I charge $10 less per day if they're away on holidays, if they let me know before they pay. After payment is paid there are no refunds for any reason they don't attend. The only time I refund is when I end up taking a sick day.

I started doing this when I first opened as a way to attract clients. It's not enough that I feel it (and it's nice to have that break sometimes) and it's enough for them to keep their child home and feel like they aren't being ripped off. I'm not feeding their child or supplying art supplies so I felt it was fair.

I can certainly understand why some providers give no reduction though! Do what you feel is fair and can survive with