notitur.com August 24, 2026

Operations

Non-refundable rate

The non-refundable rate is paid upfront and is not returned if the guest cancels or fails to show. In exchange for giving up flexibility, the guest gets a lower price. For the hotel it locks in revenue and lowers cancellation risk, though it ties it to a price it can no longer move.

Example The non-refundable rate is 20 euros cheaper than the flexible one, but charges in full even if the guest never arrives.

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FAQ

What is a non-refundable rate?
A non-refundable rate is a hotel pricing option where you pay the full amount upfront and get no money back if you cancel or don't show up. In exchange for losing flexibility, you get a lower price, usually 10% to 30% cheaper than a refundable rate.
How does a non-refundable rate work?
It works by requiring full payment at booking, and the hotel keeps that payment if you cancel or no-show. For instance, if you book a room for $150 as non-refundable but then cancel, you lose the entire $150.
What is the purpose of a non-refundable rate and how does it differ from a refundable one?
Its purpose is to secure guaranteed revenue for the hotel and reduce cancellation risk, while offering you a discounted price. It differs from a refundable rate, which allows cancellations with little or no penalty but costs more and gives you greater flexibility.

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