Long term booking cancellation

[Linda22]

Yesterday I accepted a booking for three months in the summer and realized it was at the winter price which is extremely under price for the summer months. If I cancel as the host due to misundertanding around the price with more than three months notice and the guest has indicated they would look for something else are those three months automatically blocked from other booking (ie. all summer) and what other penalties should I ex[pect to incur

[Clare0]

 Unless you can convince Airbnb that your mistake was an extenuating circumstance, I would advise you to keep the reservation.  Not only is the calendar blocked but there is potentially a $100 fine if the cancellation is within 7 days of check-in.   In addition, there is an automatic review on your listing saying that you cancelled a reservation.  Search placement is also affected by cancellations.  Airbnb does not look kindly on hosts who cancel since it really messes up guest travel plans.  You certainly can appeal to Airbnb if this is your first cancellation.  Here's a handy guide for contacting Airbnb: 

https://community.airbnb.com/t5/Tips-Tricks/Contact-Airbnb-A-How-To-Guide/m-p/16165/highlight/false#...

You should also read up on host cancellations: 

https://www.airbnb.com/help/article/990/how-do-the-cancellation-penalties-work

Good Luck!