Over the years, last-minute cancellations and no-shows have presented difficulties for the hospitality sector, negatively affecting hotel operations and revenue. The cancellation policies of hotels have changed significantly as a result. These rules have been modified to act as "price fences" as a result of revenue management strategies used in the hotel industry. This study aims to find out how various cancellation policies impact consumers' perceptions of risk and intent to reserve hotel rooms at various times. The study provides insight into the factors that affect consumer behavior and choices for hospitality goods and services by examining these elements. The results of the study offer some understanding into how hotels and other hospitality businesses can use cancellation policies to customize their marketing strategies to meet consumer needs and preferences while successfully managing revenue and profitability.