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Host Life Tips

Cancellation policies for your vacation rental

Booking cancellations and cancellation policies arise for different reasons. Sometimes unexpected events occur and guests have to cancel a booking. 

At the same time, it is possible that as an owner you may be forced to cancel a guest’s booking. In both cases, it is in your best interest to apply the right cancellation policy to minimise the impact on your business and avoid negative reviews from unhappy guests

Therefore, the best cancellation policies will be those that protect you and help you to ensure that your profits are not significantly affected. 

You are probably wondering what options exist in terms of cancellation policies. In order to help you choose the best option for your vacation rental, we bring you this article where we reveal the different types of cancellation policies that exist.

Types of cancellation policies for your vacation rental

Flexible cancellation policies

  • Details: Offers great flexibility and allows your guests to cancel their reservation up to 24 hours before their arrival. 
  • Within the deadline: In the event that they cancel their booking before the 24 hour deadline, the owner does not charge any cancellation fee. 
  • After the deadline: In case of cancellation after the deadline, the owner will be charged the full amount of the first night. 
  • After arrival: If the booking is cancelled after check-in, the guest will be charged the full amount corresponding to the number of nights they have stayed at the property and the price of one additional night. 

Moderate cancellation policies

  • Details: The moderate cancellation policy allows your guests to cancel the booking up to 5 days prior to arrival. 
  • Within the deadline: They will receive a full refund of their booking and  the owner will not charge any money for the booking.
  • After the deadline: In case of late cancellations, guests will be charged for one night and 50% of the remaining nights will be refunded. 
  • After arrival: If the guest cancels the booking after its arrival at the accommodation, they will be charged for the number of nights they have stayed, one additional night and will be refunded 50% of the remaining nights not used. 

Strict cancellation policies

  • Details: For a full refund of the booking, your guests must cancel between 48 hours after booking and 14 days prior to arrival. 
  • Within the deadline: If they cancel between 7 and 14 days prior to arrival, the owner will be refunded 50% of all the nights that make up the booking. 
  • After the deadline: If guests cancel after the deadline, it is the owner who receives the full amount of the reservation.
  • After arrival: No refund of the total amount of nights not used. 

How to choose the cancellation policy that works better for you? 

The flexible policy will be perfect for your holiday rental when: 

  •  You want to make your offer more attractive to guests who are looking for flexibility. 
  • The location of your accommodation is attractive to the guests.
  • If you are in low season, offering a flexible policy can attract potential guests and increase bookings in your vacation rental

A moderate cancellation policy is a middle point between a flexible and a strict cancellation policy. This will be the best option for your holiday rental when: 

  • You are looking to significantly reduce last minute cancellations. 
  • You want to attract travellers who plan their trips in advance and are seeking refundable accommodations. For example, business travellers. 

A strict cancellation policy is usually not very attractive to guests, but there may be other valid reasons why you should consider choosing it.