Cancellation Rate Impact Calculator

Work out cancellation rate impact instantly with clear inputs, formula shown and shareable results.

About Cancellation Rate Impact Calculator

The cost of cancellations is not the gross value cancelled but the portion that could not be resold. A high resale rate makes a high cancellation rate tolerable, which is why cancellation policy and lead time have to be considered together.

Formulas

Cancellation rate

Rate % = Cancellations and no-shows / Bookings received x 100

Net loss

Net loss = Cancelled value x (1 - Resold share %)

Worked example

With the default values below, Cancellation Rate Impact Calculator returns Net revenue lost of $1,012,320.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Bookings received: 820
Cancellations and no-shows: 148
Average booking value: 18,000
Share of cancelled rooms resold: 62

Results

Net revenue lost: $1,012,320.00
Cancellation and no-show rate: 18.05%
Gross value of cancelled bookings: $2,664,000.00
Cancelled rooms resold: 92

Step by step

1Values used
2Cancellation rate
3Net loss
4Net revenue lost= 1,012,320.00
5Cancellation and no-show rate= 18.05
6Gross value of cancelled bookings= 2,664,000.00
7Cancelled rooms resold= 92

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should I tighten the cancellation policy?

It reduces cancellations but also reduces bookings, since flexible rates convert better. Test the trade-off rather than assuming.

Why do cancellation rates vary by channel?

Because online travel agents encourage speculative multiple bookings, whereas direct and corporate bookings are typically more committed.