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Read Conditions Carefully
'Free cancellation' often applies only until a certain date (e.g., 24 or 48 hours before check-in). After that, the hotel will charge the cost of the first night or the entire stay.
Non-refundable rates are cheaper but riskier. Book them only if you are 100% sure about the trip.
Date Change Hack
If you have a non-refundable booking and the trip is cancelled, try not to cancel, but move the dates to a later time (a month or two later). Often booking systems allow this without a fine.
Wait a couple of days after the change, and then cancel the new booking. Sometimes this trick works because the cancellation conditions for the new dates may be softer or the system 'forgets' about the non-refundability of the initial payment (but there are no guarantees, it depends on the hotel).
Force Majeure
If the reason for cancellation is serious (illness, visa refusal), contact the booking service support or the hotel directly. Provide certificates. Many hotels meet halfway and refund money even for non-refundable rates out of loyalty to the client.