Cancellations are stressful for everyone. A calm, written, step-by-step process protects your money and your relationship with the client.
Short answer: When a client cancels, acknowledge it at once, then check every booking against its supplier's terms, send the client a written breakdown showing what is refundable and what is not, offer alternatives where they exist, and refund what you owe promptly by the original payment method. Following the policy the client accepted keeps the process fair and consistent.
Updated October 2026. This is general guidance, not legal advice. Refund obligations vary by country and by the kind of booking.
Cancellations arrive at bad moments, often with emotion attached: illness, a family event, a change of plans. If you improvise each time, you will be inconsistent, and inconsistency creates disputes. A fixed process also stops you forgetting a supplier, which is where agents lose money.
Reply the same day if you can. Confirm that you have received the cancellation, say that you will come back with exact figures, and give a time. Keep it warm and brief.
Hi Maria, I'm sorry to hear that, and thank you for letting me know. I will check each booking with the suppliers today and send you a clear breakdown of what can be refunded by tomorrow afternoon.
Ask exactly what the client wants to cancel: the whole trip, or part of it. Confirm the date they are cancelling, because many charges depend on it. Ask in writing if it came by phone.
List each booking and what its supplier will return. Use a table so nothing is missed:
| Booking | Amount paid | Supplier refund | Charge |
|---|---|---|---|
| Hotel, 5 nights | 1,500 | 1,500 if cancelled by the free-cancellation date | 0 or a penalty after it |
| Flights | 1,200 | Often nothing, or taxes only | Fare, unless the fare allows a refund |
| Tour | 400 | Per supplier terms | Per supplier terms |
The figures are invented to show the layout. Always use the real supplier terms.
Now apply what the client agreed to with you: your service fee, and how supplier charges pass through. See how to write a cancellation policy. If the client accepted the terms in the proposal, you are applying something they have already seen. That makes the conversation easier.
Show the total paid, each deduction with the reason, and the amount refunded. Put the numbers in a table, and say when the money should arrive.
Total paid: 3,100. Supplier charges: 1,200 for flights, which the airline does not refund. Our service fee: 150. Refund due to you: 1,750, to the card you paid with, normally within 10 working days of the suppliers confirming.
Before you refund, ask whether the client would prefer to move the trip. Some suppliers allow a change of date at a smaller cost than cancelling. A credit towards a later trip keeps the relationship and the revenue, if the supplier terms allow it. Present it as an option, not as pressure.
Do not cancel anything before the client confirms in writing that they want to proceed on the figures you gave. Some cancellations cannot be undone. Once confirmed, cancel the bookings, keep the confirmation of each, and note the date.
Return the money by the original method where possible. Record the refund against the trip, send the client a short confirmation, and note the outcome. If you use a payment provider, remember that refunds are often processed in the provider's dashboard and take days to appear.
If the client has travel insurance, point them to it early. Many policies require a prompt claim and supporting documents, such as a medical note. You cannot make the claim for them, but you can send the supplier confirmations and cancellation dates they will need.
The other direction needs its own care. If a supplier cancels or changes a booking, tell the client quickly, explain the options, and do not let them discover it themselves. Keep the evidence of what the supplier sent. Refund obligations when the cancellation is not the client's are often stronger, and vary by country, so check yours.
A client has paid 4,000 for a family trip. Five weeks before departure, a parent falls ill and they cancel. The agent acknowledges the message within the hour and asks for the date the cancellation applies from.
The booking list shows a hotel (1,800, free cancellation ended two weeks ago, 50 percent charge now), flights (1,300, non-refundable fare, taxes returnable at about 140), and a tour (500, refundable until 14 days before). The agent also checks whether the client has insurance, and learns that they do, with a medical cancellation benefit.
The written breakdown shows total paid 4,000, hotel charge 900, flights lost 1,160 after taxes returned, tour refunded in full, and the agent's service fee of 150. The refund due is 1,790 after the deductions, and the agent adds that the insurance claim may recover much of what the client loses. The agent sends the supplier confirmations the insurer will want. The client is sad but treated kindly, and later books a trip the following year.
A complete file protects you if a dispute arises months later, and teaches you which clauses in your terms need clarifying.
Story of a Trip keeps the accepted terms, the payment schedule and every payment together on the trip, so the facts you need during a cancellation are in one place.
Acknowledge the cancellation quickly and kindly, confirm in writing that you have received it, then gather the facts: what has been booked, what each supplier will refund and by when. Do not discuss amounts until you have checked each booking.
Under your accepted terms, the client normally bears supplier charges that arise from their cancellation, as set out in your policy. That is why the policy has to be agreed before payment and has to reflect each supplier's actual rules.
Where possible, return money by the same method it was received, and tell the client the amount, what was deducted and why, and when to expect it. Refund times depend on the supplier and the payment provider, so give a range, not a promise.
That depends on what you stated in your terms. Many agents treat a planning fee as earned once work begins. Whatever you decide, apply it consistently and explain it in the breakdown.
Be prompt, fair and clear. Offer alternatives such as moving the dates or using the money for a later trip, where suppliers allow it. Clients remember how you treated them when things went wrong.
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