Set Up a Custom Cancellation Policy on VRBO
Offer More Flexibility to Your Guests
Until recently, you could only choose from one of VRBO's five default cancellation policies. Now you have the option to create your own custom cancellation policy, tailored to your business conditions and your guests' needs. This option gives you more control and allows you to offer clearer and fairer rules for each booking.
What is a Custom Cancellation Policy?
It is an alternative to VRBO's five standard policies:
No Refund
Strict (cancellation ≥ 60 days: 100% refund)
Firm (≥ 60 days: 100% refund / ≥ 30 days: 50% refund)
Moderate (≥ 30 days: 100% refund / ≥ 14 days: 50% refund)
Flexible (≥ 14 days: 100% refund / ≥ 7 days: 50% refund)
With the custom option, you can define your own deadlines and penalty percentages, adding up to three different cancellation windows.
How to Set Up Your Custom Policy
Follow these steps from the activation screen of the portal in Channel PRO:
Click on Configuration in the VRBO panel.
Select Cancellation Policies.
Check the Custom option.
Define the conditions:
Period between booking and "X" days before check-in.
Penalty percentage to be applied.
If desired, add another cancellation window with different conditions.
You can set up to three windows in total.
👉 Remember: the penalty percentage in each window must be greater than in the previous one.
Practical Example
Cancellation more than 60 days in advance: charge of 30%.
Cancellation within the last 60 days: charge of 100%.
Additionally, you can add a fixed cancellation fee (for example, €50). This will be added to the corresponding penalty percentage, without the total ever exceeding 100% of the booking amount.
Configuration by Property
If you want the policy to vary between accommodations:
Enter the accommodation activation screen.
Click on the property's name.
Select Cancellation Policies.
Set the deadlines and percentages as in the previous case.
Click Save.
Quick Checklist
I reviewed VRBO's standard policies.
I decided whether to apply a general custom policy or by accommodation.
I defined up to three cancellation windows with their percentages.
I added, if desired, an additional cancellation fee.
I confirmed that the total never exceeds 100% of the booking amount.
Best Practices
Be clear and transparent: communicate the conditions to your guests in the listing.
Maintain a balance: offer enough flexibility for travelers to book with confidence, without compromising the security of your income.
Regularly update your policies if you notice changes in your guests' behavior or in your market.
Frequently Asked Questions
Can I create more than three cancellation windows?
No. The maximum allowed is three different cancellation windows.
Can a fixed cancellation fee be applied in addition to the percentage?
Yes. You can add a fixed amount, but the total (percentage + fee) will never exceed 100% of the booking.
Can I apply different policies to each accommodation?
Yes. From the activation of each property, you can set different custom policies.
What if I already have a standard policy set up?
You can keep it or replace it at any time with a custom policy.
Where will guests see the cancellation conditions?
The summary of the configured policy always appears in the listing and at the time of booking.
✅ In summary: a custom cancellation policy allows you to find the balance between protecting your income and offering greater confidence to travelers.