Cancellation policies define the policies in case of cancellations for specific reservation rates. Setting up your cancellation policies in FrontDesk Master will help you control payments from cancellations and track revenue from cancellation charges.

To set up your cancellation policies go to Manager / Rates / Cancellation policies:

There you will see default Free Cancellation and Non Refundable 100% policies. You can use those policies for Standard and Non-Refundable rates or create your own cancellation policy.

Click on Add button in the bottom-left corner to create a cancellation policy.

There, in Create cancellation policy window, add the policy name and choose the policy:

1) How long before arrival the guest can cancel for free

2) How much is the guest charged for cancellation

3) How much is the guest charged for a no show

In the blue background you can see the explanation of the cancellation policy - it will change depending on the options you choose.

Save the new cancellation policy.

Now, it's time to activate the cancellation policies by connecting them to rate plans

Go to Manager / Rates / Rate plans:

Open rate settings, and assign the corresponding cancellation policy to that rate. For example, I assign Non Refundable cancellation policy to Non-Refundable rate:

Such a configuration will affect what cancellation charges are applied in case of cancellations. If I cancel (or guest cancels) the reservation made for a Non-refundable rate, the system will automatically apply the cancellation fees according to the cancellation policy of that rate