How do I write the cancellation policy for my vacation rental?

Choose a flexible, moderate or strict policy, write precise deadlines and percentages, and match it to the nature of the sums paid (in France: deposit or arrhes).

A clear cancellation policy states, for each period before arrival, what share of the price is refunded to the guest and what you keep. It must be announced before booking, written with precise deadlines and percentages, and consistent with the nature of the sums paid: in France, for example, a deposit (acompte) does not have the same consequences as “arrhes”. This article offers three model policies, sets out the rules to know in France and explains how GDA Kraft Booking handles refunds.

Which rules apply in France?

The rules in this section come from the French Consumer Code and apply in France only. Elsewhere, consumer law differs from country to country: check the rules that apply to your property.

No right of withdrawal for a stay on fixed dates

In principle, a distance purchase gives a 14-day right of withdrawal. However, article L221-28 of the French Consumer Code (12°) excludes it for accommodation services, other than residential accommodation, provided on a specific date or for a specific period. A holiday rental booked for precise dates generally falls within this exclusion. So it is your cancellation policy that determines what is refunded. Article L221-5 of the same code requires you to inform the consumer when they do not have a right of withdrawal: state it in your terms.

Deposit or arrhes: the description changes everything

Under article L214-1 of the French Consumer Code, unless otherwise stipulated, sums paid in advance by a consumer are arrhes: a guest who cancels loses them, and a professional who cancels pays back twice the amount. With a clearly stipulated deposit (acompte), the contract is binding and the guest in principle remains liable for the price. The two concepts are compared in Deposit or arrhes: what is the difference?.

Texts consulted on Légifrance on 12 October 2026. These general rules are no substitute for advice tailored to your situation: have your terms reviewed by a lawyer or a tourism trade organisation.

Which policy should I choose?

Three indicative models, to adapt:

Cancellation notice before arrival	Flexible	Moderate	Strict
More than 30 days	Full refund	Full refund, except the deposit, which is kept	Deposit kept
30 to 14 days	Full refund	50% of the stay refunded	No refund
14 to 7 days	50% of the stay refunded	No refund	No refund
Less than 7 days	No refund	No refund	No refund
Suited to	Low season, short stays, new listing	Most rentals	High season, villas, very popular weeks

To choose:

the easier your dates are to re-let, the more flexible you can be;
the closer the arrival, the harder it is to re-let: that is where the policy needs to protect your income;
your policy must be consistent with your deposit: asking for 50% and refunding everything up to 7 days before is the same as having no deposit.

How do I word the clause?

A good clause can be checked without interpretation. It specifies:

the nature of the sums paid (deposit, or arrhes in France);
the deadlines, counted in days before the arrival date, and the reference time;
the percentage refunded for each period, and on what basis (price of the stay, extras, tourist tax);
how to request a cancellation (email, portal form) and which date counts;
what happens if you have to cancel;
the case of an early departure or late arrival;
the refund timeframe once the cancellation is accepted.

Example wording (template to adapt):

The sums paid at the time of booking constitute a deposit. If the guest cancels more than 30 days before the arrival date, the deposit is kept and the balance is not charged. Between 30 and 14 days, 50% of the price of the stay remains due. Less than 14 days before, the full price of the stay remains due. Tourist tax is not due for a stay that does not take place.

Where a tourist tax is calculated on actual stays (as in France), it is based on the nights spent in the accommodation: if the stay does not take place, do not keep it. Also consider suggesting cancellation insurance to the guest, with the insurer of their choice: it is the right answer for cancellations due to illness or unforeseen events, which your policy does not need to cover.

Where should I display the policy?

on each property's page, as a summary (“Moderate cancellation: full refund up to 30 days before”): "Cancellation policy" field of the "05 Booking" tab;
in your terms and conditions, in full, linked from the booking form;
in the rental agreement (see Vacation rental agreement).

The booking form always includes a mandatory checkbox "I accept the booking terms."; in the Divi module "DiviKraft · Finalisation", the "Link to the terms" option adds the link to your terms and conditions.

How do I give refunds with GDA Kraft Booking?

GDA Kraft Booking, the plugin published by Global Digital Agency, does not choose the amount to refund for you: you apply your own policy. In the accommodation settings, "Cancellation › Financial calculation" ("Enable automatic calculation", "Free until D-", "Share retained afterwards (%)") calculates an indicative amount, shown in the "Cancellation impact" box of the booking file, without ever starting a refund. For a booking paid online with Kraft Pay, you can make a full or partial refund from the booking file, "05 Payments" tab › "Refund":

the guest receives the "Refund" email; the credit note is then issued from the "04 Documents" tab;
the service fee (0.9%, reduced to 0.45% until 30 June 2027) is refunded pro rata to the amount returned;
how long it takes to appear in the guest's account depends on their bank.

A fictional example, before 30 June 2027: a €300 deposit paid with a €1.35 service fee; you refund €150 under your policy, and the guest gets back about €150.68 (€150 and half of the service fee). Refunds are described in detail in Refund a booking. If the balance has not yet been charged, check that the booking is indeed cancelled ("Cancel booking", "01 Stay" tab of the booking file): the balance of a cancelled booking is not charged.

For a booking paid by bank transfer or cheque, the refund is made by the same method, outside the plugin.

Frequently asked questions

Can the guest withdraw within 14 days?

In France, as a general rule, no: article L221-28 of the French Consumer Code excludes the right of withdrawal for accommodation provided on specific dates, except residential accommodation. Your cancellation policy applies; have it checked if in doubt. In other countries, check the local consumer rules.

What happens if I am the one who cancels?

In France, if the sums paid are arrhes, article L214-1 of the French Consumer Code provides that a professional who withdraws must pay back twice the amount. In all cases, let the guest know as soon as possible, refund them and, if possible, offer alternative accommodation.

Can I have a different policy depending on the season?

Yes. Nothing prevents a flexible policy in the low season and a strict one in summer, provided the applicable policy is clearly stated for the dates booked.

Is the service fee lost if a booking is cancelled?

No, not when you give a refund: it is refunded to the guest pro rata to the amount returned. If you refund nothing under your policy, it is retained, like the corresponding payment.