The Cancellation Policy feature allows you to automate the process of calculation and charging the cancellation fees. This will save a significant amount of time for you and your staff along with reducing any potential mistakes when calculating and posting cancellation fees.
- Using the feature is optional - use it if you wish to automate the calculation and posting of cancellation fees
- In order to utilize the Cancellation policy feature, you must connect the policy to a Guarantee option. You cannot simply select a Cancellation policy in a rate or booking. You select a Guarantee option and the cancellation policy attached to that option will be applicable to the rate/booking
- You can have several Guarantee options (e.g. Flexible; Non-refundable, etc.) and have 1 cancellation policy attached to all of them (in case the same cancellation conditions apply to all) or have a separate Cancellation policy for each guarantee option (in case of different cancellation conditions apply depending on the option)
Important: Please make sure you read Guarantee Policies as well.
You can create one or several Cancellation Policies, each with its own rules and cancellation fees. Navigate to menu Settings-> All Settings-> Cancellation Policy. Click on the New button and complete the settings;
- Name (1) - enter a name for the policy.
- Charge template (2) - 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 (3) - if you choose this option, the existing booking charges (nights, packages, extra services) will automatically be voided. Please note that if you don't select this option, but configure a Cancellation fee scheme (see below), accommodation charges will remain in the folio, but have a Cancellation fee added, meaning you are charging for the accommodation, but also a Cancellation fee on top.
Important: The charges will be voided, even if they have been transferred to another folio.
Important: 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 (4) - 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.
Note: This, in turn, can lead to the sending of a folio email to the guest (if you have the 'Auto send folio email template with folio closure' setting enabled in section Settings->All Settings->Folio Email Template).
Important: Folios will not be closed if they contain charges transferred from other bookings/company folio/event folio/non-resident folio. If such an issue occurs, the system will leave the folios open and will create a To-Do regarding this situation.
- Document types (5)> - this setting is only valid if the Close folios option is enabled. Here you can choose which document type to be used on the automatic folio closure. If nothing is selected, the folio will be closed without a document issued.
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 scheme button next to an already created cancellation policy.
Use the New button to create as many conditions as needed:
- Days before arrival (1) - how many days before the booking arrival the scheme will be activated.
- Fixed amount (2) - you can specify a specific amount to be applied when a booking is cancelled.
- Relative amount (3) - 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.
Example: 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.