%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
What is Flexible Cancellation?
Flexible cancellation is a type of guest policy in the vacation rental industry that offers a full refund for cancellations made within a specified, and typically short, window before arrival. For example, a common flexible policy might allow a guest to cancel up to 24 or 48 hours before check-in with no financial penalty.
This stands in contrast to 'Moderate' or 'Strict' policies, which require earlier cancellation for a full refund or may only offer partial refunds.
Join the Lodgify newsletter
How it works
A property manager or owner selects a 'Flexible' cancellation option when setting up their listing on an Online Travel Agency (OTA) or their direct booking website. This policy is clearly displayed to potential guests during the booking process.
If a guest who has booked under this policy needs to cancel, they can do so through the booking platform. As long as the cancellation is made within the timeframe specified by the policy, the platform or host processes a full refund of the amount paid, minus any non-refundable platform service fees.
Why it matters
Offering a flexible cancellation policy can make a listing more attractive to potential guests, especially those with uncertain travel plans, as it minimizes their financial risk. This can lead to a higher booking conversion rate and increased occupancy.
While it introduces a risk of last-minute vacancies for the host, many find that the increased volume of bookings outweighs the potential for lost revenue from cancellations.
Examples
- A couple books a city loft for a weekend but is unsure about a work commitment. They specifically filter for and book a property with a flexible policy that allows free cancellation up to 24 hours before check-in.
- A host in a competitive market switches her two-bedroom condo's policy from 'Moderate' to 'Flexible.' She observes a 20% increase in bookings for the following quarter as her listing gains more visibility and appeals to a wider range of travelers.
- A family books a ski chalet for a winter holiday, but a week before, an unexpected illness prevents them from traveling. Because the host's policy allows full refunds for cancellations made up to five days before arrival, they cancel and receive all their money back.
- A guest books a direct booking website but has to cancel due to a flight change. The host's clear, flexible cancellation policy, outlined in the rental agreement, allows for a full refund, and the guest leaves a positive comment about the process, promising to rebook in the future.
Frequently asked questions
What is a typical flexible cancellation window in vacation rentals?+
Does offering a flexible cancellation policy hurt a host's revenue?+
How is a 'Flexible' policy different from a 'Moderate' policy?+
Can I set a flexible cancellation policy on my own direct booking website?+
Related terms
Cancellation Policy
A set of rules defining the penalties a guest incurs for canceling a reservation and the conditions under which they may receive a refund.
Cancellation Fee
A cancellation fee is a charge levied against a guest who cancels their reservation within a specified timeframe, as outlined in the property's cancellation…
Moderate Cancellation
A moderate cancellation policy is a common framework in the vacation rental industry that balances guest flexibility with host protection by offering a full…
Rental Agreement
A rental agreement is a legally binding contract between a property owner or manager and a guest. It outlines the terms, conditions, and rules for a short-term…