How should I handle cancellation assumptions?
Published October 1, 2026 · 1 minute read
The answer
Forecasts should distinguish reserved nights from completed stays and allow for uncertainty around cancellations and refunds. Use your actual terms and operating history when available rather than assuming every reservation converts to earned revenue. Model cash timing separately, since payouts and refunds may occur in different periods.
Check platform policies for current details. Cancellation risk becomes especially relevant when a few high-value bookings dominate the plan.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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