Quick question. What happens with the reservation status in the front end calendar if people book but fail to pay.
Is it shown as booked and no one can book that spot?

Best would be if its still available and only if their payment goes through it shows it as booked.

Hello,
reservation will be still active.
But if you set reservation expiration to online payment only, new reservation is created as canceled.

Hello,

for this reason we added there new functionality in last update. If you have version 1.5.7 or 2 beta, please check this:
object detail -> Prices -> Reservation Expiration.

It looks like you want to use 'Online Payment Only' option. Customers will be able to use online payments only and new order will be cancelled. If payment will be received, order will be confirmed and then other users will be not able to book that time.
There are also other settings, where you can select how long after reservation customers have to pay for it. If reservation is not paid until that time, reservation should be cancelled and time should be available for other users.

Thanks, yep, working now.