Business hours represent the working hours of your organization and you can set the system up to only allow bookings inside of these hours.
Apart from business hours, there are also workdays, which serve the same purpose as business hours, albeit on a daily and not an hourly scale.
Setting up business hours for the whole organisation
Navigate to Settings -> Platform -> Calendar & Bookings. Here you'll see that there are checkboxes next to each day, the ones that are enabled represent the workdays of the organization.
Beneath the workdays, you'll the fields for the business hours - the left one represents the start of the workday and right the end. In order to specify the hours you can simply click on one of the fields and a drop-down menu will appear, where you can select the times you need.
Setting up business hours per location
You can also set business hours per location.
This can be done by going to "Space"->"Locations".
In the "General" tab you'll see two drop-downs that are responsible for the business hours.
By default any new location you create will have its business hours set to match the ones you've set in "Settings"->"Platform"->"Calendar & Bookings".
However if you have multiple locations with different business hours you can specify them per location here.
What about outside business hours?
Outside business hours is considered any period of time that is outside the workdays and business hours. You can forbid members to book outside business hours by going to Settings -> Platform -> Calendar & Bookings. While there, click the checkbox next to Business hours bookings in order to forbid members to book meeting rooms outside business hours.
How exactly do business hours affect the booking calendar?
Depending on the business hours you've set in the settings for the organization the booking calendar will appear differently.
If you go to the daily view of the calendar you'll see that only the working hours are visible on the calendar.
If you haven't forbidden the outside business hours bookings then your members will still be able to make bookings that aren't in the hours that are visible on the calendar.
If you have forbidden outside hours bookings then an error message will appear that states that "Meeting rooms can't be booked outside of business hours."
Depending on the workdays that you've set, when you go to the weekly view you'll see that the days, which aren't considered work days are greyed out.
Note: The working hours that you choose are also used when using a full day or half-day resource rates or passes. If the total working hours in a day come up to 9 hours, for example, a half-day pass will be used when a member has checked in for less than 4 hours and a half, and any booking for 4 hours and a half will use the Half-day price of its resource rate.