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Non-refundable rate

GLOSSARY

Pricing

Non-refundable rate

Non-refundable rate

Non-refundable rate

THE SHORT VERSION

A non-refundable rate is a price, usually lower than a flexible rate and paid in full when booked, that is not refunded if the customer cancels or does not turn up.

A non-refundable rate is a price, usually lower than a flexible rate and paid in full when booked, that is not refunded if the customer cancels or does not turn up.

Hotels sell them as a discounted option with less flexibility. Premier Inn, for example, describes its Non-Flex rate as its most restricted, paid in full at booking and not cancellable, amendable or refundable for any reason, including no-shows. Travelodge says its discounted Lowest Rate bookings cannot be amended or refunded.

What the law says

  • No 14-day right to cancel. The Consumer Contracts Regulations 2013 usually give consumers a 14-day cooling-off period, which they call the cancellation period, for distance and off-premises service contracts. It does not apply to accommodation booked for a specific date or period, and before a distance contract the trader must say there is no right to cancel. Premier Inn’s terms say so directly.

  • Packages work differently. Package travel contracts are outside those Regulations. Under the Package Travel Regulations, a traveller can end a package before it starts but may have to pay an appropriate and justifiable termination fee, or none in unavoidable and extraordinary circumstances at the destination.

  • Fairness. The CMA’s unfair contract terms guidance, updated on 22 July 2026, says it judges terms case by case. It says a term making a substantial prepayment entirely non-refundable, regardless of the circumstances, is more likely to be unfair, while keeping only what covers the trader’s unavoidable costs or lost profit is more likely to be fair. Terms that might work against the consumer need appropriate prominence. Where a contract becomes impossible to perform through no fault of either side, it says consumers should generally get a full refund, even of fees described as non-refundable.

Worth knowing

Both chains say they refund if they cancel, for example because a hotel closes or an event outside their control prevents the stay, though Travelodge keeps booking fees and most extras. For package contracts made from 6 April 2027, a supplier that cancels a travel service in a package must refund the organiser within 14 days.