A flexible cancellation policy can improve your visibility and increase bookings. Many travellers filter out strict cancellation policies when they search for properties.
Cancellation policy
Used for
Setting traveller expectations
Benefits
Protects from last-minute cancellations and increases visibility
Overview
Flexible cancellation policies can increase bookings. In fact, over 75% of travellers say they’re more likely to book a holiday rental property with a flexible cancellation policy. A recent survey and user session with travellers found even more valuable information:
- 77% of travellers are more likely to book a rental with flexible cancellation policies.
- 49% of travellers consider a flexible cancellation extremely important.
- Travellers are searching for rentals that offer more flexibility by using the ‘free cancellations’ filter.
- Listings with less strict cancellation policies see more bookings.
Flexible cancellations can increase bookings
Travellers can see a property’s cancellation policy on the search results. This lets them quickly compare policies to find one flexible enough to fit their needs. Some travellers also filter out strict cancellation policies when they search. To avoid getting filtered out of searches, try offering more flexibility in your cancellation policy.
What are the different types of cancellation policies?
There are five types of cancellation policies on the platform. We recommend having a relaxed cancellation policy to meet most traveller needs.
- Relaxed. (Recommended) travellers who cancel at least 14 days before check-in will get back 100% of the amount they’ve paid. If they cancel between 7 and 14 days before check-in, they’ll get back 50%. Otherwise, they won’t receive a refund.
- Moderate. Travellers who cancel at least 30 days before check-in will get back 100% of the amount they’ve paid. If they cancel between 14 and 30 days before check-in, they’ll get back 50%. Otherwise, they won’t receive a refund.
- Firm. Travellers who cancel at least 60 days before check-in will get back 100% of the amount they’ve paid. If they cancel between 30 and 60 days before check-in, they’ll get back 50%. Otherwise, they won’t receive a refund.
- Strict. Travellers who cancel at least 60 days before check-in will get back 100% of the amount they’ve paid. If they cancel after that point, they will not receive a refund.
- None. The traveller will not receive a refund if they cancel their booking at any time after it’s accepted.
From your dashboard, visit ‘property’ then ‘rules and policies’, and then ‘cancellation policy’.
If you're connected via property management software, please update your cancellation policy in your software.
How it works
How to set cancellation policies for holiday rental homeowners
You can set or change your cancellation policies from the dashboard. Go to the ‘rules and policies’ section and click the first tab, ‘cancellation policy’. From there, you’ll be able to choose from five options:
- None
- Strict
- Firm
- Moderate
- Relaxed
When setting your cancellation policy, remember to keep these things in mind:
- Timing of refunds. The percentage refund applies to the amount the traveller paid at the time of cancellation, not the total amount of the booking. Because of this, you may want to line up your cancellation policy with your payment schedule.
For example, if a traveller cancels a booking that costs £500 but has only paid £200, and your cancellation policy allows for a 50% refund at this time, the traveller would get £100 back.
- Timing of cancellations. Cancellations must be made by 11:59 pm in the property’s time zone on the chosen day.
- Impact on our booking fee. You can override the cancellation policy and refund a custom amount. If you have a Pay-Per-Booking listing and you keep part of the payment after cancellation, you’ll be charged a booking fee on the amount you’ve kept.
- Other agreements. The cancellation policy you choose overrides your rental agreement. If needed, you can choose a stricter cancellation policy than the one in your rental agreement.
How to set cancellation policies for property managers
Property managers should set policies along with owners and communicate often. It’s important to stay connected and open with your owners. Weekly calls or email updates can help communication and offer peace of mind.
Learn more about how other property managers are handling increased owner communications.
If you use software to manage your listings, sign up to get traveller-initiated cancellation requests via email for an easier and faster way to resolve traveller requests.
From your dashboard, visit ‘property’ then ‘rules and policies’, and then ‘cancellation policy’.
If you're connected via property management software, please update your cancellation policy in your software.
FAQs
By setting a cancellation policy, you may choose to keep a percentage of the booking if a traveller cancels outside of your cancellation window.
If possible, offer to reschedule dates that work for both you and your traveller.
There are several ways to make sure your listing availability is accurate to avoid declines and cancellations that could negatively impact your search ranking.
- Make sure you’ve blocked your calendar when your listing will be unavailable.
- Utilise iCal sync, a file format that you can use to import and sync calendars across multiple platforms like Google Calendar, Apple Calendar and other booking site calendars.
Travellers can contact you directly with cancellation or booking change requests by email, allowing you and your traveller to connect more quickly for a faster resolution.
There's an API available for cancellation requests only (Cancellation Service - REST API) that's a great option for partners with high volumes of requests. Please contact your software provider to learn about this API and whether you currently have access.
The details you share about your property—types of amenities, policies, proximity to popular destinations—are used when travellers narrow a search down to find a holiday rental that meets their specific needs. The visibility of your property is increased when you provide more detailed information. Great photos and information about the area help travellers imagine their stay and prompt them to book. Keeping your listing up to date with photos and amenities will help you stay competitive.
Your cancellations policies are displayed in the ‘policies’ section of your listing.
You can edit your cancellation policy in the ‘rules and policies’ section under the ‘cancellation’ policy tab.
Our easy-to-use owner dashboard will be the primary location for managing your reservations, updating rates and keeping your listing up to date. Some partners choose to use a software provider to link our systems. They still log in to the owner dashboard to leverage our more advanced tools like MarketMaker and Boost.
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Visit your local laws page in your dashboard for more information.
If you’d like to get involved or learn more about the policy landscape in your community, please reach out to GovernmentAffairs@Vrbo.com.
Integrated property managers use third-party or proprietary software that they have connected to our travel platform to manage their listings. Integrated property managers can manage their listings directly from their software by an integration feed that automatically updates reservations, amenities, photos and more.
