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In this Rev Up Monday episode, Jasper dives deep into one of the most overlooked aspects of revenue management: cancellation policies. Learn why your strict cancellation policy might be costing you thousands in lost bookings and discover the optimal policy for your specific market and property type.

Key Topics Covered:

The Hidden Cost of Strict Policies

• Why strict cancellation policies discourage early bookings
• How policies impact your booking window and revenue
• The psychology behind guest booking decisions (44% of guests prioritize free cancellation)

Breaking Down Every Airbnb Policy

• Super Strict 30/60 (avoid)
• Firm: 30-day cancellation window
• Limited: 14-day cancellation window (NEW)
• Moderate: 5-day cancellation window
• Flexible: 24-hour cancellation window

Market-Specific Strategies

• Short booking window markets (like Miami): Go flexible
• Seasonal markets (ski/beach): Consider firm for peak season
• Stable mid-tier cities: Moderate or limited works best
• Large homes vs. small units: Different policies for different property sizes

Advanced Tactics

• Using flexible policies to recover from bad reviews
• Temporary policy changes to boost momentum
• The "last man standing" strategy for 100% occupancy markets
• Balancing protection vs. booking velocity

Action Items:

1. Check your current cancellation policy immediately
2. Review your market's booking window patterns
3. Consider loosening your policy if bookings are slow
4. Test different policies for different property sizes

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