What is Cancellation Protection?

Cancellation Protection discontinuation

Cancellation Protection will be discontinued on October 15, 2026, at 11:59 p.m. Paris time. 

Why ? 

This decision was made because the current model is no longer sustainable, and maintaining the service would require a significant price increase that could affect the competitiveness of your rates.

Bookings created from that date onward will no longer be covered. Bookings made before the cutoff will remain protected under the applicable terms, provided that your Smily account remains active, payments continue to be collected through SmilyPay, and the SmilyPay IBANs remain configured on the relevant channels. Claims can still be submitted through Smily within 60 days of the scheduled check-out date. On October 15, Smily will automatically restore the cancellation policies that were in place before the feature was enabled and remove the markup applied to the Flexible rate. Only properties using a partial Booking.com connection will need to update their cancellation policies manually in the Booking.com extranet on October 15, but not before.

Table of content

• How It Works

• Benefits for You as a Property Manager

  • Guaranteed Revenue
  • More Bookings
  • Additional Revenue Stream
  • Competitive Advantage
  • Limited Extra Work

   

Cancellation Protection is a feature exclusive to Smily that helps you offer flexible booking options to travelers while protecting your rental income from last-minute cancellations, for bookings cancelled between 30 days and 24h before check-in.

How It Works

With Cancellation Protection, you can offer travelers two booking options:

Flexible Rate (with Protection) - Travelers pay a small supplement (typically around 13-15% of the booking value) in exchange for the ability to cancel and receive a full refund up to 1 day before check-in.

Non-Refundable Rate - Travelers get a lower rate but cannot cancel for a refund.

Example: 

1️⃣ Non-refundable rate (without Cancellation Protection)

• The guest pays around €120
• Booking.com takes its commission

👉 You receive ~€100

This is how it works today.

2️⃣ Flexible rate (with Cancellation Protection)

• The guest pays around €143
• This price includes:

- Booking.com commission

- Cancellation Protection

👉 You still receive ~€100

The cost of flexibility is paid by the guest, not by you.

What happens in case of cancellation?

If the guest cancels between 30 days and 24 hours before arrival:

• You receive 96% of the rental revenue, minus the gross Cancellation Protection fee due on that booking
• The guest is refunded
• The owner is fully compensated
• Your revenue is protected — you receive the bulk of the rental revenue back, with only the protection fee on the cancelled booking deducted

📌 Key takeaway

Whether the guest chooses Flexible or Non-refundable:

• Your target revenue is preserved
• Cancellation Protection does not reduce your margin on completed stays 
• The extra cost is covered by guests who want flexibility

Benefits for You as a Property Manager

Guaranteed Revenue

Even when a traveler cancels a flexible booking within the coverage window, you receive 96% of your rental revenue minus the gross Cancellation Protection fee due on that booking. The reimbursement is distributed as follows:

• Owner: Receives 100% of their expected share. 
• Property manager: Receives the remaining amount (the owner's share is preserved in priority; the PM absorbs the 4% difference and the protection fee on the cancelled booking)

More Bookings

By offering flexible cancellation options, you attract travelers who value peace of mind. Studies show that properties with flexible policies convert more bookings and achieve higher occupancy rates.

• Vrbo: "Properties with flexible cancellation policies have 3x more bookings than those with strict policies."
• Airbnb: "Hosts who replaced their strict or moderate cancellation policies with flexible ones saw their bookings for the following month increase by 10% or more."
• Booking.com: "73% of travelers said that free cancellation was one of the main reasons they chose to book with a specific property."

Additional Revenue Stream

You can include your own markup in the Cancellation Protection price increase, turning flexibility into a profit center. Every time a traveler chooses the flexible option, you earn extra commission.

Competitive Advantage

Major OTAs like Airbnb and Booking.com already promote flexible cancellation options. By offering Cancellation Protection, you meet traveler expectations and compete more effectively.

Limited Extra Work

The entire process is partially automated. Travelers get their refunds automatically, and you receive your guaranteed payout. You only need to fill a claim form post cancellations.