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Cancellation policy guide

How to write a hotel cancellation policy

The short answer

A good hotel cancellation policy is clear, fair, and stated up front. Pick a tier that fits your property: flexible (free cancellation up to a day or two before), moderate (free up to five to seven days before, then part of the stay is charged), or strict (a deposit or the first night is non-refundable). Say the exact deadline, what's charged after it, and how a guest cancels — in plain language, on your booking page and in the confirmation. A policy a guest understands before they book prevents disputes and chargebacks later.

1. Choose a cancellation tier

Match the policy to your property. A city hotel with steady demand can afford to be flexible; a remote villa, a small guesthouse, or a peak-season lodge — where a late cancellation is hard to re-sell — leans moderate or strict. Most properties settle on three named tiers so a guest can see the trade-off at a glance.

  • Flexible — free cancellation up to 1–2 days before check-in.
  • Moderate — free up to 5–7 days before; after that, the first night or a percentage is charged.
  • Strict — a deposit or the first night is non-refundable from the time of booking.

2. State the deadline and what's charged

The two things a guest must be able to find in one read are the cut-off (for example, 48 hours before check-in) and the charge after it (nothing, the first night, a percentage, or the deposit). Vague wording is what creates disputes — a precise deadline and amount is what makes the policy fair and enforceable. Here's a moderate policy you can copy and adapt — swap the numbers to fit your property:

Sample policy — copy and adapt

Free cancellation until 48 hours before check-in (2pm local time on arrival day).

Cancellations inside 48 hours, and no-shows, are charged the first night.

A deposit of one night confirms the booking and is refundable until the same 48-hour deadline.

To change your dates, message us — we'll always move a booking to open dates without a fee.

3. Handle deposits clearly

If you take a deposit to hold the booking, say plainly whether it's refundable and until when. A deposit that quietly becomes non-refundable is the fastest route to a chargeback and a bad review; a deposit the guest understood is simply the cost of holding the room.

4. Put it where guests see it before they book

The policy belongs on the booking page and in the confirmation — not buried in a footer. A policy a guest agreed to up front is the one you can hold to; a surprise policy discovered at cancellation is the one that costs you the relationship. On a PeakRooms site your terms sit with the booking, so the guest sees them at the moment of decision.

5. Be human about genuine exceptions

You can hold a firm policy and still make a goodwill exception for a real emergency. That judgement — firm by default, kind when it matters — is what earns loyalty and the review that says a guest was treated well. A clear policy gives you the standing to be generous by choice, not by pressure.

Key takeaways

  • Pick a named tier — flexible, moderate, or strict — that matches your property.
  • State the exact deadline and the exact charge after it.
  • Say whether any deposit is refundable, and until when.
  • Show the policy on the booking page and confirmation, before the guest books.
  • Hold the policy by default; make goodwill exceptions for genuine emergencies.

Related questions

What's a fair cancellation window?
For most independent stays, 48 hours to 7 days before check-in is fair — shorter for flexible city hotels, longer for remote or high-value properties that can't easily re-sell a late cancellation. The key is that it's clearly stated before the guest books.
Should I take a deposit?
A deposit is worth taking on higher-value or peak-season stays where a no-show is costly. Just make it clear at booking whether the deposit is refundable and by when, so it protects you without surprising the guest.
Can I have different policies for different rooms or seasons?
Yes, and many properties do — a stricter policy on peak dates or a whole-villa booking, a flexible one off-season. Keep each policy clearly attached to the room and dates it applies to so a guest always sees the right one.

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