Cloudbeds Smart Policies - Everything You Need to Know

Overview

• Cloudbeds is introducing Smart Policies, a new feature designed to simplify policy management for properties and automate key operational processes such as refunds, payment collection, and Cancellation fees. 
• Unlike the regular global policies, Smart Policies allow properties to customize their policies at a more granular level, linking them directly to rate plans and automating processes that previously required manual intervention. 
• This ensures smoother operations, improves guest satisfaction, and frees up time for property managers.
• Smart Policies also support date-based exceptions, allowing properties to override a rate plan's or base rate's standard Smart Policy for specific date ranges such as holidays, special events, or peak seasons.

Where to find Smart Policies settings

When Smart Policies is enabled, there are a few areas in Cloudbeds that are updated for you to set the policy and where the policy is displayed in plain text for your front desk staff to understand what policy is associated with a rate plan and reservation.

• Within the existing Policies section, you’ll now see:
  • A new Payment & Cancelation tab. This is where you can view the smart policy templates and adjust specific options as needed. Each template includes three core components: the Guarantee Method (Deposit, Credit Card only, or No Credit Card), the Remaining Balance Payment plan, and the Cancellation Policy.
  • A new Channel Deposit tab has been added to your settings. This tab keeps all previously configured deposit and payment processing rules for your OTAs exactly as they are. No action is required on your part: your existing OTA deposit setup and payment processing behavior will continue to work without any changes.

• On the Rate Plans and Packages page, a new Policy dropdown has been added that allows you to choose the policy that applies to the rate plan. The policy information will be displayed on the booking engine when creating a reservation in Cloudbeds.

• On the Rate Plans and Packages page, a new Policy Exceptions tab allows you to create, manage, and monitor date-based policy overrides across the property.

• The Processing Method for Booking Engine source is removed from the Payments and Processing section as this will now be managed by the settings on the Smart Policy. Currently, it only supports processing the deposit/initial payment at the time of booking (immediately).

Cloudbeds Smart Policies: Next Steps

1. Configure the Default Cancellation Policy (ACTION REQUIRED) 

By default, all rates use the Free of charge until arrival date as the default policy.

1. Navigate to the Payment & Cancelation tab in Policies
2. Locate your desired Cancellation policy. 
3. Set this as the default policy by selecting Make default
   • Example: If your current Cancellation policy is set to 14 day, choose the 14-day policy.

4. Open the policy and adjust the settings as needed.
   • The Guarantee Method: how the booking is secured (charge amount, authorize only, capture the credit-card details, or don't collect guarantee).
   • The Remaining Balance Payment Plan: how and when the rest of the balance (if any) is collected (charge amount, authorize or collect manually).

All scheduled automations are processed at 12:00 AM (midnight) in the property’s local time zone.

Cancellation Policy Summary

• The Cancellation window can be changed or updated for properties using Smart Policies only. This option is not available for properties using the earlier version of Smart Policies.
• This information will be displayed on the booking engine, emails, and reservations in Cloudbeds. 
• When a Smart Policy exception applies to the selected stay dates, the exception policy overrides the default or assigned policy for the reservation.

2. How Smart Policies appear in Cloudbeds: View the Corresponding Reservation Policy in your PMS

• When making a reservation, the policy name is displayed on each room/rate plan.
• Additional policy details can be viewed by hovering over the policy name.
• If an active Smart Policy exception matches the reservation stay dates, the resolved policy shown in the PMS reflects that exception.

3. Additional setup and behavior details

A) Assigning Policies to Rate Plans (Optional)

If you have rate plans that will use a different policy from the default policy, follow these steps:

1. Access the Rate Plans page
2. Open each individual rate plan to be configured
3. Select the appropriate policy in the field "Which Cancellation policy do you want to set for this rate plan?"
4. Save each rate plan after making your selection.

If needed, you can also create Policy Exceptions to override a rate plan's or base rate's standard Smart Policy for specific date ranges.

A.1) Smart Policy Exceptions

Smart Policy Exceptions allow you to apply a different Smart Policy for specific date ranges without creating duplicate rate plans.

• Exceptions can be assigned to Rate Plans and Base Rates.
• Each exception can include one or more date ranges.
• Date ranges can also include optional day-of-week targeting.
• The system evaluates each night of the stay and applies the exception policy when a matching date is found.
• Overlapping exceptions on the same rate are not allowed.

Check how to configure exceptions in Use Smart Policy Exceptions to Override Cancelation Policies for Specific Dates.

B) Booking Engine Policy

• On the Booking Engine, the policy is displayed for each room/rate plan. 
• Depending on the rate selected, the deposit due at time of booking and any upcoming payments will be displayed in the cart.
• If a Smart Policy Exception applies, the Booking Engine dynamically displays the correct policy based on the selected stay dates.

C) Channel Deposit 

A new Channel Deposit tab is available in the Policies page, which preserves your previous settings. No changes are required, and your existing payment processing configurations for OTAs will remain unchanged.

• The deposit is calculated from the room rate only (sub-total). Decide whether taxes and fees are included (available for specific deposit types only).
• Add-ons/items sold before checkout are included in the deposit.
• Add-ons/items sold after checkout are not included and are charged at check-in or after the reservation is completed.
• The Include Taxes and Fees toggle is only visible for the Percentage or First Day Price options. Ensure your taxes/fees are configured and applied to the relevant reservation sources.

D) Email templates with new policy information

No changes are required in the configuration of your email templates. Your new policy information will automatically be integrated into the email templates sent to your guests.