Cancellation Policies

The Cancellation Policies helps users to collect a fee from a guest if they do not cancel their reservation within a specific timeframe. For example, if a guest cancels their reservation less than 24 hours from their 3:00 PM check-in time, they’ll be charged $50.

Cancellation policies are associated with a rate plan and are enforced during the cancellation of a reservation.

Users can enable the Require Reason for Override checkbox to allow users to enter a reason when changing the cancellation policy or the cancellation fee applied to the reservations from the following screens:

  • Cancel Reservation

  • Reservation

Perform the following steps to create a new cancellation policy:

Navigate to Settings à All Settings à Policies & codes (under Reservations).

Scroll down or click Cancellation Policies.

Click Add. The New Cancellation Policy pop-up screen appears.

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Refer to the following table and fill in the fields to create a new cancellation policy:

Field

Description

Policy is active

Enable the checkbox to activate the cancellation policy.

Code

Enter a unique code used to identify the cancellation policy while booking a reservation

Post Charge As

Choose which transaction category must be used to post this fee to the guest by selecting the appropriate accounting post type from the Post Charge As list. For example, choose Cancellation Fee.

Description

Enter a description of the cancellation policy.

Include - Add-Ons

  • The cancellation fees calculated for the reservations will include the charges configured for the add-ons.

  • Users can enable this checkbox only when the Day/Nights and Percentage of Stay options are selected in Default Rule (Cancellation Charge) and Scheduled (Charge Type) policies.

Default Rule

This is the default option for a cancellation policy.

Cancellation Period

Define the cancellation period, which is when the guest must cancel a reservation without incurring a charge.

Choose the appropriate Cancellation Charge, which is the amount that the guest will incur:

Field

Description

Flat fee

Select the amount to calculate the fee based on a flat amount that is not associated with the length of stay for the reservation and type the total dollar amount.

Days/Nights

Select the number of days or nights to calculate the fee based on a certain number of days or nights and type the applicable number of days or nights.

Match to deposit policy

Select the field to calculate the fee based on the deposit policy associated with the reservation.

Click Save. The cancellation policy is created successfully.

Users can also create cancellation policies that charge cancellation fees based on the cancellation period.

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Click Scheduled under Cancellation Period and Charge.

Select one of the following options in the drop-down list under Type.

  • Before Arrival

  • After Booking

  • Upon Arrival

Enter the number of days under Days/Nights.

Select one of the following options in the drop-down list under Charge Type.

  • Percentage of stay - to charge a specific percentage of the reservation charges

  • Night(s) - to charge for a specific number of nights

  • Flat fee - to charge a specific amount

Enter the percentage, number of nights, or amount, in numbers, under Charge.

Click Add Schedule to create multiple schedules for the cancellation policy.

Click Save to save the cancellation policy.