Cancellation policies & no-shows

A guest cancels two days before arrival or simply doesn't turn up: for small properties every empty night hurts. Many hosts are unsure what they may charge. This guide explains the legal situation in Germany, shows proven cancellation policies and gives tips to prevent losses in the first place.

The basic rule: booked is booked

The booking confirmation creates an accommodation contract that is binding on both sides. The guest has no statutory right to cancel free of charge. Nor is there a right of withdrawal as with online shopping for stays on fixed dates (§ 312g (2) no. 9 BGB) – whether booked online, by email or by phone.

If the guest cancels or doesn't arrive, they generally owe the agreed price. You must, however, deduct:

• saved expenses – what you don't spend because the room stays empty (breakfast, cleaning, laundry, energy);
• income from re-letting – if you manage to let the room to someone else, that counts against the claim. You should make a genuine effort to do so.

Common flat rates for saved expenses

So nobody has to count every napkin, German courts have settled on flat rates. The guest usually pays:

• 90% of the price for room only (including holiday rentals)
• 80% for bed & breakfast
• 70% for half board
• 60% for full board

These values apply even if you have no cancellation policy of your own. If the guest proves you saved more, they pay less.

Your own cancellation policy: what is allowed

Most hosts set their own tiered cancellation policy – often more generous than the law, to make booking more attractive. For it to be effective:

• Communicate it before booking: the guest must know the terms before booking – on your website, in the offer or in the confirmation. Terms introduced afterwards don't apply.
• Reasonable amounts: flat fees must not exceed the loss that typically occurs. More than the percentages above is hard to justify.
• Allow counter-evidence: the guest must be allowed to prove that your loss was lower or nil (§ 309 no. 5 BGB). A sentence such as "The guest may prove that a lower loss was incurred" belongs in the policy.
• Be clear: deadlines in days before arrival, a percentage of the total price, how to cancel (in writing, by email).

Template: tiered cancellation policy

The deadlines and percentages are only an example – adapt them to your season and occupancy. Stricter terms are common in high season, more generous ones in low season.

No-shows: when the guest simply doesn't come

A no-show is a guest with a confirmed booking who doesn't arrive and doesn't cancel. Legally, it is treated like a cancellation on the day of arrival: your cancellation policy or the flat rates above apply.

• Try to reach the guest first: maybe they're stuck in traffic. Note when you called or wrote.
• Set a holding time: a sentence such as "Without notice we hold the room until 6 pm" in the confirmation makes it clear when you may re-let.
• Report no-shows for platform bookings: Booking.com & co. offer a function in the partner area – usually only within a few days after the arrival date. That way you don't pay commission on a stay that didn't happen.
• Invoice the loss: send the guest an invoice for the cancellation fee. Whether VAT applies depends on the case – best clarified with your tax adviser.

How to make losses rarer

• Ask for a deposit: guests who have already paid 20–30% are more likely to cancel in time – or come.
• Reminder before arrival: a friendly email a few days ahead with directions and check-in time noticeably reduces no-shows and gives the guest a chance to cancel in time.
• Make the policy visible: in the confirmation, the offer and on your website.
• Rebook instead of cancelling: a new date is often better for both sides than a cancellation fee.

How Stay-Board helps

• Your own cancellation policy in the guest portal: every booking has a page for the guest with the stay, directions and your cancellation terms – linked in the confirmation email.
• Deposit via QR code: the guest portal can show the deposit amount (set as a percentage) with a QR code for the banking app.
• Automatic pre-arrival email: a few days before arrival the guest receives a reminder with all the details.
• "Cancelled" and "No-show" status: losses stay traceable in the calendar and don't distort your revenue statistics.
• Cancelled on the platform = cancelled in the calendar: bookings cancelled on Booking.com or Airbnb are removed automatically during sync.

Frequently asked questions about cancellation policies

Can I charge anything without my own cancellation policy?

Yes. Even without your own rules, the guest owes the price minus saved expenses – in practice usually the flat rates of 60–90%. Your own policy just makes things clearer for both sides.

Is it different for holiday rentals?

No, the principles are the same. Since you save little with a holiday rental, the usual flat rate is 90%. You may not charge for final cleaning that isn't needed.

What applies to bookings via Booking.com or Airbnb?

The cancellation policy you set for the listing on that platform. The platform shows it to the guest when booking and sometimes handles the fees itself.

Note: this guide describes the legal situation in Germany and is not legal advice. Austria, Switzerland and other countries have their own rules.

More on guest communication before arrival in the online check-in guide.

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