By default, Direct bookings have a non-refundable cancellation policy. You can configure custom policies and associate them to properties using our cancellation policy manager that will let you choose how flexible you would like your policy to be.
Once a reservation is canceled or expires, it cannot be reinstated. Hosts and guests must explore new arrangements if needed, as canceled reservations are permanently invalid.
Guest cancellations
Guests are able to cancel bookings at any time from the guest portal. Hospitable displays the refundable value of their reservation according to the cancellation policy of the reservation. If the guest chooses to go forward with a cancellation, we require them to first validate either their email or phone number by submitting a one-time code.
Refunding your guest
If you need to cancel a reservation, we will ask you if the cancellation is at the guest's request, or if you, the host, are requiring the cancellation:
Guest cancellations - if you cancel at the request of your guest, we will calculate the refund according to the reservation's cancellation policy.
Host cancellations - when you cancel and tell us it was at the host's initiative, the guest will receive the exact amount they paid refunded to their payment method.
Partial refunds - click the Send or request money button within two weeks of the end of a reservation to refund any portion of the reservation, without altering the dates of the reservation.
Denied Reservations - If a reservation has been denied, any funds associated with the booking will be refunded to the payment method used during the transaction. Guests can expect the refunded amount to appear in their account shortly.
Rebooking the Reservation - For canceled Direct bookings, guests can create a new booking, or the host can create a custom quote for the desired dates.
When the payout has been sent out, refunds will fail if your account does not have enough balance.
Canceling from the inbox
Open the conversation in your Inbox
Click on the Cancel reservation button
Select whether the cancellation is at the request of the guest or the host (this affects how we calculate the refund amount on the next screen)
If the cancellation was not requested by the guest, Hospitable will return the entire amount the guest paid to their payment method
If the cancellation is at the request of the guest, no amount will be refunded.
Click Continue, review the final details, and click Confirm & cancel
After You Cancel
Once a Direct booking is cancelled, here's what to expect.
Refund Timelines
Refunds are processed automatically based on your cancellation policy. How quickly the guest sees the money depends on the original payment method:
Credit or debit cards: Refunds typically appear within 5–10 business days. Debit cards may take up to 2 weeks in some cases.
Bank transfers: Refunds typically take 5–10 business days, depending on the guest's bank.
Authorization holds (pre-check-in charges that were never fully captured): Released within 3–5 business days.
Refund processing times are determined by the guest's bank or card issuer. Hospitable cannot speed up this process once the refund has been issued.
What Happens to Payouts Already Released to the Host
What happens depends on your Direct plan:
Direct Premium: If a payout has already been released, Hospitable creates a negative adjustment that is deducted from your future booking payouts. No immediate action is needed, the system handles this automatically.
Direct Basic: If a payout has already been released, the refund amount is withdrawn from your connected Stripe balance*. Make sure your Stripe account has sufficient funds to cover the refund.
*If your account does not have enough balance when a refund is processed, the refund will fail. Ensure your Stripe account or payout balance can cover any potential refunds for active bookings.
How Partial Stays Are Handled
If a guest cancels mid-trip (after check-in but before check-out), the cancellation policy applies to the remaining nights only. The nights already stayed are charged in full.
To issue a custom refund for a partial stay, use the Send or Request Money feature in the reservation's inbox. Partial refunds through Send or Request Money are available for up to 14 days after the reservation end date.
Cancellation Scenarios
Below are the most common cancellation scenarios and what happens in each case.
Cancel as Host
Host-Initiated Cancellations
When you cancel a booking as the host, the cancellation policy is overridden and you bear the full financial responsibility for the booking amount.
Before payout: The booking amount is refunded from the original payment.
After payout (Premium): A negative adjustment is applied to your future payouts to recover the amount.
After payout (Basic): The amount is withdrawn from your Stripe balance.
Service fees on host-initiated cancellations:
On Direct Premium, the service fee is included in the refund.
On Direct Basic, the service fee is collected from the host.
Host Cancel as Guest or through the Guest Portal
Guest Cancels Within the Free Cancellation Window
If your cancellation policy includes a free cancellation period and the guest cancels within that window, they receive a full refund.
Refunds are processed automatically.
The guest can expect the refund within 5–10 business days, depending on the payment method.
Guests can cancel directly through the Guest Portal using a one-time password (OTP) sent to their email. The refundable amount is displayed before they confirm.
Guest Cancels Outside the Free Cancellation Window
If the guest cancels after the free cancellation window has passed, your cancellation policy determines how much of the booking is refunded.
The cancellation fee is calculated as a percentage of the full booking amount, as defined in your cancellation policy terms.
The non-refundable portion is retained by the host.
The refundable portion is returned to the guest within 5–10 business days.
You can customize your cancellation policy terms under Settings → Direct → Cancellation Policy Manager.
The cancellation fee is calculated from the full booking amount, not just the amount that has been captured at the time of cancellation.
Guest No-Show
Guest no-shows are handled according to your cancellation policy, there is no separate no-show policy. The booking amount is retained or refunded based on the same terms that would apply if the guest had cancelled at that point.
Cleaning Fees on Cancellation
Cleaning fees follow the same rules as the rest of the booking, they are handled according to your cancellation policy. If the policy grants a full refund, the cleaning fee is refunded. If the policy retains a percentage, the cleaning fee is subject to the same terms.
Common Questions After Cancelling
"My guest says they haven't received their refund yet"
Refunds typically take 5–10 business days to process, depending on the payment method. Debit cards may take up to 2 weeks. Authorization holds (pre-check-in charges that were never fully captured) are usually released within 3–5 business days.
If more than 10 business days have passed, ask your guest to check with their bank or card issuer, the refund may have been processed on Hospitable's side but is still being handled by the financial institution. You can verify the refund status from the reservation details in your inbox.
"Can I undo a cancellation?"
No. Once a reservation is cancelled, it cannot be reinstated. If the guest still wants to stay, you will need to create a new booking, either by having the guest book again through your Direct website, or by sending them a custom quote.
Cancelled and expired reservations cannot be reinstated. A new booking must be created if the guest wishes to rebook.
"I cancelled a booking as the host, what should I expect?"
When you cancel a booking as the host, the cancellation policy is overridden and you are responsible for the full booking amount. If a payout has already been released, the amount will be recovered from your future payouts (Premium) or Stripe balance (Basic).
Refunds are processed automatically and typically take 5–10 business days to reach the guest.
"I see an unexpected deduction or adjustment on my account"
There are a few reasons you might see an unexpected charge or adjustment after a cancellation:
Post-payout recovery: If a refund was issued after your payout was already released, Hospitable recovers the amount through a negative adjustment on future payouts (Premium) or a withdrawal from your Stripe balance (Basic).
Service fee: Depending on your plan and the type of cancellation, a service fee may have been collected from your account.
Partial policy retention: If a guest cancelled outside the free cancellation window, only the non-refundable portion is retained by you, the refundable portion was returned to the guest.
If the adjustment doesn't match any of the above, contact Hospitable support for clarification.