Cancellations happen. Things come up—schedules change, work goes haywire, kids throw tantrums—and your customer cancels, potentially leading to wasted time and lost revenue.
Missed appointments and cancellations are a fact of life, but how you handle them can distinguish your company. A negative cancellation experience could end a customer’s relationship with your business, but a positive one can build brand loyalty.
Here are some helpful cancellation policy examples, best practices for writing your policy, and tips for reducing cancellations.
How to create a cancellation policy
- Look at industry standards
- Consider how quickly you can fill the slot
- Brainstorm what you can offer customers who cancel
- Decide what prepayment option works best for you
- Specify exceptions and how you’ll deal with them
To create a cancellation policy that works for your customers and your business, take some time to think through these salient points:
Look at industry standards
Looking at the cancellation policies of other establishments in your industry may help you iterate on your own and identify the ideal cancellation window.
For example, let’s say your hair salon takes the full payment for customers who cancel a week out. If the norm for similar establishments is to issue full refunds for cancellations made more than 24 hours in advance, you may lose out on business.
Consider how quickly you can fill the slot
Factor in how in-demand your business is. If you can fill a canceled slot for your pop-up supper club within minutes, it may feel unfair to customers asked to pay a heavy cancellation fee.
Brainstorm what you can offer customers who cancel
Can you offer customers a full refund if their canceled slot is filled? Maybe you can’t give them back the money they paid upfront for their massage appointment, but you could offer an alternative slot. Canceling customers may return later if they feel valued.
Decide what prepayment option works for you
It’s not unusual for businesses to take payment information for bookings. You may decide to hold on to card details for reservations to your restaurant and charge for no-shows and last-minute cancellations. You may take the full fee for a block of classes upfront and offer customers alternate classes if they have to cancel. Or you could charge a holding fee, a refundable or redeemable advance payment, or other payments to incentivize customers to show up and not cancel at the last minute. Whatever model you choose, state it clearly to prevent disputed charges.
Specify exceptions and how you’ll deal with them
You may want to make exceptions for illnesses and emergencies, both as a goodwill gesture to your customers and to protect yourself. Clearly state which exceptions you’re willing to consider, and how you’ll deal with them. You may choose to handle this on a case-by-case basis or enforce a blanket rule to avoid confusion.
Cancellation policy best practices
- Share your cancellation policy at the time of booking
- Send appointment reminders
- Make rescheduling easy
- Clearly state your cancellation policy in high-visibility places
- Be clear and friendly
- Require confirmations or profiles
Cancellation policies discourage last-minute cancellations, protect your time, and maximize your schedule. Follow these best practices when putting together your business’s cancellation policy:
Share your cancellation policy at the time of booking
Set clear expectations early by sharing your cancellation policy when customers make a reservation. You don’t have to lay out all the details before the reservation, but you can provide an abridged version before customers click to confirm.
Consider writing something simple like, “We will use this payment information to charge a $25 fee for no-shows and cancellations made with less than 24 hours’ notice.” Then, send a complete cancellation policy by text or email once they’ve made the booking.
Send appointment reminders
Your clients may have made a booking weeks or even months in advance. As you send them reminders about their appointment, add a note about your cancellation policy so they have plenty of opportunities to cancel in time and avoid penalties if they can’t make it.
Make rescheduling easy
Offer your customers the ability to reschedule. If customers can easily reschedule, they may adjust their appointment times rather than canceling. This added convenience can make a difference in reducing lost revenue. In 2024, 94% of customers rated convenience as the most important aspect of their customer experience.
Scheduling software can make it easier for your customers to book, change, or cancel appointments without manual work from you or your team. Scheduling software also allows clients to manage their calendars and reschedule outside of business hours, which can prevent late cancellations from busy professionals.
Clearly state your cancellation policy in high-visibility places
You can make your cancellation policy easy to find by sharing it on the booking page of your website, as part of your FAQ page, and even on social media. This makes it hard to miss and prevents confrontations if customers need to cancel.
Be clear and friendly
Make your cancellation policy easy to understand and friendly. While clarity is paramount, you don’t want to turn off customers with an abrupt or stern tone of voice. Infuse your brand voice into your message to give it a personal touch.
Require confirmations or profiles
If you offer more hands-on professional services—maybe you’re a personal trainer, tax pro, or business consultant—consider sending an email or text requiring customers to confirm their appointment. For this, customers must open the message and click a button or reply to the message to confirm their appointment.
