Pricing
Stricter cancellation policies earn more
The trade-off runs in your favor.
1.64x for Super Strict
Based on
281,192 active 2BR listings
Key finding: Super Strict 2-bedroom listings earn about 1.64x what Flexible ones earn at the same size, based on 281,192 active 2BR listings.
The short version
A firmer cancellation policy does not cost you enough bookings to hurt. In this data, the stricter listings out-earned the flexible ones by a wide margin. If you have been defaulting to Flexible because you are afraid of scaring guests away, that fear is likely costing you money.
The data
Across 281,192 active 2-bedroom listings, the pattern was clear at matched size:
Super Strict listings earn about 1.64x what Flexible listings earn.
This holds when comparing listings of the same size.
That is the whole headline. One number, and it points in one direction.
Why it works
A stricter policy protects your calendar. When a guest cannot cancel for free at the last minute, you hold the booking and the revenue that comes with it. Fewer cancellations means fewer empty nights you scramble to refill at a discount. Confident, experienced operators tend to choose stricter policies, and they also tend to run tighter, higher-earning listings. The firmer policy does not appear to drive away enough bookings to offset the protection and revenue it brings.
What to actually do
Stop defaulting to Flexible out of fear. Treat the policy as a lever, not a courtesy.
Test a firmer policy on one listing and watch your booking pace over a full season before judging it.
Pair a stricter policy with clear listing copy so guests know the terms up front and book with confidence.
The honest caveats
This is correlational, not causal. Confident, experienced operators tend to choose stricter policies, so some of the earning gap reflects who picks Super Strict rather than the policy itself. The finding covers active 2-bedroom listings only, so a one-bedroom studio or a large home may behave differently. What this shows is a consistent direction, not a guaranteed 1.64x lift for any single listing that switches.
Methodology
The analysis drew on 281,192 active 2-bedroom listings, using IntelliHost and Key Data figures from 2026. Earnings were compared across cancellation policy tiers at matched listing size, so the comparison holds bedroom count constant. Restricting to 2-bedroom listings keeps the size effect out of the result and isolates the policy pattern.
Frequently asked questions
Does a stricter cancellation policy really make more money?
In this data, yes. Super Strict 2-bedroom listings earned about 1.64x what Flexible ones earned at the same size, though the relationship is correlational rather than proven cause and effect.
Will a strict policy scare away bookings?
Not enough to hurt, based on this sample. A firmer policy did not lose enough bookings to offset the revenue and protection it added across 281,192 active 2-bedroom listings.
Should I switch my Flexible listing to Super Strict?
It is worth testing. The direction favors firmer policies, but this study is correlational, so try it on one listing and track your booking pace across a full season before rolling it out.