Thanks for all of the advice, guys. I think I'll give it some thought in the off season, and will probably implement a cancellation policy beginning next year.
A lot of Santas (and other performers) also use written contracts, but other than for the Ritz (who insisted on one) nobody in Cayman has ever asked for one. I do technically need a Trade & Business License to operate (since I charge for my services), but only Government entities (libraries and public schools) have ever asked about that, since it's a requirement they must meet in their payment process. In addition, a lot of Santas pay to get a background check done every year and have insurance that covers them up to a million dollars per incident (i.e., you drop some kid who cracks his or her head open).
I've held off on most of these types of "business" aspects of being Santa (as well as getting a website or doing any local promoting/advertising) because at heart I still think of myself as a hobbyist. Or at least I don't want to lose that sense of just being out there for the kids, to have a lot of fun, and to spread joy. But on the other hand, I don't want to be perceived as a "hack" so some of these types of things would actually help in terms of making what I do even that much more professional.
On the other side of it, I've had some amazing experiences as Santa and some clients who are just incredibly generous and appreciate. There is one family that has hired me for about 10-12 years now, dating back to when I wouldn't take any money from anybody for any reason (not even from corporate clients). My thinking hadn't yet "evolved" at that point! I used to do it JUST for the kids, even though it cost quite a bit each year for candy, giveaway items, small toys, and wardrobe items. So they would give me a bottle of rum because they just couldn't let me leave empty handed.
Then for several years, I would ask them to write a check for $50 to a designated charity which rotated each year (and led to nothing but headaches from the charities to be honest). Then one year, all of the lady's sons and son in laws matched her $50 check, so the charity got $300 that year. Then eventually I became my own designated charity, but they still give me anywhere from $200 to $300 each year for a 1 hour visit, and usually a bottle of wine or scotch. When the grandmother who hosts that event calls to schedule now, we have a chat like old friends and neither of us ever even mentions how much my fee will be.
Then I had the lady who was staying at the Ritz a couple of years ago who insisted that she give me a Christmas gift, and wanted to know what I wanted. I told her that the only thing I wanted, which I had already bought for myself, was a new Santa suit. She then insisted on seeing pictures of it, and then when she saw the pics insisted that she paid for it. Her husband gave her permission so she wrote me a check for $2,000 in addition to the fee that she had previously agreed on! Her husband told me as he walked me out of the hotel that he was just happy that I didn't tell her I wanted a car!
So those kinds of things live on in my memory and make me feel unbelievably blessed to have this opportunity each year to serve humanity in a very special way for about a month, being a rock star everywhere I go and watching kids get totally wrapped up in it. Even at the grocery stores and at gas stations and in airports, and even when I'm wearing "Santa casual" clothes, there are moments in every day that make it all worthwhile (despite an occasional cancellation due to rain, or dealing with an idiot event coordinator who thinks I should cancel other scheduled events to meet her ever changing needs).