Today, travelers expect flexible booking conditions. Without flexibility, you lose bookings. With flexible policies, you absorb 100% of the loss when cancellations happen. Cancellation Protection removes this trade-off by helping you increase bookings while securing your income, with 96% of the rent guaranteed when guests cancel, even up to 24 hours before arrival.
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Boost Bookings and Guest Confidence with Flexible Options
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Cancellation Protection is simple to activate. It requires SmilyPay, since all protection fees and payouts flow through the Smily payment infrastructure to ensure automated reconciliation and compliant fund management. Once SmilyPay is enabled, turning on Cancellation Protection is as easy as selecting the properties you want to cover. Your refundable and non refundable rate plans sync automatically to your Airbnb and Booking.com (direct booking and Google support coming next), with no manual configuration needed.
Why do I need SmilyPay to offer Cancellation Protection?
SmilyPay ensures all protection fees and payouts are handled correctly, automatically, and in full compliance. Without SmilyPay, there is no mechanism to route the protection fee from the traveler, manage the refund, or deliver the guaranteed payout to you. SmilyPay centralizes and automates the entire financial flow, allowing Cancellation Protection to operate seamlessly without any manual reconciliation.
Will guests really pay more for refundable bookings?
Yes. Travelers consistently show a strong willingness to pay extra for flexibility. OTA research confirms this: properties with relaxed cancellation policies receive up to 3 times more bookings compared to strict listings (Vrbo), 75.6 percent of travelers prefer accommodations offering partial or full cancellation (HomeToGo), and 73 percent of guests say free cancellation is one of their top booking reasons (Booking.com). Offering a refundable option captures this demand and converts travelers who would otherwise hesitate or choose a competitor.
Will offering refundable bookings make my cancellation rate skyrocket?
Even if cancellations increase, it no longer affects your revenue. That is the entire point of Cancellation Protection. When a protected guest cancels under eligible conditions, you still receive 96 percent of the rent, so the financial impact is removed completely. This lets you offer the flexibility travelers want without worrying about lost income, empty nights, or owner dissatisfaction. In practice, flexible policies tend to drive more bookings without meaningfully increasing harmful cancellations, but even if they do rise, your payout is guaranteed and your income remains stable.
What happens when a guest cancels a protected booking?
If the cancellation meets the eligibility criteria, the traveler is refunded by our licensed protection partner, and you receive 96 percent of the rent amount through SmilyPay. All you do is submit a short claim form inside Smily. The claim is processed quickly, and both sides receive their respective payouts without any manual steps.
Who handles the refund and the payout?
Refunds to guests and payouts to you are handled by Smily’s licensed insurance partner in coordination with SmilyPay. You are not responsible for refunding the traveler yourself. SmilyPay ensures the funds flow correctly, the partner handles the coverage, and you get your payout without needing to manage any external communication.
Is this insurance? Am I allowed to offer it?
You are not selling insurance. You are offering travelers a different booking condition: a refundable rate; and Smily provides you with a commercial guarantee. Cancellation Protection operates within a strict and fully compliant legal framework.
Can’t travelers just buy their own travel insurance instead?
They could, but most don’t. Traditional travel insurance usually reimburses the traveler after cancellation, while the host keeps the payment based on the cancellation policy. The issue is adoption: insurance is rarely purchased because it sits outside the booking flow and requires extra steps. Cancellation Protection brings this same benefit directly into the booking process, making it easy and visible for travelers to choose a refundable option at checkout, while hosts keep their existing cancellation terms and revenue structure.
Does Cancellation Protection work on all channels?
Today, Cancellation Protection is available on Airbnb and Booking.com. Support for Smily direct booking websites and Google Vacation Rentals is coming next, and Smily will automatically publish the refundable and non refundable rate plans as these new integrations go live.
How long does the payout process take?
Once you submit the claim form for an eligible cancellation, payouts are typically sent within 7 business days. The entire process is handled by the licensed protection partner, and you can track the status directly inside your Smily dashboard.
Can I see which reservations are protected?
Yes. You can view all protected reservations directly in Smily. Each booking clearly displays whether Cancellation Protection was selected, along with the protection fee, eligibility, and payout status. This gives you full operational visibility, simplifies claim submission, and keeps your financial reporting accurate and complete.
