The instructor has the leeway to decide how to handle this at my company.
At the beginning of the course, I go over this stuff along with the other course requirements. At my company, the students choose their own schedule, so a scheduled lesson should never be a surprise to them.
I don't mind if someone calls and cancels, even as soon as the day of, as long as I haven't left the house.
First no call/no show's free- after 20 minutes of waiting, I call the student, and let them know that's the freebie.
Subsequent no shows or super short notice cancels, I bill for an hour and a half. That covers my time to get to the airport and back from my house.
Late students- If our block starts at 3:30, and they are *habitually* late for no good reason (no school or work interfering), then I bill starting from the block start time.
If a student has a *good* reason to cancel on short notice, that's a freebie too, as long as it's not a regular thing. I understand, sometimes Work calls, or a babysitter bails, or whatever.
For what it's worth, I've very rarely had to charge someone for missing a lesson. I try to be very up-front about my policy at the beginning of the course. I've only had a couple students who were habitually late, and they weren't very focused on the course anyway (surprise), and they eventually wandered off to find different hobbies eventually. After a few lessons, you can kinda get a sense of who's likely to stand you up, and who's responsible and serious about the course.
-A-