Free cancellation or non-refundable: which rate to pick

By the DropStay team · November 2026

For the same room, a free-cancellation rate often costs a little more than a non-refundable one. You can think of the difference as the price of two options: changing your plans, and switching if the price drops.

How the two rates differ

Free cancellation: cancel without a fee until a set deadline. Usually a bit more expensive.
Non-refundable: cheaper, but no refund if you cancel, and changing dates is often not possible.
After the deadline, cancelling usually costs a fee — sometimes one night, sometimes the full amount. Check the terms in your confirmation.

A worked example

Say two nights cost ₩300,000 with free cancellation and ₩280,000 non-refundable — a ₩20,000 difference. (Example numbers, for illustration.)

Pick non-refundable and you save ₩20,000, but usually get none of the ₩280,000 back if your plans change.

Pick free cancellation and you pay ₩20,000 more, but you are covered if plans change. And if the same room drops by more than ₩20,000 before check-in and you switch, you win that difference back.

When non-refundable makes sense

Your dates are fixed and very unlikely to change
The gap between the two rates is large and check-in is close, leaving little time for the price to move

When free cancellation makes sense

Your plans might change (flights, time off)
Check-in is far away — more time for the price to move
It is peak season and you want to hold a room while you look for something better

Write down the deadline

The benefit of free cancellation only lasts until its deadline. The deadline is in your confirmation email and is often in the hotel’s local time. Put it in your calendar as soon as you book.