Managing cancellations can be one of the most challenging aspects of being a Vrbo host. While cancellations are inevitable in the vacation rental business, understanding Vrbo’s cancellation policies can help you minimize their impact and provide your guests with better clarity. This guide dives into the specifics of the Vrbo cancellation policy and provides actionable steps to help you manage cancellations effectively. You’ll learn about cancellation options, waivers, how to handle guest requests, and ways to protect your business from the unexpected.

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Understanding the Vrbo Cancellation Policy Options

One of the key features of hosting on Vrbo is the flexibility it offers in choosing cancellation policies that work best for you and your property. Here are the available cancellation policy options for Vrbo hosts, so you can determine which is the right fit for your business:

No refund policy

This option offers no refunds under any circumstances. While it protects your revenue, it can also deter potential guests from booking, especially for high-ticket or long-term stays.

Best For:

• Hosts targeting last-minute bookings or shorter stays.
• Properties in locations with consistent, high demand.

Strict policy

• 100% refund if guests cancel at least 60 days before check-in.
• No refund for cancellations made less than 60 days prior to check-in.

Best For:

• Hosts who want to prioritize revenue protection but are still willing to allow refunds for early cancellations.

Firm policy

• 100% refund if guests cancel at least 60 days before check-in.
• 50% refund (excluding traveler service fees) if canceled at least 30 days prior.
• No refund for cancellations made less than 30 days before check-in.

Best For:

• Hosts looking for a middle-ground approach that balances both guest flexibility and host security.

Moderate policy

• 100% refund if canceled at least 30 days before check-in.
• 50% refund (excluding the full traveler service fees) for cancellations at least 14 days prior.
• No refund for cancellations made less than 14 days before check-in.

Best For:

• Hosts targeting travelers who plan a few weeks in advance.
• Seasonal rentals with variable demand.

Relaxed policy

• 100% refund if canceled at least 14 days before check-in.
• 50% partial refund (excluding traveler service fees) for cancellations made at least 7 days prior.
• No refund for cancellations made less than 7 days before check-in.

Best For:

• Hosts who want to attract a larger pool of potential guests by offering flexibility.

Customizing Your Vrbo Cancellation Policy

Vrbo also allows hosts to customize their cancellation policies in two ways:

1. Custom refunds

If a guest cancels under the extenuating circumstances policy, you can override your set policy and offer a customized refund. However, the new refund amount cannot be less than what the guest would have received under the initial policy.

2. Seasonal policies

You can adjust your property’s cancellation policy to align with the season or specific dates. For example, you may apply a stricter policy during peak holiday seasons and a more relaxed one during quieter months. This approach can improve your property’s appeal during off-season or low-demand periods.

Handling Guest Cancellations

If you’re in a situation where a guest needs to cancel, follow these steps to manage the process smoothly:

1. Log in to your Vrbo account.
2. Select the reservation from the Inbox menu.
3. Find the guest’s name under “All Messages”.
4. Click “Cancel Booking”.
5. Choose the cancellation reason, review the refund amount, and click “Confirm.”

Always communicate clearly and promptly with the guest throughout the process. Guests appreciate transparency and professionalism, which can lead to positive reviews and higher ratings.

When to Apply for a Vrbo Cancellation Waiver

Cancellations made by a host can negatively impact your listing’s ranking metrics. However, host cancellations due to reasons beyond their control may qualify for a cancellation waiver to protect standing in the marketplace. Here’s a breakdown of scenarios that qualify:

Natural disasters and abnormal weather

• Events like tornadoes, earthquakes, floods, or abnormal weather events that make travel or stay unsafe. These historically severe weather events may qualify as a covered event.

Extensive property damage

• Issues like gas leaks or burst pipes that render the property uninhabitable.
• Supporting documentation, such as insurance claims, must be provided.

House rules violations

• When guests repeatedly break your property’s house rules and refuse to request a cancellation themselves.

Non-payment

• Guests who fail to complete payment deadlines are eligible for cancellation without ranking penalties.

These waivers ensure that unforeseen circumstances don’t penalize you unfairly. Apply for a waiver through Vrbo’s Help Center and provide the relevant documentation as required.

Tips to Minimize Cancellations

While cancellations can never be eliminated entirely, there are steps you can take to reduce them:

1. Set clear expectations

Include detailed property descriptions, rules, and policies in your listing to help prevent misunderstandings.

2. Highlight travel insurance

Encourage guests to invest in Vrbo travel insurance to cover emergencies like passport or visa requirements or abnormal weather events.

3. Offer immediate assistance finding alternative accommodation

If a cancellation is unavoidable, show goodwill by helping guests find alternative accommodations. This builds trust and improves guest satisfaction.

4. Use a property management tool

Streamline your operations using tools like automated messaging and synced calendars. This ensures smooth processes if cancellations do occur. Platforms like Host Tools provide features like intelligent pricing optimization and guest communication support.

Preparing for Unforeseen Situations

Even with all precautions, last-minute cancellations can still happen. Consider these approaches to prepare for the unexpected:

• Set aside an emergency fund to handle gaps in revenue from cancellations.
• Provide flexible rebooking options for guests affected by extenuating circumstances.
• Train your team or yourself to handle guest communications empathetically and resolve issues quickly.

Final Thoughts

Cancellations are an inevitable part of vacation rental hosting. However, with an understanding of Vrbo’s cancellation policies and proactive strategies to manage them, you can minimize their impact on your business. By keeping your listings updated, offering flexibility when possible, and utilizing management tools, you’ll be better prepared to handle these disruptions while maintaining stellar guest satisfaction.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!