How to set up cancellation and deposit policies

Policies make rate plans contractually clear. A guest looking at three rates — Flexible, Semi-Flex, Non-Refundable — should see exactly what each commits them to. This article walks through the three policy types and how to wire them up.

Where policies live

Backoffice → Policies. Each policy has a name, description, type, and the type-specific fields below. Once created, attach to one or more rate plans (Backoffice → Rates → open a rate → Policy field).

CANCELLATION policies

Define what's charged when the guest cancels late or no-shows. Fields:

• deadline_days / deadline_time — cancel before this point and no penalty applies. "3 days before check-in at 18:00".
• penalty_type — what's charged after the deadline: first_night, two_nights, full_stay, percentage, fixed_amount.
• penalty_value — the percentage (e.g., 50 for 50%) or amount (e.g., 100 for €100). Only required if penalty_type is percentage or fixed_amount.
• noshow_penalty_type / noshow_penalty_value — separate fee for actual no-shows (vs late cancellations). Often the same as penalty_type but can be harsher.
• non_refundable — flag for prepaid/non-refundable rates. The booking engine displays this prominently so guests opt in deliberately.
• grace_period_hours — buffer after the deadline. Optional safety valve.

DEPOSIT policies

Define what's collected upfront and when. Fields:

• deposit_type — percentage, fixed_amount, or first_night.
• deposit_amount — the percentage or amount.
• deposit_due_days / deposit_due_time — when the deposit must be received. "Within 7 days of booking" or "by 14 days before check-in".
• refundable_deposit — flag indicating whether the deposit is refundable on cancellation (depends also on the cancellation policy).

RELEASE policies

Govern unconfirmed holds — typically used by allotments and tour-operator contracts. release_days / release_time say when an unconfirmed hold becomes available again. release_type can be full (all rooms released at once) or gradual (released in chunks over time).

Common policy presets

• Flexible (free cancel, no deposit) — cancellation deadline 1 day before, penalty first_night, no deposit.
• Semi-flex with deposit — cancellation deadline 7 days before, penalty 50%; deposit 30% due within 7 days of booking, refundable until deadline.
• Non-refundable (best price) — non_refundable on, full_stay penalty for any cancellation, deposit 100% upfront, refundable_deposit off.

Attach to rate plans

Backoffice → Rates → open the rate plan → Policy field. Pick the cancellation/deposit/release policies that apply. The rate plan now inherits those terms; the booking engine surfaces them on the rate selection screen so guests see exactly what they're agreeing to.