Airbnb’s New 24-Hour Free Cancellation Rule: What Hosts Need to Know

BIG CHANGES Coming to AIRbnb (Facebook Ad)

Airbnb has announced a major update to its cancellation policies that will take effect October 1, 2025. If you’re a host, here’s everything you need to know about how this change could impact your bookings, cancellations, and overall hosting strategy.

The Key Update: 24-Hour Free Cancellation Window

Beginning October 1, all short-term stays (under 28 nights) will automatically include a 24-hour free cancellation period.

Here’s how it works:

  • Guests can cancel within 24 hours of booking and receive a full refund—including taxes and fees.

  • This applies only if the booking is made at least 7 days before check-in.

  • After that 24-hour window closes, your chosen cancellation policy (Flexible, Moderate, Firm, etc.) takes over as usual.

What This Means for Hosts

  • Early cancellations are possible: Some guests may back out within a day, so you’ll want to be mindful of how you manage calendars and pricing.

  • Your policy still matters: After the grace period, guests are bound by the cancellation terms you select.

  • Policy options are changing: Airbnb is rolling out a new “Limited” policy and phasing out the Strict policy for new listings after October 1, 2025.

Why Airbnb Is Making the Change

According to Airbnb, the update is designed to give guests more peace of mind when booking, without leaving hosts unprotected. The 24-hour window is meant to build trust and confidence—something that ultimately helps encourage more bookings across the platform.

How to Prepare as a Host

✅ Review your cancellation policy. If you’re currently using “Strict,” you may want to decide whether to keep it or transition to another option before the deadline.

✅ Monitor your booking calendar. Be aware that some last-minute cancellations may happen within that 24-hour grace period—especially for stays booked far in advance.

✅ Communicate with guests. Consider adding a note in your listing description that explains how your policy works after the 24-hour window closes.

Bottom Line

Starting October 1, 2025, every host on Airbnb will need to adapt to this new 24-hour cancellation rule. While it may bring a few early cancellations, the upside is that it can also increase guest confidence and bookings. As long as you set the right cancellation policy for your business, your home remains protected after that initial window.

Source: Airbnb Help Center – Cancellation policies for your home