Rental Property Investor · Seattle, WA · Member since 2016 · 524 posts · 148 votes
Hi All,
I have my Airbnb listing set to "Firm (New)" for cancellation policies. Wanted to know what your guys' / gals' thoughts are on what is the best cancellation policies out there?
Also, I have my STR on Airbnb and VRBO. Should I put it on Bookings.com too? What other OTAs are worth listing on? Is it even worth it to list on others other than Airbnb and VRBO?
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
4y
It seems Airbnb’s algorithm may favor you being more flexible in your cancelation policy, similar to the way they do with instant book being turned on.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
4y
As far as other sites, what does your occupancy numbers look like right now? I would say if you are less than a year in focus on the these 2 sites. Have very competitive pricing to start so you can get more bookings and more reviews. More reviews will lead to more bookings.
Property Manager · Nova Scotia · Member since 2021 · 78 posts · 52 votes
4y
Guests will cancel whenever they want to/need to and will almost always expect a refund no matter which option they select. We prefer flexible for that reason (and because, as @Luke Carl mentions it seems to be preferred by ABB) but sites like "booking.com" offer a non-refundable rate option that can also boost traffic and bookings.
The key is that you're happy and comfortable with your policy and "enforcing it" if need be. We actually add a section to our "house rules" stating that we cannot refund non-refundable rates just to make sure there is no misunderstanding (though...we definitely still get requests)
Your question about booking.com factors in greatly here actually. We use it, and it's pretty good. The guest will not be the same (have the same expectations) as dedicated STR sites though so be prepared for that. You'll also likely want to look at a damage/security deposit strategy if you go that way...which again, will be a matter of comfort and willingness to communicate and hold firm on.
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
4y
Hey @Gulliver R., our policy is moderate and we do get guests who cancel after the no refund part of the policy. It is very rare actually. I feel pretty sure that like @Leslie Anne Morris said, both VRBO and AirBNB algorithms prioritize the listings based on ease of booking (instant book) and very flexible cancellation policies.
That one guest who canceled last minute? I gave them a full refund due to the death of her husband. Could have been a lie, but why be a jerk. It was booked less than 24 hours after I removed the block on VRBO.
If you have a great STR, you will get those canceled dates re-booked.
Rental Property Investor · Seattle, WA · Member since 2016 · 524 posts · 148 votes
4y
Thank you everyone for your feedback and information! I'll probably wait to add Booking.com into the mix. I'll see how things go for a little bit longer. As far as my cancellation policy I'm in the middle. I'll see how things go and tweak it from there.
So 2 weeks ago I listed my property on Airbnb and VRBO and so far it's been pretty slow. So far I have 3 bookings: one this month and two for October. Is it usually this slow going in the beginning?
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
4y
Hey @Gulliver R.. yup, that is the norm. A brand new listing has no reviews or feedback. Depending on where it is it could take a while to get rolling. We weren't profitable the first year, broke even the 2nd and now we are doing very well.
It is going to take time. The more popular an area (like the Smokey's) seem to get a lot of bookings right away, but my area (north Idaho on Lake Coeur d'Alene) it isn't the same. It is a popular place, but no where near the visitors the Smokey's get.
Rental Property Investor · Seattle, WA · Member since 2016 · 524 posts · 148 votes
4y
@Michael Baum - ok thank you for the reassurance. I knew it would be pretty slow going, but I just didn't know for how long. My property is in Indio, CA so it's a popular destination in the spring and a few more other times in the year. But it's not an all year busy place for traveling. So there's for sure seasonality.
I got all the tools that I can think of to make this a successful venture: I got the smart locks, keypad, door bell cam, outdoor cam, noise sensor, PMS, Dynamic Pricing tool, scheduling app for cleaners, smart thermostat, etc. Any other helpful tips are absolutely welcome :) !
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
4y
Hehe @Gulliver R.! You got more than me! I have the locks and thermostat but none of the rest really. I also don't do dynamic pricing so I don't need that.
@Michael Baum - ok thank you for the reassurance. I knew it would be pretty slow going, but I just didn't know for how long. My property is in Indio, CA so it's a popular destination in the spring and a few more other times in the year. But it's not an all year busy place for traveling. So there's for sure seasonality.
I got all the tools that I can think of to make this a successful venture: I got the smart locks, keypad, door bell cam, outdoor cam, noise sensor, PMS, Dynamic Pricing tool, scheduling app for cleaners, smart thermostat, etc. Any other helpful tips are absolutely welcome :) !
Wow! you are on it. I love how well you prep the house. You will do great. Stick with it.
Hey @Gulliver R., our policy is moderate and we do get guests who cancel after the no refund part of the policy. It is very rare actually. I feel pretty sure that like @Leslie Anne Morris said, both VRBO and AirBNB algorithms prioritize the listings based on ease of booking (instant book) and very flexible cancellation policies.
That one guest who canceled last minute? I gave them a full refund due to the death of her husband. Could have been a lie, but why be a jerk. It was booked less than 24 hours after I removed the block on VRBO.
If you have a great STR, you will get those canceled dates re-booked.
I just had someone contact me tonight saying they were running a fever and wouldn't be arriving for their checkin tomorrow. They knew that they weren't entitled to a refund. I still feel bad when this happens. I offered to give them some similar dates this fall for no charge. That seemed like a reasonable compromise. They have already been sent the automated check-in instructions.