A non-refundable rate offers a lower price, typically 10% to 20% below the flexible rate, in exchange for no refund if the guest cancels or does not show. It is usually charged at booking or shortly after.
It secures revenue early, reduces cancellations and no-shows, and makes forecasting more reliable. The trade-off is that it can put off guests who are not sure of their dates, and too high a share of non-refundable business limits your ability to resell rooms at higher rates later.
In practice: always show it side by side with a flexible rate and let the guest choose which risk to take. Watch the mix: if non-refundable becomes most of your business on peak dates, the discount is probably too generous.
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