Cancellation Policy Overview
Last Updated: January 2026
OnsStay offers four cancellation policy tiers that hosts can choose from when listing their property. Each tier defines the guest's cancellation rights and determines the host's commission rate. The host's chosen cancellation policy is clearly displayed on the property listing so guests can review it before booking.
Key Principles
- Host commission fees (2-4%) are charged on all completed bookings based on the host's chosen cancellation policy tier.
- If a guest cancels and receives a full refund, no commission is charged to the host.
- If a guest cancels and the host receives partial payment, commission is charged only on the amount the host receives.
- The person who initiates the cancellation is responsible for any applicable payment gateway charges.
- All fees apply to the total booking amount before taxes.
Host Commission Fee Structure
Hosts select their preferred cancellation policy tier when listing their property. The commission rate is tied to the tier they choose. A more flexible policy (lower commission) attracts more bookings, while a stricter policy (higher commission) offers greater revenue protection.
| Policy Tier | Commission Rate | Charged On | Best For |
|---|---|---|---|
| Tier 1: Flexible | 2% | Total booking amount (on completed bookings or partial host payments) | Hosts seeking high booking volume |
| Tier 2: Moderate | 2.5% | Total booking amount (on completed bookings or partial host payments) | Balanced flexibility and protection |
| Tier 3: Firm | 3% | Total booking amount (on completed bookings or partial host payments) | Hosts preferring advance bookings |
| Tier 4: Strict | 4% | Total booking amount (on completed bookings or partial host payments) | Maximum revenue protection |
Tier 1: Flexible Cancellation Policy
Flexible Policy
Host Commission Rate: 2% of the total booking amount
Policy Definition
Guests can cancel up to 24 hours before check-in for a full refund. No payment is made to the host in case of a full-refund cancellation. If the guest cancels after the 24-hour window (i.e., during a partial stay), the host will be paid for each night stayed, plus one additional night.
Cancellation Scenarios
Example booking: 4 nights at AED 400/night = AED 1,600 total
| When Guest Cancels | Guest Refund | Host Receives | Host Commission (2%) |
|---|---|---|---|
| 3 days before check-in (more than 24 hours) | AED 1,600 (100%) | AED 0 | AED 0 (no commission on full refund) |
| 30 hours before check-in (more than 24 hours) | AED 1,600 (100%) | AED 0 | AED 0 (no commission on full refund) |
| During stay, after 1 night stayed | AED 800 (2 unspent nights) Total - (1 stayed + 1 additional) = 1,600 - 800 |
AED 800 (1 stayed + 1 additional night) | AED 16 (2% of AED 800) |
| During stay, after 2 nights stayed | AED 400 (1 unspent night) Total - (2 stayed + 1 additional) = 1,600 - 1,200 |
AED 1,200 (2 stayed + 1 additional night) | AED 24 (2% of AED 1,200) |
| Completed stay (no cancellation) | AED 0 | AED 1,600 (full amount) | AED 32 (2% of AED 1,600) |
Tier 2: Moderate Cancellation Policy
Moderate Policy
Host Commission Rate: 2.5% of the total booking amount
Policy Definition
Guests can cancel up to 5 days before check-in for a full refund. No payment is made to the host in case of a full-refund cancellation. If the guest cancels after the 5-day window, the host will be paid for each night stayed, plus one additional night, plus 50% for all unspent nights.
