I'm not sure why this is happening, but I seem to be getting a lot more people who want to cancel and get full refunds in the 11th, 12th or 13th hour than ever before.
I found the hard "no" led to headaches so I switched to, "if it is rebooked, I will give you a refund." That has worked out much better.
Some of my 11th hour cancellations end up deciding to come after all.
My 13th hour cancellation was someone who had booked for 3 weeks and after a week announced that her plans had changed and she was leaving the following morning. She wanted a full refund on the 2 weeks she was cancelling.
She finally accepted that she wasn't getting a refund if the unit wasn't rebooked. She monitored the bookings and asked me to slash my prices in hopes of getting bookings. I did as she asked and managed to book 6 of the 14 nights she had cancelled. And that was at bargain basement prices! After removing the expenses involved with turnovers, she is getting back a 1/4 of what she lost in that cancellation.
It was slightly more work on my part but a ton fewer headaches. She isn't thrilled that her refund is so low but I was able to give her an exact account of the revenue minus expenses and she thanked me.
Far fewer phone calls. Far less of a headache. I'm happy and the guests are reasonably ok. The ones who decided to come, after all, left 5 star reviews.