When you cancel a Direct booking, the refund you receive depends on the host's cancellation policy. This article walks you through how the refund amount is calculated step by step, so you know exactly what to expect.
What determines your refund amount
Your refund is based on three things:
The cancellation policy: Each property has a cancellation policy that defines what percentage of the booking is refundable and by when. If you cancel within the free cancellation window, you receive a full refund. If you cancel after that window, only a portion may be refundable.
The breakdown of your booking total: Your total payment typically includes:
Accommodation cost (nightly rate × number of nights)
Cleaning fee (if applicable)
Service fee
Taxes
When you cancel: The closer to check-in you cancel, the less you may receive back, depending on the policy.
Step-by-step: How a partial refund is calculated
Here's how the system calculates your refund when you cancel outside the free cancellation window:
Step 1 Apply the cancellation policy to the accommodation cost
The cancellation policy percentage is applied to the accommodation cost (nightly rate × nights). For example, if the policy allows a 50% refund and your accommodation cost was $400, you'd receive $200 back for accommodation.
Step 2 Determine cleaning fee refund
Cleaning fees follow the same rules as the rest of the booking — they are handled according to the cancellation policy. If the policy grants a 50% refund, the cleaning fee is also refunded at 50%.
Step 3 Determine service fee refund
The service fee is not refunded on partial cancellations:
Direct Premium: The service fee is collected by Hospitable and not returned to the guest on partial refunds.
Direct Basic: The service fee is collected from the host and not returned to the guest on partial refunds.
On full refunds (including host-initiated cancellations), the service fee is refunded on both plans.
Step 4 Calculate tax refund
Taxes are refunded proportionally based on the cancellation policy — matching the same percentage applied to the accommodation and cleaning fee.
Step 5 Total refund
Your total refund = refundable accommodation + refundable cleaning fee + refundable taxes.
The service fee is not included in a partial refund.
Example calculation
Scenario: You booked a 5-night stay and cancel after the free cancellation window. The cancellation policy allows a 50% refund.
Accommodation: $400 (5 nights × $80/night)
Cleaning fee: $75
Service fee: $50
Taxes: $40 (on accommodation + cleaning fee)
Total paid: $565
Refund calculation:
Accommodation refund: $400 × 50% = $200
Cleaning fee refund: $75 × 50% = $37.50
Service fee refund: $0 (not refunded on partial cancellations)
Tax refund: $40 × 50% = $20
Total refund: $257.50
The remaining $307.50 is retained per the cancellation policy terms.
💡 Why the refund may feel low: In this example, the guest receives $257.50 back on a $565 booking — that's about 46%, not 50%. The difference is because the service fee ($50) is retained in full, while everything else follows the 50% policy.
How payment terms (installments) affect your refund
Some hosts use payment terms, which let you pay for your booking in installments rather than all at once. If you cancel a booking where you've only paid part of the total, here's how refunds work:
The cancellation fee is based on the full booking amount
Your cancellation policy applies to the full order amount, not just the amount you've paid so far. This means:
If you've paid the first installment and cancel outside the free cancellation window, the cancellation fee is calculated on the total booking cost, not just your first payment.
If the cancellation fee exceeds what you've already paid, you won't receive any refund — and any remaining scheduled payments are simply cancelled.
If the cancellation fee is less than what you've already paid, you'll receive the difference as a refund.
Example
Scenario: You booked a $1,000 stay with two installments, $500 paid at booking, $500 due 30 days before check-in. You cancel before the second payment, and the cancellation policy retains 50%.
Full booking amount: $1,000
Cancellation fee (50%): $500
Amount you've paid: $500
Refund: $0 — the cancellation fee equals what you've already paid
The second installment of $500 is cancelled and never charged </aside>
Scenario: Same booking, but the cancellation policy retains only 25%.
Cancellation fee (25%): $250
Amount you've paid: $500
Refund: $250, returned to your original payment method
The second installment is cancelled and never charged
What happens if a scheduled payment fails
If a scheduled installment payment fails (for example, your card is declined), the host's system will retry within a grace period. If payment still isn't collected by the end of the grace period, the booking is automatically cancelled and any refund is processed according to the cancellation policy.
You'll receive an email with a link to update your payment method if a payment fails, so act quickly to avoid automatic cancellation.
Why your refund might be less than expected
There are a few common reasons your refund may be lower than you anticipated:
The cancellation policy retained a portion of the booking. Check the cancellation terms that were displayed when you booked.
The service fee is not refunded on partial cancellations. This is retained regardless of the cancellation policy percentage.
Taxes are refunded proportionally, not in full, on partial refunds.
Cleaning fees are refunded proportionally, they follow the same cancellation policy percentage as the accommodation.
How to check your refund status
You can view your refund status through the Guest Portal. Once a refund is initiated, you'll see:
Confirmation that a refund has been issued
The refund amount
An estimated timeline for the funds to appear
If you're unable to access the Guest Portal, contact the host directly through the email you received when you booked.
Refunds typically take 5–10 business days to appear, depending on your payment method. If more than 10 business days have passed, contact your bank or card issuer for an update.
Need help?
If your refund amount doesn't match what you expected, reach out to the host through the Guest Portal or contact Hospitable support. Have your booking confirmation number ready so we can look into the details for you.