Definition
Cancellation Policy
The rule that sets how far in advance a client must cancel or reschedule to avoid a fee, and what that fee is.
A cancellation policy is the written rule that tells clients how much notice you need to change or drop an appointment (commonly 24 or 48 hours) and what happens if they give less: a partial charge, forfeit of a Deposit, or a fee to the Card on File. It is the backbone of a predictable schedule, because it converts a vague social expectation into an enforceable term the client agrees to at booking.
Cancellations are a normal, unavoidable part of the business: guests cancel about 8% of appointments on average, and up to 16% at nail salons and medspas. A policy does not aim to eliminate them, it aims to give you enough notice to refill the slot from your Waitlist and to protect you when notice does not come. Without one, a late cancellation behaves exactly like a No-Show, and unprotected no-shows run 15% to 25%.
For a policy to work it has to be enforced automatically, not remembered case by case. Systems that attach the policy to a deposit at booking see a 32% increase in successful appointments. Wire yours into checkout so every client accepts it the same way. See no-show prevention.
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