Choosing the right cancellation policy

Written by stayluxe

August 30, 2026

How the right policy helps you win more bookings

Your cancellation policy is one of the first things a guest checks before they book. A more flexible policy gives guests the confidence to book sooner, while a stricter policy protects more of your revenue if plans change. Choosing the right balance for each property helps you attract more bookings without giving up more than you need to.

Why flexibility can drive more bookings

Guests often prefer the reassurance that they can cancel if their plans change, so listings with a free cancellation window tend to convert more views into bookings. Flexibility can also encourage guests to book further ahead and for longer stays, because there is less risk to them. A stricter policy, on the other hand, gives you more protection and a larger kept payment when a guest cancels. Many hosts use flexible policies to fill quieter dates and stricter policies for peak periods or high-value stays.

The three policy types

Stay Luxe policies come in three families. Within each family you choose a timing window (7, 14, 30, or 60 days before check-in) that sets how far ahead a guest must cancel to qualify for a refund.

Flexible: full refund up to the cutoff, then no refund. The most guest-friendly option.
Moderate: full refund early, then a 50% refund in the middle window, then no refund close to check-in. A balanced middle ground.
Strict: 50% refund up to the cutoff, then no refund. The most protective option for you.

Policies at a glance

Policy	Refund logic	Timing
Flexible 7	Full refund until cutoff	7 days
Flexible 30	Full refund until cutoff	30 days
Flexible 60	Full refund until cutoff	60 days
Moderate 14	Full, then 50%, then no refund	14 / 7 days
Moderate 30	Full, then 50%, then no refund	30 / 14 days
Moderate 60	Full, then 50%, then no refund	60 / 30 days
Strict 7	50% refund until cutoff	7 days
Strict 30	50% refund until cutoff	30 days
Strict 60	50% refund until cutoff	60 days

Full policy descriptions

Flexible 7

Full refund of the accommodation amount if cancelled more than 7 days before check-in.
No refund of the accommodation amount if cancelled 7 days or less before check-in.

Flexible 30

Full refund of the accommodation amount if cancelled more than 30 days before check-in.
No refund of the accommodation amount if cancelled 30 days or less before check-in.

Flexible 60

Full refund of the accommodation amount if cancelled more than 60 days before check-in.
No refund of the accommodation amount if cancelled 60 days or less before check-in.

Moderate 14

Full refund of the accommodation amount if cancelled more than 14 days before check-in.
50% refund of the accommodation amount if cancelled between 14 days and 7 days before check-in.
No refund of the accommodation amount if cancelled 7 days or less before check-in.

Moderate 30

Full refund of the accommodation amount if cancelled more than 30 days before check-in.
50% refund of the accommodation amount if cancelled between 30 days and 14 days before check-in.
No refund of the accommodation amount if cancelled 14 days or less before check-in.

Moderate 60

Full refund of the accommodation amount if cancelled more than 60 days before check-in.
50% refund of the accommodation amount if cancelled between 60 days and 30 days before check-in.
No refund of the accommodation amount if cancelled 30 days or less before check-in.

Strict 7

50% refund of the accommodation amount if cancelled more than 7 days before check-in.
No refund of the accommodation amount if cancelled 7 days or less before check-in.

Strict 30

50% refund of the accommodation amount if cancelled more than 30 days before check-in.
No refund of the accommodation amount if cancelled 30 days or less before check-in.

Strict 60

50% refund of the accommodation amount if cancelled more than 60 days before check-in.
No refund of the accommodation amount if cancelled 60 days or less before check-in.

Which policy should I choose?

Choose Flexible if you want to attract the most bookings and fill quieter dates, and you are comfortable offering full refunds up to the cutoff.
Choose Moderate if you want a balance between flexibility for guests and protection for you.
Choose Strict if you want the most revenue protection, for example on peak dates, high-value homes, or long stays.
Pick a longer timing window (30 or 60 days) if you want more notice before check-in, and a shorter window (7 or 14 days) if you want to stay more flexible for guests.

Important to know

The Stay Luxe processing/service fee is non-refundable in all circumstances.
Cancellation deadlines are calculated based on the property’s local check-in time.
Hosts must select one of the approved policies listed above. Custom policies are not permitted.

Frequently asked questions

Which cancellation policy gets the most bookings?
Flexible policies usually attract the most bookings, because guests feel safer knowing they can cancel up to the cutoff and get a full refund.

Can I set a different policy for each property?
Yes. You choose one approved policy per property, so you can be flexible on some listings and stricter on others.

Can I create my own custom policy?
No. You must choose one of the approved policies above. Custom policies are not permitted.

Is the Stay Luxe service fee refunded if a guest cancels?
No. The processing/service fee is non-refundable in all circumstances, regardless of the policy.

How is the cancellation deadline calculated?
It is based on the property’s local check-in time, not the guest’s time zone.

How to set your cancellation policy:

1 Go to the StayLuxe host dashboard.