Hotel Refund Letter Generator

How to write a hotel refund letter

A cancellation is a lost booking, but how you handle the refund decides whether the guest books again or writes a bad review. A short, polite letter that shows the numbers clearly avoids confusion and follow-up calls. This free hotel refund letter generator creates one in seconds: it calculates the refund from the percentage your policy allows, shows what is retained, and states the refund mode and timeline.

What the letter should include

• Guest name, booking ID and the original stay dates.
• The date of cancellation and how many days before check-in it was made.
• The cancellation policy that was agreed at the time of booking.
• A simple table: amount paid, refundable amount, deductions and the final refund.
• Refund mode — original payment method, bank transfer, UPI or a credit note — and a realistic timeline.
• A warm closing that invites the guest back.

Calculating the refund

For example, ₹18,000 paid with 75% refundable gives a refund of ₹13,500, and ₹4,500 is retained as the cancellation charge. If the guest cancels inside the no-refund window, the letter says so politely and offers help with a future stay. To see what cancellations cost your hotel across a month, try the cancellation and no-show loss calculator.

Good refund practice

1. Follow the policy the guest accepted. If your policy is unclear, rewrite it with the hotel policy generator.
2. Refund to the original payment method where possible — it is easier to trace.
3. Offer a credit note as an option; many guests prefer it to losing money.
4. Process refunds within the timeline you promise and send the transaction reference.
5. If GST was charged on the advance, ask your CA how to reverse it correctly.

Frequently asked questions