I have been curious about what it was like having a B and B. As far as last minute cancellations go, I'm sure it can be a hassle getting another reservation for that room. I wonder how that works, how long it takes to get that filled.
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It depends on the season, but our cancellation policy does protect us from that. Our insurance will cover loss of income if a guest cancels due to illness etc.
Fortunately, it doesn't happen often.
Thank you for popping in @wanderingmoon