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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.

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What policies are available?

  • Cancellation policies

Let guests know if they can cancel their bookings free of charge, and, if so, until when. Generally speaking, we recommend allowing guests to cancel for free until 1 or 2 days before check-in. Alternatively, you can select non-refundable policies where guests wonʼt get their money back if they cancel.


  • Deposit and prepayment policies

Let guests know if they should expect any charges before arrival, and, if so, when and how much they'll be charged.

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.



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.



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

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 select a fully flexible policy, a customized policy, or apply different policies to different room types.

• With a fully flexible policy, your guests will only pay when staying at your property and can cancel free of charge during a time frame of your choice prior to check-in. 

• With a customized policy, you decide how long before check-in guests can cancel for free, and how much theyʼll 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 want 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 youʼll pre-authorize their cards or not, as well as how much and when youʼll pre-authorize. Pre- authorization can be applied to specific policy types, too.

• With a deposit, you can make sure youʼre covered if a guest cancels. If the guest does end up staying, you can return the money afterwards, or just deduct it from the overall price of the reservation. Deposits are usually paid by bank transfer, so this is especially useful if you can't charge credit cards. 

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