Vrbo Cancellation Policy for Hosts Explained

Vrbo Cancellation Policy for Hosts Explained

0:00

/567.744

1×

Cancellations can be extremely frustrating for both you, as a Vrbo owner, and your guests. That’s why outlining a clear cancellation policy on your short-term rental listings is a must. It makes sure the guest understands the key information regarding their booking and also safeguards you from a last-minute Vrbo cancellation.

In this article, we look at a few easy steps hosts can take to ensure they have an up-to-date Vrbo cancellation policy for smooth vacation rental property management.

Different Vrbo Cancellation Policies 

Ultimately, a Vrbo cancellation policy can differ from listing to listing. Their available options also differ from the Airbnb cancellation policies which can be everything from a very strict policy (which we know can negatively affect booking rates) to a very relaxed policy allowing a total or partial refund of the money that the traveler already paid.

When it comes to Vrbo, hosts have the following cancellation policies to choose from:

1. No refund

Bookings at this property are non-refundable.

2. Strict policy

You offer a 100% refund if a guest cancels at least 60 days before check-in. There is no refund if a guest cancels less than 60 days before check-in.

3. Firm 

You offer a 100% refund if a guest cancels at least 60 days before check-in. Guests can get a 50% refund (minus the service fee) if they cancel at least 30 days before check-in. There is no refund if guests cancel less than 30 days before check-in.

4. Moderate

You offer a 100% refund if a guest cancels at least 30 days before check-in. The guest receives a 50% refund (minus the service fee) if they cancel at least 14 days before check-in. There is no refund if guests cancel less than 14 days before check-in.

5. Relaxed

You offer a 100% refund if a guest cancels at least 14 days before check-in. The guest receives a 50% refund (minus the service fee) if they cancel at least seven days before check-in. There is no refund if the guest cancels less than seven days before check-in.

At the end of the day, a property’s cancellation policy will dictate how comfortable guests are to book your property. As such, this relaxed cancellation policy is what Vrbo recommends.

Does Vrbo Allow Hosts to Customize Cancellation Policies?

It’s important that the information provided on your vacation rental listings is relevant and specific, especially when it comes to important details like your property’s cancellation policy and deposit refund policy.

If you want to customize your Vrbo cancellation policy to be more relevant to the current season or your guest’s specific situation, there are two ways that the booking platform allows hosts some level of customization. 

Firstly, you have the option to pay custom refunds. This gives you the option to dismiss your own Vrbo cancellation policy, giving you the freedom to decide the amount that you want to refund. However, if you choose to override the refund amount, it may not be less than the number that the guests would’ve received under the cancellation policy that was in place at the time of booking. 

Secondly, you have the option to create seasonal cancellation policies. To do this, you’ll need to access the “Rules and policies” section via your Vrbo dashboard and select the check-in dates for which you want this policy to apply. The benefit of this feature is that it will make your property more attractive during slower seasons. That said, you’ll also have a more difficult time getting another booking if guests decide to cancel.

To help you avoid missing out on any replacement bookings if a guest does cancel their booking for your Vrbo listing, it’s a good idea to streamline your booking system with iGMS.  It, for example, offers a unified calendar that makes managing bookings from multiple platforms much easier.

How to Cancel a Guest’s Reservation

If you are forced to cancel a guest’s booking for reasons beyond your control, these are the steps to follow as a host on Vrbo:

• Log into your Vrbo owner login page
• Click on the reservation listing you wish to cancel
• Go to the Inbox 
• Find the guest’s name in the All Messages drop-down menu
• Click on Cancel booking
• Choose the reason for the cancellation in the drop-down menu
• Review the refund amount and click Continue
• Click Confirm.

Does Cancelling a Guest’s Booking Affect My Listing’s Ranking? 

Hosts who cancel bookings without any due reason can negatively impact the industry, which is something Vrbo wants to avoid. However, the good news is that depending on your reason for cancelling, you might qualify for a Vrbo cancellation waiver.

The platform offers cancellation waivers for cancellations due to reasons outside of a host’s control. Obtaining a waiver will prevent a cancellation from hurting your standing in the marketplace. It’s important to note that if you don’t receive a waiver, your ranking metrics will be negatively affected by your cancellation.

Examples of situations that qualify for one include:

Natural disasters

Natural disasters like tsunamis, tornadoes, earthquakes, or wildfires make it unsafe for guests to stay at your property, and therefore qualify for a waiver. Vrbo will also consider severe or abnormal weather events like flooding or a large-scale outage of an essential utility, grounds to waive any fees. 

Property damage

If your property suffered extensive damage, like a gas leak or burst pipe, you can also apply for a waiver. When applying, you’ll need to provide Vrbo with a description of the issue, along with an insurance claim/third-party estimate and time frame. 

House rules violation

In the unfortunate event that guests have broken or refuse to follow your house rules and will not request a cancellation themselves, you can apply for a waiver. 

Vrbo requires that your house rules must be set up on your listing under the relevant section to be eligible for a waiver. You will need to provide your communication with guests as supporting documentation along with the house rules that should be clearly available on your listing.

Past due balance

If a guest misses a deadline payment to complete their booking, a host is allowed to cancel. However, you must try to contact the guest as well as issue the guest a refund of any amount they originally paid, to be eligible for a waiver.

Cancelled bookings where the guest failed to make the first payment don’t impact your listing’s ranking metrics. As such, you won’t need to apply for a waiver in this case.

Cancelled bookings where the guest hasn’t made the first payment do not affect your listing’s Ranking Metrics, and you won’t need to apply for a waiver.

How to Approve a Guest’s Cancellation Request

If a guest needs to cancel a reservation and your approval is needed, here’s what you need to do:

• Log in to your Vrbo account
• Click on the listing that the guest would like to cancel
• Click on the Inbox
• Filter your conversation in the All Messages drop-down menu by searching for the guest’s name or reservation ID
• Select the guest’s name
• Click on Confirm cancellation. 

How to Adjust Your Vrbo Cancellation Policy

If you’d like to change your cancellation policy for whatever reason, follow the next steps:

• Go to your Vrbo dashboard
• Select which listing you’d like to edit 
• Go to the Settings button, then the Rental Agreement, and click on the Cancellation Policy button
• Select which policy you would like to use in the Cancellation Policy section and save the changes you’ve made.

Tips for Dealing With Cancellations

Creating accurate property descriptions and highlighting your rental agreement and house rules beforehand will help to avoid cancellations. However, as explained, there are a myriad of reasons, from disaster weather conditions impacting travel to an unexpected accident, why you could receive a cancellation request.

While you have little control over the weather, having the correct insurance in place can help to avoid unexpected financial costs. It’s also a good hosting practice to encourage guests to invest in Vrbo travel insurance. 

Then, when guests reach out to cancel due to these unforeseen reasons, hosts have the discretion to offer a refund or reschedule the stay, even if they are in violation of your stipulated cancellation policy. It is always good to put yourself in your guest’s shoes and show some leniency.

Everything in Moderation—Even Vrbo Cancellations

With all things considered, applying a flexible or moderate cancellation policy to your vacation rental is the best approach. Guests are more inclined to book properties that have flexible cancellation policies.

Cancellations will always happen. What you can do as host is to keep abreast of local laws and regulations, ensure your cancellation policy and listing are updated, and avoid cancelling on travelers last minute. 

To stay ahead of any eventuality, hosts should also consider making use of a property management system like iGMS. With iGMS, you can streamline your business operations, guest communication, direct bookings, and more.