The "Cancellation Policy" feature allows you to automate the process of calculation and charging the cancellation fees.

Setup

You can create one or several Cancellation Policies, each with its own rules and cancellation fees. Go to menu "Other" - "Settings" - "Cancellation Policy". Click on the "New" button and:

  • Name - enter a name for the policy.
  • Charge template -  if you wish to use automatic cancellation fee calculation/post, you can select the charge template that will be used for the cancellation fee.
  • Cancel existing charges- if you choose this option, the existing booking charges (nights, packages, extra services) will automatically be voided.
    • The charges will be voided, even if they have been transferred to another folio.
    • If the folio containing the charges is already closed, it will be impossible for these charges to be voided. In this situation, the system will create a To-Do regarding the issue.
  • Close folios- if this option is selected, the booking folio will be closed upon cancellation. Empty folios (folios without any charges or payments) will be voided as they can't be closed.
    • This, in turn, can lead to the sending of a folio email to the guest (the 'Auto send folio email template with folio closure' setting ).
Note: Folios will not be closed if they contain charges transferred from other bookings, for example. If such an issue occurs, the system will leave the folios open and will create a To-Do regarding this situation.

Calculation of an automated cancellation fee.

The Cancellation Policies are flexible and can be set in accordance with your needs. In order to set them click on the  "Cancellation fee schema" next to an already created cancellation policyUse the "New" button to create as many conditions as needed:

  • Days before arrival - how many days before the booking arrival the scheme will be activated.
  • Fixed amount - you can specify a specific amount to be applied when a booking is cancelled.
  • Relative amount - a relative amount that is based on a percentage of the booking amount and/or nights. If both are defined, the greater amount applies. For more details, you can also see the deposit calculation examples in the ''Guarantee Policies'' article.

Let's examine a case with two rules - one for 3 days before arrival (Rule 1), and another for 14 days before arrival (Rule 2).
-
Cancellation made 1 day before arrival - Rule 1 is applied.
- Cancellation made 3 days before arrival - Rule 1 is applied.
- Cancellation made 10 days before arrival - Rule 2 is applied.
- Cancellation made 20 days before arrival - No rule is applied.

As this feature overlaps with the previously used "Auto-void booking charges on booking cancellation" functionality, the setting has been migrated based on the following rules (if the functionality was set to Yes):

  • A Cancellation Policy in which options "Cancel existing charges" and "Close folios" are selected is created with name "Cancel booking charges and close folios"
  • The newly created cancellation policy is automatically selected to all Guarantee options.