First, locate the reservation by going to Reservations > Manage Reservations and entering the name of the guest/booker or the reservation number in the search box. (You can also get to it from the Room Schedule view by double clicking on a reservation and choosing "Manage Reservation" on the pop-up window that appears). This will directly open up that booking, so you won't need to search for a name or RES/RESX number.
Click on the drop-down arrow next to the reservation number (or the individual room reservation (RESX) if you are only cancelling one room from a group booking) and select 'Cancel Reservation' if you're on (RES) or 'Cancel Room' if you're on (RESX).
A pop-up will appear onscreen as shown below; please enter the cancellation reason here and then press "Yes" to confirm your selection – the reservation is now cancelled.
If you would like to change the list of cancellation reasons that come up onscreen and customise them to suit your business needs, you can do this by going to Administration > Option Sets, click the drop-down menu at the top and go to 'Cancellation Reason', then click +Add button to the right and the 'Option Value' is the new cancellation reason you wish to add.
To send a cancellation email to the customer, firstly, go to Administration > Email Templates to create one. Then you will also need to go to Administration > Property and scroll down to the 'Property Settings' section and ensure that cancellation emails have not been disabled (therefore this should be unticked):
If you want the system to send cancellation emails automatically, ensure the checkbox 'Disable Automatic Sending of Booking Cancellations' is unticked. This is so you don't have to manually send a cancellation email to every guest who cancels.
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