Handling Cancellations and Refunds
Last updated: November 2025
Learn how to process booking cancellations and manage refunds professionally. A clear cancellation policy protects your business while maintaining guest satisfaction.
Cancelling a Booking in InnGO
Step 1: Go to Bookings tab
Step 2: Find and open the booking to cancel
Step 3: Click Cancel Booking button OR change status to "Cancelled"
Step 4: Confirm cancellation in popup
Step 5: Add cancellation reason in notes (optional but recommended)
What Happens When You Cancel
- Booking status changes to "Cancelled"
- Room automatically becomes available for those dates
- Booking remains in system for records
- Cancellation timestamp recorded
- Guest can receive cancellation confirmation email
⚠️ Important: Cancelled bookings remain in your system for record-keeping and reporting. They're not deleted.
Recommended Cancellation Policies
Standard Cancellation Policy (Most Nigerian Hotels)
Free cancellation:
- More than 48 hours before check-in: 100% refund
- 24-48 hours before check-in: 50% refund
- Less than 24 hours before check-in: No refund
- No-show: No refund
Flexible Policy (Attract more bookings)
- More than 24 hours: 100% refund
- Less than 24 hours: 50% refund
- No-show: No refund
Strict Policy (Peak season, high demand)
- More than 7 days: 100% refund minus processing fee
- 3-7 days: 50% refund
- Less than 3 days: No refund
- No-show: No refund
Non-Refundable (Lowest rates)
- No refund for any cancellation
- Offer discounted rate in exchange
- Common for advance purchase deals
💡 Tip: Display your cancellation policy clearly on booking confirmations and your website. InnGO can include it in automated emails.
Processing Refunds
Step-by-Step Refund Process
Step 1: Calculate Refund Amount
- Check cancellation date vs check-in date
- Apply your cancellation policy
- Calculate refundable amount
- Example: ₦50,000 paid, 50% refund = ₦25,000
Step 2: Verify Payment Details
- Check original payment method
- Get refund destination (bank account, cash pickup)
- Confirm guest identity
Step 3: Process Refund
- Bank Transfer: Send to guest's account
- Cash: Guest collects at hotel
- POS/Card: Process reversal through terminal
- Online/Paystack: Initiate refund through Paystack dashboard
Step 4: Update Booking
- Open cancelled booking
- Add note: "Refund processed: ₦25,000 via bank transfer on Nov 19"
- Update payment amount to reflect refund
- Save changes
Step 5: Send Confirmation
- Email or message guest confirming refund
- Include refund amount and method
- Provide reference number
- State processing time (e.g., "3-5 business days")
Refund Methods by Payment Type
Cash Payments
Option 1: Cash Refund
- Guest collects cash at hotel
- Verify ID before giving cash
- Get signed receipt
- Fastest method
Option 2: Bank Transfer
- Ask for account details
- Transfer refund amount
- Provide transfer receipt
Bank Transfer Payments
- Refund to same account that sent payment
- Use same bank if possible (faster)
- Typically takes 24 hours for same bank, 1-3 days for different banks
- Send payment confirmation to guest
POS/Card Payments
- Process reversal through POS terminal
- Refund goes to same card used
- Takes 3-10 business days depending on bank
- Print reversal receipt for guest
Online/Paystack Payments
- Log into Paystack dashboard
- Find transaction
- Click "Refund"
- Enter refund amount
- Paystack processes automatically
- Guest receives email from Paystack
Handling Different Cancellation Scenarios
Guest-Initiated Cancellation
Guest calls or emails to cancel:
- Note cancellation date and time
- Calculate hours/days until check-in
- Apply cancellation policy
- Explain refund amount to guest
- Get confirmation guest agrees
- Cancel booking in InnGO
- Process refund within promised timeframe
- Send cancellation confirmation
Hotel-Initiated Cancellation
When you need to cancel (overbooking, emergency):
- Contact guest immediately
- Explain situation honestly
- Offer 100% refund regardless of policy
- Suggest alternative accommodation if possible
- Consider compensating guest (upgrade at sister property, discount on future stay)
- Cancel booking in system
- Process immediate refund
- Follow up to ensure guest is satisfied
⚠️ Legal Note: Hotel-initiated cancellations should always result in full refunds. Offer compensation to maintain reputation.
