CANCELLATION POLICY

Introduction
The purpose of this Cancellation Policy is to clearly outline the rules, obligations, rights, and procedures relating to reservation cancellations on the Ethnic BNB platform. Ethnic BNB is a hospitality marketplace that connects guests seeking accommodations with hosts offering properties for short-term stays. To maintain transparency, fairness, and operational consistency, every booking made on Ethnic BNB is governed by the cancellation policy selected by the host and accepted by the guest at the time of reservation.
This expanded document provides a detailed explanation of how cancellations work, what refund amounts apply in different scenarios, how payouts are calculated for hosts, and what steps guests must follow to cancel a reservation. It also elaborates on no-show situations, special conditions, host obligations, guest responsibilities, definitions, examples, exceptions, and platform-wide procedural standards.
This unified policy applies to all users—both guests and hosts—unless a specific listing or local regulation requires additional terms.

Every reservation on Ethnic BNB follows the cancellation framework defined by the host. When a host publishes a listing, they must select a cancellation policy type along with a cancellation timeline. Guests are fully informed of these rules before confirming their booking. By completing a reservation, a guest agrees to abide by the policy and timeline chosen by the host.
The two main components that shape cancellation outcomes are:
1. Cancellation Timeline (also known as the “free cancellation period”)
2. Cancellation Policy Type selected by the host (Fully Refundable, Partially Refundable, or Non-Refundable)
Both elements work together to determine the refund owed to the guest and the payout owed to the host in case a cancellation occurs.

The cancellation timeline refers to the number of days prior to check-in during which guests must cancel in order to receive a full refund. The host chooses this timeline when configuring their listing.
Key Characteristics of the Cancellation Timeline
· It is customizable and can vary from listing to listing.
· It represents the last moment at which a guest may cancel without penalty.
· It defines the boundary between “early cancellation” and “late cancellation.”
· It affects refund distribution, payout calculation, and guest responsibility.
· It applies equally to all guests booking the same listing.
· The timeline becomes part of the contract between host and guest once the reservation is confirmed.
Examples of Cancellation Timelines
· A host may set a 5-day timeline. Guests cancelling 5 days or more before check-in get a full refund; cancellations within 4 days or less fall under late cancellation rules.
· A host may set a 10-day timeline for high-demand properties or peak season dates.
· A host may set next-day or same-day timelines for last-minute or promotional bookings.
What Is Considered “Before the Cancellation Timeline”?
Any cancellation made strictly earlier than the number of days defined counts as “before” the timeline. For example:
If the timeline is 7 days, then:
· Cancelling 8 days before check-in → Full refund
· Cancelling 7 days before check-in → Considered after the timeline (late cancellation)
This is because the timeline marks the end of the free cancellation window.

Every host listing must be assigned one of the following three policy types:
1. Fully Refundable Policy
2. Partially Refundable Policy
3. Non-Refundable Policy
These policies operate in conjunction with the cancellation timeline and define the refund allocation in scenarios where a guest cancels after the timeline expires.

3.1 Fully Refundable Policy
The Fully Refundable Policy gives guests the highest level of flexibility while also giving hosts limited discretion in how refunds should be issued for late cancellations.
3.1.1 Cancellations Before the Timeline
· Guests cancelling before the cancellation timeline receive a full refund.
· A full refund includes:
 o Nightly charges
 o Taxes
 o Cleaning fees (if applicable)
 o Ethnic BNB service fees
The host does not receive any payout in this scenario since the guest cancels sufficiently early.
3.1.2 Cancellations After the Timeline
Under the Fully Refundable Policy, when a guest cancels after the cancellation timeline has passed, the host is granted flexibility. The host can choose one of the following two outcomes:
Option A — Partial Refund
Applicable when the host believes that some portion of the stay could still be rebooked or wishes to exercise guest-friendly discretion.
· The host decides the percentage or specific amount to refund.
· The guest receives the partial refund amount defined by the host.
· The host receives payout for the non-refunded portion of the reservation.
Partial refunds may apply in situations such as:
· Cancellations within 48 hours of check-in
· Cancellations during peak season
· Long stays where the host can still rebook some days
Option B — No Refund
If the host chooses the “no refund” option:
· The guest receives zero refund for nightly rates, taxes, and service fees.
· The host receives the full payout corresponding to the entire reservation.
This option is used in situations such as:
· Extremely late cancellations
· No rebooking possibility
· High-demand periods where last-minute cancellations cause financial loss
3.1.3 Rationale Behind This Policy
This policy exists to provide hosts with both flexibility and protection. It is ideal for hosts who want to accommodate guests but still maintain control over financial outcomes in case of late cancellations.

