Refunds for Direct bookings depend on two things:
Your cancellation policy
The amount already collected from the guest
This article explains how refunds are calculated and what happens when a refund is issued.
How Refunds Are Calculated
When a booking is canceled:
Only payments that have already been collected are considered for a refund
Future scheduled payments are not charged
The refund amount is calculated based on your cancellation policy
Refunds are based only on collected payments. Any future scheduled payments are automatically canceled and never charged.
What Affects the Refund Amount
Refunds depend on:
Your cancellation policy rules (for example, refundable vs non-refundable periods)
When the booking is canceled
The total amount already paid by the guest
What Is Included in a Refund
For partial refunds, different parts of the booking may be treated differently:
Accommodation cost → Refunded based on your cancellation policy
Cleaning fee → Refunded proportionally
Taxes → Refunded proportionally
Service fee → Not refunded for partial cancellations
If the booking is fully refunded:
The guest receives the full amount paid, including the service fee
Refund breakdowns depend on the type of cancellation and the amount paid. The final refund amount always follows your cancellation policy and collected payments.
Refunds for Pending vs Accepted Bookings
Pending Bookings
If a booking is pending:
No payment is collected
No refund is needed
This includes:
Booking requests
Custom quotes sent to guests
Accepted Bookings
If a booking is accepted:
Refunds are calculated based on:
Your cancellation policy
Payments already collected
Any future scheduled payments:
Are not charged
Are automatically canceled
Host vs Guest Cancellation
Who cancels the booking affects the refund outcome:
Guest cancellation → Refund follows your cancellation policy
Host cancellation → The guest is refunded in full
If you cancel a booking as the host, the guest always receives a full refund, regardless of your cancellation policy.
Example: Refunds With Scheduled Payments
Here’s how refunds work with partial payments:
Booking total: $1,000
Payment schedule: $500 at booking, $500 later
If the booking is canceled after the first payment:
Only the $500 collected is considered
The second payment is not charged
The refund depends on your cancellation policy
Example:
If your policy retains 50%, the guest receives $0
The remaining $500 is never charged
What Happens After a Refund
What happens after a refund depends on why the refund was issued.
If the booking was canceled:
The reservation is no longer active
The dates become available on your calendar
No further payments are collected
If the refund was issued without canceling the booking:
The reservation remains active
The refund is recorded in the booking’s payment history
Future scheduled payments (if any) continue as planned
Refunds can be issued without canceling a booking using the Send or Request Money feature.
Relationship to Other Settings
Refunds are directly connected to:
Payment terms → Determine how much was collected
Payment schedules → Determine what remains unpaid
Cancellation policies → Determine how much is refunded
Key Things to Know
Refunds are based only on collected payments
Future scheduled payments are never charged after cancellation
Cancellation policies determine how much is refunded
Pending bookings do not require refunds
Host cancellations always result in a full refund
Refunds can also be issued without cancelling a booking