Group bookings are golden. But they also come with risks. After all, how do you give guests the flexibility they expect, without risking empty rooms at the last minute? A smart set of cancellation policies is then not a nice-to-have, but a strategic weapon. In this article, you'll discover the basics of a successful cancellation policy for groups anno 2025. And want to dive deeper? A free e-book is waiting for you with even more information so you can optimize your cancellation policy.
More than ever, guests want to be able to book without stress. Especially younger generations, such as millennials and Gen Z, actively filter accommodations with free cancellations. They are even willing to pay extra for it.
📊 75% of travelers prefer to book stays with flexible cancellation terms.
And you notice this immediately: if your conditions are too strict, you disappear from search results on platforms like Booking.com. But the solution is not to "just allow everything." It's about smart policies that combine flexibility with control over your schedule.
Most successful group accommodations use a phased approach. This consists of three parts:
1. Free cancellation up to a certain point
For example: free cancellation up to 60 or 30 days before arrival. This lowers the barrier to booking.
Tiered cancellation fees 2.
Work with incremental percentages, such as:
Tip: The KHN UVH tier (Uniform Hospitality Industry Terms and Conditions) is a good starting point.
Ask for a partial upfront payment to enforce commitment. For example:
Guests then know exactly where they stand - and so do you.
The needs of a sports team are very different from those of a business group. And the impact of a cancellation of 5 rooms does not compare to 50. Smart hoteliers therefore differentiate their cancellation policies:
By group size
The larger the group, the stricter the policy. For example, ask for a higher deposit sooner or set a longer free cancellation period.
By season and demand
In high season, rooms are scarce. Then you can be less flexible. In the low season? Then leniency is actually smart to attract groups at all.
By group type
Sports teams:Being flexible does not mean that you automatically run more risk. On the contrary: a good policy ensures more bookings, better customer relations and higher occupancy.
🧠Case: a rental company implemented a policy with free cancellation up to 30 days. Result:
Why. Guests are more likely to book if they know that cancellation is possible. And often they don't. Win-win.
Cancellation conditions are more than legal prerequisites. They are a strategic part of your offer. They influence your booking ratio, customer satisfaction and occupancy rate.
The key is balance:
Download the free e-book: Cancellation requirements for groups anno 2025
Do you want to know more about what bookers want when it comes to cancellation policies? And do you want to dive deeper into how you can adapt your policy accordingly? Find out how to protect and increase your group turnover with smart flexibility. Download our free whitepaper!