by-Step)

There are two types of refunds: full and partial.

Full Refund (Before Check-In)

1. Go to Reservations

2. Select the booking

3. Click Issue Refund

4. Confirm the amount

Partial Refund (After Check-In)

1. Open the Resolution Center

2. Click Send Money

3. Select the guest

4. Choose a reason

5. Enter refund amount

6. Add a short explanation

7. Send

Important:

👉 You are not required to issue a refund if you disagree.You can contest refund requests and let Airbnb review the evidence.

The BNB Guardians Takeaway

Refunds don’t kill Airbnb businesses, lack of systems does.

At BNB Guardians, we help hosts:

• Prevent refund situations before they happen

• Use Guesty to automate access, cleaning, and communication

• Choose cancellation policies that protect income

• Handle disputes confidently and professionally

When your operations are dialed in, refunds become rare, controlled, and strategic—not stressful.

👉 Need help tightening your Airbnb systems?

Join our Airbnb Super Host Academy on Skool or book a call with BNB Guardians for hands-on Airbnb coaching and operational support.