Why You Need a Clear Cancellation Policy
Without a written cancellation policy, every cancellation becomes a negotiation. Clients expect refunds, you've already committed funds to suppliers, and the conversation gets uncomfortable. A clear, fair policy set at booking time prevents disputes.
The Standard Tiered Cancellation Policy
| Timeframe Before Departure | Refund | Rationale |
|---|---|---|
| 60+ days | Full refund minus admin fee ($50-100) | Suppliers haven't been booked/paid |
| 30-59 days | 50% refund | Some supplier costs are non-refundable |
| 15-29 days | 25% refund | Most supplier costs are committed |
| 0-14 days | No refund | All costs are committed |
Key Clauses to Include
- Force majeure — natural disasters, pandemics, political unrest. Define what qualifies and what the remedy is (credit, reschedule, or refund).
- Operator cancellation — your right to cancel for insufficient numbers. Offer full refund or alternative dates.
- Trip interruption — if a client must leave mid-tour, clarify that unused portions are non-refundable.
- Changes to itinerary — reserve the right to modify due to weather, safety, or supplier issues.
- Travel insurance requirement — strongly recommend or require clients to carry trip cancellation insurance.
Legal Tips
- Have your policy reviewed by a legal professional in your jurisdiction
- Require written acknowledgment before accepting payment
- Keep the language plain and readable — legalistic jargon alienates clients
- Display prominently on your website, booking forms, and quotations