How To Reduce Cancellations and Their Impact
Jarod LaFalce
Co-Founder / COO of BookingTerminal
Published on: Dec 12, 2024 | Estimated Read Time: 3 minutes
Last-minute cancellations are one of the biggest frustrations for tour and excursion operators. You’ve planned, staffed, and reserved availability, only to have a customer cancel hours before their booking. Sound familiar? Don’t worry—we’ve got tips to help reduce cancellations and limit their impact.
Set Clear Expectations with a Cancellation Policy
A clear refund policy is the foundation of reducing cancellations. Here’s how:
- Require cancellations at least X days in advance to qualify for a Y% refund.
- Late cancellations result in no refund to cover preparation costs.
To make sure customers understand your policy, display it prominently during checkout. BookingTerminal makes this easy by showing your cancellation terms right before customers enter payment details—there’s no way to miss it!
Protect Your Business with Non-Refundable Deposits
To cover operational costs, consider requiring non-refundable deposits or making a portion of the payment non-refundable after a certain date:
- Use deposits to cover upfront expenses like accommodations or commissions.
- Be transparent—explain why the deposit is non-refundable, so customers understand.
BookingTerminal helps you categorize deposits and non-refundable fees separately, making it easy to manage refunds fairly.
Offer Peace of Mind with Trip Protection
Trip Protection is an optional upgrade that allows customers to cancel closer to their booking date in exchange for a fee:
- Customers gain flexibility and peace of mind.
- You recoup potential losses from late cancellations.
This win-win solution avoids uncomfortable refund conversations while giving customers more control.
Conclusion
Cancellations may be inevitable, but with the right strategies, you can minimize their impact. By setting clear policies, protecting your business with deposits, and offering Trip Protection, you’ll take control of cancellations and keep operations running smoothly.
Ready to streamline your booking process and reduce cancellations? Schedule a demo with us today or email us directly to set up some time to chat!