Nonrefundable rate

A nonrefundable rate is a condition set by travel providers that offers a lower price in exchange for stricter cancellation terms.

Once a reservation is made and paid for, the traveler cannot cancel it without forfeiting the full amount paid. 

Nonrefundable rates typically attract price-sensitive travelers. In return, the business benefits from guaranteed income, regardless of whether the traveler ends up using the service.

In contrast, flexible rates allow changes or refunds and are more expensive.