I think that may have to be a business decision you have to make. Is it within your budget to compensate with no class? Would you rather save the money and risk hurting the relationship between you and your instructor.
Talk to your instructors and see if you can compromise.
These are all tough questions that owners of any business will have to deal with.
Hope this helps,
I suggest establishing a cancellation policy.
If you are an employee discuss this with your employer
If you are an independent contractor, you are in charge of this.
My cancellation POLICY is 24 hours notice in advance: I also charge for 10 sessions up front so I’m not collecting money for missed sessions.
As others have already said, if you have a cancellation policy in place that is well communicated to your clients, then both the studio and the instructor would get paid if a client no-shows.
I have a 24 hour cancellation policy, BUT I am usually lenient the first time someone misses a session or if there is an emergency.
Thank you for all of the information and answers so far. I do appreciate it. I do have a late cancellation policy in place. I also offer packs of 5 or 10 classes. My concern is more when somebody cancels prior to the 24 hour period. For example. One of my clients emailed me on Friday to cancel for Monday due to a funeral. She is part of a semi private (2 people). Should the instructor still get paid for both students even though one early cancelled? Just curious if there is an industry standard for this?