Glossary / Sales & groups

Cancellation Rate

Definition

Cancellation rate is the percentage of bookings that get canceled before arrival. A property with 1,000 bookings and 220 cancellations has a 22% cancellation rate.

What it tells you

Cancellation rates vary heavily by segment (OTA bookings cancel more than direct; flex rates cancel more than non-refundable) and by lead time (long-lead bookings have more cancellation surface area). Rising cancellation rate signals either weakening demand or a distribution-mix shift toward more cancellable bookings.

How to track it

PMS reports surface cancellation rate by default. Segment-level breakdown lives in BI tools — Peaqplus tracks positive vs. negative pickup (cancellations are negative pickup) and stagnation separately.

Where it fits

Inputs the wash factor and overbooking levels. Also informs the rate-strategy decision between flex and non-refundable rates.

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