When you rent out accommodation with Airbnb, normally everything goes well. But sometimes, the tenant cancels their reservation at the last moment. This obviously results in a loss of income. To reduce these cancellations, there are solutions that will allow you to anticipate.

The Tenant Has Canceled Their Reservation, What are the Impacts?

First, you’ll face a loss of profit. The occupancy rate is naturally affected by these cancellations, which means a loss of income. Any unoccupied rooms in your property represent a missed opportunity to earn money. And even if you manage to re-rent the accommodation, you’ve lost time and money on the canceled reservation.

Cancellation is also a cause for seeing your ranking on the Airbnb platform drop. If you experience numerous cancellations, this will impact your ranking on search engines, but also on the Airbnb site. Indeed, if you have many reservations and as many positive reviews, your visibility will be higher. Conversely, when cancellations multiply, your ranking will also decrease. The listing will then be less visible.

Experiencing a cancellation is also a cause of stress and additional work. You’ll need to update the calendar and try to make the rental profitable by finding a new tenant without delay.

Anticipating Cancellations: the First Actions to Take

First, it will be essential to identify the source of the problem. Naturally, a tenant may have many reasons for having to cancel their stay. But a large number of cancellations can also mean that a problem exists. To solve it, it will then be essential to find its cause. For this, different methods are possible.

The first is to contact the tenant who canceled. This way you can understand the reasons for their cancellation. You can then take the necessary measures to anticipate cancellations.

You can also analyze your competitors’ accommodations. Compare your offer to theirs, so you can determine what makes the difference and what attracts tenants there rather than to your accommodation. This will allow you to improve your accommodation and stand out from competitors in the best way.

Analyzing your guest targeting is also useful. Addressing the right people is essential. Group the type of guests who cancel and analyze it. Do the same with the type of room and the time of year.

Strategies to Reduce Cancellations

The tenant may have different reasons for having to cancel their Airbnb accommodation. But for things to be clear, it is important, above all, to establish a very clear cancellation policy. Communicate it to potential tenants before they book. You should define a precise date beyond which it will no longer be possible to cancel. Clearly specify the cancellation fees that will be taken into account if the tenant cancels after the deadline. By defining a clear and precise policy, this will prevent the tenant from canceling at the last minute.

The standard conditions set up by the Airbnb platform concern reservations of less than 28 nights and are 4 in number: flexible, moderate, firm and strict conditions. The traveler can cancel, for example with moderate conditions, their reservation up to 24 hours before arrival. In the event that the tenant cancels, the owner will not receive any refund if the cancellation takes place at least 5 days before arrival. If the cancellation occurs after, the refund will correspond to the total of nights spent in the accommodation.

It is also possible to ask for a security deposit. At the time of booking, you can request a sum by credit card at the time of reservation. In case of late cancellation, the deposit will serve as a guarantee. It will also be useful to deter potential tenants from booking if they are not sure of themselves. But you can naturally set up your own conditions. Be clear and precise so that there is no doubt.

Partial refund is also an interesting option. Depending on the cancellation date, the refund will be different.

It is also helpful to be flexible and stay in touch with the tenant. Respond promptly to their questions. Send them reminders before they arrive. Being flexible can also prove to be a good idea. For example, by adjusting arrival and departure dates. Or if the tenant wishes to change the dates of their reservation, trying to find the best solution for them and for you will be useful. This way, you’ll show your guest that you care about them.

Effective communication and a proactive approach are essential elements to avoid last-minute cancellations. This will help you maintain and maximize your revenue. You can also entrust your Airbnb property to a concierge service that will handle the search for new tenants and can offer you optimal cancellation conditions. If you own a property on the French Riviera (in Nice, Cannes, or Villefranche-sur-Mer), Bnb Groom Services is at your disposal to ideally rent out your property for short-term stays.