How to Settle Advance Payments When a Booking is Cancelled or Marked as No-Show?

Introduction

When a booking with advance payment is cancelled or results in a no-show, hoteliers may either retain charges (as per the hotel’s cancellation policy) or refund the amount to the guest. The system provides multiple options to manage and settle these scenarios correctly.

Scenarios & Settlement Options

1. Cancellation with Charges (Advance Payment Retained)

• If the cancellation policy allows the hotel to retain the advance amount as cancellation charges:

  1. Cancel the reservation.

  2. At the time of check-out, a pop-up will appear regarding cancellation charges.

  3. Add the cancellation charges.

  4. The amount will be settled under Cancellation Revenue.
     
     

2. Cancellation with Refund (Advance Payment Returned)

• If the cancellation policy allows a full refund and no charges are applied:

  1. Go to Reservation > Edit.

  2. Click on Add Payment.

  3. Select the Payment Method you will use for the refund.

  4. The refund amount will appear in negative (-), indicating money returned to the guest.
     
     

3. OTA Prepaid Bookings (Special Case)

• If the booking was prepaid through an OTA (Online Travel Agency):

  1. Open the reservation in Edit mode.

  2. Select the payment entry.

  3. Click on Void.

  4. This will settle the folio and adjust the OTA payment entry.
     
     

Notes

• Always follow your hotel’s cancellation and refund policy before settling payments.

• OTA prepaid refunds should generally be coordinated with the OTA’s platform policies as well.