In recent years there has been a rapid increase in hotel cancellations. More and more frequently, guests tend to cancel their room reservation. In many cases the cancellation is free of charge up to 24 hours before arrival. Cancellations often present a big challenge for hotel managers. Especially since the rise of online travel agents such as Booking.com, Expedia and Co. it became more and more common to enforce free cancellations up to 24 hours before arrival. On one hand, this policy brings a new dimension of flexibility to hotel guests, on the other hand, it means an increasing financial risk for hotels and difficulties while planning their occupancy rate. Due to these developments, it got more and more important to analyze cancellation behavior of hotel guests and find a pattern in order to create a forecast.