Having just returned from a short but busy visit to Florida, I can understand why some American expats may run into trouble with Europe's rather strict rules on cancellation.

Yes, some of the larger chain hotels in Europe follow a similarly relaxed cancellation policy. But they are the exception rather than the rule. If you are planning to book a vacation in Europe, you have to allow for the possibility of charges if you cancel a confirmed booking.

Why hotels charge for cancellations

First, the hotels many expats love to book are not in busy areas where there is a lot of "off-the-street" customers. If you don't show, or if you leave earlier than planned, chances are the hotel won't be able to resell the room. That can be quite a financial blow for a small, family-run hotel.

Second, hotel managers impose cancellation charges to discourage the public from holding bookings up to the last minute in case something better comes along. "No show" - or failing to show up for a booking - is a big problem that affects not just hotels, but airlines and restaurants, too.

Cancellation penalties today are not just limited to hotel reservations. Practically every travel brochure on the market talks about cancellation costs in the fine print. And Dutch tour operators have some the strictest cancellation terms around.

Once you've accepted the fact the cancellation charges are common in the European travel industry, you need to ask up front what the fees would be for the travel you are booking. Then you can decide whether you want to book under those terms. Always ask to see the terms and conditions of the company with whom you are booking.

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