Cancellation Policy

In this article

To create a new cancellation policy

Policy

Cancel Penalty Lines

No Show Penalty

Early Checkout Penalty

The Hotels module's cancellation policy feature allows users to configure how price and rate changes should be handled for cancellations, no-shows, and early checkouts. The system supports multiple cancellation policies, enabling you to create as many as needed.

The cancellation policies are applied through the rate code in Rate Configuration. The cancellation policy is displayed on the Hotel Reservation Card, where you can drill down into the Cancellation Policy Card to view detailed policy information.

Once a reservation is confirmed, the cancellation policy is copied into the Hotel Reservation Cancellation Policy and can be edited, ensuring that changes apply only to that specific reservation.

To create a new cancellation policy

1. From the Navigation menu in the Hotel Back Office role center, click Rate Management to display the Navigation bar.
2. From the Navigation bar, click Cancellation Policy.
3. Click the New action, and fill in the fields in the Cancellation Policy card.

The tables below list and describe the fields in the page's FastTabs.

Policy

Field	Description
Cancellation Code	Unique ID for the cancellation policy.
Description	Description of the cancellation policy.
Cancel Policy Type	Select the functionality behind the cancellation policy. Available selections are: Always Charge - Fees for cancellation will always be applied. A cancel penalty line must be created specifying the fee Never Charge - Fees for cancellation will never be applied. Cancel Not Allowed. Charge Within Days/Time before Arrival - Fees for cancellation will be applied depending on how many days prior to arrival and the time when the cancellation was made (see the Cancel Time and Cancel within No. of Days fields). Charge Within Days/Time after Confirmation - Fees for cancellation will be applied depending on the number of days after confirmation and the time when the cancellation was made (see the Cancel Time and Cancel within No. of Days fields).
Cancellation Posting	The item number behind the fee posting. This item is used for all financial postings for the cancellation fee.
Prompt When Applying	If enabled when a cancellation is made, the user will get a question asking if the cancellation policy should be applied or not. If disabled, the cancellation policy will always be applied.
Allow Manual Fee	If enabled, the user can set the fee value manually on the Cancellation Details which prompts when canceling a hotel reservation.

Cancel Penalty Lines

Here you set up how the calculations for the cancellation fees are done when a reservation is set to Status Cancel. The Cancel Charge Value field is either editable or non-editable, depending on the selection in Cancel Charge Type.

The Cancel within No. of Days and Cancel Time fields are only available when Cancel Policy Type is set as Charge Within Days/Time before Arrival or Charge Within Days/Time after Confirmation. With these Policy Types, you can define multiple time scenarios for cancellation, for example, apply a percentage for cancellation within 90 days after confirmation and a different one for over 90 days.

Field	Description
Cancel within No. of Days	Used to determine how many days prior to arrival or after confirmation, depending policy type, the fees are applied when canceling. Use 0 or blank to specify the period later than the largest number in No. of Days in setup.
Cancel Time	Used to determine the time when the fees are applied when canceling. The Cancel within No. of Days field is used together with Cancel Time. Therefore, if the time is set to 12:00, cancellations before 12:00 o'clock 'X' number of days prior to the arrival date will get the cancellation fee. If based on Confirmation, cancellations after 12:00 o'clock 'X' days after the confirmation date will get the cancellation fee.
Cancel Charge Type	Specifies how the calculation should be made, select from the drop-down list: First Night - The cancellation fee is the same amount as the first night of the rate price. Number of Nights - The cancellation fee is the same amount as an 'X' number of nights. Percentage - The cancellation fee is a percentage that you set in the Cancel % field, of the entire stay's room rate, plus any fixed charges or packages associated with the rate code. Fixed Amount - The cancellation fee is a fixed amount that you set in Cancel Amount. None - No fee is charged.
Cancel Charge Value	Specifies the percentile, amount, or number-of-nights you want to charge for cancellation.

No Show Penalty

Here you set up how the calculations for the cancellation fees are done, when a reservation is set to Status No Show. The fields are either editable or non-editable, depending on the selection in Cancel Charge Type.

Field	Description
No Show Charge Type	Specifies how the calculation should be made. Select from the drop-down list: Number of Nights - The cancellation fee is the same amount as an 'X' number of nights. Percentage - The cancellation fee is a percentage that you set in the No Show % field, of the entire stay's room rate, plus any fixed charges and packages associated with the rate code. Fixed Amount - The cancellation fee is a fixed amount that you set in No Show Amount. None - No fee is charged.
Number of Nights	Used for the Number of Nights No Show charge type. Specifies how many nights you want to charge for no show.
No Show %	Used for the Percentage No Show charge type. Specifies the percentile you want to charge for no show.
No Show Amount	Used for the Fixed Amount No Show charge type. Specifies the amount you want to charge for no show.

Early Checkout Penalty

Here you set up how the calculations for the cancellation fees are done when the Early Checkout function is used. Early checkout can be made from the POS, through the POS command EARLYCHECKOUT, or on the Hotel Reservation Card using Actions - Functions - Early Check-out. The fields are either editable or non-editable, depending on the selection in Cancel Charge Type.

Field	Description
Early Checkout Charge Type	Specifies how the calculation should be made, select from the drop-down list: First Night - The cancellation fee is the same amount as the first night of the rate price. Number of Nights - The cancellation fee is the same amount as an 'X' number of nights. Percentage - The cancellation fee is a percentage that you set in the Early Checkout % field of the entire stay's room rate, plus any fixed charges and packages associated with the rate code. Fixed Amount - The cancellation fee is a fixed amount that you set in Early Checkout Amount. None - No fee is charged.
Number of Nights	Used for the Number of Nights No Show charge type. Specifies how many nights you want to charge for early checkout. Calculated from the day the guest checks out.
Early Checkout %	Used for the Percentage No Show charge type. Specifies the percentile you want to charge for early checkout.
Early Checkout Amount	Used for the Fixed Amount No Show charge type. Specifies the amount you want to charge for early checkout.