What Happens When a Reservation Is Cancelled

This diagram shows how funds move when a covered reservation is cancelled, the guest is fully refunded, and there is no replacement booking for the cancelled dates.

The key idea remains the same: the guest is made whole, while booking income is protected through Roam.

What’s new here is how that protected income can be shared.

Step-by-Step Breakdown

1. Guest Cancels the Reservation

When a guest cancels a covered reservation:

• All guest payments are refunded
  • $1,175 booking subtotal
  • $100 in taxes
• Taxes are not retained on cancelled reservations

2. No Following Departure (No Rebooking)

This scenario assumes:

• The cancelled dates are not rebooked
• The property would otherwise earn a delta on whatever rebooked amount. (e.g. original amount $1175, rebooked amount $800 —> claim payment for $375)

3. Roam Pays a Claim

After the cancellation is finalized (departure date):

• Roam pays a $1,000 claim