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How to configure cancellation and payment policies for me and my TO ?

The Cancellation and Contracting Conditions Module in KOOB allows DMCs to manage cancellation policies and contract terms dynamically. This ensures clear and transparent rules for both DMC-hotel agreements and DMC-TO contracts, helping to prevent disputes and streamline booking operations.

With KOOB, you can:

✅ Set cancellation penalties based on time before check-in.
✅ Define separate cancellation policies for DMCs and TOs.
✅ Adjust conditions by season (e.g., summer/winter).
✅ Ensure all cancellation rules are visible during the booking process.

🚀 Objective: This module enables DMCs to configure contracting conditions efficiently, ensuring TOs have clear policies while maintaining flexibility with hotels.

 

Where to configure contracting conditions?

Cancellation and contracting conditions are managed in the "Contracting Conditions" tab within a hotel contract.

There are two sections:

  • My Contracting Conditions → Defines the DMC’s cancellation policy with the hotel.
  • Client Contracting Conditions → Defines the DMC’s cancellation policy for TOs.

Steps to access contracting conditions:

  • Go to "My Catalog" and select the hotel.

  • Click on the "Contracting Conditions" tab.
  • Choose either:
    • "My Contracting Conditions" → Rules for DMC-hotel contracts.

     
    • "Client Contracting Conditions" → Rules for TOs.

     

    📌 Note: Setting the correct time zone ensures accurate penalty calculations.

     

    Configuring cancellation policies

    KOOB allows you to set dynamic cancellation policies by defining penalties based on how many days before check-in the booking is canceled.

    Steps to set a cancellation conditions:

    • Click "Add Condition" to create a cancellation policy.

    • Choose whether the penalty is a percentage (%) or a fixed amount by clicking "Use percentage".

    • Select the period for the cancellation policies
    • Choose whether the penalty applies to all nights or only the first X nights.
      • Example: If the rule applies to only the first 2 nights, enter "2".
      • If the cancellation applies to the entire stay, enter "0".


    • Define the cancellation period by entering the time range:
      • Example: "From 3 to 7 days before check-in".

    • Define the penalty charge:
      • Example: 50% charge for the first 2 nights if canceled 3-7 days before check-in.

    ✅ Example Cancellation Setup:

    Days Before Check-in Cancellation Penalty
    30+ days before No charge
    15-29 days before 25% of total stay
    7-14 days before 50% of total stay
    0-6 days before 100% charge

     

    Managing seasonal cancellation policies

    Many hotels apply different cancellation rules for peak and off-peak seasons. KOOB allows multiple policies for different periods to accommodate these variations.

    Example Seasonal Setup:

    Condition 1: Summer Period (May 1 - Sep 30)

    • Cancellation 7+ days before check-in → No penalty.
    • Cancellation 3-6 days before check-in → 50% charge for the first night.
    • Cancellation 0-2 days before check-in → 100% charge for the full stay.

    Condition 2: Winter Period (Oct 1 - Apr 30)

    • Cancellation 14+ days before check-in → No penalty.
    • Cancellation 7-13 days before check-in → 25% of the total stay.
    • Cancellation 0-6 days before check-in → 100% penalty.

    ✅ Tip: If different seasonal policies apply, set up separate conditions for each period.

     

    Adding written conditions

    In addition to dynamic cancellation conditions, KOOB allows you to add custom written conditions for contractual agreements. These typically include terms such as:

    • Allotments → The hotel reserves the right to request the return of unsold rooms.
    • Overbooking → The hotel reserves the right to relocate guests, offering alternative accommodation without compensation.
    • Amendments → The agreement is valid only if signed by both parties, with waivers granted at the hotel’s discretion.

    📌 Tip: Use the rich-text editor to format conditions clearly for easy reference.

    📌 Reminder: These conditions appear in the booking details and help ensure smooth operations between DMCs, hotels, and TOs.

     

    Translating contracting conditions

    KOOB supports multiple languages, allowing you to translate contracting conditions for better clarity with international TOs.

    • Click on the language selector (flag icon) in the top right corner.
    • Select the desired language from the dropdown.

    • Translate the field : Written contracting conditions.
    • Save the translation.

    📌 Reminder : The default language remains English, but translations help facilitate clear communication between DMCs, hotels, and TOs.

     

    Configuring TO-specific contracting conditions

    Under "Client Contracting Conditions", DMCs can define different cancellation rules for each Tour Operator partner.

    How to set TO-specific rules:

    • Click “Client Contracting Conditions” in the tab.
    • Click "Add Condition" to configure a custom TO cancellation policy.

    • Follow the same process as previously see above to set up TO contracting conditions.
    • Save the changes once TO conditions are configured.

    📌 Tip: You can choose whether TOs see the hotel's contract conditions or your customized DMC-TO conditions under the “Distribution Parameters” settings.

     

    📌 Reminder: Cancellation policies are displayed automatically during the booking process, ensuring transparency for TOs.

     

    Takeaways ✅

    ✅ Flexible contract management → Configure separate rules for hotels and TOs.
    ✅ Dynamic cancellation policies → Set different penalties based on the cancellation date.
    ✅ Seasonal flexibility → Apply different policies for summer and winter periods.
    ✅ TO-specific customization → Ensure clear booking terms for TOs.
    ✅ Real-time visibility → Cancellation conditions are automatically displayed in bookings.

     

    FAQ

    Can I apply different cancellation policies to different TOs?
    ✅ Yes! Under "Client Contracting Conditions," you can set specific cancellation rules for TOs.

    What happens if I don’t configure a cancellation policy?
    ⚠️ If no policy is set, the system assumes full flexibility, allowing cancellations without penalties.

    Can I define different cancellation policies for peak and off-peak seasons?
    ✅ Yes! KOOB allows you to create multiple policies for different seasonal periods.

    Where do TOs see the cancellation policies?
    ✅ TOs can view them in the KOOB Marketplace and Trip Designer before booking and in the booking details after confirmation.

    Can I edit a cancellation policy after publishing it?
    ✅ Yes! You can modify policies at any time, but changes will only apply to new bookings.

    How does KOOB handle time zones for cancellations?
    📌 KOOB uses the hotel's time zone to ensure accurate penalty calculations based on check-in time.

     

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    📌 Need more help? Visit the KOOB Knowledge Base or contact KOOB Support for assistance. 🚀