Vacation Rentals – Cancellation Policies Compared – All You Need To Know
So, you booked a vacation rental, but for whatever reason, you need to cancel. What’s going to happen? Where do you stand? In this Vacation Rentals – Cancellation Policies Compared article, we look at all of the various policy options, where you stand, and if and when you get your money back.
Let’s dive in…
Quick links
Why do vacation rental hosts and managers have cancellation policies?
What happens if I cancel an Airbnb booking?
What happens if the host cancels an Airbnb booking?
How do I cancel an Airbnb booking?
What happens if I cancel a Booking.com booking?
What happens if the host cancels a Booking.com booking?
How do I cancel a Booking.com booking?
What happens if I cancel a VRBO booking?
What happens if the host cancels a VRBO booking?
How do I cancel a VRBO booking?
What happens if I cancel a booking that I made directly with the host?
What happens if the host cancels a direct booking?
How do I cancel a direct booking?
Why do vacation rental hosts and managers have cancellation policies?
In order to answer this question, we need to look at things from a host or manager’s perspective. Let’s imagine that a guest has booked two weeks in high season, but they cancel just days before they are due to arrive. These are two of the most expensive weeks of the year, and the chances of the host rebooking these dates at such short notice are very slim.
This host will, in effect, be thousands of dollars (or whatever currency) out of pocket. This is a huge financial hit, and the property will be sitting empty. The pool guy and the cleaning staff have all been booked and still need to be paid.
This is a host or manager’s worst nightmare.
So, to offset the risk of this happening, hosts and managers have clearly stated cancellation policies that mitigate the pain when this happens.
For example, some operators will refund the guest in full if they cancel 60 days before arrival but will only refund the guest 50% of the booking if they cancel 30 days before the due arrival date.
The thing is, there are a myriad of cancellation policies depending on how, where, and when you book.
The three biggest booking platforms, Airbnb, Booking, and VRBO, all have numerous options that the host can choose from, so let’s look at those first…
What happens if I cancel an Airbnb booking?
Believe it or not, Airbnb has 9 different types of cancellation policy, and if that isn’t confusing enough, they also have special case policies for certain countries.
In general, hosts choose which policy they wish to apply to each listing. These range from flexible to strict.
Don’t worry too much, as the cancellation details are clearly shown in the ‘Things to know’ section of each listing.
Just add your dates, and you will see the cancellation policy details for your proposed booking.
Click on the ‘Show more’ link, and you will see the full details regarding the dates applicable to canceling and the percentage of refund that you will receive.
The policy shown below is just an example, and as I say there are over 9 different policies that hosts can choose from, so pay attention here.
Make sure that you check specific details before booking any Airbnb property to avoid any upset should you have to cancel for any reason.
What happens if the host cancels an Airbnb booking?
There may be occasions when a host has to cancel your booking. These could include things like double bookings, the property has been damaged, earthquakes, hurricanes, a pandemic, etc.
Here’s what Airbnb will do if a host cancels a booking…
While it’s rare, sometimes a Host may need to cancel a reservation. We understand this can impact your plans in a big way. Rest assured that every booking made on Airbnb comes with AirCover, protection for guests against significant issues, including Host cancellations within 30 days of check-in.
In the unlikely event a Host needs to cancel your booking within 30 days of check-in, you’ll automatically get a refund and we can help you find a similar or better home to rebook.
Bear in mind that although Airbnb states that they will help you find a similar or better home to rebook, this may not be possible in high season or in rural areas.
How do I cancel an Airbnb booking?
Just follow this short video to cancel an Airbnb reservation.
What happens if I cancel a Booking.com booking?
Similar to Airbnb, BookingCom has various cancellation policies that differ from listing to listing depending on individual host preferences. These can vary from room to room, season to season, etc.
Before booking, check the ‘Book this holiday home’ section. In the example below, you can see that this booking is non-refundable.
Whereas, in the example below, this listing offers free cancellation up to 30 days prior to arrival.
As I said before, cancellation policies vary from listing to listing, room by room, and seasonally, so always check it before you book it,
What happens if the host cancels an BDC booking?
If the host cancels the reservation, Booking.com refunds you immediately; however, the processing time may take 7 to 10 days, depending on the bank.
How do I cancel a Booking.com booking?
Just follow this short video to cancel a Booking.com reservation.
What happens if I cancel a VRBO booking?
VRBO offer hosts 5 different cancellation policies to choose from. Again, as a guest, we don’t need to worry about the different options. We just need to check the actual cancellation terms before booking any individual property.
VRBO is very upfront with cancellation terms, and they are clearly shown below the ‘Book Now’ button (as shown below). In this case, I will receive a full refund as long as I cancel 30 days before my planned arrival date.
As I said before, cancellation policies vary from listing to listing, room by room, and seasonally, so always check it before you book it,
What happens if the host cancels a VRBO booking?
If the owner unexpectedly cancels your reservation within 30 days of your stay, VRBO will help you find a comparable property under the terms of their Book with Confidence Guarantee.
Again bear in mind that although VRBO states that they will help you find a similar or better home to rebook, this may not be possible in high season or in rural areas.
See this article for more on VRBO’s Book with Confidence Guarantee
How do I cancel a VRBO booking?
To cancel a reservation, just follow the steps below
Desktop
- Sign in to your Vrbo account.
- Select your account name and choose My Trips.
- Select the reservation you wish to cancel.
- From the Details tab, select Change or cancel trip.
- Review the property’s cancellation policy.
- Select Cancel booking.
- If Cancel booking isn’t available, select Request cancellation.
iOS or Android device
- Open your Vrbo app.
- Sign in to your Vrbo account.
- Select Trips.
- Select the reservation you wish to cancel.
- Select Change or cancel.
- Review the property’s cancellation policy.
- Select Cancel booking.
Note: If Cancel booking isn’t available, select Request cancellation. When you select Request cancellation, the host must process this request. Follow-up with the host directly if you don’t hear from them within 24 hours.
For more information visit https://help.vrbo.com/articles/Can-I-receive-a-refund-for-my-cancelled-reservation
What happens if I cancel a booking that I made directly with the host?
This will depend on the cancellation policy set by the host. Again, cancellation policies will vary from host to host, and maybe season to season.
Before booking, check the rental agreement that the host has sent you. This should state the terms of the cancellation policy.
Alternatively, check the host’s direct booking website. You should see a section like the one below (but terms will differ on a property by property basis).
Most host’s book direct websites will state the cancellation policy on the availability and rates page. If you can’t find the policy, reach out to the host and ask for their cancellation terms.
Whatever you do, make sure that you have the terms in writing before booking.
What happens if the host cancels a direct booking?
To be honest, you don’t have any real fallback position if a guest cancels a direct booking. This doesn’t happen often, but if it does, you will be forced to find alternative accommodation.
How do I cancel a direct booking?
Contact the host in writing as soon as you can. The host will have outlined the cancellation policy in the rental agreement, but many hosts will make a bigger refund if they manage to rebook the property.
Vacation Rentals – Cancellation Policies Compared
We hope that you found this Vacation Rentals – Cancellation Policies Compared article helpful, but if you have any comments or questions, please drop us a line in the comments section below.
Alan has been working in the vacation rental sector since 2004, when he first created a listing site for his property management company. He has been helping short-term rental owners and managers to stand out in an over-saturated marketplace for over 12 years and has written thousands of articles in that time.
He has written books on vacation rental photography and was the first in the industry to create online marketing courses for hosts.
He has given keynote presentations across various subjects at The Vacation Rental World Summit, VRMA, VRMintel, Host, and The Book Direct Summit.
