How do hotel cancellation policies work?
Hotel cancellation policies are set by each property, not by the booking platform. They specify a deadline and a penalty schedule for cancellations.
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How a policy is structured
A hotel cancellation policy has two parts: a deadline (when free cancellation ends) and a penalty (what's deducted if you cancel after). Common shapes include:
- Free cancellation until 48 hours before check-in, then non-refundable.
- Tiered: 100% refund up to 7 days, 50% up to 48 hours, 0% after.
- Non-refundable from the moment you pay.
Why policies vary
Hotels balance occupancy risk with guest flexibility. Peak-season rates are usually stricter; low-season rates are often more lenient. Boutique properties tend to be stricter than chain hotels because they have fewer rooms to backfill.
Cancellation policies on trip1
trip1 displays the cancellation policy of every rate at checkout and repeats it in your confirmation email. Refunds, when applicable, are sent through CoinGate within 24-48 hours to the wallet you paid from.
How hotel cancellation policies work - FAQ
There is no industry standard; each hotel sets its own, and one hotel can have different terms for different rates. Common shapes are free cancellation until 24 to 48 hours before check-in, tiered refunds that shrink as check-in nears, and non-refundable rates. The policy is shown on each rate before you pay, and on trip1 it is repeated in your confirmation email.
Hotels balance the risk of an empty room against guests' need for flexibility. Peak-season rates are usually stricter and low-season rates more lenient. Boutique properties tend to be stricter than chain hotels because they have fewer rooms and find it harder to resell a late cancellation.
Yes, if the rate's terms allow it: a non-refundable rate, or a cancellation after the deadline, usually means no refund. Some places add legal protections, such as California's rule allowing a full refund within 24 hours of booking for stays booked at least 72 hours ahead. Otherwise, any exception is goodwill, so read the policy on the rate before paying.
It means booking a free cancellation rate, then watching the price for your dates. If the same or a better room gets cheaper before your cancellation deadline, you book the new price and cancel the original booking. It only works on refundable rates and only before the deadline, so check both before cancelling anything.