Every reservation cancellation turns into a difficult conversation when the rule wasn't written down. A clear policy resolves this before it starts: the guest knows what happens if they back out, the staff doesn't have to decide on a case-by-case basis, and the hotel protects revenue from the most sought-after dates.
Below, a ready-to-copy and adapt model, with three types of rates and rules for no-shows, date changes, and refunds. Before it, the legal precautions that avoid issues with the Consumer Protection Agency. Adjust the deadlines and percentages to the reality of your hotel and validate the final text with legal counsel.
What the law says about reservation cancellation
There is no law that sets cancellation deadlines or percentages for hotels. There are general rules that the policy must respect:
- Clear information before purchase: the Consumer Protection Code guarantees adequate and clear information about the terms of the contract (art. 6, III). The policy must appear before payment, not just in the confirmation;
- No excessive disadvantage: clauses that place the consumer at an excessive disadvantage are null (CDC, art. 51, IV). Retaining 100% from someone who cancels months in advance tends to be questioned;
- Proportional penalty: the Civil Code allows the judge to reduce a manifestly excessive penalty (art. 413). Percentages that increase as the date approaches are easier to defend;
- Deposit has its own rule: the amount paid for the reservation functions as an earnest money (Civil Code, arts. 417 to 420). If the payer backs out, the recipient can retain it, as agreed.
For reservations made online or via WhatsApp, there is also the discussion about the seven-day right of regret (CDC, art. 49). Its application to bookings with a set date is not settled, so address this point with legal counsel and make the rule explicit in the policy.
For a complete overview of sector regulations, also see the guide on the lodging law.
Three types of rates, three cancellation rules
The simplest way to balance flexibility and protection is to link the rule to the type of rate:
- Flexible rate: full price, with free cancellation up to a few days before arrival. It attracts those who are still deciding;
- Non-refundable rate: discount in exchange for full payment, with no refund. Good for those who already have a set date;
- High season and packages: longer deadlines for New Year's Eve, Carnival, extended holidays, and packages, when a last-minute cancellation leaves no time to resell the room.
Sample cancellation policy to copy
Replace the items in brackets with your hotel's values.
Cancellation Policy – [hotel name]
1. Flexible Rate. Cancellations made up to [7] days before the arrival date have a full refund of the amount paid. Between [6] days and [48 hours] before arrival, we retain [50%] of the deposit. Cancellations with less than [48 hours] notice and no-shows have the deposit retained.
2. Non-Refundable Rate. Rate with [10%] discount, paid in full at the time of reservation. There is no refund in case of cancellation or no-show. Date changes can be made once, up to [7] days before arrival, subject to availability and rate difference.
3. High Season, Holidays, and Packages. For [New Year's Eve, Carnival, extended holidays, and packages], cancellations up to [30] days before have a full refund. Between [29] and [15] days before, we retain [50%] of the deposit. With less than [15] days, we retain the deposit.
4. Date Changes. Requests for date changes made up to [7] days before arrival have no cost, subject to availability and the rate for the new dates.
5. Early Departure. Unused nights due to early departure [are not refunded / become credit for a new stay within 12 months].
6. Situations Beyond the Control of the Guest and Hotel. In cases such as road closures or extreme weather events, we offer free rescheduling or a credit valid for [12] months.
7. Refunds. Refund amounts are processed within [10] business days, using the same payment method used for the reservation.
8. How to Cancel. Cancellation must be requested via the official WhatsApp [number] or email [address] and is valid from the time of our written confirmation.
Where the policy needs to appear
- in the budget, along with the value and payment method;
- in the booking engine checkout, before payment;
- in the reservation confirmation, via WhatsApp and email;
- on OTAs, with the same logic as the direct channel. Different policies on each channel confuse the guest and staff.
At DeskHotel, the budget shows what is paid now and what is due upon arrival, and the conversation is recorded on the hotel's official WhatsApp. If there is a dispute, the hotel has the history of what was agreed upon.
How to apply the policy without losing the guest
A good policy is also applied with common sense. When someone requests a cancellation within the retention period, offer a date change or credit first: often the guest accepts, and the reservation stays with the hotel. Record the reason for each cancellation in the CRM to understand what repeats. And use reminders before arrival to reduce no-shows.
Frequently Asked Questions about Reservation Cancellation
Can the hotel charge a penalty for cancellation?
Yes, as long as the rule was clearly communicated before payment and the amount is proportional. Staggered percentages based on the advance notice are usually more defensible than full retention.
What is the ideal deadline for cancellation without cost?
It depends on demand. For regular dates, a few days' notice usually suffice. In high season, longer deadlines make sense, as the hotel needs time to resell the room.
Is a no-show the same as a cancellation?
No. A no-show is when the guest doesn't show up or notify. The policy should state what happens in this case, usually the retention of the deposit or the first night.
With the rule written and visible on all channels, cancellation stops being a discussion. DeskHotel combines budget, payment, official WhatsApp, and CRM in a single platform, from click to payment.
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References: Consumer Protection Code (Law 8,078/1990), arts. 6, 49, and 51; Civil Code (Law 10,406/2002), arts. 413 and 417 to 420. This content does not replace legal advice.