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For example, a guest might cancel for free up to 14 days before arrival. After that deadline, you might charge a specific fee, such as the first night or 50% of the total stay. This structure is common in leisure segments because it can offer guests some flexibility while giving the property more predictability closer to arrival.",[],{"type":922,"text":1199,"spans":1200,"direction":932},"Non-refundable policies",[1201],{"start":1174,"end":1202,"type":1175},23,{"type":922,"text":1204,"spans":1205,"direction":932},"With a non-refundable policy, the guest typically pays the full amount (or a significant deposit) at booking, and refunds are generally not offered if they cancel. In exchange, the guest may receive a discounted price (often in the 10% to 15% range, depending on market and strategy).",[],{"type":922,"text":1207,"spans":1208,"direction":932},"The shift in traveler behavior",[1209],{"start":1174,"end":1210,"type":1175},30,{"type":922,"text":1212,"spans":1213,"direction":932},"In many markets, traveler expectations have moved toward more flexibility. Models like “book now, pay later” can encourage some guests to treat reservations more like placeholders. As a result, properties that offer only strict, non-refundable options may feel less appealing to travelers who want room to change their plans.",[],{"type":922,"text":1215,"spans":1216,"direction":932},"At the same time, offering only flexible policies can lead to more “wash,” where a meaningful share of bookings cancels close to the deadline. When wash is high, some properties use controlled overbooking to protect occupancy while staying fair to guests.",[1217],{"start":1218,"end":1219,"type":928,"data":1220},178,225,{"id":1221,"type":124,"tags":1222,"lang":14,"slug":1223,"first_publication_date":1224,"last_publication_date":1225,"uid":1226,"url":1227,"link_type":24,"isBroken":34},"Z79XgxAAACAAHfAu",[],"how-to-manage-hotel-overbooking-to-your-advantage","2025-02-26T18:03:49+0000","2025-12-19T14:06:21+0000","guide-manage-overbooking-in-hotels","/en/free-downloads/guide-manage-overbooking-in-hotels",{"type":1135,"text":1229,"spans":1230,"direction":932},"Cancellation policy templates and examples",[],{"type":922,"text":1232,"spans":1233,"direction":932},"Creating a clear policy can make it easier to handle changes consistently and reduce misunderstandings. You can adapt the examples below for your booking engine, website terms and conditions, or confirmation emails.",[],{"type":922,"text":1235,"spans":1236,"direction":932},"Template 1: Flexible (City Hotel Example)",[1237],{"start":1174,"end":1238,"type":1175},41,{"type":922,"text":1240,"spans":1241,"direction":932},"“You may cancel your reservation free of charge up to 24 hours before your scheduled arrival date. If you cancel within 24 hours of arrival or do not show up, you will be charged the cost of the first night.”",[],{"type":922,"text":1243,"spans":1244,"direction":932},"Template 2: Moderate (Vacation Rental Example)",[1245],{"start":1174,"end":1246,"type":1175},46,{"type":922,"text":1248,"spans":1249,"direction":932},"“Free cancellation is available until 14 days before check-in. If you cancel between 14 days and 24 hours before check-in, you will be charged 50% of the total booking value. Cancellations made within 24 hours of check-in are non-refundable.”",[],{"type":922,"text":1251,"spans":1252,"direction":932},"Template 3: Non-Refundable (Discounted Rate Example)",[1253],{"start":1174,"end":1254,"type":1175},52,{"type":922,"text":1256,"spans":1257,"direction":932},"“The total price of the reservation will be charged at the time of booking. This amount is non-refundable and non-transferable, even in the case of cancellation or modification.”",[],{"type":922,"text":1259,"spans":1260,"direction":932},"Template 4: Strict (Peak Season / Events Example)",[1261],{"start":1174,"end":1262,"type":1175},49,{"type":922,"text":1264,"spans":1265,"direction":932},"“A prepayment of 100% of the total stay is required to secure your reservation. If canceled up to 30 days before arrival, 50% of the prepayment will be refunded. If canceled later or in case of no-show, the total amount will be retained.”",[],{"type":1135,"text":1267,"spans":1268,"direction":932},"How do you calculate the cancellation rate?",[],{"type":922,"text":1270,"spans":1271,"direction":932},"To understand how your policy is performing in practice, it helps to track your cancellation rate. This metric shows the percentage of confirmed bookings that do not result in a stay.",[],{"type":922,"text":1273,"spans":1274,"direction":932},"Cancellation Rate = (Number of Canceled Bookings ÷ Total Number of