Businesses that need background information, like nutritionists, can also ask customers to fill out a profile online or check in with their information ahead of time. This helps speed up the in-person visit and indicates that the customer is willing to put in the effort for the appointment, indicating less likelihood of canceling.
Cancellation policy templates
These templates can help you craft a cancellation policy for your business so customers have clear expectations and timelines about what happens if they can’t keep their appointment.
Appointment-based businesses
Here’s a straightforward cancellation policy template suited to appointment-based services. Fill in the blanks to tailor this to your salon, spa, physical therapy practice, or doctor’s office:
Dear [Customer name],
We’re looking forward to seeing you on [appointment date and time] at [your business address]. If you can’t make it, please cancel by [final date] to prevent a late fee charge of [amount]. Missed appointments without notice will be considered a no-show, subject to a [amount] fee. To cancel your appointment, you can [link, text reply, or call option].
Exceptions:
In case of illness, please get in touch with us as soon as possible, and we’ll do our best to accommodate you.
Thank you!
[Your name and business]
Group classes
Whether you’re teaching watercolors or water aerobics, a cancellation policy lets your students know what to expect if they can’t attend. If you allow customers to book a bundle of group classes at a time, make sure your cancellation policy accounts for what happens if they need to miss one:
Dear [Customer name],
We’re excited to see that you’ve enrolled for [class name] and can’t wait for your [activity] journey with us. However, we do understand that life happens and you may have to miss a class. Please review our cancellation policy below to help us accommodate other students.
If you need to cancel, please give us [number] days’ notice before your class so we can offer your spot to someone else. A cancellation made within [number] days will be considered a late cancellation and will result in a [amount] fee/credit deduction. If you don’t show up for a class you booked and fail to give notice beforehand, that will be considered a no-show and will result in a [amount] fee/credit deduction.
In the case of an emergency, please contact us as soon as possible, and we’ll do our best to accommodate you.
We thank you for your understanding.
[Your name and business]
Ticketed events
If you’ve sold a ticket for your event and charged the full price, you may think you don’t need a cancellation policy. But an empty venue can bring down the vibe; plus, your customers will be grateful if they can get a refund for an event they can’t attend. This may boost attendance and brand loyalty in the long run.
Whether you’re hosting a pop-up dinner or stand-up comedy showcase, here’s a cancellation policy template to help you minimize no-shows:
Dear [Customer name],
We understand that plans can change, sometimes unexpectedly. If you’ve purchased a ticket and are unable to attend, please get in touch by [contact method] so we can try and pass on your ticket to another party. If you cancel within [amount of time], you can receive a refund on your ticket minus the booking fee. For cancellations within [amount of time], you may be charged a fee of [amount]. If you fail to show up for the event without prior notice, we will not be able to issue a refund.
We will do our best to honor exceptions in the case of an emergency. Please contact us as soon as possible, and we’ll do our best to accommodate you.
Thank you for your understanding.
[Your name and business]
Cancellation policy template FAQ
How do I make a cancellation policy?
You can write a cancellation policy from scratch or start from a cancellation policy template. Either way, clearly state your cancellation window(s) and any associated fees. Consider your brand voice and tone, but remain professional and firm to ensure customers follow your policy.
After creating a clear cancellation policy, share it with your customers on your website, emails, and booking pages.
What is an example of a cancellation policy message?
An example of a cancellation policy message for a fitness studio might be: “We understand that life happens and you might miss a class. To help us accommodate other students, we require 24 hours notice for all cancellations. Cancellations within 24 hours of your booking will result in a $20 fee.”
What should a cancellation policy include?
A cancellation policy includes your cancellation window and the penalties or fees for cancellations outside the window. It can also have information on rescheduling, no-shows, exemptions, and grace periods for late arrivals.
What’s a good time frame for a cancellation policy?
Cancellation time frames vary across industries, but many businesses will ask for either 24- or 48-hours’ notice to waive cancellation fees.
Where should I post my cancellation policy?
Link to your cancellation policy across your website—i.e., from your FAQ page, terms and conditions, booking page, account page, and linked in the navigational menu or website footer. Consider including the policy as a mandatory checkbox on the booking page so customers have to acknowledge it to make an appointment.
