Prerequisites for Cancel Penalties
Cancel Penalties (Cancel Penalty Rules) define the penalty amount to be charged if a reservation is canceled. The amount can be a flat amount, a percentage of the rate, a percentage of the first night's rate, or it can be based on the number of nights.
Cancel Penalties also define the number of days or date prior to the arrival date that the reservation can be canceled without penalty. The date can be associated with a time (for example, 5:00 PM) before which the reservation must canceled to avoid penalty.
Cancellation rules can be associated to a reservation type, to a rate code, or to a combination of reservation type and rate code through the setup of Cancel Penalty Schedules. Rules scheduled for the reservation type and/or rate code automatically populate to the reservation at the time the reservation is created.
In addition, you can select a cancellation rule (as well as non-rule-based cancellation requirements) for a reservation by selecting the Deposit / Cancellation details link on the reservation. The Reservation Deposits and Cancellations topic has more information on reservation deposits and cancellations.
Only one cancellation rule can apply to a reservation at a time, even if the reservation type, rate code, and reservation itself each has its own rule attached.
Note:
When the Cancellation Penalty Rule is configured as a percentage of revenue ensure the applicable sales charge transaction codes have the Include in Dep/Cxl. check box selected.