Set up the cancellation rules in Channel Manager

Introduction

What are the cancellation rules?

Cancellation rules are guidelines within Maxxton Software that outline the procedures to follow when a reservation is cancelled. Typically, there are two main scenarios for cancellations: one involves reservations that include insurance, while the other pertains to those that do not. Different scenarios may require varying rules, such as a full or partial refund.

Conceptual flow

Below are the steps to set up cancellation rules:

1. Initial setup

2. Set up the insurance add-on in the Content Manager, create a new cancellation add-on, and set up rules for your cancellation in the Channel Manager.

Initial setup

Prerequisites

1. The employee must have the following rights assigned to them in the Back Office Manager:

   1. Content Manager - Add-on types

   2. Channel Manager - Cancellation

2. The feature flag Cancellation fee for no. of days must be enabled.

Access

Insurance add-on type and add-ons are created in the Content Manager.

The Channel Manager manages the creation of the cancellation add-on, the setup of cancellation rules, and the creation of a new cancellation add-on with a customisable name/rate.

Configuration

Set up insurance

Create an insurance add-on type

In Maxxton Software, insurance is set up using add-ons.

To set up a new add-on type, navigate to the Content Manager.

1. Select Add-ons and click the Manage add-on types button on the Add-ons screen.

2. Click the New add-on type button displayed on the next screen.

3. On the Create new add-on type pop-up, enter the relevant add-on name and type, and for the field Add-ons created under this type will be created as, select Fees from the dropdown. Click Create.

A new add-on type is created.

Activate the Cancellation premium toggle in the Advanced settings section. This is required for the system to pick up the linked add-ons when cancelling a reservation.

Create an insurance add-on

Create the insurance add-ons using the Create add-on button on the Add-ons screen in the Content Manager. Select the add-on type created above for the insurance.

Create cancellations

Create a new cancellation

In Maxxton Software, cancellations are also considered as cancellation add-ons. These are rules that determine how refunds are handled when a reservation is cancelled. The refund policies can vary; some may allow a full refund regardless of when the cancellation occurs, while others may provide partial refunds based on the timing, such as 80% if cancelled 60 days before arrival. A single reservation can have multiple cancellation add-ons, covering different components such as accommodation, local charges, or deposits.

To create a cancellation, follow these steps in the Channel Manager:

1. From the Configuration menu, select Cancellations.

2. On the Cancellations screen, click on Create new cancellation.

3. On the Create new cancellation widget, enter the relevant details for the fields displayed and click on Create. The newly created cancellation is displayed.

Setting up cancellation rules

Once the cancellation add-on is created, configure the rentability rules and define the applicable cancellation rates.

1. On the detail screen of the newly created cancellation, navigate to the Rates card.

2. Click on Create rate. The Configure periods and rates widget is displayed.

3. Three options are displayed for the user to choose the kind of cancellation rate they want to configure:

   1. Relative percentage over accommodation type: If the cancellation for a channel is based on the total booking amount, choose this option. The cancellation rate is calculated over the accommodation type, offers, and add-ons in the booking. Enter/select relevant details for the fields:

      1. Type of rate calculation: Select an option from the drop-down.

      2. Predefined stays, Rate applicable for (nights), Stay days: These fields are displayed only when Custom stay is selected in the Type of rate calculation field. Select the required value for the Predefined stay field, and the other two fields will be auto-populated.

      3. What do you want to do: Select the option from Refund or Charge and

      4. Enter the refund/charge percentage to guest: Enter the value for refund percentage. Based on the dropdown option that you select, this field caption will be displayed.

      5. Next, specify the time frame by entering relevant values for the field Apply this rate when cancellation is within and selecting a condition from the drop-down, for this cancellation to be applicable for a booking.

      6. Specify the period for which this rate is valid by selecting a valid radio button. Click on Next step.

      7. On the Rate types screen, select the rate types for which this rate is valid. Click on Next step.

      8. On the Accommodation types/add-ons/offers/activities screen, select the accommodation types, add-ons, offers, accommodation kind, and activities for which this rate should be applicable.

      9. The Others screen enables configuring Translations, Bill settings, and Distribution settings.

      10. Click the Add rates button. The new rate is created.

   2. Fixed cancellation rate: If the cancellation for a channel is a fixed rate, choose this option. The configuration for this rate is similar to the previous option, the only difference is that the refund/charge field is not available for this configuration instead a flat value (e.g. 50€) is required to be entered instead of a percentage in the How much is the guest charged for cancellation? field. The Accommodation types/add-ons/offers/activities screen is not displayed when Fixed cancellation rate option is selected.

   3. Charge X number of days: If the cancellation for a channel is charging for a certain number of days after a defined time period, then choose this option. The configuration for this rate is similar to that of the Relative percentage over accommodation type option, the only difference is:

      1. The Type of rate calculation field is set to the value of Per night and is disabled for editing.

      2. The refund/charge field is not available, instead number of days needs to be entered in the field How many days will be charged as cancellation fee to the guests.

Choose any of the above options to create the cancellation rate (cancellation rules).

Linking cancellations to the DC

Now that the cancellation rules have been set up, link them to the distribution channel. This enables the system to pick up the cancellation add-ons.

To link cancellations to DC, follow these steps in the Channel Manager:

1. On the Distribution channels screen, select the required DC.

2. Navigate to the Cancellation card on the details screen of the selected DC. Click the Add cancellation add-on button.

3. Select the cancellation configured above.

4. In the next step, select the cancellation type. This determines whether the cancellation add-on applies to bookings that include the configured insurance add-on(s) or those without insurance. Click on Add cancellation.

The cancellation add-on is linked to the distribution channel.

Create a new cancellation add-on with a customisable name/rate

To modify a cancellation add-on that has already been applied to a cancelled reservation (e.g. to waive a client fee that they refuse to pay), a new cancellation add-on with a customisable name/rate must be created. Then the original cancellation add-on can be removed from the booking, and the new one can be applied.

To create a new cancellation add-on with a customizable name/rate, navigate to the Channel Manager:

1. In the Configuration menu, select Cancellations and create a new cancellation add-on.

2. On the details screen of the newly created cancellation add-on, open the Advance settings by clicking on the Settings icon.

3. Enable the toggle for Customise name or rate.

Conclusion

Cancellation rules in Maxxton Software provide a structured approach to handling different cancellation scenarios. By carefully setting up insurance add-ons, defining cancellation add-ons , and linking them to distribution channels, the correct refund or charge is applied consistently.