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In this episode of Get Paid For Your Pad, Jasper Ribbers continues last week’s conversation on cancellation policies and breaks down how VRBO and Booking.com approach cancellations differently from Airbnb. This part-two discussion focuses on how policy structure, booking windows, and guest behavior impact your revenue and why choosing a single policy for the entire year often leads to missed opportunities.
This conversation explains why different seasons require different cancellation rules, how Booking.com allows more customization than any other channel, and what hosts should consider when deciding between strict, moderate, or flexible setups.
You’ll hear:
- Why one cancellation policy for the entire year does not work
- How booking windows determine the ideal cancellation rules
- Why summer markets often require stricter policies than winter
- What to know about VRBO’s strict, firm, moderate, and relaxed tiers
- How Booking.com lets you build multiple policies and price them differently
- Why offering both non-refundable and flexible rates improves conversions
- How choice overload impacts guest decision making
- When a flexible policy helps new listings gain early traction
- Why aligned policies across channels can simplify operations
- When it makes sense to diversify and use different rules on different platforms
We also talk about:
- Airbnb’s upcoming dynamic cancellation policies arriving in 2026
- Why blocking your summer calendar can protect you from costly cancellations
- How to fast-track reviews on Booking.com with flexible early policies
- Why Booking.com is gaining momentum in the US market
- How strict review standards on Airbnb make channel diversification more important than ever
🎯 Mentioned in the Episode:
- Airbnb dynamic cancellation update
- VRBO cancellation policy categories
- Booking.com rate plan setup and flexibility
- OR Getaways
🔥 Favorite Takeaway:
“Your booking window should determine your cancellation policy, not the calendar.”
📍 Want to grow a profitable and resilient STR business?
Connect with Jasper on LinkedIn and continue the conversation on smarter revenue strategy.
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Jasper Ribbers | Freewyld
Welcome back to another episode of Get Paid For Your Pad. Today is Monday, which means you are listening to an episode of RevUp, where we talk about revenue management strategies and what we are learning from managing 45 portfolios across multiple markets around the world. We currently manage over 80 million dollars in supply and revenue with a team of five revenue managers. Each week we share insights and strategies to help you maximize your revenue.
Today we are talking about cancellation policies. Last week we covered Airbnb’s cancellation policies and how they affect your bookings, your revenue, and which options tend to be the most profitable. This week is part two, focused on VRBO and Booking.com, because both platforms handle cancellations very differently from Airbnb.
Before diving into that, a quick update. One of the biggest challenges with Airbnb has always been the fact that you can only choose one cancellation policy for the entire year. This is problematic because cancellation policies should be chosen based on the booking window. In markets where booking windows are long, you need stricter protection. If guests book far in advance and cancel shortly before arrival, you often have to rebook at a much lower rate.
But in markets with short booking windows, stricter policies do not provide much additional protection, because rebooking at a similar rate is still possible with little notice. This is why having only one policy for the entire year does not make sense.
Some markets, especially beach destinations, have summer booking windows of six months or more. Guests even book next summer as soon as they check out. Those months require stricter cancellation policies. Winter months, on the other hand, have lower demand and lower ADRs, so being more flexible makes more sense.
Hosts have been asking Airbnb for dynamic cancellation policies for years. After 13 years of hosting, I have heard this feedback constantly. Airbnb has finally responded. Dynamic cancellation policies are scheduled to roll out in early 2026, with exact timing depending on the market. You will be able to set different policies for different periods of the year. Along with this update, Airbnb is also making improvements to price tips and earnings dashboards.
Now let’s move on to VRBO. VRBO currently works similarly to Airbnb in that you can choose only one cancellation policy per listing for the entire year. Airbnb also allows a non-refundable option with a 10 percent discount. VRBO has non-refundable as well, but if you choose it, it becomes your cancellation policy.
VRBO’s strict 60-day policy gives guests a full refund if they cancel more than 60 days before arrival. After that, there is no refund. The firm 60-day policy gives a 50 percent refund for cancellations 30 to 60 days before check-in. The moderate policy offers a full refund more than 30 days out and a 50 percent refund between 14 and 30 days before arrival. The relaxed policy gives a full refund more than 14 days out and a 50 percent refund between 7 and 14 days.
Next is Booking.com, which operates very differently. Booking.com gives hosts much more flexibility. You can create multiple cancellation policies for each listing and decide how to price them. You can customize refund windows and offer partial refunds. Once you set your policies, you can attach them to different rate plans and price each one accordingly. A non-refundable rate is also available.
However, offering too many options can create what I call choice stress. When guests see too many choices, it becomes harder to decide. This applies to menus, grocery aisles, and cancellation policies. Too many options can actually hurt conversions.
I do not recommend having five different policies, but I do recommend offering a non-refundable option and one flexible one. Most hotels on Booking.com use this combination, and guests expect it. When I book on Booking.com, I always expect to see both options. If I do not, it feels like something is missing.
In the future, I plan to experiment more with pricing different cancellation policies differently. But I also like keeping things simple because complexity makes it harder to understand what is going on with your bookings.
If you are not on Booking.com yet, I highly recommend joining. It can be harder to onboard, which causes hesitation for many hosts, but Booking.com is investing heavily in vacation rentals, especially in the US. It is easier to get an account manager in the US, and the platform is growing fast. Some clients who recently joined have seen strong traction. In some cases, bookings come in at higher rates than Airbnb because Booking.com originated as a hotel platform. Many Airbnb guests see the platform as more budget-oriented.
On Booking.com, discounts like mobile discount and Genius can change guest pricing, which means some bookings come in at higher rates when guests do not use those discounts.
Booking.com is a strong opportunity in the STR space, and diversification is important, especially now that Airbnb is stricter about three-star and four-star reviews. Low ratings can affect visibility or even lead to listing removal. Diversifying across VRBO, Airbnb, and Booking.com is more important than ever.
To recap what we have covered: cancellation policies on Airbnb, VRBO, and Booking.com. Booking.com offers the most flexibility. Airbnb will introduce seasonal policies in 2026. VRBO may eventually adopt something similar.
A common question I receive is whether to align cancellation policies across platforms. For stabilized units with consistent performance and reviews, having the same policy across channels can make operations easier. For new listings, however, a more flexible policy can help build momentum, especially on Booking.com where quick reviews unlock the Genius program.
A useful strategy during low season is to offer a flexible policy to attract initial bookings while blocking high-season months to avoid risk. For new listings, I recommend opening only a couple of months on the calendar with flexible policies to gather bookings and early reviews.
There are valid reasons to vary policies across channels, but once a property is stable, consistency often works well.
Before we close, a reminder: December 5 is the World Cup draw, which is extremely important for planning 2026 pricing strategies. The World Cup will be one of the biggest revenue drivers of that year. If you have not listened to the World Cup episode from two weeks ago, I highly recommend it.
That is it for today. Have a great week, and I will see you next time.