Bookings) × 100",[1275],{"start":1174,"end":1276,"type":1175},82,{"type":922,"text":1278,"spans":1279,"direction":932},"Practical example\nIf you received 200 bookings in a month and 40 of them were canceled before arrival:",[1280],{"start":1174,"end":926,"type":1175},{"type":922,"text":1282,"spans":1283,"direction":932},"40 ÷ 200 = 0.20\n0.20 × 100 = 20%",[1284,1285],{"start":1174,"end":1184,"type":1175},{"start":1286,"end":1287,"type":1175},16,32,{"type":922,"text":1289,"spans":1290,"direction":932},"Your cancellation rate is 20%, meaning that one out of every five bookings did not result in a stay. Monitoring this over time can help you spot patterns and decide whether your current rules match your property’s needs and guest expectations.",[],{"type":1135,"text":1292,"spans":1293,"direction":932},"What factors influence the effectiveness of a cancellation policy?",[],{"type":922,"text":1295,"spans":1296,"direction":932},"Several variables can shape whether your policy feels workable for both your operation and your guests. Understanding these drivers can help you adjust your approach rather than setting it once and leaving it unchanged.",[],{"type":922,"text":1298,"spans":1299,"direction":932},"1. Booking channel",[1300],{"start":1174,"end":1301,"type":1175},18,{"type":922,"text":1303,"spans":1304,"direction":932},"Guests booking via OTAs (such as Booking.com) may cancel more frequently than guests who book directly, partly because OTAs often make cancellation very easy. Direct bookings can involve a more deliberate process, which may correlate with stronger intent.",[1305],{"start":1174,"end":1306,"type":928,"data":1307},72,{"id":1308,"type":701,"tags":1309,"lang":14,"slug":1310,"first_publication_date":1311,"last_publication_date":1312,"uid":1313,"url":1314,"link_type":24,"isBroken":34},"Z7c4NBAAACEAYb6s",[],"how-to-disintermediate-from-otas-4-basic-strategies","2025-02-20T14:12:06+0000","2025-11-17T14:39:51+0000","4-basic-strategies-disintermediation-ota-hotel","/en/blog/4-basic-strategies-disintermediation-ota-hotel",{"type":922,"text":1316,"spans":1317,"direction":932},"2. Seasonality and demand",[1318],{"start":1174,"end":1319,"type":1175},25,{"type":922,"text":1321,"spans":1322,"direction":932},"During high-demand periods (holidays, peak season), properties often have more flexibility to use stricter policies because travelers have fewer alternatives. In low season, some properties loosen terms to reduce hesitation for guests who are uncertain.",[],{"type":922,"text":1324,"spans":1325,"direction":932},"3. Trip purpose",[1326],{"start":1174,"end":1184,"type":1175},{"type":922,"text":1328,"spans":1329,"direction":932},"Business travel often benefits from flexibility because schedules can change. Leisure travel is often planned further ahead, and some guests may prefer a lower price with stricter terms if the tradeoff is clear.",[],{"type":922,"text":1331,"spans":1332,"direction":932},"4. Local events",[1333],{"start":1174,"end":1184,"type":1175},{"type":922,"text":1335,"spans":1336,"direction":932},"When a city hosts a major concert or conference, speculative bookings can increase, where travelers book “just in case.” In those situations, some properties consider stricter rules (or deposits) to reduce the number of tentative holds that may cancel close to arrival.",[],{"type":1135,"text":1338,"spans":1339,"direction":932},"How do you improve your cancellation policy strategy?",[],{"type":922,"text":1341,"spans":1342,"direction":932},"Optimizing your cancellation policy is a balancing act. You want to reduce friction for guests while keeping your rules clear and workable for your team. The goal is usually not zero cancellations; instead, it is to manage cancellations in a way that supports planning, consistency, and a straightforward guest experience.",[],{"type":922,"text":1344,"spans":1345,"direction":932},"Here are five strategies you can use to refine your approach.",[],{"type":1347,"text":1348,"spans":1349,"direction":932},"heading3","1. Implement rate fencing (tiered policies)",[],{"type":922,"text":1351,"spans":1352,"direction":932},"Instead of choosing only one policy for all guests, you can offer multiple options at different price points.",[1353],{"start":1354,"end":1355,"type":928,"data":1356},60,108,{"id":1357,"type":701,"tags":1358,"lang":14,"slug":1359,"first_publication_date":1360,"last_publication_date":1361,"uid":1362,"url":1363,"link_type":24,"isBroken":34},"Z6snyhIAACYAQ-nS",[],"7-different-rates-to-increase-revenue-and-capture-more-bookings","2025-02-11T10:35:44+0000","2025-11-17T14:38:19+0000","7-different-rates-to-increase-revenue-and-capture-more","/en/blog/7-different-rates-to-increase-revenue-and-capture-more",{"type":922,"text":1365,"spans":1366,"direction":932},"For