Important: Custom Smart Policies availability status
Custom Smart Policies is currently in a limited-release status. New properties have this feature enabled by default. Existing properties are being enabled progressively as part of a phased rollout, with a broader release planned for Q2 2026.
If you are interested in enabling the Custom Smart Policies testing phase, please reach out to our support team for more information on eligibility and available packages.
Once Smart Policies are set up, Cloudbeds automatically follows your guarantee, payment, and cancellation rules for eligible reservations. This guide explains how Smart Policies work during the reservation lifecycle and what your team should know when managing payments, cancellations, and policy-driven actions in the PMS.
Smart Policies in Action: How They Work After Setup
- Each reservation follows the Smart Policy that was active at the time the reservation was created.
- The policy cannot be changed afterwards, even if the reservation is moved to a different room or rate plan.
Smart Policies can automate:
- Initial charges or authorizations
- Remaining balance collections
- Captures of previously authorized amounts
- Refunds or late-cancel penalties
- Automation depends on your connected payment gateway. Properties without full automation must manually perform some or all actions.
Check below how Smart Policies work in multiple scenarios:
Some reservation changes can update the scheduled amounts:
-
Date changes:
When stay dates are updated, the system recalculates the remaining balance and updates upcoming payment amounts accordingly. -
Room/rate changes:
If a reservation is moved to a room or rate plan with a different rate, the remaining balance updates (as long as the policy collects a remaining balance). -
Add-ons or voided items:
Adding or voiding items does not immediately adjust scheduled payments.
If the dates are changed after add-ons are added, the scheduled amounts update based on the new total.
-
Successful or declined payments:
- When an automated payment succeeds or fails, Cloudbeds can notify you via email if payment notifications are enabled.
-
If a payment fails, staff must:
- Contact the guest or request an updated payment method.
- Trigger the needed charge or authorization manually in the PMS.
-
Manual overrides stop automation:
If your staff performs actions that differ from the policy, automation for that reservation will stop. Actions that trigger this include:- Changing the amount charged
- Charging earlier or later than scheduled
- Manually authorizing an amount
- Capturing an authorization early
This prevents duplicated or unexpected charges.
Smart Policies automate the cancellation outcome based on:
- When the guest cancels
- How much has already been paid
- The fee or refund rules in the policy
If a guest cancels in the Guest Portal, Smart Policy automation does not run automatically.
Staff must manually process the refund or penalty.
Here are examples of how Smart Policies behave during daily operations:
-
The guest changes stay dates:
- The remaining balance and scheduled payments adjust automatically based on the new dates and rates.
-
The guest adds or removes an item:
- Scheduled payments do not update unless the dates are changed afterward.
-
The guest wants to update their card:
- Staff can update the card; future automations continue as long as automation is still active.
-
The guest wants a different rate plan:
- If the new plan uses a different policy, the reservation must be cancelled and rebooked.
- Smart Policies cannot be changed after the reservation is created.
- Use hover-over summaries in the PMS to avoid confusion at check-in.
- Remind guests to review cancellation rules when booking.
- Train staff on what actions disable automation.
- Review scheduled payments periodically for operational accuracy.
Comments
What is the point of Smart Policies automating cancellations, refunds, and cancellation fees, if they don't also automate posting the cancellation fee to the folio? It automates one piece, but then I still have to manually go in an post the cancellation fee to the Folio or I will show a balance due after the cancellation. I don't understand why this piece isn't automated!!
Cancellations are way more complex than they should be in Cloudbeds, making a Manager/Owner the only person who can handle them because there is too much room for error for other staff. As the Manager/Owner there is way too much room for error for me having to manually calculate the math!
Please sign in to leave a comment.