Cancellation Policies help you define and automate how cancellations and fees are handled for your property. These policies can be configured on any account, but the guest experience will differ depending on whether you’re using ThinkWeb or the legacy booking engine.
Guest Experience Overview
For ThinkWeb Clients
Guests who book online and create a ThinkTravel account can:
View their existing reservations directly in their account.
Cancel their reservations online.
When a guest cancels online, the cancellation policy you’ve configured in ThinkReservations will automatically be applied.
Note: Guests can cancel their reservations online only if the rate type they booked has an associated cancellation policy. If no cancellation policy is configured for that rate type, guests will be prompted to call the property to cancel their reservation.
For Legacy Booking Engine Clients
Guests will not have the option to cancel online.
However, your configured Cancellation Policy will still apply automatically — meaning cancellation fees will be calculated and applied for you when cancellations are processed internally.
Creating a New Cancellation Policy
Go to Settings → Cancellation Policies
If you don’t see the link under Room Configuration, you can navigate directly to:
https://manage.thinkreservations.com/settings/cancellation-policies
Click NEW in the top-right corner.
Give your policy a clear name, such as “Standard Policy.”
4. By default, there is no cancellation fee applied. Assuming you have a cancellation fee of any kind, click Edit under General Rule to configure the timeframes and fees.
5. Click Add a time period to define how fees apply based on when cancellations occur.
You can add multiple time periods if your policy changes closer to arrival.
Example:
A hotel might use these rules:
$50 flat cancellation fee for all reservations.
50% of total is charged if cancelled within 30 days of arrival.
100% of total is charged if cancelled within 7 days of arrival.
Once you’ve finished, click Apply and Close.
Note About Flat-Rate Cancellation Fees and Taxes
The Cancellation Policies section includes a setting that allows you to exclude taxes from flat‑rate cancellation fees. If your business sometimes charges a fixed amount (such as $25 or $50) and those flat fees should not be taxed, be sure to toggle this option ON. If your flat fees are taxable, leave the toggle off so taxes are included as expected.
Adding Exceptions
If your policy changes for special dates (e.g., holidays or local events), you can add exceptions to override the general rule.
For example:
Higher cancellation fees during peak season.
Non-refundable stays for major event weekends.
Final Step: Apply Your Cancellation Policy to Each Rate Type
For your cancellation policy to take effect, it must be assigned to the appropriate rate types.
Go to Settings → Rate Types.
Select the rate type you want to update.
On the Details tab, locate the Cancellation Policy section and choose the policy you want to apply.
Click Save.
Repeat these steps for each rate type that should use this policy.
Configuring Rate Types to Fit Your Cancellation Policy
Each rate type can be linked to only one Cancellation Policy.
This means if you offer different policies for different stay lengths, you’ll need separate rate types for each scenario.
Example:
Reservations under 1 week → “Standard” rate with one cancellation policy.
Reservations 1 week or longer → “Extended Stay” rate with a different cancellation policy.
To manage this setup:
Create one rate type with a max qualifier of 6 (nights).
Create another with a min qualifier of 7 (nights).
Important Note About Your Written Cancellation Policy
The cancellation policy configured in Business Settings → Cancellation Policy is the written policy your guests actually see when booking online. This text should be complete, accurate, and reflect all possible cancellation rules you may apply.
Keep in mind that the cancellation policy configuration in ThinkReservations only determines how fees are calculated and applied—it does not control the wording displayed to guests. Because of this, the written policy must clearly explain every scenario, fee, and condition you want guests to understand before booking.
For best clarity and consistency, we also recommend including your full cancellation policy at the bottom of your confirmation emails, ensuring guests have it in writing after they book.
Important Note About Taxes on Cancellation Fees
When setting up your cancellation fee item in Settings → Items, make sure the item is configured with all taxes that could apply to a cancellation charge. Think through every scenario—especially cases where you may charge a 100% cancellation fee—and ensure the item includes any taxes that would normally apply to that amount. This ensures that if a cancellation fee is taxed in certain situations, ThinkReservations can calculate it correctly.
Tips for Success
Review each rate type to ensure it’s linked to the correct cancellation policy.
Clearly communicate your policy to guests in confirmation emails and on your booking page.