Cancellations are never fun, and the vacation-rental industry has long leaned on strict, host-friendly policies that give guests little flexibility — keeping cancellation rates low for a decade. A strict policy reduces the chance of needing a riskier, less profitable replacement booking near check-in, but it can also deter guests, lowering your click-through and conversion rates and hurting your ranking.
Be flexible, increase RevPAR
Obsessed with what-if forecasting, Quibble studied and A/B tested cancellation policies across 9 major US destinations before the pandemic. Listings with a flexible policy — 100% reimbursement up to 7 days or fewer before check-in — drove 22% higher RevPAR than restrictive ones, with an average cancellation rate of just 6%, well below the 10% average for alternative accommodations.
Listings with a flexible cancellation policy drove 22% higher RevPAR versus a restrictive cancellation policy.
Policy as a revenue stream
Looser policies bring operational headaches, but they can also be a revenue stream: offer guests several price points with different restrictions. Travel research shows 2–4 options help maximize total revenue, and Quibble’s policy strategies have helped property managers raise revenue by up to 27% while cutting vacancy — adding a new revenue stream in the process. Check that your direct-booking policy matches what you offer on Airbnb and Vrbo.