Cancellation policies define how refunds are calculated when a Direct booking is cancelled.
Each booking is assigned a cancellation policy at the time it is created, and that policy determines what portion of the booking is refundable.
How Cancellation Policies Work
When a Direct booking is created:
A cancellation policy is assigned to the booking
That policy determines:
If the booking is refundable
How much is refunded
When refunds are allowed
This policy is applied automatically based on your booking settings.
The cancellation policy is fixed at the time of booking and cannot be changed afterward.
When the Cancellation Policy Is Applied
The cancellation policy is applied:
When the booking is created (for both guest bookings and custom quotes)
Based on the policy assigned to the property at that time
Even if you update your policies later:
Existing bookings keep their original policy
Where Cancellation Policies Are Set
Cancellation policies are configured within your booking policies.
Go to Direct → Booking Policies
Open the booking policy you want to edit
Update the cancellation policy rules
Click Save
Booking policy settings in Hospitable showing cancellation policy configuration
Where Guests Can View the Cancellation Policy
Guests can review the cancellation policy:
During the booking process before checkout
In their booking confirmation email
In the Guest Portal
This ensures guests can review the cancellation terms before and after booking.
How Cancellation Policies Affect Bookings
Cancellation policies apply when a booking is cancelled by the guest or due to certain system events (such as missed payments).
They determine:
Whether a refund is issued
How much is refunded
Refunds are calculated based on:
The cancellation policy
The timing of the cancellation
The amount already collected
If a host cancels a booking, the guest is always refunded in full, regardless of the cancellation policy.
How Timing Affects Refunds
The refund amount depends on when the booking is cancelled relative to check-in.
For example:
Cancelling earlier may result in a higher refund
Cancelling closer to check-in may reduce or eliminate the refund
How Cancellation Policies Work with Payment Schedules
If a booking uses split payments:
The cancellation policy still applies to the full booking
Refunds are calculated based on payments already collected
Future scheduled payments are not charged
Also see: Direct Booking Refunds
Key Things to Know
Cancellation policies determine refund amounts
Policies are assigned at the time of booking and cannot be changed
Guests can view the policy before and after booking