A cancellation fee refers to the charge a hotel imposes on guests who cancel their reservation or fail to show up for their stay. The fee amount varies depending on the accommodation, booking plan, and reservation method. Typically, cancellation fees are based on how many days in advance the cancellation is made. For example, it’s common for accommodations to charge 10% of the room rate for cancellations two days before the stay, and 20% for cancellations made one day prior.

When a reservation is made, the facility in question immediately secures a room for the guest. Upon an unexpected cancellation, the reserved room becomes vacant, resulting in a loss of expected revenue. This creates a financial setback for the facility.

For reservation plans that include meals, such as dinner or breakfast, accommodations often start arranging ingredients as soon as the booking is confirmed. A cancellation not only wastes these materials, but also results in a further financial loss for the facility.

To mitigate these potential losses, cancellation fees are applied to hotel reservations.

The cancellation policy outlines the rules for canceling a reservation. By clearly stating this, both the accommodation and the guest understand the terms and procedures if a cancellation is needed.

Cancellation policies vary by accommodation and are not standardized across the country. They can differ based on the type of reservation, booking method, and timing. For example, a hotel might typically charge cancellation fees only from the day before the stay, but some cheaper plans may charge fees from the moment of booking, in exchange for keeping the cost low (i.e., no cancellations allowed).

These details are usually shown before confirming the reservation, ensuring the guest can review and agree to the terms. For online bookings, guests often need to check a box to agree to the policy before proceeding. To avoid issues, it's essential to carefully check and agree to the cancellation policy when booking.

As mentioned earlier, cancellation policies vary depending on the type of accommodation and the booking method. However, there are differences in policies between luxury hotels and business hotels, and particular attention is needed for the cancellation policies of traditional Japanese accommodations, such as ryokan. Below, we will explain these differences in more detail.

Cancellation policies vary by hotel and accommodation plan, but the general trend is as follows:

- From two days before scheduled stay: Cancellation fees of 20% to 100%
- For same-day cancellations: Cancellation fees of 100% (full amount)

Some facilities may specify a time, such as "from 3 PM two days before," for when cancellation fees begin to apply. Additionally, many hotels charge the full amount for no-show cancellations (failure to cancel without notice), as these have a significant impact on the hotel.

Similar to luxury hotels, cancellation policies for business hotels vary by hotel and accommodation plan, but the general trend is as follows:

- Cancellations the day before the stay are free.
- Same-day cancellations incur a 100% (full amount) cancellation fee.

Some business hotels may set specific times, such as "100% cancellation fee for cancellations after 12 PM on the day of stay." Like luxury hotels, cancellations without notice (no-show) result in full charge.

In Japan, in addition to hotels, there are "ryokan" (traditional inns). Historically, the "Ryokan Business Law" distinguished between "ryokan" and "hotel," but in 2018, the law was amended to merge them under the category of "hotel and ryokan operations," and there is no longer a clear distinction. However, ryokan are still often recognized as distinct from hotels in Japan. They are generally considered traditional Japanese inns that offer hot springs and luxurious meals, often served in the guest rooms.

Ryokan typically have stricter cancellation policies compared to hotels. This is due to the fact that ryokan often provide elaborate meals, which require more precise management of ingredients and quantities than the buffet-style meals common at hotels. As a result, common cancellation policies for ryokan are as follows:

- 20-30% cancellation fee for cancellations 2-3 days before the stay
- 50% cancellation fee for cancellations the day before
- 100% (full amount) cancellation fee for same-day cancellations

Additionally, some ryokan charge cancellation fees even when there is a change in the number of guests.

There are several long holiday periods in Japan, such as the New Year, Golden Week (late April to early May), Obon (mid-August), and Silver Week in September, when many people travel. During these times, cancellation policies may differ from the usual, so it's important to be cautious. Additionally, for events like fireworks festivals or large outdoor concerts, hotels in nearby areas may have separate cancellation fees. Always check the cancellation policy when making a reservation.

Depending on how you make the reservation, the ways to confirm a facility's cancellation policy differ, so it's important to be cautious.

Regardless of the booking method, there is a "General Terms & Conditions for Accommodation Contract" between the guest and the accommodation facility. This agreement outlines room usage times, payment methods, and conditions under which the facility may refuse accommodation, and it often includes the cancellation policy under the penalty section. Some facilities may provide this in multiple languages.

Even if the term "Terms & Conditions" is not used, the cancellation policy is usually clearly displayed at the time of booking. Therefore, it is important to carefully check the details you agree to when making the reservation.

When making a reservation through the hotel's official website or by phone, the cancellation policy is often clearly stated on the official website. Since it may vary depending on the reservation plan, the most reliable way is to check the "reservation confirmation notice" sent to the email address you registered at the time of booking.

When booking through an online travel agent (OTA) like Rakuten Travel or Booking.com, you can often cancel directly on their website. However, cancellation policies differ by accommodation, and OTAs normally don't handle specific details. The cancellation policy is usually listed on the accommodation's reservation page, but it's also helpful to check the confirmation email you receive after booking.

For last-minute cancellations, it may be better to contact the hotel directly, even if you booked through an OTA. Keep in mind that cancellation policies may differ between bookings made through an OTA and those made directly on the hotel's official website. The hotel may ask where you made the reservation, so be sure to provide that information.

When booking through a tour package organized by a travel agency, the contract is made between the travel agency and the traveler. Therefore, instead of contacting the accommodation directly, it’s important to first check with the tour operator.

What happens in the case of unforeseen circumstances, such as natural disasters? While you might think that cancellation fees should be waived, that is generally not the case. The basic rule is that cancellation fees apply according to the cancellation policy, regardless of the reason. It is important to keep this in mind and promptly contact the accommodation.

If you want to cancel your trip due to reasons like a typhoon approaching, or concerns about traveling due to an earthquake, contact the accommodation where you made the reservation. Having the cancellation policy (such as the confirmation email you received after booking) on hand will make contact with the facility smoother.

In the case of a typhoon, the movement and impact can often be predicted a few days in advance. While you may hesitate to make a decision until the last moment, it's recommended to consult early as it can affect the cancellation fee.

As mentioned earlier, cancellation fees generally apply regardless of the reason. However, in unexpected situations such as typhoons or earthquakes that disrupt transportation, some facilities may waive the cancellation fee. It’s important to remember that this is a gesture of goodwill, and for the accommodation provider, it may result in a loss or missed profit.

If you need to cancel your hotel reservation, it’s important to contact the facility as early as possible. Unexpected situations can arise, so to ensure a smooth process, always check the cancellation policy at the time of booking.

*The information and cancellation policies provided are accurate as of November 2024. Please check the official websites for the latest details.