Hosts create cancellation policies to cover the losses that last minute cancellations cause. The cancellation policies set in Lodgable apply to bookings made through Lodgable's custom sites (lodgable.me) but Airbnb, VRBO/Homeaway and Booking.com have custom policies.
Cancellations when the host is the merchant on record (Booking.com and VRBO):
If a guest who booked through Booking.com or VRBO, or another MoR channel, cancels you'll want to verify the policy that applies to the booking first. If the cancellation doesn't have a cancellation policy then the full amount is expected to be refunded. Otherwise verify what charge is appropriate with the cancellation and refund what's appropriate.
Cancellations when the channel is the merchant on record (Airbnb)
Airbnb will refund the payment according to the cancellation policy that's been set. If it's never been updated it's probably set to their moderate policy. You can review the Airbnb cancellation policies at https://www.airbnb.com/home/cancellation_policies#moderate.
To refund the payment visit the reservation page in Lodgable and at the bottom of the page you'll see the payment with a Refund option
Once you click the Refund button a module will open to verify the amount of the refund
If you're using a Property Management Software (RNS, Escapia, etc) you'll need to remove the reservation manually in your software. Click here for more information.