Writing a cancellation policy for experiences and accommodation: deadlines, refunds and examples

A good cancellation policy names a deadline for free cancellation, states in figures what is refunded after that, and deals separately with what applies when you cancel. For experiences and accommodation on a fixed date, neither Austria nor Germany gives guests a statutory 14-day right of withdrawal. So what your terms say is decisive. This article outlines the legal position and is not legal advice.

Do guests have a right of withdrawal for online bookings?

Austria: under § 18 (1) no. 10 FAGG the consumer has no right of withdrawal for services in the fields of accommodation for other than residential purposes, transport of goods, car rental, delivery of food and drink, and leisure activities, provided the contract sets a specific date or period for performance. A room from Friday to Sunday or a guided tour on Saturday at 3 pm falls under it.

Germany: § 312g (2) no. 9 BGB contains the same exemption for accommodation and other leisure services with a fixed date or period. Both rules go back to the same European directive.

The exemption depends on the fixed date. A voucher without a date or a multi-visit pass is a different matter. Have those cases checked separately.

What applies if you have set no rules?

Then the contract is binding, for both sides. For Austria, the General Terms and Conditions for the Hotel Industry 2006 contain a widely used scale. They come from the hotel association of the chamber of commerce and only apply if you have agreed them with the guest. Individual agreements take precedence.

The AGBH also cover the case where the guest cannot arrive because of unforeseeable exceptional circumstances such as extreme snowfall or flooding: under § 5.7 the guest does not have to pay for the days on which arrival was impossible. For consumers, a court can reduce a cancellation fee under § 7 KSchG. The WKO points out that excessive cancellation fees in standard terms can be void.

Germany: according to the Hanover chamber of commerce (IHK) there is no general right to cancel a room booking. The guest owes the price, and the hotel has to deduct the expenses it saved. Courts regularly accept flat deductions of 10 to 20 % for bed and breakfast, 30 % for half board and 40 % for full board, depending on the individual case. The statutory basis for the deduction is § 537 BGB, which also names benefits from letting the room to someone else. Flat fees in standard terms must, under § 309 no. 5 BGB, match the loss to be expected in the normal course of events and expressly allow the guest to prove a smaller loss.

Which deadlines are common for experiences?

For tours, classes and tastings there is no official scale and no industry template like the one for hotels. Deadlines vary widely. Base yours on how long you need to resell a place that has become free and on the costs you have already incurred.

• Open dates with many places, such as a city tour: a short deadline, for example 24 or 48 hours.
• Small groups with preparation, such as a cooking class with shopping: a longer deadline, for example 3 to 7 days.
• Private dates and groups: a separate agreement with a deposit, because a whole slot is lost.
• Multi-day offers with accommodation: tiers as for rooms.

Worked example: a family books four places on a kayak tour at € 60 each, € 240 in total, with free cancellation up to 48 hours before, then 50 %. If they cancel five days before, they get € 240 back. If they cancel 30 hours before, they get € 120 back. Second example: a stay costing € 600 is cancelled three weeks before arrival. Under the AGBH 2006 scale the cancellation fee is 70 %, which is € 420.

How do you word a cancellation policy?

The following texts are examples, not legally checked contract clauses. Adapt deadlines and rates to your offer and have your version checked.

• Experience: “You can cancel free of charge up to 48 hours before the start and receive the full amount back. If you cancel later or do not turn up, we keep 50 % of the price. You may show that we suffered no loss or a smaller one.”
• Accommodation: “Free cancellation up to 14 days before arrival. After that we charge 70 % of the room price, and 90 % in the last three days and for no-shows. If we can let the room again, we deduct the proceeds.”
• Refund: “Refunds go back to the payment method you used. Depending on your bank this takes a few working days.”
• Rebooking: “Up to 48 hours before the start you can move to another date once, free of charge.”

How do you deal with weather?

Separate two cases. If you cancel because the tour is not safe in a thunderstorm, flood or gale, you have not delivered the service. Offer a new date or a full refund and say so in your terms. If the tour takes place and the guest prefers not to come because of light rain, the normal deadlines apply.

• Say who decides and by when: “We decide by 6 pm the day before whether the tour takes place and let you know by email.”
• Say what happens then: “If we cancel because of the weather, you choose a new date or receive the full amount back.”
• Say what does not count as a reason: “The tour also takes place in cloudy weather and light rain.”
• For accommodation: describe what applies when the access road is closed, and take the AGBH rule on prevented arrival as a guide.

How this works in EachVisit

In EachVisit you set for each offer how many hours before the start cancellation is still free and which fee applies afterwards, as a percentage or a fixed amount. For rooms, the cancellation terms belong to the rate. Guests cancel themselves through the link in their email and see beforehand what it costs. The refund is based on the amount actually paid and goes back through Stripe. If the cancellation falls exactly on the deadline, it is free. In bad weather you message all participants on a date at once.

One limit: EachVisit supports one free period and one fee after it. A multi-step scale such as 40, 70 and 90 % cannot be reproduced exactly. Rebooking does not change the payment. EachVisit takes 0 % commission, and Stripe's fees apply to online payments.