Hotel Revenue Glossary · Forecasting

Cancellation Rate

The percentage of confirmed reservations that are cancelled before the arrival date. Cancellation rates vary by booking channel, rate type, and lead time — non-refundable bookings have lower cancellation rates than flexible ones.

Why it matters: Understanding cancellation patterns by segment and lead time is essential for accurate forecasting. High cancellation rates on far-out bookings mean early pace figures can be misleading if not adjusted for expected attrition.

All glossary terms No-Show Rate Forecast Booking Window (Lead Time)