Hi Kia,
Thank you for your response.
I have a 4 BR/4.5 bath near the convention center in San Diego. We are typically booked about 27 nights per month. We cater to business teams, but have many families and groups of friends travelling for pleasure as well.
Since our home is so large the cleaning fee is quite high, and have found it to be cost-prohibitive for short stays. So, for that reason and others pertaining to our neighbors, we typically have a 4-night minimum. As a result of the factors above, most of our booking come approximately 4 to 8 months in advance. In 7 years we have only had a handful of bookings within 6 weeks of travel even if we offer shorter stays and steep discounts.
So, when we experience last-minute cancellations, we have almost no chance of rebooking and recovering the lost revenue. We recently lost a week-long booking 6 days prior to arrival with no note or reason why from the guest. We lost $2,800 in revenue as a result, which is quite significant to my family.
So, you ask, why don't we have a strict cancellation policy? Well, we tried that too, and received many emails from our regular business guests and others that wanted to book asking us to change the booking policy because their companies required them to book homes that offered free cancellation in case the needs of the company changed. The strict policy was just not possible for us as it cost us a very large share of our target guest population.
So, how would cancellation information help? Say the person that cancelled last-minute had one 5-star review, and 10 cancellations. Do you think I would have taken their booking? No way! Someone with 10 5-star reviews and one cancellation? Maybe. I would communicate with them about the circumstances of that cancellation first though.
Also, I think the mere existence of this information would stop the serial-cancellers, because they would soon find that no sane host would allow them to book.
One of our guest once mentioned that they they liked our cancellation policy because they typically booked four or five places, then decided based on their final travel plans which one to use. I asked how long in advance they cancelled, and they replied "always by the deadline" which I took to mean "just before the deadline."
I discussed the impact their behavior had on the cancelled hosts with them, and it seemed like they had never even considered this. Unfortunately there are a lot of people out there that don't consider the impacts of their behavior on others.
I hope that you can now see the tremendous value that cancellation information would have for some hosts. If it is not important to you, great! But for some of us, the more information we can have about potential guests, the better.