Airbnb
Case Study: Host Cancellation
Team: Solo
Timeline: February - May 2025
Disclaimer
Background When a host cancels, introducing curated backup stays reduce stress and provide clarity in a frustrating situation. Not only will guests be satisfied, but Airbnb’s reputation as a dependable and user-first platform within the travel industry will shine through.
Research
Out of 100 most recent reviews in the App Store, 15% of users expressed their concerns regarding host cancellations.
Reviewers shared their frustrations about poor communication from hosts, unclear policies, and unhelpful customer service when trying to resolve problems.
According to Airbnb‘s host cancellation policy, the host is charged a fee unless the cancellation is due to a major disruptive event or a reason beyond their control. Additionally, the host’s calendar is blocked for the affected dates to prevent them from rebooking the listing.
While this policy holds hosts accountable, guests are left with limited support. Canceled guests typically receive a refund within a few days, but the platform offers little to no guidance in helping them find a new place to stay.
In addition, important elements, such as refund timelines, lack visual emphasis. Minor language issues, such as redundant phrasing like “before,” also affect overall readability.
User reviews reflect these issues, frequently mentioning poor communication from hosts, vague policies, and unhelpful customer support when trying to resolve cancellations.
Competitive Analysis
I analyzed several of Airbnb’s major competitors to understand how they handle host cancellations.
Similar to Airbnb, platforms like Vrbo’s cancellation policy state that hosts may be held responsible if they initiate a cancellation, double-book, mislead a traveler, or pressure the traveler to cancel. Hosts are typically charged a fee based on the timing of the cancellation.
Overall, most platforms hold hosts accountable in similar ways, but offer little to no support for guests when a cancellation occurs. The lack of clear, helpful options for rebooking shows a large gap in the experience and presents an opportunity for improvement.
Experience Principles
Users are drawn towards familiar places they’ve already looked at when they don’t have much time to look through other options.
In time-sensitive situations, users heavily rely on fast responses to confirm or adjust their reservations without the added stress.
Users want control over where and when their reservation will be.
Hybrid Booking Model
Instant Booking: Immediately book a backup stay with a host who allows it.
Approval Required Booking: Users can try booking with a host who requires approval. If it's declined, an instant booking backup stay will be ready as a fallback.
The result is a hybrid model that can balance speed and control, but can cause friction. The app’s instant-book alternatives after denials help reduce this friction and build trust.
User Flow
Key Features
Simplified Policy
The dropdown menus make it easy to understand what happens if the user or host cancels, and show other key cancellation policies.Usability Testing To evaluate how users navigate and feel about the rebooking options, I tested with 5 participants, aged 25-56, who had previously booked stays on Airbnb or similar platforms. Participants were asked to complete a flow where their original stay was canceled and they needed to rebook an alternative. Usability testing showed that:
80% of users were able to complete the rebooking flow without assistance.
80% of users responded positively to seeing their favorited listings first.
60% of users found the alternative stay suggestions relevant and helpful.
Expected Effect
If implemented, it could:
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Improve rebooking rates by offering timely alternatives.
- Strengthen user confidence and loyalty.
- Decrease customer support volume related to cancellations.
Usability testing and competitive research showed there’s real potential to improve both the user experience and business results.
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Improve rebooking rates by offering timely alternatives.
- Strengthen user confidence and loyalty.
- Decrease customer support volume related to cancellations.
Usability testing and competitive research showed there’s real potential to improve both the user experience and business results.
Conclusion By offering personalized rebooking options like favorited stays and giving hosts more flexibility with instant booking, the experience feels more supportive and less chaotic for both sides. It not only builds trust but also helps Airbnb avoid losing bookings and keeps guests coming back.
Reflection This project taught me how important it is to design for recovery, giving users more control and support when something frustrating, like a cancellation, happens. I aimed to make the experience feel more personal and reassuring, rather than just another generic error message.
It also helped me deepen my thinking around trust, small interaction details, and how to make stressful moments feel more manageable through UX.
If I had more time, I would:
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Test the flow with a broader, more diverse group of users.
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Run an A/B test to compare it with Airbnb’s current flow and measure rebooking rates.
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Explore edge cases, like users with who have no favorites.
It also helped me deepen my thinking around trust, small interaction details, and how to make stressful moments feel more manageable through UX.
If I had more time, I would:
-
Test the flow with a broader, more diverse group of users.
-
Run an A/B test to compare it with Airbnb’s current flow and measure rebooking rates.
-
Explore edge cases, like users with who have no favorites.