SHS047: Strict Cancellation Policy For Airbnb Hosts Is Gone! Host Are Now Responsible For Chargebacks!?
Intro
Airbnb is making major changes…
And depending on how you run your business:
👉 These changes could either hurt your profits
👉 Or position you to win long-term
In this episode, Elijah Bilel brings together experienced operators to break down what’s really happening—and how to adapt.
Panel Cast
Host:
- Elijah Bilel – Founder of The Side Hustler’s Society
Panelists:
- Micheal Brown – Founder of PBD Stays
👉 Learn more about his business here - Federico Zimerman – Founder of Black Bird Hospitality
👉 Connect with him and his work here
Episode Overview
In this panel discussion, we break down:
- Airbnb’s new cancellation policy changes
- Why hosts are now responsible for chargebacks
- How pricing strategy ties into policy changes
- The shift toward more “professional” hosting standards
- Why many operators are moving toward direct bookings
- How to compete with hotels (not just other Airbnbs)
Listen to the Episode
Check us out on Apple Podcasts or Spotify! While you’re there, hit subscribe so you don’t miss our latest episodes!
Why This Panel Matters
Elijah Bilel intentionally brought on operators with larger portfolios and different business models to give a more complete perspective.
Because Not All Hosts Are the Same
- Small operators → fewer units, simpler systems
- Large operators → teams, systems, scaling challenges
The Key Insight
👉 The bigger your operation, the more these changes matter
If you’re newer to Airbnb or looking to build a stronger foundation before navigating changes like these, you can get access to a free 5-part video series on getting started as a host by joining The Side Hustler’s Society newsletter Here.
Breaking Down Airbnb’s Policy Changes
This episode focuses on three major updates:
1. Cancellation Policy Changes
Airbnb is removing the strict cancellation policy
👉 Hosts now have less control over refunds
What This Means
Previously:
- Hosts could keep more revenue on late cancellations
Now:
- Guests have more flexibility
- Hosts take on more risk
Why This Is Controversial
👉 It directly impacts profitability
Especially for:
- Larger properties
- Higher nightly rates
Perspective Shift: Not Everyone Sees This as Negative
Federico provides a contrarian perspective:
👉 Airbnb may just be catching up to the rest of the industry
His Take
- Other platforms already prioritize flexibility
- Flexible policies can increase booking volume
- Pricing strategy should adjust accordingly
Meanwhile, Micheal Brown Adds Another Layer
Micheal Brown highlights that operators also need to think beyond just Airbnb policies and focus on:
👉 how they generate and control their own demand
His Focus
- Direct outreach (cold + warm)
- Retargeting past guests
- Building B2B relationships
Why This Matters
👉 If you rely ONLY on Airbnb…
You’re more exposed to platform changes
The Bigger Lesson: Adaptation Over Complaining
Across the panel, there’s a shared theme:
👉 The operators who win are the ones who adapt
What That Looks Like
- Adjusting pricing models
- Understanding booking behavior
- Diversifying lead sources
Reality Check
👉 The platform will change whether you like it or not
Why Flexible Policies Can Increase Bookings
Federico emphasizes:
👉 Flexibility lowers friction
Consumer Psychology
People are more likely to book when:
- Risk is low
- They have options
- They feel protected
Additional Insight from the Panel
Even when cancellations happen:
👉 Listings may get boosted again in visibility
Micheal Brown’s Strategy: Control the Demand
While policy changes matter…
Micheal Brown focuses on something deeper:
👉 Not relying on platforms alone
His Approach Includes
- Direct marketing to businesses
- Outreach to corporate clients
- Following up with past guests
Key Insight
👉 The more control you have over your leads…
👉 The less these changes affect you
You’re Not Just Competing With Airbnb Hosts
This was one of the biggest insights from the discussion:
👉 Your real competition is hotels
Why This Matters
Hotels offer:
- Flexible cancellations
- Consistent experiences
- Predictability
So If You’re Competing…
👉 You need to match or beat that experience
Example: Why Strict Policies Can Hurt You
Elijah Bilel shares a real experience:
- Launched a listing
- Used a strict cancellation policy
- Got no bookings
What Changed
👉 Switching to a more flexible policy
Result
👉 Immediate booking activity
Understanding Customer Behavior
The panel also highlights how people actually book travel:
Typical Booking Flow
- Flights
- Events
- Accommodation last
Implication
👉 Many bookings are last-minute
So If Your Policy Is Too Strict
👉 You miss those opportunities
Advanced Strategy: Competing Smarter
Federico shares a powerful positioning strategy:
Example
- Offering 1-night stays
- Capturing overlooked demand
- Charging premium pricing
Meanwhile, Micheal Reinforces
👉 Demand isn’t just captured—it can be created
Through:
- Outreach
- Relationships
- Strategic targeting
The Bigger Trend: Professionalization of Airbnb
A core theme throughout the panel:
👉 Airbnb is evolving into a more structured marketplace
What That Means
- Less flexibility for hosts
- More standardization
- Closer alignment with hotels
Why This Is Happening
- Shareholder pressure
- Customer expectations
- Market maturity
Final Thoughts
This panel makes one thing clear:
👉 Airbnb is changing—but opportunity still exists
Key Takeaways
From Federico:
👉 Adjust your pricing and strategy
From Micheal:
👉 Build systems outside the platform
From Elijah:
👉 Understand the customer and adapt
Because at the end of the day
👉 The operators who win aren’t the ones who resist change
👉 They’re the ones who move with it
If you want a step-by-step breakdown of how to actually get started and position yourself as a host in today’s market, you can get access to the free 5-part Airbnb starter video series by joining The Side Hustler’s Society newsletter Here.
Watch The Podcast On Youtube!
