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 guests plan their trips, unexpected events can alter their bookings. When this happens, itʼs just as important that they know what to expect as it is for you to not miss out on revenue.
To make sure guests know when and how much youʼll charge them, we recommend setting up cancellation, deposit, and prepayment policies that best suit your business. This will prevent both surprises for 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?
What policies are available?
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Cancellation policies
Let guests know if they can cancel their bookings for free, and if so, until when. Generally speaking, we recommend allowing guests to cancel for free until one or two days before check-in. You could also 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, when and how much they’ll be charged.
Deposit and prepayment policies
Along with 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. 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 else 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 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 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 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 customized 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 for free during a time frame of your choice before check-in.
- With a customized policy, you can choose how long before check-in guests can cancel for free, and how much they’ll be charged if they 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-authorization preferences, you can show guests whether you’ll pre-authorize their card or not, as well as when and how much you’ll pre-authorize. Pre-authorization can be applied to specific policy types, too.
- With a deposit, you can make sure you’re covered financially if a guest cancels their booking. If the guest ends up staying, you can return the money afterward or deduct it from the overall price of the reservation. Deposits are usually paid by bank transfer, which is particularly useful if you aren’t able to charge credit cards.