I've decided to use this post as a way to centralise information about canceling and issues related to it.
Email received from Airbnb:
'In rare situations, you may need to cancel. However, If you cancel again, your listings may be temporarily paused. This means the listings wouldn’t show up in search results and you wouldn’t be able to confirm future reservations.'
The situation:
An experienced user of Airbnb got around the House Rules by booking for one person. 'Instant Booking' is engaged for those who have met Airbnb's verification status and for those who have existing positive Host reviews. She then sent a message asking for 7 people to be accommodated. It is clear Lakeview accommodated a MAXIMUM 6 people. I would also have thought, knowing the maximum number of people that can be accommodated at Lakeside is six, that she woulld have used 'Contact Host' at the top of the page, to initiate discussion and to negotiate BEFORE 'Instant Book.'
Airbnb advice:
1. In rare situations you may need to cancel. When canceling you are provided with options to represent your reason. In this case it was the Guest could not meet House Rules.
2. IF YOU CANCEL AGAIN - there was no second cancelation
3. Your listings MAY be TEMPORARILY paused. In fact Airbnb DID pause the listing for the dates concerned.
4. 'As part of honouring your commitment to guests, it’s important to remember that cancellations have a serious impact.' In fact, it was the Guest who dishonoured the agreement as set out by Airbnb in terms of how it operates. ie a Guest must comform to the House Rules. On the other hand I was honouring the advertised accommodation which Airbnb define as 'House Rules.'
5. Once 'Instant Book' is engaged there is no option but to cancel. 'Instant Book' is working well for other Guests. And if I was a Guest myself I would want to use this facility as the optimal approach to dealing with time as a limited resource.