Cancellation Policies
Set a cancellation policy on your rate plan to define refund rules when guests cancel their booking. The policy determines how much of the booking amount is refundable and until when.
Available Policy Types
| Policy | Cancellation deadline | Refund | Best for |
|---|---|---|---|
| Flexible | 24 hours before check-in | 100% refund | Maximum bookings, budget properties |
| Moderate | 5 days before check-in | 100% refund | Balance between flexibility and security |
| Strict | 14 days before check-in | 100% refund | Peak season, high-demand properties |
| Firm | 30 days before check-in | 100% refund | Luxury properties, long-stay rentals |
| Non-refundable | N/A | No refund | Discounted rates, last-minute deals |
TIP
If the guest cancels before the deadline, they receive a full refund. If they cancel after the deadline (or don't show up), the booking amount is non-refundable.
Setting a Cancellation Policy
- Go to Rates → open your rate plan
- Find the Cancellation Policy section
- Select one of the five policy types
- Click Save
The policy applies to all bookings made with this rate plan going forward.
Channel Manager Integration
When your listing is connected to OTAs via the Channel Manager, the cancellation policy is synced automatically:
| hejGuide policy | Channex sync |
|---|---|
| Flexible | 24-hour deadline |
| Moderate | 5-day (120-hour) deadline |
| Strict | 14-day (336-hour) deadline |
| Firm | 30-day (720-hour) deadline |
| Non-refundable | Non-refundable flag |
WARNING
OTA platforms (Booking.com, Airbnb) may have their own cancellation policy frameworks. The Channel Manager maps your policy as closely as possible, but the exact guest experience may vary by platform.
Channel Variants (Rate Tiers by Policy)
You can offer discounted rates for stricter cancellation policies. This incentivizes guests to accept less flexible cancellation terms in exchange for a lower price.
Example configuration:
| Policy | Discount | Rate for €200 base |
|---|---|---|
| Flexible (base) | 0% | €200/night |
| Moderate | -3% | €194/night |
| Strict | -5% | €190/night |
| Firm | -7% | €186/night |
| Non-refundable | -10% | €180/night |
These variants are synced to OTA channels as separate rate plans, giving guests the choice between price and flexibility.
Setting Up Channel Variants
- Open your rate plan
- In the Channel Variants section, enable the variants you want
- Set the discount percentage for each policy tier
- Save — the variants sync automatically to connected channels
Choosing the Right Policy
- New hosts: Start with Moderate — it protects you while still being attractive to guests
- High-demand periods: Use Strict or Firm to minimize last-minute cancellations
- Low season: Consider a Flexible policy with a slightly higher price, or offer Non-refundable at a discount to lock in bookings
- OTA listings: Align your hejGuide policy with what you offer on Booking.com/Airbnb to avoid confusion
Processing Cancellations
When a guest cancels:
- Check the cancellation deadline against the policy
- Process the refund amount based on the policy rules
- Record the refund in the booking payments
- The dates become available again on your calendar
TIP
Even with a strict policy, you can choose to offer a partial refund as a goodwill gesture. The policy sets the minimum — you can always be more generous.
Related
- How Pricing Works — how pricing and policies interact
- Channel Manager — Synchronization — how policies sync to OTAs
- Refunds — processing cancellation refunds