Cancellation Policy-what's Sensible?

[tb42_So]

i have a diving business and i've got 4 people booked for the Similan trip, then a week before the departure date they canceled because one of them found out about pregnancy. They deposit about 20 % of the total price and i already gave that money to the trip operator, so i talked to them they gave me money back and i decided to refund these people 25% of the deposit which i think is very fair, but i got email saying they want more money back. I think i've done some work on this case and i didn't take too much for it.

The operator cancellation policy is if you canceled less than 45 days before departure date ,you don't get money back. i emailed them last month and they didn't object, so why are they doing this now

i explained what's what already. What's your opinion?

[peter991]

The operator's policy is 45 days notice. That's a bit excessive - but that is his policy. It should be part of your duty to let clients know before they make their booking what the cancellation penalties are.

Whether or not you told the clients - it's a case of buyer beware. If you failed to advise them, it is still their responsibility to check.

It also depends on how much preparation the operator made and whether or not he was able to 're-sell' the dive. Your clients may not be able to get a refund until well after the dive date.

That's my thoughts on the matter.

Peter

[tb42_So]

they were told to deposit 30% because that's what i need to confirm the booking and it's non-refundable. without the deposit i can;t confirm . they didn't want to deposit anything at the beginning but i told them without the deposit i couldn;t guarantee their spaces so they decided to dep. 20%. They knew that and i explained to them a while ago.

SORRY I REFUND 75% OF THE TRIP PRICE NOT 25%. I KEPT 25%

[GuestHouse]

Let me see if I have this right.

People who booked a tour/trip with you have had to cancel due to a pregnancy.

They have asked for a return of their deposit.

You have managed to get a refund from the operator (a bit of good will going on there) but decide to keep 75% of the deposit for your own efforts.

The Operator's 45 day refund policy is irrelevant since they themselves ignored it when they made a refund to you.

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In your contract with the customers do you have a booking fee? ie a portion of the deposit that is designated for booking costs?

----

If not then I think you are loosing sight of two things - The deposit belongs to the people booking, you should return it, just like the operator did.

And secondly, you are taking your eye off the all important 'reputation' of your business because you have your eye on money that you ought to have returned to the customer.

----

I'd like to have been a fly on the wall when you where talking to the Operator 'Can I have the deposit back, I'm going to keep 75% of it myself !!!

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Reputation / good / bad news... its all important stuff....

Tell us who the operator is, they sound like reasonable people with good business practices - I'd be glad to book directly with them myself. Going through some middleman who thinks he's entitled to my deposit money would not be my idea of good sense and I am absolutely sure that the people who's deposit you are keeping are thinking likewise.

I'd sort that out before they start spreading the good word if I where you.

Edited February 5, 2008 by GuestHouse

[Shrubbery]

The trip operator refunded you. Presumably the full amount that you paid. So why not refund your clients the full amount too.

Ok, you are a business and need to pay costs, but I believe you should also show the good will that was shown to you.

[cmsally]

If you have a clear and precise cancellation policy, then that is what you should stick by.

There is not much use in having a policy if you don't stick to it.

If you have an internet booking system you might want to add a check box that states they have read conditions (policies) before they can put the booking through.

To be fair to your supplier you should be splitting the deposit with him for wasted time etc.

But if they made the booking through you, you should be going by your booking conditions and not the suppliers (although these maybe the same).

If you are are acting solely as a booking agent then you should be taking a booking fee which is non refundable and your supplier would keep deposit according to their policy.

[jbowman1993]

Let me see if I have this right.

People who booked a tour/trip with you have had to cancel due to a pregnancy.

They have asked for a return of their deposit.

You have managed to get a refund from the operator (a bit of good will going on there) but decide to keep 75% of the deposit for your own efforts.

The Operator's 45 day refund policy is irrelevant since they themselves ignored it when they made a refund to you.

----

In your contract with the customers do you have a booking fee? ie a portion of the deposit that is designated for booking costs?

----

If not then I think you are loosing sight of two things - The deposit belongs to the people booking, you should return it, just like the operator did.

And secondly, you are taking your eye off the all important 'reputation' of your business because you have your eye on money that you ought to have returned to the customer.

----

I'd like to have been a fly on the wall when you where talking to the Operator 'Can I have the deposit back, I'm going to keep 75% of it myself !!!

-----------

Reputation / good / bad news... its all important stuff....

Tell us who the operator is, they sound like reasonable people with good business practices - I'd be glad to book directly with them myself. Going through some middleman who thinks he's entitled to my deposit money would not be my idea of good sense and I am absolutely sure that the people who's deposit you are keeping are thinking likewise.

I'd sort that out before they start spreading the good word if I where you.

Another great post from GH, who is, imo, the MVP of ThaiVisa