How Our Cancel For Any Reason Protection Works

Gabriela Garcia

Updated February 11, 2026 17:14

Availability of Cancel for Any Reason

The Cancel For Any Reason add-on is currently being released in phases. Following the initial pilot, it is being gradually enabled for all eligible Cloudbeds properties through Q1 2026.

Our Cancel For Any Reason product, provided by HTS, is a powerful solution designed to benefit both hotel partners and their guests. It allows hotels to increase booking conversions, especially on non-refundable rates, while offering guests complete flexibility and confidence in their purchase.

HTS manages the entire refund process for covered cancellations. This creates a seamless, positive experience for the guest and removes the operational burden of cancellation management from the hotel.

Here is a clear breakdown of the financial responsibilities:

✅ The HTS refund covers:

The total pre-paid room rate.
All associated taxes and mandatory fees.

❌ The HTS refund does NOT cover:

The cost of purchasing the Cancel For Any Reason plan itself.
Any separate, non-room add-ons purchased at the time of booking (e.g., breakfast, spa credits, parking).

The following examples illustrate how the refund process works across various booking and payment scenarios.

Important Cancel For Any Reason limitations

To be eligible, the guest must cancel before the Cancel For Any Reason deadline shown in their confirmation email.

Refunds cover only the room base rate and applicable taxes/mandatory fees that were actually collected.
No‑shows are not eligible for Cancel For Any Reason refunds.
Refunds are processed by HTS; the hotel keeps its payment and does not issue the refund.
Cancel For Any Reason cannot be added after the booking is completed.

Example 1: "Pay in Full, Non-Refundable" Reservation

This scenario highlights the core value of Cancel For Any Reason on rates with no flexibility.

Reservation Details:
- Room Rate + Taxes: $500
- Breakfast Add-on: $50
- Cancel For Any Reason Plan Cost: $45
- Total Guest Payment: $595
- Hotel Policy: Fully Non-Refundable
Scenario: The guest cancels their trip 10 days before their check-in date.
Financial Result:
- Hotel Refund to Guest: $0 (The hotel retains the full payment for the room and add-on as per its policy).
- HTS Refund to Guest: $500 (Covers the pre-paid room rate and taxes).
- Total Refund to Guest: $500.
- Guest's Net Cost: $95 (The non-refundable $45 Cancel For Any Reason plan + the non-covered $50 breakfast).

Example 2: "Fully Refundable" Reservation

This demonstrates the value of Cancel For Any Reason in covering last-minute, same-day cancellations after the hotel's flexible policy window has closed.

Reservation Details:
- Room Rate + Taxes: $1,200
- Cancel For Any Reason Plan Cost: $90
- Total Guest Payment: $1,290
- Hotel Policy: Free cancellation up until the day prior to check-in
Scenario A: The guest cancels before the hotel's deadline (e.g., 2 days prior).
- Financial Result:
  - Hotel Refund to Guest: $1,200 (This is still within the property's cancellation window).
  - HTS Refund to Guest: $0
  - Total Refund to Guest: $1,200.
  - Guest's Net Cost: $90 (The non-refundable Cancel For Any Reason plan cost).
Scenario B: The guest cancels on the day of check-in.
- Financial Result:
  - Hotel Refund to Guest: $0 (The guest is now inside the hotel's penalty period).
  - HTS Refund to Guest: $1,200
  - Total Refund to Guest: $1,200.
  - Guest's Net Cost: $90 (The non-refundable Cancel For Any Reason plan cost).

Example 3: "Partial Payment Upfront" Reservation

The refund is based on the amount successfully collected for the room to date.

Reservation Details:
- Room Rate + Taxes: $1,000
- Cancel For Any Reason Plan Cost: $80
- Payment Status: A $250 deposit for the room has been paid.
- Total Guest Payment: $330 ($250 deposit + $80 Cancel For Any Reason plan).
Scenario: The guest cancels the reservation before the final payment is due.
Financial Result:
- Hotel Refund to Guest: $0.
- HTS Refund to Guest: $250 (The total amount paid towards the room to date).
- Total Refund to Guest: $250.
- Guest's Net Cost: $80 (The non-refundable Cancel For Any Reason plan cost).

Important Clarifications for Hotel Partners:

Disclaimer: The collection of any scheduled payments (like a final balance) that are processed outside of the primary booking payment system is the responsibility of the hotel. HTS can only refund funds that have been successfully collected from the guest.
Use Case: If the hotel is unable to collect the remaining $750 balance from the guest, the HTS refund remains $250, as this reflects the actual amount the guest has paid for the room.

Example 4: "Pay Later" or "Pay at Hotel" Reservation

Cancel For Any Reason protects the guest against late cancellation fees charged to a card on file.

Reservation Details:
- Room Rate + Taxes: $600
- Cancel For Any Reason Plan Cost: $50
- Total Guest Payment at Booking: $50 (for the Cancel For Any Reason plan only).
- Hotel Policy: Free cancellation up to 48 hours before check-in. A late cancellation incurs a fee equal to the first night ($150).
Scenario A: The guest cancels before the hotel's deadline (e.g., 3 days prior).
- Result: The cancellation is processed without a penalty from the hotel. No refund is needed for the room. The guest's net cost is $50 for the Cancel For Any Reason plan.
Scenario B: The guest cancels after the hotel's deadline (e.g., 12 hours prior).
- Result: The hotel successfully charges the guest's credit card on file the $150 cancellation fee.
- Hotel Refund to Guest: $0.
- HTS Refund to Guest: HTS refunds the guest the $150 that was charged by the hotel.
Note: If the hotel is using Cloudbeds Payments, this fee will be immediately processed.

If the hotel is not using Cloudbeds Payments and is instead using another gateway or processing the payment manually, it is the responsibility of the hotel to ensure they process the payment correctly based on the payment schedule.
- Guest's Net Cost: $50 (The non-refundable Cancel For Any Reason plan cost).

Important Clarifications for Hotel Partners:

Disclaimer: It is the hotel's responsibility to successfully process the payment for any late cancellation fees, especially if the transaction occurs outside of the primary booking payment system.
Use Case A (Payment Not Collected): If the hotel attempts to charge the $150 penalty but the payment fails (e.g., declined card), no funds have been collected from the guest. Therefore, no refund from HTS is required. The guest is not out of pocket, and the hotel has not collected its penalty.

Have more questions?

Check the Cancel for Any Reason FAQ for answers about eligibility, timing, and the refund process.