1. When an event is canceled, there is no automated notification.  There must be someone managing the business process and that involves manually sending a notification to stakeholders.  However there is way to automate this process by using the "Event Save Email" functionality.

2. Access to this functionality is typically limited to administrators.  You want to go to the More menu > System Settings > Event Saved Email > Add Template

You want to start with building a template first.  The template is going to be the actual notification.  You can customize what the email says and how it looks using the template settings.  The top section on the template is adding the recipient information. The next section will be the email body.  You will have access to template variables which will pull data directly from the event to be populated in email body.  

3. Here is a sample used at a college.

4. Once your template is saved, the next step is to create a scenario.  The scenario is the process that triggers the email.

You will need add a scenario name which is mainly for identifying your different scenarios. The other settings can remain the default settings which is making sure the email is triggered when creating or editing event based on the criteria set-up.

5. The next part is setting up a scenario criteria.  You can sent up a trigger based on specific locations or resources assigned or removed, or based on certain attributes or requirements selected.  In this example since it's a "Cancellation" email notice, we are basing it on event states.

When "canceled" event state is chosen it will send an email notification to the contact(s) selected in the template.