Glossary · Money

Cancellation policy

Cancellation policy · definition
  • A cancellation policy defines what a guest gets back when they cancel — from flexible (full refund until shortly before check-in) to strict (limited refund after booking).
  • Category: Money

The real trade-off

Flexible policies convert better — guests book earlier and more willingly — but hand you the empty-night risk of late cancellations. Strict protects revenue but suppresses conversion, especially far ahead.

A sane default

Moderate policies plus dynamic pricing usually win: cancelled peak dates resell if freed early enough. Match strictness to how resellable your dates are — a city flat resells Tuesday nights; a remote lodge does not resell next weekend.

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Part of the Stays short-term rental glossary.

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