Cloudbeds Smart Policies - Everything You Need to Know

Overview

• Cloudbeds Smart Policies are designed to simplify policy management for properties and automate key operational processes such as refunds, payment collection, and cancellation and no-show fees. 
• Unlike the regular global policies, Smart Policies allow properties to customize policies at a more granular level, link them directly to rate plans, and automate processes that previously required manual intervention. 
• This helps create more consistent financial workflows while reducing manual work for property staff.
• Smart Policies allow properties to define how no-shows are handled separately from cancellations. Properties can keep the no-show fee aligned with the cancellation policy or configure a dedicated no-show fee.
• For reservations with applicable Smart Policy automation, Cloudbeds can automatically post cancellation and no-show fees to the folio, along with applicable policy taxes and fees.
• Smart Policies 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.
• Smart Policies also include role-based permissions that allow property administrators to control which staff members can override Smart Policy financial outcomes, such as payment rules, cancellation fees, no-show fees, and policy exceptions.

Where to find Smart Policies settings

When Smart Policies is enabled, several areas of Cloudbeds are updated so you can configure policies and see which policy applies to a rate plan or reservation.

• Within the existing Policies section, you’ll see:
  • A Payment & Cancelation tab, where you can view and manage Smart Policies. A Smart Policy can define the Guarantee Method, Remaining Balance Payment plan, Cancellation Policy, and No-show Policy.
  • Within the cancellation settings, you can determine how no-shows are handled. The no-show fee can follow the same rules as the cancellation policy or use a custom amount.
  • A Channel Deposit tab that keeps the deposit and payment processing rules used for OTA reservations separate from Smart Policies for direct reservations. Existing OTA deposit settings continue to work without changes.

• On the Rate Plans and Packages page, a Policy dropdown allows you to choose which Smart Policy applies to a rate plan.

• On the Rate Plans and Packages page, the optional 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 because payment behavior for direct reservations is managed by the applicable Smart Policy.
• On the Roles & Permissions page, property administrators can control which staff members can override Smart Policy financial outcomes. These permissions only appear when Smart Policies is enabled for the property.

Smart Policy permissions

When Smart Policies is enabled, four permissions are available on the Roles & Permissions page to control who can override Smart Policy financial behavior.

• Override or turn off Smart Policy automation: controls whether staff can override or turn off Smart Policy automation for a reservation.
• Override cancellation fee: controls whether staff can waive Smart Policy cancellation fees.
• Override no-show fee: controls whether staff can waive Smart Policy no-show penalties.
• Create/Edit policy exceptions: controls whether staff can create, edit, assign, enable, disable, or delete date-based policy exceptions on rate plans.
• Under Reservation Permissions: Override or turn off Smart Policy automation, Override cancellation fee, and Override no-show fee.

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• Under Rates permissions: Create/Edit policy exceptions.

By default, admin roles keep full access. Existing custom roles on properties with Smart Policies enabled are assigned permissions based on related permissions they already had. Roles created after this update have the four Smart Policy permissions turned off by default, and administrators can grant them as needed.

How Smart Policies apply

Default policies, rate plans, and exceptions

• A default Smart Policy applies to the property's Base Rate and to rate plans that do not have another Smart Policy assigned.
• Properties can assign different Smart Policies to individual rate plans.
• Smart Policy Exceptions can temporarily override a rate plan's or Base Rate's standard Smart Policy for specific date ranges.
• For exceptions, Cloudbeds evaluates each night of the stay from check-in through checkout, excluding the checkout date. The first night that matches an active exception determines the Smart Policy applied to the entire reservation.

Learn how to configure these settings in Set up Smart Policies.

Cancellation and no-show policies

Smart Policies can define separate financial outcomes for cancellations and no-shows.

• Cancellation policies determine the amount a guest owes based on the configured cancellation terms.
• For no-shows, properties can choose:
  • Same as cancellation policy: the no-show fee follows the applicable cancellation policy and stays aligned when the cancellation terms are updated.
  • Custom amount: a separate no-show fee can be configured as a percentage of the total, fixed amount, or first night's price.
• The applicable no-show fee is used whenever a reservation is marked as no-show, whether the status is updated manually by staff, by a connected system, or during the nightly audit.

Cancellation and no-show fees on the folio

When a reservation has an applicable Smart Policy and a connected payment gateway that supports full automation, Cloudbeds indicates whether the configured cancellation or no-show fee will be posted to the reservation folio. Configure the applicable taxes and fees for both cancellation and no-show charges in the Smart Policy so the folio reflects the intended amount.

• The configured policy taxes and fees are included with the applicable cancellation or no-show charge when the fee is posted.
• For multi-room reservations, applicable cancellation or no-show fees are distributed across the individual rooms.
• Unposted reservation charges follow standard folio behavior, while previously posted charges and received payments remain on the folio.
• Cancellation and no-show fee line items are categorized separately from regular stay revenue in reporting.

Where Smart Policy information appears

For property staff

• When creating or reviewing a reservation, the applicable policy is displayed with the room and rate plan.
• Policy summaries help staff review information such as guarantee rules, remaining balance payment rules, cancellation terms, and no-show terms.
• If an active Smart Policy Exception applies to the reservation dates, the resolved policy reflects the applicable exception.

For guests on the Booking Engine

• The applicable Smart Policy is displayed for each room/rate plan.
• Depending on the selected rate, guests can see the deposit due at booking and upcoming payments.
• The applicable cancellation and no-show terms are included in the policy information presented to the guest.
• When a Smart Policy Exception applies, the Booking Engine displays the resolved policy based on the selected stay dates.

In guest emails

Smart Policy information is automatically included in supported guest email templates. This can include the applicable payment, cancellation, and no-show policy information.

Next steps

Use the following guides to configure your Smart Policies and learn how they behave after they are applied to reservations: