Choosing the Cancellation Policy on VRBO: Strict or Flexible
More Bookings Without Losing Income
When setting up your cancellation policies on VRBO, the same question always arises: be stricter to protect income or more flexible to attract more guests? The reality is that today, travelers value flexibility above all else. And not just as an "extra": many even filter their searches to show only properties with free cancellation.
Myths and Realities About Cancellation
❌ Myth: "With strict policies, I protect my income because I avoid cancellations."
✅ Reality: in fact, you also avoid bookings. Properties with moderate policies generate more than 30% additional annual net value.
❌ Myth: "Travelers don't look at cancellation policies."
✅ Reality: yes, they do. In fact, many filter by this criterion. If you use firm or strict policies, your accommodation might not even appear in their results.
❌ Myth: "No refund guarantees secure income."
✅ Reality: if no one books, there's no income to protect. These policies act like a "Do Not Disturb" sign for guests.
Benefits of Being More Flexible
According to VRBO data, properties with relaxed or moderate policies achieve:
More than 30% net value in bookings per year.
A 10% higher conversion.
3 times more views on listings.
2 times more clicks on the property page.
In summary: more visibility, more bookings, and ultimately, more income.
Types of Cancellation Policies on VRBO
Relaxed (recommended)
Cancellation ≥ 14 days before: 100% refund.
Cancellation ≥ 7 days before: 50% refund.
Moderate
Cancellation ≥ 30 days before: 100% refund.
Cancellation ≥ 14 days before: 50% refund.
Firm
Cancellation ≥ 60 days before: 100% refund.
Cancellation ≥ 30 days before: 50% refund.
Strict
Cancellation ≥ 60 days before: 100% refund.
No Refund
Nothing is refunded after booking.
Custom
Up to 3 configurable periods with their percentages.
You can add a fixed cancellation fee.
The total can never exceed 100% of the booking amount.
Step by Step: How to Change Your Policy on VRBO
Access Channel PRO from your Avantio account.
Go to Channels and click on Configure within the VRBO panel.
Select the policy you prefer (the more flexible, the better 💰).
Click Save.
👉 You can apply the policy generally in the portal configuration or individually for each property from the activation section.
Quick Checklist
I have reviewed which policy I have active on VRBO.
I know if my properties appear in the "Free Cancellation" filter.
I evaluated if a more flexible policy can increase my conversion.
I decided whether to apply the same policy to all my properties or customize by accommodation.
Useful Tip
If you want to quickly show the impact of each policy on your bookings, create a visual comparison with tools like Canva or notebooklm. A diagram with refund percentages and search examples will help you or your team make faster decisions.
Frequently Asked Questions
Does being flexible mean losing money?
No. In fact, properties with more flexible policies generate more income because they attract more bookings.
Can I apply a different policy to each property?
Yes. You can configure it in the activation of each accommodation.
What advantages does appearing with "Free Cancellation" have?
Greater visibility, more clicks, and a better conversion rate.
Can I change my policy at any time?
Yes. You can easily modify it from Channel PRO.
What if I already have a strict policy and want to try moderate?
You can change it immediately and apply the new policy both generally and by accommodation.
✅ In summary: choosing more flexible cancellation policies not only builds trust with guests, it also increases the visibility and income of your properties on VRBO.