I teach privately (flute, piano, and harp) and have a flat rate per month. I don't adjust for vacations/holidays. I don't charge extra for 5-week months, and I have no recital or registration fees. I don't refund for missed lessons on the student's part, although I do try to schedule a makeup lesson if my schedule allows. If I can't work it in within a week or two, the lesson is forfeited. They're also allowed to switch with other students (many of them know each other from school). My studio runs so much more smoothly since I started using a stricter policy. However, I DO refund a pro-rated amount if I have to miss and we can't schedule a makeup lesson. That only seems fair. :)