A Cancellation Policy outlines the rules and procedures for canceling a service or reservation. It specifies the timeframe in which a cancellation can be made, any fees that may apply, and how refunds are processed. This policy helps both the service provider and the customer understand their rights and responsibilities. Typically, a cancellation policy will vary depending on the type of service, such as hotels, flights, or events. For example, airlines may allow free cancellations within 24 hours of booking, while hotels might require a notice several days in advance to avoid charges.