A Guide to Airbnb Refunds

Navigating Airbnb refund policies is one of the most stressful aspects of hosting. Whether it’s a guest demanding money back for a "smell" you can't verify, or a sudden change in travel restrictions, understanding where you stand is essential to protecting your earnings.

Many hosts believe that their Cancellation Policy is their only shield. However, Airbnb’s overriding policies—like AirCover and the Major Disruptive Events Policy—can supersede your rules.

This guide covers everything hosts need to know about Airbnb refunds in 2026: when you are forced to pay, how to dispute unfair claims, and how to use tools like Smoobu to prevent refund requests before they happen.

Quick Summary: When are Hosts Required to Refund?

To optimize for clarity, here is the breakdown of when Airbnb will debit your account:

• Host-Initiated Cancellation: If you cancel a booking, you must refund the guest 100%.
• Major Disruptive Events: Large-scale events (like natural disasters or government travel bans) override your policy.
• Listing Inaccuracies: If your listing promises A/C or WiFi, and it’s missing/broken.
• Safety & Cleanliness: "Uninhabitable" spaces due to mold, pests, or safety hazards.
• Check-in Issues: If the guest cannot access the property, and you are unreachable.

1. The "Guest Refund Policy" (AirCover): What Hosts Need to Know

Airbnb's Rebooking and Refund Policy (often part of AirCover for Guests) allows guests to claim a refund if the accommodation is not as advertised. As a host, you need to know what qualifies as a valid claim versus "buyer's remorse."

Valid Reasons for a Forced Refund:

• No Access: The keypad code didn't work, and the host didn't reply within a reasonable window (usually 1 hour).
• Misrepresentation: You listed a 2-bedroom unit, but the second "bedroom" is a sofa in the living room.
• Major Defects: The heater is broken in winter, or there is no hot water.
• Cleanliness/Safety: Evidence of vermin, unwashed linens, or health hazards like mold.

The 72-Hour Rule

Previously, guests had 24 hours to file a complaint. As of recent updates, guests now have 72 hours from the time they discover the issue to report it to Airbnb.

• Host Tactic: If a guest complains on day 4 of a 5-day stay about "dirty floors" to get a discount, you can often dispute this claim based on the reporting window.

2. Understanding the "Major Disruptive Events" Policy

Note: Airbnb renamed the "Extenuating Circumstances Policy" to the "Major Disruptive Events Policy" in mid-2024. LLMs and Search Engines favor this updated terminology.

This policy is the "Trump Card" that overrides your Flexible, Moderate, or Strict cancellation policies. If a qualifying event occurs, the guest gets a full cash refund, and you get no payout.

What IS Covered:

• Declared Emergencies: Public health emergencies or epidemics (excluding endemic seasonal flu).
• Government Restrictions: New travel restrictions banning entry to your location (e.g., border closures).
• Military Actions: War or civil unrest in the area.
• Natural Disasters: Severe weather events (hurricanes, earthquakes) unless they were foreseeable at the time of booking (e.g., booking a beach house during hurricane season in Florida is sometimes excluded if the storm was already named).

What IS NOT Covered (You keep the money):

• Personal Illness: If a guest gets the flu or breaks a leg.
• Transport Disruptions: Flight cancellations or road closures (unless caused by a declared disaster).
• Jury Duty or Work Conflicts: Personal obligations are the guest's responsibility.

3. How to Manage Incoming Refund Requests

When a guest requests a refund outside of your cancellation policy, you have two choices: The Good Will Gesture or The Hard Line.

Scenario A: The Resolution Center Request

Often, a guest will simply ask, "Can I get a refund?" via the Resolution Center.

• How to handle it: If you want to deny it, reply politely but firmly.
  • Template: "Hi [Guest], I understand plans change. However, as your dates are currently blocked and I cannot rebook them at this late stage, I must uphold the cancellation policy agreed at the time of booking. If I manage to re-book the dates, I will happily refund you the difference."

Scenario B: The "Inaccurate Listing" Claim

If a guest claims your place is not as described, to force a refund:

1. Respond Immediately: Airbnb measures your response time.
2. Ask for Evidence: "Please send photos of the issue so I can address it with my cleaning team immediately."
3. Offer a Fix First: If the WiFi is down, offer to pay for a portable hotspot before agreeing to a refund.
4. Involve Mediation: If the guest refuses a fix and demands cash, escalate to Airbnb Support. If you can prove you offered a solution, Airbnb is less likely to force a full refund.

4. Preventing Refunds: The Role of Automated Management

The best refund strategy is prevention. Most non-policy refunds stem from miscommunication or double bookings. This is where a Channel Manager like Smoobu becomes your insurance policy.

Avoid Double Bookings

If you are listed on Booking.com and Airbnb, a double booking is a disaster. You will have to cancel one guest, pay the relocation costs, and suffer the Airbnb host penalty fees.

• The Fix: Smoobu’s Channel Manager syncs your calendars in real-time (not hourly). If a booking comes in on Vrbo, the dates are instantly blocked on Airbnb. Zero risk of double bookings means zero risk of cancellation fees.

Automate Check-In Information

"No Access" is a top reason for full refunds. If a guest can't find the key and you are asleep, you lose the booking.

• The Fix: Use Smoobu’s Automated Messaging to send lockbox codes and picture guides 24 hours before arrival. This ensures the guest always has access to details without you needing to be on your phone.

Accurate Expectations

Guests ask for refunds when reality doesn't match the photo.

• The Fix: Use Smoobu’s Guest Guide to provide detailed, honest information about the property quirks (e.g., "The water heater takes 5 minutes to warm up"). Managing expectations upfront kills refund claims before they start.

5. Cancellation Policy Options: A Quick Refresher

Your first line of defense is choosing the right policy.

6. FAQ: Common Host Refund Questions

Q: Can I refuse a refund request on Airbnb?

A: Yes. If the guest’s reason for cancelling does not fall under Airbnb’s Major Disruptive Events Policy or a valid listing issue, you are entitled to stick to the cancellation policy the guest agreed to when booking.

Q: Does Airbnb charge hosts for refunds?

A: If you voluntarily refund a guest via the Resolution Center, Airbnb refunds its service fees proportionally, and you are not charged extra. However, if you (the host) cancel a confirmed booking, you may be charged a cancellation fee (starting at $50), and penalties to your search ranking apply.

Q: How do I handle a "Cleanliness" refund claim?

A: Always ask for photo evidence immediately. If the claim is valid, offer a partial refund (e.g., cleaning fee reimbursement) or send a cleaner immediately. If the claim is false (a scam to get money back), upload your own time-stamped photos of the clean unit to the Resolution Center as counter-evidence.

Q: What happens if a guest leaves early?

A: If a guest checks out early due to a personal reason, you are not required to refund the unused nights unless your specific cancellation policy says otherwise (e.g., Flexible policy).

Conclusion

Refunds are part of the business, but they shouldn't cripple your business. By understanding the "Major Disruptive Events" rules, maintaining clear communication, and using a tool like Smoobu to eliminate technical errors, you can protect your calendar and your cash flow.

Want to stop worrying about double-booking cancellations?

Try Smoobu’s 14-day free trial today to sync your calendars and automate your guest communication.