example, you can present two prices for the same room:",[],{"type":1180,"text":1368,"spans":1369,"direction":932},"Standard Rate: fully flexible (e.g., free cancel up to 24 hours), higher price",[1370],{"start":1174,"end":1371,"type":1175},14,{"type":1180,"text":1373,"spans":1374,"direction":932},"Non-Refundable Rate: stricter terms, discounted price (e.g., 10% off)",[1375],{"start":1174,"end":1376,"type":1175},20,{"type":922,"text":1378,"spans":1379,"direction":932},"This approach gives guests a clear choice and helps you communicate what they receive in exchange for flexibility.",[],{"type":1347,"text":1381,"spans":1382,"direction":932},"2. Adjust policies dynamically based on lead time",[],{"type":922,"text":1384,"spans":1385,"direction":932},"A static policy for all bookings is not always a good fit because a booking made six months in advance can carry different uncertainty than one made for tomorrow. Two approaches some properties use are:",[],{"type":1180,"text":1387,"spans":1388,"direction":932},"For last-minute bookings (e.g., same day): You might make these non-refundable immediately, since there is limited time to resell the room if plans change.",[1389],{"start":1174,"end":1390,"type":1175},42,{"type":1180,"text":1392,"spans":1393,"direction":932},"For long lead times: You might require a deposit or set a stricter cancellation window (e.g., 14 days) so the terms better match the planning horizon.",[1394],{"start":1174,"end":1376,"type":1175},{"type":1347,"text":1396,"spans":1397,"direction":932},"3. Simplify your policy language",[],{"type":922,"text":1399,"spans":1400,"direction":932},"Clear wording can make it easier for guests to understand what they are agreeing to, and it can reduce back-and-forth later. The policy is often easier to follow when you:",[],{"type":1180,"text":1402,"spans":1403,"direction":932},"Use clear, plain language (e.g., “Free cancellation until June 15.”).",[],{"type":1180,"text":1405,"spans":1406,"direction":932},"Avoid conflicting terms across different channels.",[],{"type":1180,"text":1408,"spans":1409,"direction":932},"Display the policy prominently during checkout and in the confirmation message.",[],{"type":1347,"text":1411,"spans":1412,"direction":932},"4. Automate payment collection and validation",[],{"type":922,"text":1414,"spans":1415,"direction":932},"Policies are easier to apply consistently when payment steps are clear and repeatable. Many properties use automation to reduce manual effort and spot payment issues earlier. For example, you can:",[],{"type":1180,"text":1417,"spans":1418,"direction":932},"Use a payment gateway that validates cards at booking.",[1419],{"start":1420,"end":1421,"type":928,"data":1422},6,53,{"id":277,"type":56,"tags":1423,"lang":14,"slug":279,"first_publication_date":141,"last_publication_date":280,"uid":281,"url":282,"link_type":24,"isBroken":34},[],{"type":1180,"text":1425,"spans":1426,"direction":932},"For flexible bookings, consider authorizing the first night’s amount shortly before the cancellation window closes.",[],{"type":1180,"text":1428,"spans":1429,"direction":932},"Collect deposits for non-refundable rates at the time of booking.",[],{"type":922,"text":1431,"spans":1432,"direction":932},"If you use a PMS with payments tooling, these workflows may be easier to set up and manage, depending on your configuration.",[],{"type":1347,"text":1434,"spans":1435,"direction":932},"5. Incentivize rebooking over refunding",[],{"type":922,"text":1437,"spans":1438,"direction":932},"When a guest needs to cancel a non-refundable booking due to an emergency, some properties choose options that preserve goodwill while still keeping the policy understandable. Two common approaches are:",[],{"type":1180,"text":1440,"spans":1441,"direction":932},"Offer a voucher or credit for a future stay instead of a cash refund.",[],{"type":1180,"text":1443,"spans":1444,"direction":932},"Allow a one-time date change for a small fee.",[],{"type":922,"text":1446,"spans":1447,"direction":932},"This can help you remain consistent with your terms while giving guests a path forward that feels more accommodating.",[],"rich_text$8f7a4eae-fc84-4758-848d-ee956022bb57","rich_text","Cancellation policy: hotel meaning and examples | Glossary","Cancellation policy is a set of rules that explains when a guest can cancel, what deadlines apply, and whether fees or refunds apply. See examples.",{},{"prev":1454,"next":1458},{"title":1455,"link":1456},"Buyer's journey",{"to":1457},"/en/glossary/buyer-journey",{"title":1459,"link":1460},"CompSet (Competitive Set)",{"to":1461},"/en/glossary/compset",1776524640697]