When travel does not happen.
WHAT CAUSES CANCELLATION
The client changing plans Illness Documentation refused Supplier cancellation Disruption at the destination
WHAT TO ESTABLISH AT BOOKING
Your cancellation terms, stated clearly and agreed.
WHAT THEY SHOULD SPECIFY
What is retained at each point before departure Whether any element is non-refundable from the outset How refunds are processed and over what period
WHY BY PERIOD
Your exposure increases as departure approaches and suppliers become non-refundable.
WHAT TO MATCH
Your terms to your suppliers'.
WHY
Refunding more than you can recover is a direct loss.
WHAT TO EXPLAIN
Which elements are non-refundable and why.
WHAT TO DO ABOUT SUPPLIER CANCELLATION
Inform the client immediately Offer alternatives Refund what cannot be replaced
WHY IMMEDIATELY
Clients discovering it themselves lose all confidence.
WHAT TO ESTABLISH ABOUT AIRLINE REFUNDS
That they take time, and the timescale is not within your control.
WHAT TO EXPLAIN
That timescale, at the point of request.
WHY
Clients assume immediate refund and pursue you when it does not arrive.
WHAT TO NEVER DO
Refund from other clients' deposits.
WHY
It is the pattern that ends in collapse and it harms everyone.
WHAT TO ESTABLISH
Reserves sufficient to meet refunds.
WHAT TO RECORD
Every cancellation, what was retained, what was refunded and when.
WHAT TO TRACK
Cancellation rates, and their causes.