Key Takeaways
- Airbnb’s Extended Cancellation Option is live in 12 markets, including the U.S.
- Guests can pay extra to cancel for a full refund up to 24 hours before check-in
- Airbnb says host payouts remain protected because the platform covers the gap
Airbnb is giving guests a new way to buy more flexibility at checkout.
The company’s Extended Cancellation Option went live in the U.S. on June 3 and is now active across 12 markets.
The add-on lets guests pay Airbnb an extra fee for the right to cancel a reservation for a full refund up to 24 hours before check-in, even if the host’s normal cancellation policy is stricter.
Hosts who don’t want to offer it can choose to opt out at any times via their listing settings.
If you run high-value or peak-season stays where a late cancellation is hard to backfill, this is worth reviewing before the test reaches your market.
Airbnb expands paid flexibility for guests
The feature is available in Argentina, Canada, Chile, Colombia, Ireland, the Netherlands, the Philippines, Poland, Sweden, Türkiye, the U.S. and Vietnam.
The good news is, Airbnb still pays hosts according to their existing cancellation policy when a guest uses the option, according to Rental Scale-Up by PriceLabs.
The company covers the difference between the guest’s full refund and the payout owed to the host, according to the report.
Most listings with moderate, limited, firm or grandfathered strict policies are automatically eligible. Listings with flexible cancellation policies are not included.
In the U.S., the guest’s Extended Cancellation fee is non-refundable. In the other 11 markets, the fee is refunded when the guest cancels.
At launch, the Extended Cancellation Option was being tested for eligible hosts and listings in Argentina, Canada, Chile, Colombia, Ireland, the Netherlands, the Philippines, Poland, Sweden, Turkey, the US, and Vietnam.
Related: Lodgify CEO says passive short-term rental hosting now requires a real business strategy
Here’s some guidance from PriceLabs on what this means for short-term rental hosts:
| Scenario | What the guest gets | What the host gets |
|---|---|---|
| Guest cancels more than 24 hours before check-in (Extended Cancellation active) | Full refund of the reservation | Paid per existing policy (Airbnb covers the gap) |
| Guest cancels within 24 hours of check-in | Refund per host’s standard policy; Extended Cancellation fee not refunded | Paid per existing policy |
| Host cancels | Full refund including the Extended Cancellation fee | No payout; standard host cancellation penalties may apply |
| Major Disruptive Event applies | Refund / travel credit regardless of policy | No payout, even if Extended Cancellation was purchased |
