Covid - 19 - Cancellation Policies
How each business deals with cancellations is their own individual commercial decision to make. There are no easy answers - we have seen a variety of responses across the industry so far, with people balancing their current needs with a longer-term view of securing good relationships for the future when things ease up again. However, if you receive a cancellation within your cancellation policy you are able to invoke the terms of your policy - if you wish.
There are some things you should take into consideration:
- different countries have different laws regarding cancellations and we operate under NZ law. However, under German law (for example) agents are required to refund the customer the full price of the trip if entry is not possible at the time of travel. Agents may therefore ask you to waive your cancellation fee.
- If you work with Agents you may wish to waive cancellation fees (or part thereof) and look to the future considering future bookings they may send to you; and
- If you have guests who wish to cancel but who have already paid, instead of refunding them or taking a cancellation fee; you may wish to offer them a period in which they can rebook with you which the funds already paid will be credited to, eg. If a guest has paid $50 you may say that if they rebook with you before the end of 2021 the $50 will be put towards that booking.
The bottom line is that you must make the decision that is best for you and your business.
We have a force majeure clause in our agreements, can we use it now?
Yes, however, it depends on the wording. Lane Neave suggests seeking advice before looking to invoke one of these clauses.