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Once the cancellation add-on has been created, we can now setup the rentability rules & the Rates ( the rules) of our cancellations.
A the bottom right of the Rates card, go ahead an click on "create rate". You should see the following pop-up
Here, you have two options for the type of rate you would like to configure.
- A relative percentage (i.e. 50% refund to guests)
- a fixed cancellation rate (flat fee) that will be added to the price of the reservation
When configuring a relative percentage, fill in the field for how much the guest is charged for cancelling the reservation. The refund field will be filled out automatically. When configuring a flat fee, the setup is almost identical. The only difference is that the refund field is not available for this configuration and that you should enter a flat value (i.e. 50€) instead of a percentage.
Please note that when selecting a relative percentage rate configuration, you will have one extra step during the configuration to decide for which accommodation types, add-ons & offers is this relative percentage rate applicable (see photo above). When selecting the flat rate, this extra step disappears (see photo below) from the flow as the flat rate will be applied regardless of any add-ons, offers, or accommodation types.
Next, you are able to specify the time frame for which you want this rate (or rule) to apply. This can be done by filling in the "Apply this rate when the cancellation is within" fields. Please note that the lower value should be on the left and the higher value should be on the right.
Finally, the last fields allow you to choose the period for which this rate (or rule) is valid. You can either chose "valid from today" or give a specific period in the future.
Once you have filled in all of the necessary fields, click on "Next Step".
Here you can choose the rate types for which you wish to apply this cancellation rule. You can either choose all rate types or some specific ones. Click on "Next Step" when you have filled in the relevant information.
If and only if you have chose the relative percentage rate for your rule, you will see the following pop-up.
On this step you can select the accommodation types, the add-ons and the rates for which the relative percentage rate will apply. Each time you have the option to select specific accommodation types, add-ons & offers or all. We suggest to apply the rate to all accommodation types, all offers, and all add-ons except the insurance add-ons. However the setup varies depending on the needs of each client. Click on "Next Step" when you have selected all the relevant items.
Finally, you have this last pop-up where you can configure translations if needed. The bill settings should not be changed. Once you are done click on "Add Rates". Congratulations, your rate has been created. You can enter multiple rates, as long as they are not using the same time frame. This allows you to create granularity around your cancellation rules. (i.e. between 14 & 29 days = 50% refund, but between 0 & 13 days = 0% refund).
There is one last thing that needs to be done before the cancellation terms can be used.
Linking cancellations to the DC
Now that the cancellation rules have been setup, it is necessary to link these rules to the Distribution Channel in order for the system to pick up the cancellation add-ons. In order to do this, go to the Distribution Channels tab in the Channel Manager.
Once you have navigated to the relevant Distribution channel, click on it, and go to the "Cancellation" card.
Click on "Add Cancellation add-on". The following pop-up should appear
If you have configured everything correctly, you should see your cancellation add-on(s) in the list. Select the ones you want to use and click on "Next Step".
The last step is to pick whether your cancellation add-on is applicable for bookings with insurance (i.e. the insurance add-on(s) that you configured) or without. It is therefore advised to have 2 different cancellation add-ons, one that defines the rules for reservations with insurance(s), and another to define the rules without insurance(s).
Please note, it is possible to have multiple cancellation add-ons linked to a DC. You can have 2 different cancellation add-ons, both for bookings with insurance, linked to the same DC. Both add-ons will apply to your reservations, as long their rules don't overlap (there need to be either different time frames or different types of rates or both).
You have now completed the configuration of your cancellation terms. In order to manage your cancellations, please see here.
Conclusion
Using cancellation term configuration, different cancellation terms can be set up for different scenarios. These rules determine whether a payment is due when canceling a reservation, which is triggered by adding a cancellation addon in the reservation. These cancellation addons add-ons are configured as add-ons.
- the terms can be different based on the situation if there is a cancelation cancellation premium in the booking
- the terms (for definitive canceled bookings) can be different based on the fact if it is a valid reason or not
- for non-refundable please see Non-Refundable settings
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Cancellation add-ons are linked to the Distribution Channel, so the terms can also be different per dc.
The Some examples to illustrate the logic of the set up of a canceled bill
When a booking is canceled, the original bill doesn't get changed. The system adds the cancelation cancellation add-on with a negative amount.
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Paid 0
Cancelation Cancellation Add on Rent -500
Cancelation Cancellation Cleaning - 75
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Paid 1075
Cancelation Cancellation Add on Rent -500
Cancelation Cancellation Cleaning - 75
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