Cancellation Policies for Small Hotels: Choosing the Right One

Your cancellation policy balances booking conversion against the risk of empty nights. Booking.com and Airbnb each offer their own policy options. Check their current help pages.

Options

• Flexible: more bookings, more cancellations
• Moderate/firm: balance
• Non-refundable rate: usually offered at a discount, guaranteed revenue

Good practice

• Offer a non-refundable rate alongside a flexible one
• Use stricter policies for peak dates only
• Keep the same terms on your own website
• State the policy clearly in the confirmation

Official sources

• Airbnb Help Center: cancellation policies
• Booking.com Partner Hub

Last reviewed 29 October 2026. This guide is general information, not legal or tax advice. Check the linked official sources for your case.