Customer support zone

Starting from version HotelTime 4.6.7, we’re introducing an easier way to charge no-show and cancellation fees, helping you make your processes even more efficient! Increase your revenue and cash flow by responsibly invoicing cancellation fees using a simple 3-step process. Charging fees has never been easier – just a few clicks!

1 – Select the method of payment for the cancellation fee

2 – Review and optionally edit the invoice details

3 – Confirm the invoice creation

First, in system settings, choose which hotel service you want to use as the default for charging cancellation fees. You can find this in Menu > Settings > Application > Main system setup under the Accounts and Documents tab, titled " Default hotel service for cancellation fees". From the dropdown menu, select the service that the system will offer as the default when creating cancellation fee documents. The selected service must already be set up in the hotel’s service list (Settings > Application > Products and services - hotel).

Then select the user groups that should have user rights to charge cancellation fees:

• Report for cancellation fees - allows the user to work with the new report for cancellation fees
• Cancellation fee receipt - allows the user to create a cancellation fee document
• Require reason for waiving cancellation fee - prevents users from waiving the fee without providing a reason

  
  

You can get an easy overview in the new report specifically designed for charging cancellation fees, accessible via Menu > Reservations > Report for Cancellation Fees. In the displayed list, you will find all room reservations that were cancelled in the specified period and match the applied filters.

The "Group by Reservations" checkbox helps with billing when handling a multi-room reservation that you want to charge all at once. 

The "Display already processed reservations" checkbox will show room reservations that have already been billed, giving you a perfect overview of which reservations have already been billed.

Step 1 – Select payment method

Click the money icon at the end of the reservation row to open payment options:

Available deposit invoices will show if the cancelled reservation is tied to previously issued deposit invoice.

Available preauthorizations will appear if you use HotelTime's payment solution and there is an unused preauthorization linked to the cancelled reservation.

Create Card Payment will appear if you use HotelTime's payment solution and the cancelled reservation is linked to a tokenized credit card or a virtual card.

Settle in Document should be selected if a cancellation fee is to be charged for the room or multi-room reservation in the usual way.

Waive Cancellation Fee should be selected if no fee is to be charged for the room or multi-room reservation (e.g., the fee was waived for the guest, or it was a duplicate reservation). For reporting purposes, such a reservation is subsequently considered "processed."

Tip: A waived cancellation fee can be charged later. Just enable the “Show Already Charged” tickbox in the report to access it again.

Step 2 – Adjust invoice details

Now review or update the invoice fields.

The top of the dialog shows a summary of the reservation including total price. You can add notes to the item or entire invoice (these will appear on the guest’s invoice).

Tip: The reservation price is broken down into accommodation, meals, taxes, and extras. Use the checkboxes to auto-fill the invoice amount, or enter your own manually.

"Create AR invoice" tickbox – Use this when invoicing an agency or if your accounting requires an invoice type document for internal purposes.

Step 3 – Create the invoice

Confirm the invoice and you’re nearly done!

If there’s any outstanding balance, the system will redirect you to the document settlement section, where you can select a payment method according to standard hotel procedures and finalize it. 

If there’s no remaining balance, you’ll be redirected to the invoice detail screen, where you can download it or email it to the guest.

Note: If the value of the used deposit is greater than the invoice total, the system may not allow invoice creation unless over-payments / partial-payments are allowed in the system settings.

In such cases, invoice via “create AR invoice” without using the deposit invoice and then link the deposit invoice using the “Link to invoice” option in the invoice’s right-hand menu.

Why Was the Fee Waived?

When waiving a fee, you can record the reason. If you want to enforce this for some users, enable the user right: “Require reason for waiving cancellation fee.”

Who Waived It?

Click the shield icon at the end of a row to access the Audit Log, where you can see who waived or charged the fee.

Are There Existing Invoices?

Click the document icon at the end of a row to check if any cancellation fee invoices already exist. You can click on the document number to open it.

Interrupted Process?

If you began invoicing the cancellation fee, collected a preauthorization or charged a card token and had to stop (e.g. to other duties or internet outage), don’t worry – the created payment stays linked. Return to the cancellation fee report and click the green money icon to resume the process. It will appear as an "Available External Payments" in the context window.

Manual Cancellation

If you manually cancel a room or entire reservation, after confirming the cancellation, the same dialog appears as if you accessed the report.

If you don’t want to charge a fee (at the moment), simply close the window using the X or Escape key. The cancelled reservation will then appear in the cancellation fee report.

What Happens if You Reinstate a Reservation That Has Cancellation Fees Already Invoiced?

The cancellation fee invoice remains permanently linked to the reservation. When the reservation is restored, the invoice is still visible in the Issued Documents section and fully accessible.

This also applies when only part of a multi-room reservation was cancelled and charged. The cancellation fee invoice will still appear in the reservation detail.

How to Check That All Cancellation Fee Invoices Are Paid?

The ideal tool is the introduction of regular daily report checks:

Unpaid Invoices By Day

• Accounting > Overviews> Unpaid Invoices By Day
• When the "Issued on the Same Day" checkbox is active, only regular invoices awaiting payment by bank transfer should appear in this report.

Revenue By Document

• Accounting > Overviews> Revenue by Document
• This report shows discrepancies between revenue and payment for each tax document.

Invoices or Closed Hotel Account Book

• Accounting > Invoices or Closed Hotel Accounts
• In these reports, you can also see outstanding payments or overpayments on tax documents

Let’s wrap up with why charging cancellation fees is worth it:

Increase Revenue and Cash Flow

• Charging fees for canceled reservations and no-shows allows you to recover part of the income that would otherwise be lost when guests do not show up for their stay.

Reduce the Risk of Losses from Unused Rooms

• Rooms that remain unoccupied due to last-minute cancellations or no-shows represent lost income for you. Cancellation fees help cover this loss and motivate guests to cancel in time or not at all.

Better Capacity Management

• By charging fees, you can better manage your occupancy. Guests will be more thoughtful about when and how they cancel, giving you more time to offer the released room to another guest or adjust your short-term pricing strategy.

More Responsible Customer Behavior

• Introducing cancellation fees encourages guests to cancel more responsibly and with more notice. This gives you better predictability and the ability to respond flexibly to changes in demand.

Enhance Loyalty Programs

• Hotels can benefit from clearly defined cancellation and no-show policies when setting up loyalty programs. For example, you can offer more flexible conditions to regular guests, which can increase their loyalty.