On the flip side, as an Airbnb host myself, I have had to cancel a guest's reservation before. It was because of reasons beyond my control (ie. being sent a war

On the flip side, as an Airbnb host myself, I have had to cancel a guest's reservation before. It was because of reasons beyond my control (ie. being sent a warning fine from my HOA). Losing the 3% isn't the only thing that happens. #1. You also get a "review" on your listing and profile that says "Host canceled booking X days before arrival". #2. Airbnb drops your listing ranking, meaning you won't show up as high in searches. Frankly, it's a bad experience for the host and guest, which is why I'm not convinced it happens all that often with hosts who have more than zero reviews. If you book a place with zero reviews, I think it's MUCH more likely to happen, as newer hosts are probably less likely to understand how Airbnb works.