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STR Cancellation Policy Impact Calculator

Cancellation policy balances booking conversion with revenue security.

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Flexible advantage / month

$2,115

Strict revenue

$16,000

Flex net revenue

$18,115

How the math works

Strict = bookings × avg. Flex = bookings × (1+lift) × avg. Cancel loss = flex × cancel% × (1 − rebook%).

Strict $16k. Flex 24.4 × $800 = $19.5k gross − 18% × 40% = $1.41k loss = $18.1k net. $2.1k advantage.

How to Use

  1. Enter monthly bookings.
  2. Enter avg booking revenue.
  3. Enter flexible vs strict booking lift %.
  4. Enter cancellation rate (flex) %.
  5. Enter re-book recovery rate %.
  6. Read policy comparison.

Frequently Asked Questions

Airbnb cancellation policies?

Flexible: full refund up to 24 hours before check-in. Attracts cautious bookers, high cancellation rate (15-25%). Moderate: full refund up to 5 days before, 50% 0-5 days. Firm: full refund up to 30 days, 50% 14-30 days, none within 14. Strict: 50% refund up to 14 days, none within 14. Super Strict 30: 50% up to 30 days, none within. Each drives different booking conversion and cancellation dynamics.

Booking conversion impact?

Flexible vs Strict: +15-30% booking conversion. Moderate vs Strict: +8-18%. Reason: bookers research multiple properties, flexibility reduces perceived risk of commitment. Luxury/longer stays: bookers more cautious, flexibility matters more. Business travel: strict acceptable (planned in advance). Short-notice weekend: flexibility drives significant share.

Cancellation revenue risk?

Flexible cancellation: 15-25% of bookings cancel. Net revenue after re-bookings: 85-95% of original. Strict: 3-8% cancellation, 95-98% net. Difference: 5-15% revenue loss for flexible. But flexible booked 15-30% more bookings = more gross bookings. Net economics: flexible + strong re-bookings often wins on total revenue.

Dynamic approach?

Off-season: flexible (drives bookings when demand weak). Peak season: strict (reduce cancellation of already-committed high-revenue dates). Luxury: flexible (high-end bookers value flexibility, pay premium). Large groups (>4 guests): strict (high-revenue, can't easily re-book). Institutional operators vary policy by season + product type. Test A/B when possible.

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