Looks like I opened a can of worms here...
Just as an update, considering the WHO's elevation of CV to pandemic status and recommendations to limit travel, we've decided to offer credits towards future travel and refunds in other cases.
What people need to understand is that Airbnb is not a Hilton. You choose Airbnb to get a personal, non-commercialized experience. As such, a host's options are more limited due to their small size. I know the big guys set the tone but it burns me when we expect all businesses to work like big businesses. You can't have it both ways. You either want a more personal approach and accept that it comes at the cost of flexibility or you choose the big guys and forgo the personal touch. We're one location in one city. Not many locations in many cities. That means a credit with us is a lot more limiting, especially if you're not in a tourist area. So saying "hotels and airlines are offering credits" doesn't mean much to me. I'm not a hotel or airline where a credit is a good option to pacify guests. Cancellations present a totally different set of issues for me. Now, if Airbnb wants to step in and help allow hosts to "act" like big hotels by allowing those credits to be used for travel to places other than the original booking, that changes things. But that hasn't happened yet.
I'll end my rant. Guess the point is, we all need to decide for ourselves what works and stop expecting small to act big since that expectation is ridiculous. There needs to be more flexibility here. It's not cut and dry.