In this article · 6 sections
A clear hotel cancellation policy protects your income during busy dates and gives guests the confidence to book. The worst policy is a vague one. "Refund as per management decision" invites disputes and bad reviews.
Decide on rate types
Most hotels offer two options:
- Flexible rate: free cancellation up to a deadline, slightly higher price
- Non-refundable rate: lower price, no refund
Guests choose, so they can't later claim they didn't know.
Sample policy (adapt to your property)
Standard dates: Free cancellation up to 48 hours before check-in. Cancellations within 48 hours are charged one night. No-shows are charged the full first night.
Peak dates (festivals, long weekends, wedding season): Free cancellation up to 7 days before check-in. After that, 50% of the booking value is charged.
Group bookings (5+ rooms): 25% advance, non-refundable within 21 days of arrival.
Refunds are processed to the original payment method within 7 working days.
Early departure: The remaining nights are charged when the stay was booked on a non-refundable or peak rate.
Show it everywhere
- Booking page on your website, before payment
- Confirmation email or WhatsApp
- OTA rate plans. Make sure each channel shows the same rules
- Terms page on your site
Handle exceptions with care
Medical emergencies or weather closures happen. Offering a date change instead of a refund keeps goodwill without losing revenue.
No-shows and overbooking
See the full process in hotel no-show and overbooking policy.
FAQs
Can I keep the full advance if the guest cancels?
Only if your published policy clearly says so and the guest accepted it before paying. Consumer-protection rules expect terms to be fair and disclosed upfront.
This template is general guidance, not legal advice.
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