Operations
Cancellation and deposit policies that feel fair to everyone
How to set a deposit and cancellation policy that protects your income without scaring off guests, with practical examples, wording tips and the mistakes to avoid.
3 min read

Nobody enjoys writing a cancellation policy. It feels like planning for the moment a guest lets you down, and the last thing you want is to sound suspicious before they have even arrived. But a clear policy is one of the kindest things you can give a guest, because it removes the awkward conversation later. It is also what stands between you and an empty pitch on a sold-out August Saturday.
The aim is simple: protect the income you have planned around, without making booking feel risky.
Why a deposit does more than cover your costs
A deposit is a commitment signal. A guest who has paid something upfront is far more likely to turn up, or to tell you early if they can't, which gives you a chance to rebook the pitch. Booking with no payment at all invites casual holds that quietly block your best weekends.
The amount matters less than you might think. Many sites take around 20 to 30 percent at booking and the balance on arrival or a few weeks before. Charge too little and the deposit stops meaning anything. Charge the full amount months ahead and some guests will hesitate, especially for a first visit. If you are unsure, start at 25 percent and adjust once you see how often people cancel.
Match the policy to the season
One policy for the whole year is simple, but rarely the best fit. Your demand is not the same in every month, so your risk is not either.
- Peak season and bank holidays: Stricter terms make sense here. A late cancellation costs you a booking you could have sold three times over.
- Shoulder season: Be more flexible. Guests booking in April or October are often watching the weather, and a generous policy can tip an undecided guest into booking. Our guide to making the most of shoulder season covers more of this.
- Quiet midweek stays: Flexibility costs you little, and it fills gaps that would otherwise stay empty.
If your booking system supports it, set different terms per season rather than one blanket rule.
A simple structure that works
You do not need a long list of clauses. Most sites do well with three tiers:
- Free cancellation up to a set point, often 14 to 28 days before arrival, with the deposit refunded or moved to a new date.
- Deposit kept inside that window, since by then you have lost the chance to resell the pitch.
- Full payment kept for cancellations in the final few days or no-shows.
Offering to move a booking to another date instead of refunding it is worth considering. It keeps the money with you and the guest happy, and most people would rather rebook than lose their holiday.
Wording that sounds human
Policy language does not have to sound like a contract. Compare these two:
Cancellations within 14 days of arrival are non-refundable.
If you need to cancel more than 14 days before your stay, we will happily refund your deposit or move you to another date. After that, we will have held the pitch for you, so we keep the deposit.
The second says the same thing, but explains the reason. Guests accept rules far more readily when they understand why they exist. Put the policy on your booking page, in the confirmation email and in your pre-arrival message, so nobody can say they never saw it. We cover that last one in pre-arrival emails guests actually read.
The mistakes to avoid
- Hiding the policy. A surprise at the point of cancelling is the single biggest cause of bad reviews about money.
- Being rigid when life happens. Illness, a bereavement or a closed road are not the same as a change of mind. Decide in advance that you will use your judgement, and a goodwill gesture will usually earn you a loyal guest and a glowing review.
- Forgetting weather. Decide whether you will ever refund for a bad forecast. Most sites don't, but say so clearly, so nobody assumes otherwise.
- Changing the rules mid-season. Apply new terms to new bookings only.
Review it once a year
Once the season ends, look at how many bookings were cancelled, when, and how many nights you managed to resell. If late cancellations are costing you real money, tighten the window. If guests are abandoning checkout, loosen it. Our post on what your booking data is trying to tell you shows where to find those numbers.
A fair policy is not about catching guests out. It is about making a promise to each other that both sides can keep.

