Monday, September 8, 2014

Not All Travel Cancellation Policies Are Equal - Or Fair!

Not all Travel Cancellation Policies are equal ... fair ... or even close to being fair!  As a traveler and an agency owner, I know this all too well and have done some considerable research into them to make the best recommendations to clients.

When we worked with Tour Operators for our Ireland Self Drive Vacations, the cancellation policy was ... you couldn't cancel.  This seemed to be more common lately as Tour Operators pushed travelers into purchasing travel insurance rather than a sliding-scale fee for cancelling.  Cruise Lines and our Caribbean Tour Operators still offered sliding-scale cancellation fees which make more sense because it becomes increasingly harder to sell a room or cabin as the departure date approaches -- and an unsold room means lost revenue.

Tour Operator Double-Dipping Cancellations

Years ago we had a client who did not purchase Travel Protection Insurance and, you guessed it, she couldn't travel due to a fractured foot -- the day before departure!  Again, Murphy's Law kicks in and she was perfectly healthy with no medical issues at all and a small trip before vacation and she cannot travel.

We immediately notified the Tour Operator that she was not going to make the trip and they advised the advised it was non-refundable... but, in the same breath, advised me they would switch it for her if she rebooked it right with the next few weeks?  Of course there would be fees involved but it made me dig deeper. 

The fees charged were for the airline to change the tickets and that makes sense, all airlines do it and the fees are all about the same.  That means that the Tour Operator wasn't going to charge to change the hotels and car rentals so there were no fees involved.

So why are their packages advertised as "non-cancellable"?  That would be to ensure their profitability and for those that do cancel, they make a huge profit!  Think about it - you purchase insurance to protect your vacation and you have to cancel... file a claim and receive a refund.  Notifying the tour company and they cancel your hotel and car rental and never have to pay them... but you paid them for those items.  Double-dipping and huge profits!

Mind you, travel agents don't get paid when you cancel -- so tour operators don't pay us the commission that they already have!

Protecting The Costliest Part of Travel ... Airfare

Airfare remains the costliest part of most vacations for those traveling from North America to Europe and it is the one part of air travel that is non-refundable.  In that case you most certainly should purchase insurance.

With that in mind we decided to keep Enchanting Ireland's Cancellation Policy very simple and cost-effective.  Small cancellation fees up until 2 days prior as well as any fees transferred onto us.  With such a policy, you can purchase insurance to cover the airfare and the cancellation fees only... but remember, anything the day prior will not allow you to receive a refund.

So, in the case of the woman who sprained her foot ... she cancelled the day before and would not be entitled to a refund because all cancellation policies for cars and hotels require at least 48-hours notice.

Enchanting Ireland's Fair Cancellation Policy

Taking all of above into consideration, we sat down to review our supplier's cancellation policies and come up with our own... something fair for everyone.

As of right now we allow you to cancel 7-days or more prior to departure with just a $100 fee. This fee covers the cost of planning your vacation as well as cancelling each part to ensure a refund.

If you cancel 2-7 days prior then the charge increases to $200 as we are now against the clock to call Ireland and make sure we cancel your reservations in time to avoid penalties.

If you are less than 48-hours from departing for Ireland, we're sorry but there are no refunds.

Please keep in mind that credit cards charge us 3% for all payments, which we can refund within 3-months when cancelling.  If you paid for your trip more than 3-months prior, we cannot issue an electronic refund and have to issue a check.. which means the 3% credit card fee is non-refundable.

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