A cancellation policy template for small hotels and B&Bs

For a small house, one empty room on a busy weekend is a real loss. A guest who cancels the day before leaves you with little chance of selling it again. A policy does two things: it tells guests what to expect before they book, and it gives you something clear to point to when things go wrong.

Three principles hold up well:

• Be clear and short. Guests should read it in under a minute.
• Show it before the booking is made. Not in the fine print after payment.
• Apply it fairly. A policy that you waive for a guest with a real emergency can build more goodwill than strict enforcement.

The wording below is an example only. Adapt the days and amounts to your house, and check what rules apply where you are (see the note at the end).

1. Flexible

Good for guests who plan late, and for houses that rarely sell out.

Example: You can cancel free of charge until 2 days before arrival. After that, the first night is charged. If you do not arrive and have not told us, the full stay is charged.

2. Moderate

A balance for most small hotels and B&Bs.

Example: You can cancel free of charge until 7 days before arrival. From 6 days to 2 days before arrival, 50 percent of the stay is charged. Later cancellations and no-shows are charged in full. If we can re-let the room, we will reduce the amount.

3. Strict or non-refundable

Often offered as a cheaper rate next to a flexible one, so the guest chooses.

Example: This rate is non-refundable. The full amount is due at booking. Changes of dates are not possible. We recommend travel insurance.

Deposits

A deposit makes a booking firmer. Common examples are a percentage of the total at booking, with the rest on arrival, or the full amount for non-refundable rates. State when the deposit is due, how it is paid, and whether it is returned on a timely cancellation.

No-shows

Say what happens if a guest does not arrive: usually the same as a late cancellation. Add how long you hold the room on the day of arrival, for example until a stated time, unless the guest has told you they are late.

The policy must be visible before the guest clicks Book. Put a short summary next to the rate (“Free cancellation until 7 days before arrival”) and the full text in a place the guest passes on the way. Use the same wording in the confirmation e-mail. If you accept bookings in several languages, translate the text instead of leaving it in one.

Nuitina has four settings that together make up your policy.

• Tariffs: Under Rates you can offer the same room as a flexible tariff (“Free cancellation”) and as a non-refundable one, each with its own price change in percent. Guests choose when they book.
• Free cancellation days: In Settings → Property (German: Einstellungen → Haus) you set “Free cancellation until … days before arrival”. Within that time, guests on a flexible tariff can cancel online themselves. A value of -1 means never online. A non-refundable tariff cannot be cancelled online.
• Deposit in percent: The same screen has the deposit percentage. It is stated in the confirmation. If you have connected Stripe or PayPal under Settings → Payments, guests can pay the deposit or the full amount online, straight into your account, and you can choose whether the room is held until it is paid.
• Policy text: The field “House rules and cancellation terms” is shown to the guest before booking. You can translate it into the languages you offer. Paste your own wording there, based on the examples above.

The online cancellation and the deposit are mechanical. Anything beyond that, such as charging 50 percent for a late cancellation, is for you to agree with the guest and handle yourself, based on your written terms.