3.2 Partially Refundable Policy
The Partially Refundable Policy strikes a balance between fairness to guests and guaranteed earnings for hosts.
3.2.1 Cancellations Before the Timeline
Same as the Fully Refundable Policy:
· Guests cancelling before the timeline → Full refund
· Host payout → Zero
3.2.2 Cancellations After the Timeline
Once a guest cancels after the timeline:
· The first night (including taxes and service fees) becomes non-refundable.
· The guest receives a refund for all remaining nights.
· The host receives payout only for the first night.
3.2.3 Why the First Night Is Non-Refundable
The first night acts as a form of cancellation fee, protecting hosts against sudden cancellations while still allowing guests to recover a portion of their payment.
3.2.4 Detailed Breakdown (Example)
If a guest books:
· 4 nights
· With a 5-day cancellation timeline
· And cancels 2 days before check-in
Then:
· Guest pays for Night 1 → Host gets payout
· Nights 2–4 → Refunded to guest
This provides a predictable structure for both guests and hosts.

3.3 Non-Refundable Policy
The Non-Refundable Policy is the strictest option and is typically chosen by hosts seeking maximum income protection or offering steeply discounted rates.
3.3.1 Cancellations Before the Timeline
Regardless of the policy type, cancellations before the timeline always result in:
· Full refund to guest
· No payout to host
This ensures fairness when guests cancel early.
3.3.2 Cancellations After the Timeline
When a guest cancels after the timeline:
· No refund is issued to the guest, under any circumstances.
· The host receives payout for the entire reservation, including nightly rates, taxes, and fees.
This policy is recommended for:
· Promotional listings
· Discounted stays
· Peak-season properties
· High-demand destinations
It provides the highest level of financial assurance for hosts.

A no-show refers to a situation where the guest:
· Fails to arrive at the property
· Provides no cancellation request
· Makes no communication regarding delays or changes
4.1 Treatment of No-Shows
Under Ethnic BNB platform rules:
· No-show = Treated as a late cancellation
· The host’s selected cancellation policy is applied automatically
· Under the Non-Refundable Policy → Guest pays 100% of the total amount
4.2 Why No-Shows Are Not Eligible for Refunds
No-shows are treated strictly because:
· Hosts must keep the property blocked for the duration of the reserved stay
· Hosts lose the opportunity to rebook the dates
· Operational costs (cleaning, preparation, utilities) may already have been incurred
The system is designed to ensure hosts receive fair compensation in these cases.

Cancelling a reservation on Ethnic BNB is straightforward and designed to give guests full control over their bookings.
5.1 Steps to Cancel
Guests may cancel through:
· The “Trips” section of their Ethnic BNB profile
· The reservation details page
· The booking confirmation page
After selecting the cancellation option, the system will:
· Display the applicable refund amount
· Show the policy type
· Confirm whether the cancellation timeline still applies
· Provide a final summary before completing the cancellation
5.2 Refund Processing
Once a cancellation is submitted:
· Refunds are automatically calculated based on policy rules
· The original payment method is credited
· Refund processing time varies depending on the payment provider
· Ethnic BNB may display estimated processing times
Guests receive a cancellation receipt for their records.

This Cancellation Policy governs all reservation activities on Ethnic BNB and is designed to protect both guests and hosts by ensuring clear, predictable, and equitable rules. Whether a host chooses a Fully Refundable, Partially Refundable, or Non-Refundable framework, each option offers transparency and fairness based on the timing of cancellation and the needs of both parties.
By using the Ethnic BNB platform, both hosts and guests agree to abide by this Cancellation Policy and all the terms outlined herein.