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.
This guide provides common setup examples and best-practice recommendations to help you design policies for different scenarios, such as flexible rates, non-refundable offers, high-demand periods, and more.
Use these examples as you prefer and adapt the details to match your property’s needs.
Common Smart Policies Setup Examples
A Non-refundable policy means that guests are charged 100% of the reservation amount regardless of when they cancel.
Setup Details
Cancellation Rule: No tiers are configured; 100% is non-refundable after booking.
Payment Guarantee: Usually involves charging 100% upfront, or charging a portion with remaining balance collection scheduled.
Scenario: Non-Refundable Charge Application
Condition:
Reservation Total: $1,000
Amount Paid: $500 (50% deposit).
Cancellation: Guest cancels after booking.
Action:
Result: The system automatically charges the guest the remaining
$500.
Fee Application & System Logic:
The cancellation fee is 100% of the reservation ($1,000).
Since the guest paid $500 and the policy requires $1,000, the
system must collect the remaining $500.
A Partially refundable policy requires guests to pay a specified fee or penalty regardless of when they cancel. This policy often uses tiered rules based on how close the cancellation is to arrival.
Setup Details
Cancellation Rule: Multiple tiers can be configured, each requiring a charge (percentage, fixed amount, or first night).
Minimum Charge: The cancellation charge cannot be less than 0% or 10%, depending on configuration.
Scenario A: Refund Required
Condition:
Reservation Total: $1,000
Amount Paid: $500 (50% upfront).
Cancellation policy: If canceled 5 days before arrival, charge
10% (Fee = $100).
Cancellation: Guest cancels 6 days before arrival.
Action:
Result: The system automatically refunds $400 to the guest.
Fee Application & System Logic:
Cancellation fee is $100.
Guest paid $500 → Refund = $400.
Scenario B: Forfeit / No Change
Condition:
Reservation Total: $1,000
Amount Paid: $500.
Policy: Cancel between 3–5 days → Fee = 50% ($500).
Cancellation: Guest cancels 4 days before arrival.
Action:
Result: Guest forfeits the $500 paid; no further refunds or charges
occur.
Fee Application & System Logic:
Required fee = $500.
Amount collected = $500 → Payment retained.
Scenario C: Charge Required
Condition:
Reservation Total: $1,000
Amount Paid: $0 (credit card stored only).
Policy: If canceled within 3 days → Fee = 100% ($1,000).
Cancellation: Guest cancels 48 hours before arrival.
Action:
Result: The system automatically charges the guest $1,000.
Fee Application & System Logic:
Guest paid nothing → System charges full $1,000 fee.
A Fully refundable policy means guests can cancel within a defined window and receive a full refund. After the free cancellation window, penalties may apply.
Setup Details
Cancellation Rule: Must include a period with a 0% charge if canceled before the cut-off date.
Tiers: Additional tiers can set penalties (e.g., 50% or 100%) after the free cancellation window ends.
Scenario A: Full Refund
Condition:
Reservation Total: $1,000
Amount Paid: $500.
Policy: Cancel 5+ days before arrival → Fee = 0%.
Cancellation: Guest cancels 7 days before arrival.
Action:
Result: The system refunds $500.
Fee Application & System Logic:
Required charge = 0%.
Amount collected = $500 → Full refund processed.
Scenario B: Late Charge
Condition:
Reservation Total: $1,000
Amount Paid: $500.
Policy: Free until 5 days prior; 100% penalty afterward.
Cancellation: Guest cancels 3 days before arrival.
Action:
Result: The system charges the remaining $500.
Fee Application & System Logic:
Fee required = $1,000.
Amount paid = $500 → Remaining $500 charged.
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