First things first: decide whether you want to issue a partial or full refund. Consider what many tours and activities operators do and issue a partial refund when the tour is cancelled close to the event date, and a full refund within a certain time frame.
When it comes to handling larger groups of 20-plus people—be they wedding parties, bachelor or bachelorette parties, or other private functions—things become a bit more murky. That makes it all the more important to have a clear cancellation policy for group bookings. You may want to impose a trip cancellation fee to cover any administrative costs associated with changing the reservation. For instance, Classic Journeys, a small group tours operator, posts a schedule of fees in their Cancellations & Refunds section based on the trip price and flat fees depending on when the cancellation was requested prior to the trip start date.
Something you can never predict, but can plan for: bad weather. If your tours take place at a destination at risk for tornadoes, severe thunderstorms, hurricanes, or other types of severe weather during certain times of the year, this needs to be addressed in your policy. Adventure Cat Sailing Charters addresses this issue succinctly in its FAQs page.
Sometimes customers may change their minds or itineraries and will need to reschedule a tour or activity for a later date. If you offer cooking tours or other specialized tours, it may not be possible to reschedule since you have already paid your tour guides and made arrangements to set up the tours at various venues. In situations like these, you may need to state that tickets are non-refundable if a cancellation is requested within a certain timeframe. We also agree to the Individual Redress Principle, which requires that individuals have a right to pursue legally enforceable rights against data collectors and processors who fail to adhere to the law. This principle requires not only that individuals have enforceable rights against data users, but also that individuals have recourse to courts or government agencies to investigate and/or prosecute non-compliance by data processors.
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