Cancellation Scenarios
Example booking: 5 nights at AED 500/night = AED 2,500 total
| When Guest Cancels | Guest Refund | Host Receives | Host Commission (2.5%) |
|---|---|---|---|
| 10 days before check-in (more than 5 days) | AED 2,500 (100%) | AED 0 | AED 0 (no commission on full refund) |
| 6 days before check-in (more than 5 days) | AED 2,500 (100%) | AED 0 | AED 0 (no commission on full refund) |
| 3 days before check-in (less than 5 days, guest hasn't checked in yet) 0 nights stayed + 1 additional + 50% of 4 unspent = 0 + 500 + 1,000 |
AED 1,000 2,500 - 1,500 |
AED 1,500 | AED 37.50 (2.5% of AED 1,500) |
| During stay, after 1 night stayed 1 stayed + 1 additional + 50% of 3 unspent = 500 + 500 + 750 |
AED 750 2,500 - 1,750 |
AED 1,750 | AED 43.75 (2.5% of AED 1,750) |
| During stay, after 3 nights stayed 3 stayed + 1 additional + 50% of 1 unspent = 1,500 + 500 + 250 |
AED 250 2,500 - 2,250 |
AED 2,250 | AED 56.25 (2.5% of AED 2,250) |
| Completed stay (no cancellation) | AED 0 | AED 2,500 (full amount) | AED 62.50 (2.5% of AED 2,500) |
Tier 3: Firm Cancellation Policy
Firm Policy
Host Commission Rate: 3% of the total booking amount
Policy Definition
To receive a full refund, guests must cancel at least 30 days before check-in. If they cancel between 7 and 30 days before check-in, the host will be paid 50% of all nights. If they cancel less than 7 days before check-in, the host will be paid 100% of all nights. Guests can also receive a full refund if they cancel within 48 hours of booking, provided the cancellation occurs at least 14 days before check-in.
Cancellation Windows Summary
| Cancellation Timing | Guest Refund | Host Payment |
|---|---|---|
| 30+ days before check-in | 100% refund | 0% (no payment to host) |
| Within 48 hours of booking AND 14+ days before check-in | 100% refund | 0% (no payment to host) |
| 7 to 30 days before check-in | 50% refund | 50% of all nights |
| Less than 7 days before check-in | 0% refund | 100% of all nights |
Cancellation Scenarios
Example booking: 7 nights at AED 600/night = AED 4,200 total
| When Guest Cancels | Guest Refund | Host Receives | Host Commission (3%) |
|---|---|---|---|
| 45 days before check-in (30+ days) | AED 4,200 (100%) | AED 0 | AED 0 (no commission on full refund) |
| Within 48 hours of booking, 20 days before check-in | AED 4,200 (100%) | AED 0 | AED 0 (no commission on full refund) |
| 20 days before check-in (between 7-30 days) | AED 2,100 (50%) | AED 2,100 (50% of all nights) | AED 63 (3% of AED 2,100) |
| 10 days before check-in (between 7-30 days) | AED 2,100 (50%) | AED 2,100 (50% of all nights) | AED 63 (3% of AED 2,100) |
| 5 days before check-in (less than 7 days) | AED 0 (0%) | AED 4,200 (100% of all nights) | AED 126 (3% of AED 4,200) |
| 1 day before check-in (less than 7 days) | AED 0 (0%) | AED 4,200 (100% of all nights) | AED 126 (3% of AED 4,200) |
| Completed stay (no cancellation) | AED 0 | AED 4,200 (full amount) | AED 126 (3% of AED 4,200) |
Tier 4: Strict Cancellation Policy
Strict Policy
Host Commission Rate: 4% of the total booking amount
Policy Definition
To receive a full refund, guests must cancel within 48 hours of booking, and the cancellation must occur at least 14 days before check-in. If they cancel 14 or more days before check-in but not within 48 hours of booking, the host will be paid 50% of all nights. If they cancel between 7 and 14 days before check-in, the host will be paid 50% of all nights. If they cancel after that (less than 7 days before check-in), the host will be paid 100% of all nights.
