Add or Edit a Cancellation Policy

Cancellation Policies define the payment terms if the guest cancels at a certain point in time before the check-in date, or after the booking was made. 

Thus, Cancellation Policies help you secure revenue, and set the right expectations for your guest. When you Cancel a Reservation, innRoad automatically checks if a payment or refund is due, based on the policy applied to the stay.  

For OTA Reservations, the Cancellation Fee is defined by policies on the OTA.

Add or Edit a Cancellation Policy

How to create a Cancellation policy:

1. Go to Inventory > Policies.
2. Click Create New in the CancellationPolicy section.
   
3. Select a Pricing Type:
   
   • Percent of stay is based on total reservation charges or total room charges.
   • Flat fee always applies a fixed value cancellation fee. 
   • Number of nights is based on the first "N" nights of the reservation. 
4. After selecting the type, fill out the amount:
   
   
5. Select the type of time boundary to use:
   
   1. After the reservation was made uses the Booked On Date.
   2. Within check-in date uses the Arrival Date.
6. Enter the number of days.
   1. When using After the reservation was made, a lower number is more restrictive.
   2. When using Within check-in date, higher values are more restrictive. 
7. Optionally, click "Add 2nd clause" to create additional clauses.
   
   This way, you can increase the cancellation fees for cancellations closer to the check-in date.
   
8. Optionally, enable Custom Text to modify the auto-generated Policy text.
9. Click Add Policy to save.

Cancellation Policy Overlaps

Cancellation policies can have multiple clauses. For example:

• $100 fee if cancelling 30 days before check-in date
• 50% total charges if cancelling 14 days before check-in date
• 100% of total charges if cancelling 7 days before check-in date

In some cases, clauses could overlap in their terms. When this happens, only one clause is picked. 

For example, let's review the following cancellation policy.

• $100 fee if cancelling at any point after the booking was made
• $200 fee if cancelling 60 days before the check-in date

If the guest cancels later than 60 days before the check-in date, both policies are technically applicable. However, only the 2nd clause will apply the Cancellation Fee. 

The logic of applying the Cancellation Policy follows the hierarchy below:

• By Date: Policies are only applicable if the cancellation meets the date requirement.
  • By Type: Clauses with Days within check-in date have a priority over X Days after booking.
    • By Amount: The policy with the higher amount, if clauses with the same type overlap, will be selected.
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