“Free cancellation” is one of the most useful phrases you will see when comparing hotels, and one of the most misunderstood. It does not mean you can cancel at any time, and it does not always mean you will not be charged anything up front. Understanding how flexible rates work lets you book early to secure a room, keep your options open and avoid the penalties that catch people out.
What free cancellation actually means
A free-cancellation rate lets you cancel without a penalty up to a set deadline. After that deadline, the booking usually becomes non-refundable, or a penalty applies, often the cost of the first night and sometimes the whole stay. The deadline is set by the hotel and can be anything from a few weeks before arrival to the afternoon of your arrival day.
Save60 compares rates and sends you to partner sites to book, so the terms that apply are the ones shown by the hotel or booking site at the point you book. Read them there before you pay.
The rate types you will see
- Free cancellation, pay later. You give card details to guarantee the room but are not charged until you stay, or until shortly before arrival. The hotel may place a pre-authorisation on your card.
- Free cancellation, pay now. You are charged when you book and refunded if you cancel before the deadline. The refund can take several working days to appear.
- Partially refundable. A deposit, often the first night, is non-refundable, while the rest can be cancelled.
- Non-refundable. Usually the cheapest rate, but you pay in full and cannot cancel or, in most cases, change the dates.
Read the deadline carefully
The small print around the deadline is where most problems arise.
- Time zone. Deadlines are usually expressed in the hotel’s local time. A deadline of 18:00 in Bangkok falls around midday or earlier in the UK, depending on the time of year, while a deadline of 18:00 in New York is late evening in London.
- Counting days. “Free cancellation until two days before arrival” usually means a specific time on a specific date. Check the exact date and time shown in your confirmation rather than working it out yourself.
- Peak dates. Hotels often apply stricter terms around big events and holidays, such as New Year in Edinburgh, so the policy you had last time may not apply this time.
- Changes. On some bookings, changing your dates counts as a cancellation followed by a new booking at the current price.
No-shows and late arrivals
If you do not turn up on your first night and have not cancelled, the hotel will usually charge a no-show fee, often the first night or the full stay, and may cancel the rest of your booking. If your flight is delayed and you will arrive late, contact the hotel to let them know. Most will hold a guaranteed room, but it is safer to tell them.
How to cancel properly
- Cancel through the same site or channel you booked with. A hotel often cannot cancel a booking that another company made on your behalf.
- Keep the cancellation confirmation email, and take a screenshot showing the cancellation and the time.
- Check your card statement for the refund or the release of any pre-authorisation.
- If the booking was charged in a foreign currency, the amount refunded in pounds may differ slightly because of exchange rate movements.
- If a refund does not arrive, contact the company you booked with and quote your confirmation. As a last resort, your card provider may be able to help.
The book-early, re-check strategy
The main advantage of a flexible rate is that it lets you lock in a room without locking in the price. A simple routine works well:
- Book a free-cancellation rate as soon as you know your dates, particularly for busy periods.
- Put the cancellation deadline in your calendar, with a reminder a few days before.
- Re-check prices for your dates every so often, and again shortly before the deadline.
- If you find a better rate, book the new room first, make sure it is confirmed, and only then cancel the original.
The order matters. If you cancel first and the cheaper rate disappears, you may end up paying more than you started with.
A worked example
To illustrate with made-up round numbers: a hotel offers a non-refundable rate of 100 a night and a free-cancellation rate of 115 a night. For a three-night stay, the difference is 45, which is effectively the price of flexibility. If there is a real chance your plans will change, or the stay is far enough away that prices could drop, paying it can be worthwhile. If your dates are fixed, the trip is soon and the non-refundable rate is good, taking the saving can be the better choice.
When a non-refundable rate makes sense
- Your dates are fixed and your flights are already booked on non-refundable fares.
- You are booking close to the date, when prices are less likely to fall.
- The saving is large compared with the risk of losing the booking.
Remember that travel insurance generally covers cancellation for specific reasons, such as illness, and not because you have changed your mind or found a cheaper room. Check your policy wording.
Line up your hotel and flight terms
A flexible hotel is only half the picture if your flights cannot be changed. If you might need to move your trip, check the flight’s fare rules alongside the hotel’s cancellation deadline, and make your decision before the earlier of the two. Our guide to when to book flights covers fare rules and timing.
Checklist before you book a flexible rate
- What is the exact cancellation deadline, and in which time zone?
- Do you pay now or at the hotel, and will a pre-authorisation be taken?
- Is any part of the payment non-refundable?
- What happens if you arrive late, or not at all, on the first night?
- Is the price difference compared with the non-refundable rate worth the flexibility?
For more ways to get a better rate, see our guide on how to find cheap hotel deals, or start comparing hotels in cities such as Paris, Dubai and Barcelona.
