Cancellation, deposit, and prepayment policies
Clarity for your guests, guaranteed revenue for you
Cancellations are an inevitable part of the hospitality industry. No matter how much your guests plan their trips, unexpected events can alter their bookings. When they do, itʼs just as important that they know what to expect as it is that you don't miss out on revenue.
To make sure guests know when and how much youʼll charge them, we recommend setting up the cancellation, deposit, and prepayment policies that best suit your business. This will both prevent surprises for your guests and you from missing out on revenue.
Now it's easier than ever to set up your policies on the Extranet. All the main cancellation and payment scenarios are covered, so all you have to do is answer a few key questions to configure your preferred policies.
What policies are available?
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Cancellation policies
Let guests know if they can cancel their booking free of charge, and if so, until when. Generally speaking, we recommend that you allow guests to cancel for free until one or two days before check-in. Alternatively, you can choose non-refundable policies, where guests won’t get their money back if they cancel.
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Deposit and prepayment policies
Let guests know if they can expect any charges before they arrive, and if so, what they will be charged and when.
Deposit and prepayment policies
Alongside your cancellation policy, you can configure:
A deposit
Guests pay a certain amount up front, usually by bank transfer, which theyʼll get back if they cancel within the free (flexible) cancellation period. However, if they cancel after that, they wonʼt get the deposit back. That way, youʼre covered if they cancel.
Prepayment
During the booking process, guests use their cards to pay for part of a reservation, often just the first night. Prepayment is usually for partially refundable or non-refundable bookings. So if the guest cancels, they wonʼt get that amount back.
Pre-authorization
You hold a certain amount to verify a guest's card, with the plan to charge it fully at a later date. You can hold this amount as a guarantee in case the guest no-shows, or just return it to the guest immediately.
How can your business benefit from cancellation and prepayment policies?
Secure revenue
Reduce cancellations
Manage guest expectations
Make sure you’re covered whenever guests cancel.
When guests have a clear idea of what to expect, they’re less likely to cancel.
Clearly stated policies reduce the surprises that can have a negative impact on guest experience.
Secure revenue
Reduce cancellations
Make sure you’re covered whenever guests cancel.
When guests have a clear idea of what to expect, they’re less likely to cancel.
Manage guest expectations
Clearly stated policies reduce the surprises that can have a negative impact on guest experience.
Secure revenue
Make sure you’re covered whenever guests cancel.
Reduce cancellations
When guests have a clear idea of what to expect, they’re less likely to cancel.
Manage guest expectations
Clearly stated policies reduce the surprises that can have a negative impact on guest experience.
Overview: How it works
To check your policies on the Extranet, click the "Property" tab and select "Policies."
- Under ‘Cancellation policies’, you can choose between a fully flexible or a customised policy – or apply different policies to different room types.
- With a fully flexible policy, your guests will only pay when they stay at your property, and can cancel free of charge during a time frame of your choice prior to check-in.
- With a customised policy, you can choose how long before check-in guests can cancel for free, and how much they’ll be charged if they do cancel after that point. You can also set up a prepayment before check-in, and define how and when you’d like to receive that payment. On top of that, you can apply different policies to different room types.
- With pre-authorisation preferences, you can show guests whether you’ll pre-authorise their card or not, as well as how much you’ll pre-authorise and when. Pre-authorisation can be applied to specific policy types, too.
- With a deposit, you can make sure you’re covered financially if a guest cancels a booking. If the guest does end up staying, you can give them back the money afterwards, or simply deduct it from the overall price of the reservation. Deposits are usually paid by bank transfer, so this is particularly useful if you aren’t able to charge credit cards.