Configuring Cancel Penalty Rules

Prerequisites for Cancel Penalties

Cancel Penalties 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. These rules 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 penalty 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 Cancellation Penalty Schedules.

Cancellation penalty 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 penalty rule (as well as non-rule-based cancellation requirements) for a reservation by selecting the Deposit / Cancellation details link on the reservation. For more information, see Managing Reservation Deposit Request and Cancellation Policy.

Note:

Ensure the applicable sales charge transaction codes have the Include in Dep/Cxl. check box selected when cancellation penalty rules are configured as a percentage of revenue.

Adding Cancellation Penalty Rules

1. From the Administration menu, select Booking, select Booking Rules and Schedules, and then select Cancel Penalties.

2. Click New and complete the following:

   Note:

   When the Multi Property OPERA Control is active, new cancel penalties can only be created by clicking the Template tab. Once created, you can copy the configuration to specific properties using the Copy action. For more information, see Copying Configuration Codes to Multiple Properties.

   1. Code: Enter the cancellation rule code that appears on the reservation.

   2. Description: Enter the description of the cancellation code.

   3. Type: Select the method used to compute the penalty. Select from the following types:

      • Flat - The penalty amount is the exact amount of the cancellation charge in the property currency.

      • Percent - The penalty amount is a percentage of the entire stay's room rate plus any fixed charges, packages, and generates associated with the rate. For example, if the Penalty Amount is 50, the guest will pay a charge of 50% of the total stay room rate. If the room rate is $300 a night for 3 nights, the guest pays $450 (0.50 x $900). Notice that "of Stay" appears following the field when Percent is selected.

      • Percentage of Nightly Rate - The penalty amount is based on the percentage of the first night's room rate. Schedule the time period when this rule is effective. When a cancellation is made, the cancellation schedule generates the correct values in the appropriate currency.

      • Nights - The penalty amount is determined by the guest’s room rate plus any fixed charges, packages, and generates associated with the rate for this number of nights. For example, assume the guest is planning to stay 3 nights. If the Penalty Amount is 1, and the nightly room rate is $150, the cancellation charge would be $150 ($150 x 1 nights).

      • Non-Cancelable - The reservation cannot be canceled.

   4. Amount: Enter the Cancel Penalty Amount. The meaning of this field varies depending on the Type (computation method) used for this rule.

   5. Days Before Arrival: Enter the number of days before the arrival date up to which the reservation can be canceled without penalty.

   6. Before Time: Enter the time before which the guest must cancel to avoid penalty (used in conjunction with the days Before Arrival value). For example, if the Before Arrival is 5, and the Before Time is 6:00 PM, the guest must cancel before 6:00 PM five days prior to the arrival date to avoid the cancellation penalty. The configured time appears on the cancellation message when canceling a reservation.

   7. Seq: Enter the sequence number that determines the position of this rule in the Cancellation Penalty Rules LOV.

3. Click Save or Save and Continue to add more rules.

Editing Cancellation Penalty Rules

1. From the Administration menu, select Booking, select Booking Rules and Schedules, and then select Cancel Penalties.

2. Enter search criteria, and click Search.

3. Select the cancellation penalty rule in the search result, then click the vertical ellipsis Actions menu and select Edit.

   1. Make the desired changes.

   2. Inactive: Select check box to make the Cancel Penalty Rule inactivate. Inactive cancellation penalty rules are no longer available for selection in Cancellation Penalty Schedules.

   3. Click Save

Deleting Cancellation Penalty Rules

1. From the Administration menu, select Booking, select Booking Rules and Schedules, and then select Cancel Penalties.

2. Enter search criteria, and click Search.

3. Select the cancellation penalty rule in the search result, then click the vertical ellipsis Actions menu and select Delete.

4. Click Delete to confirm.