Cancelled reservations often require special handling to ensure revenue is recorded and allocated correctly. This overview brings together the four primary cancellation workflows in VRTrust and helps you quickly determine which approach to use in each situation.
This article acts as a decision guide, with links to the detailed step-by-step articles for each scenario.
Why Cancellation Scenarios Matter
When a reservation is cancelled, one or more of the following may apply:
A guest payment was received
Some or all of that payment was refunded
A portion of the payment was retained
Revenue may belong to:
The owner
The property manager
Or be split between both
VRTrust defaults cancellation revenue to the owner, but provides flexible tools to handle exceptions.
Scenario 1 | Cancellation revenue to owners | Owner keeps all retained funds |
Scenario2 | Allocate cancellation fee revenue to the property manager | PM keeps all or part of cancellation revenue by default |
Scenario 3 | Cancellation fee adjustments | One-off exceptions to the default allocation |
Scenario 4 | Allocate cancellation revenue to PM (manual fee) | PM keeps revenue only in specific cases |
Scenario 1: Cancellation Revenue to Owners (Default)
Use this when:
A reservation is cancelled
Funds were retained
The owner keeps 100% of the cancellation revenue
How It Works
You add a financial adjustment for the retained amount
Revenue is recorded to the owner
No fees are applied unless configured separately
This is the default behavior in VRTrust and requires no fee setup.
👉 Refer to the article: Cancellation Revenue to Owners
Scenario 2: Allocate Cancellation Fee Revenue to the Property Manager (Automatic)
Use this when:
The property manager should receive:
All cancellation revenue, or
A defined percentage (e.g. 50%)
This rule should apply consistently across listings
How It Works
You create a Cancellation Fee – PM
The fee reallocates revenue from owner to PM
The fee is applied to listings
Revenue is split automatically when a cancellation adjustment is added
This is ideal for standardized cancellation policies.
👉 Refer to the article: Allocate Cancellation Fee Revenue to the Property Manager
Scenario 3: Cancellation Fee Adjustments (Exceptions)
Use this when:
A cancellation normally follows a default split
But a specific reservation needs different treatment
How It Works
Cancellation revenue is recorded normally
You add manual fee adjustments on the reservation
You can:
Increase PM revenue
Decrease PM revenue
Remove commissions or other fees
This approach allows fine-grained control without changing global rules.
👉 Refer to the article: Cancellation Fee Adjustments
Scenario 4: Allocate Cancellation Revenue to PM (Manual Fee Only)
Use this when:
Cancellation revenue usually belongs to the owner
But occasionally should be paid to the property manager
You do not want automatic behavior
How It Works
You create an Other Fee (e.g. Cancellation Revenue – PM)
The fee is not applied to listings
You manually apply it from the reservation when needed
This is best for one-off or negotiated exceptions.
👉 Refer to the article: Allocate Cancellation Revenue to PM