KHR COMMERCIAL INSIGHTS
Cancellations are not simply an operational inconvenience. They change forecast accuracy, rate decisions, staffing, marketing efficiency and the true value of each distribution channel. A strong hotel cancellation strategy therefore combines guest-friendly rate options with disciplined measurement of which bookings cancel, when they cancel and whether the hotel can resell the room.
The commercial gap is significant. Cloudbeds’ 2026 State of Independent Hotels report, analysing 2025 booking data, found an OTA cancellation rate of 21.8%, compared with 10.6% for direct bookings. These aggregate figures provide context; they are not a forecast for an individual property. That does not make every OTA booking undesirable. It means booked revenue and expected consumed revenue should not be treated as the same number.
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