Cancellation Windows Summary
| Cancellation Timing | Guest Refund | Host Payment |
|---|---|---|
| Within 48 hours of booking AND 14+ days before check-in | 100% refund | 0% (no payment to host) |
| 14+ days before check-in (but NOT within 48 hours of booking) | 50% refund | 50% of all nights |
| 7 to 14 days before check-in | 50% refund | 50% of all nights |
| Less than 7 days before check-in | 0% refund | 100% of all nights |
Cancellation Scenarios
Example booking: 10 nights at AED 800/night = AED 8,000 total
| When Guest Cancels | Guest Refund | Host Receives | Host Commission (4%) |
|---|---|---|---|
| Within 48 hours of booking, 20 days before check-in | AED 8,000 (100%) | AED 0 | AED 0 (no commission on full refund) |
| 1 week after booking, 20 days before check-in (14+ days, but NOT within 48 hours of booking) | AED 4,000 (50%) | AED 4,000 (50% of all nights) | AED 160 (4% of AED 4,000) |
| 10 days before check-in (between 7-14 days) | AED 4,000 (50%) | AED 4,000 (50% of all nights) | AED 160 (4% of AED 4,000) |
| 5 days before check-in (less than 7 days) | AED 0 (0%) | AED 8,000 (100% of all nights) | AED 320 (4% of AED 8,000) |
| 1 day before check-in (less than 7 days) | AED 0 (0%) | AED 8,000 (100% of all nights) | AED 320 (4% of AED 8,000) |
| Completed stay (no cancellation) | AED 0 | AED 8,000 (full amount) | AED 320 (4% of AED 8,000) |
Host Cancellations
If a host needs to cancel a booking, the following applies:
- The host must provide proof and a valid reason for the cancellation.
- In case of mutual agreement between the host and guest, the host must provide supporting proof of the agreement.
- The host must offer a similar or better alternative accommodation to the guest for the duration of their reservation.
- If the host fails to provide an alternative, OnsStay will arrange new accommodation and charge the difference to the host on a back-to-back arrangement.
- The guest receives a full refund from the original booking.
- The host pays the payment gateway charges since they initiated the cancellation.
Payment Gateway Charges
When a cancellation involves a refund, payment gateway charges may apply. The party who initiates the cancellation is responsible for these charges:
| Scenario | Who Pays Gateway Charges |
|---|---|
| Guest cancels with full refund (100%) | Guest pays gateway charges |
| Guest cancels with partial refund (50%) | Guest pays gateway charges |
| Guest cancels with no refund (0%) | No gateway charges (no refund is processed) |
| Host cancels the booking | Host pays gateway charges |
Refund Methods & Processing Times
When a refund is applicable, guests can choose from the following refund methods:
| Refund Method | Processing Time | Details |
|---|---|---|
| OnsStay Wallet Fastest | Immediate | Funds credited instantly to your OnsStay wallet after cancellation acceptance. Use for future bookings or request withdrawal. |
| Credit/Debit Card | Up to 15 business days | Refund appears as a credit on your card statement. |
| Bank Transfer | Up to 15 business days | Direct transfer to your bank account. |
| Digital Wallets (Apple Pay, Google Pay, etc.) | Up to 15 business days | Returned to your digital wallet account. |
| Tamara Pay Later | Up to 15 business days | Credit applied to your Tamara account. |
Recommended: OnsStay Wallet
For the fastest refund experience, we recommend choosing OnsStay wallet as your refund method. Funds are credited immediately after cancellation acceptance and can be used for future bookings or withdrawn to your bank account.
How to Cancel Your Booking
- Log in to your OnsStay account.
- Navigate to "My Bookings".
- Select the booking you wish to cancel.
- Click "Cancel Booking".
- Review the cancellation terms displayed, including the refund amount based on the property's cancellation policy tier.
- Choose your refund method (OnsStay wallet for instant credit, or original payment method for processing within 15 business days).
- Confirm the cancellation.
- Receive a confirmation email with refund details and expected timeline.
Exceptions & Special Cases
Force Majeure Events
The following circumstances qualify for full refunds regardless of cancellation policy tier:
- Government-mandated travel restrictions
- Natural disasters in the affected area
- Health and safety emergencies
Property Issues
If a guest arrives and the property does not match the listing description or has significant issues, OnsStay will investigate and may provide:
- Alternative accommodation arrangement
- Partial or full refund based on impact assessment
- Compensation for inconvenience (vouchers, credits)
Questions About Cancellations?
Contact our support team:
Email: support@onsstay.com
Phone: +971 4 871 4587
WhatsApp: +971 52 255 5504