Apply a cancellation policy to a rate type

Applying a Cancellation Policy to a Rate Type in RMS.

Overview

A Rate Type Cancellation Policy will apply to the Reservation any time that Rate Type is selected, unless a policy higher in the hierarchy below applies.

A Rate Type is the charge description that identifies a pricing structure used by Reservations.

Derived Rates determine their pricing using an adjustment amount set against the selected Master Rate Type.

A Rate Type will only be available for selection on a reservation if it has been linked with a Rate Period and Rate Table using a Rate Lookup.

A Cancellation Policy can be setup on a Rate Type, Derived Rate Type, Rate Type Property Rule, Rate Table and Rate Period, set in the Control Panel or selected on the Reservation.

The Cancellation Policy applied to the reservation will be determined by the following hierarchy:

Reservation (1)

Rate Type Control Panel Override (2)

Rate Type Property Rule (3)

Rate Period (4)

Rate Table (4)

Rate Type (5)

Derived From Rate Type Control Panel Override (6)

Derived From Rate Type Property Rule

Derived From Rate Type

Second Derived From Rate Type Control Panel Override (7)

Second Derived From Rate Type Property Rule

Second Derived From Rate Type

1. Selecting or changing the cancellation policy on a reservation will ignore any policy selected on any rate setup.

2. A Control Panel Override applies when it covers the reservation's arrival date. When an override for (All) Rate Types and an override for the specific Rate Type both apply, the most recently saved one is used.

3. The Property Group Rate Rule is used only when the property has no Property Rule for that Rate Type.

4. For a Derived Rate Type, the Rate Period and Rate Table are the ones it prices from, usually those of the Rate Type it is derived from. A policy set there takes precedence over the Derived Rate Type's own policy.

5. Rate Type means the Rate Type on the reservation. When it is a Derived Rate Type, its own policy is used before the policy of the Rate Type it is derived from.

6. RMS checks this level and the two below it only when the Rate Type on the reservation is a Derived Rate Type and no policy has been found above. These levels belong to the Rate Type it is derived from.

7. RMS checks this level and the two below it only when that Rate Type is also a Derived Rate Type. These levels belong to the Rate Type it is derived from in turn.

Important! The Cancellation Policy applied at the time the reservation is created will not automatically change if the Rate Type is updated later. If the new Rate Type has a different Cancellation Policy, the original policy will remain on the reservation until it is manually updated.

There are two exceptions:

If the reservation has no Cancellation Policy, changing its Rate Type on the Reservation screen adds the policy from the new rate setup.
Changing the Rate Type on sibling reservations from a Master Reservation replaces their Cancellation Policy with the one from the new rate setup, or removes it if the new rate setup has none.

A reservation with no Cancellation Policy is not charged a cancellation fee when it is cancelled.

Please Note! RMS is highly configurable. Some Terminology, User Access & Permissions, Images, Labels, and Functions used in these articles may differ from your setup. CLICK HERE to find out more.

Guide

In the side menu of RMS, go to Charts > Rate Manager.

Select 'Rates'.
Select 'Rate Types'.
Select an existing Rate Type,
Select 'Edit'.
Select a Cancellation Policy.
Select 'Save/Exit'.

Please Note! The selected Cancellation Policy will apply to Reservations created after the changes are saved. An existing Reservation keeps its Cancellation Policy when its Rate Type is changed on the Reservation screen, unless it has none.

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