Airbnb’s New Cancellation Policy: What You Should Know
If you’re planning your next getaway, here’s some welcome news: Airbnb is rolling out a major update to its cancellation policy — and starting October 1, 2025, guests are getting more flexibility than ever.
24-Hour Grace Period
Among the most significant changes? There is a 24-hour free cancellation window for all regular short-term reservations (less than 28 nights). You can cancel within the first 24 hours for a complete refund, including taxes, provided that the reservation was made at least 7 days prior to check-in.
Goodbye, Strict — Hello, Limited
The strict cancellation policy for new listings is being phased down by Airbnb. Alternatively, hosts have the option of a new Limited policy, Firm, Moderate, or Flexible. The Limited policy finds a middle ground: if you cancel 14 days or more prior to check-in, you will receive a full refund; if you cancel between 7 and 14 days, you will receive 50% of your money back.
What About Yesterday’s Strict Bookings?
Airbnb is implementing a change for hosts who now follow the Strict policy: unless they specifically opt out by October 1, their listings will automatically become Firm. According to the new firm policy, visitors who cancel 30 days or more before check-in will receive a full refund; those who cancel 7–30 days prior will receive a 50% refund.
Why the Change?
In fact, over 44% of guests believe that free cancellation is a top priority when making a reservation, which supports Airbnb’s claim that this is all about visitor flexibility. Additionally, hosts may benefit from the change; according to Airbnb data, hosts who move from Strict to Firm often make 10% more money.
Bottom Line
If you’re a guest, these changes make it much easier to book with confidence — and cancel if your plans change. For hosts, it’s a moment to reevaluate your cancellation policy: you can lean into the new Limited or Firm options, or keep Strict (if you act by the deadline).
Whether you’re traveling for relaxation, adventure, or business, Airbnb’s updated policy gives you a nicer safety net — and maybe even better options when you’re ready to reserve.
