Advice on canceling on Airbnb guest

[Kadeidra Honey-Brooks]

Hello all! I own a seasonal STR rental outside Chicago - summers are very busy and Sept-May is pretty empty. I have a guest (airbnb) staying one weekend during the off season but had an opportunity to rent to a mid-term tenant for the entire off season (lease is now signed and deposit paid), which is way better for my bottom line. I now need to cancel on the Airbnb guest. Any advice?

Should I ask them to cancel so it doesn’t affect my host status? Offer a discount on another date? Just cancel and deal with the fee?