Host Cancellation policies

Cancellation, deposit, and prepayment policies

Ensuring transparency for your guests and securing consistent revenue for your business is crucial in the hospitality industry.

 Despite guests’ careful planning, unforeseen circumstances can lead to cancellations. It is essential to communicate cancellation, deposit, and prepayment policies effectively to guests, minimizing surprises for them while safeguarding your revenue. With the user-friendly Extranet, setting up your policies has become simpler than ever. By answering a few essential questions, you can configure your preferred policies, covering all major cancellation and payment scenarios.

Explore the available cancellation policies to inform guests about the options for cancelling bookings, including free cancellation deadlines and non-refundable options.

Provide details on deposit and prepayment policies to clarify any charges guests may incur before their arrival, including the amount and timing of payments.

Deposit and prepayment options

In addition to your cancellation policy, you can set up a deposit system. Guests will be required to make an initial payment, typically through card payment, which will be refunded if they cancel within the designated 14-day free cancellation period. However, if they cancel after that period, the deposit will not be refunded. This provides you with protection in case of cancellations.

Guests are required to make a prepayment during the booking process, typically covering the cost of 20 percent of the booking. This prepayment is applicable for bookings that are either partially refundable or non-refundable. In the event of a cancellation, the guest will not receive a refund for the prepayment amount.

Pre-authorization involves temporarily holding a specific amount on a guest’s card for verification purposes, to charge it in full at a later time. This amount can serve as a security deposit in case of a guest’s no-show or be refunded back to the guest promptly.

How can the Host leverage cancellation and prepayment policies to their benefit?

1. Ensure revenue protection: Guarantee coverage in case of guest cancellations.

2. Minimize cancellations: Providing clear expectations decreases the likelihood of guests canceling.

3. Set clear policies: Managing guest expectations with transparent policies helps prevent negative surprises impacting their experience.