No-Show Situations
Guest doesn't arrive and doesn't contact you:
- Wait 2-3 hours past normal check-in time
- Try contacting guest via phone/email/WhatsApp
- If no response by end of check-in day, mark as no-show
- Apply no-show policy (typically no refund)
- Cancel booking to free room
- Send notification to guest about no-show status
- Keep payment as per policy
Force Majeure Cancellations
Cancellations due to emergencies, natural disasters, travel bans:
- Be understanding and flexible
- Consider 100% refund or credit for future stay
- Build goodwill and customer loyalty
- Document reason in booking notes
Partial Refunds vs Full Refunds
When to Give Partial Refunds
- Cancellation within policy timeframe but some cost incurred
- Guest requests early checkout with advance payment
- Service issues warranting compensation
When to Give Full Refunds
- Cancellation well in advance (per policy)
- Hotel error (overbooking, maintenance issues)
- Major service failure
- Force majeure situations
Refund Alternatives
Instead of cash refunds, consider:
1. Hotel Credit
- Offer credit for future stay
- Set expiration date (e.g., 6-12 months)
- May offer slightly more value than refund (e.g., 110% credit)
- Keeps revenue and encourages return visit
2. Rescheduling
- Offer to change dates instead of cancelling
- No refund needed
- Guest keeps reservation
- You keep the booking
3. Transfer to Another Guest
- Allow guest to transfer booking to friend/colleague
- Update guest name in booking
- No refund needed
- All parties happy
Documentation and Record-Keeping
What to Document
- Cancellation date and time
- Reason for cancellation
- Who initiated (guest or hotel)
- Refund amount calculated
- Refund method used
- Refund processing date
- Guest communication records
Where to Record
- In InnGO booking notes field
- Your accounting software
- Refund register/ledger
- Email confirmation sent to guest
Nigerian Context: Special Considerations
Festive Season Cancellations
- December bookings: Consider stricter policy
- High demand means you may not rebook cancelled room
- Clearly communicate policy at booking time
- Offer flexibility for regular/corporate customers
Corporate Booking Cancellations
- Companies may have negotiated cancellation terms
- Often more flexible due to business relationship
- May accept credit instead of refund
- Document per company agreement
Payment Method Challenges
- NEPA issues: POS reversals may be delayed
- Bank holidays: Transfers take longer
- Cash refunds: Ensure adequate cash on hand
- Communicate realistic refund timelines
Preventing Unnecessary Cancellations
Before Guest Cancels
- Offer to reschedule instead
- Suggest changing room type if price is issue
- Offer discount for keeping reservation
- Explain cancellation fees clearly
Reduce Cancellation Rate
- Send booking confirmation immediately
- Send reminder 24-48 hours before check-in
- Make changes easy (good customer service)
- Provide clear directions to hotel
- Be responsive to guest questions
Best Practices
- ✓ Have clear, written cancellation policy
- ✓ Communicate policy at time of booking
- ✓ Be consistent in applying policy
- ✓ Process refunds promptly (within 7 business days)
- ✓ Keep detailed records of all cancellations
- ✓ Be flexible for exceptional circumstances
- ✓ Send cancellation confirmation to guests
- ✓ Update room availability immediately after cancellation
Troubleshooting
Guest disputes refund amount?
Point to policy stated at booking time. Show calculation clearly. If genuine misunderstanding, consider goodwill adjustment.
Refund takes longer than promised?
Communicate proactively. Explain delay (bank processing, etc.). Provide regular updates. Consider compensation if significant delay.
Guest claims they never received refund?
Provide transfer receipt or Paystack confirmation. Verify correct account details. Track with bank if necessary.
Need More Help?
For cancellation and refund assistance:
- Email: support@inngo.com
- Live chat in dashboard
- Visit Help Center