How to Set the Right Cancellation Policy in Your Quote

September 11, 2025

A clear and fair cancellation policy is one of the most important parts of your travel quotation. It builds trust with travelers, protects your business from last-minute losses, and helps Holidify process refunds smoothly when cancellations happen.

But how do you decide what’s fair — and how do you set it up correctly?

Let’s break it down.

Why Your Cancellation Policy Matters

Travelers often worry about, “What if I need to cancel?” A transparent policy gives them peace of mind — and protects you from disputes related to cancellations down the line.

With a well-structured policy:

  • Travelers know exactly how much they’ll lose if they cancel

  • You’re compensated for the time, effort, and advance bookings you’ve made

  • Everyone understands the rules upfront — no confusion later

How to Structure Your Cancellation Policy

Holidify allows you to set a structured, multi-slab policy — based on how many days before the trip the traveler cancels.

You can define:

  • Partial refund slabs (e.g., 75% refund if canceled 30+ days before)

  • A full penalty window (e.g., 100% penalty if canceled within 15 days)

Here’s an example:

Days Before Trip                              Refund

30+ days                                           75%

15–29 days                                        50%

<15 days                                            0%

This ensures fairness: early cancellations get partial refunds, while last-minute cancellations incur a full penalty.

How to Set It in Your Quotation

When creating or editing a quote:

  1. Scroll to the Trip Policy section

  2. Click “Add Cancellation Policy”

  3. For each refund slab:

    • Select the number of days before the trip starts

    • Set the refund percentage (or penalty percentage)

Holidify’s system will automatically apply these rules if the traveler cancels their trip later.

💡 Tip: Add a clear final rule — such as “100% penalty after <X date>” — so there’s no confusion about last-minute cancellations.

Things to Keep in Mind

  • Be fair – Avoid harsh penalties far in advance. Travelers may hesitate to book if the terms feel too strict.
  • Be firm – Use stricter penalties for last-minute cancellations when you've already confirmed hotels, cabs, or other bookings.
  • Align with vendor policies – If your hotel or cab partners don’t offer refunds close to the trip, reflect that in your cancellation terms.
  • Explain clearly – Don’t assume travelers read the fine print. When sharing the quote, take a moment to explain the policy.

How PaySecure Handles Refunds

Once your cancellation policy is set, PaySecure enforces it strictly. Here’s what happens when a trip is canceled:

  • The refund is auto-calculated based on your set policy

  • The traveler receives the refund amount (if applicable)

  • You receive the penalty portion directly — no manual steps needed

It’s fast, fair, and reduces the chances of disputes.

Final Words

A strong cancellation policy isn’t just protection — it’s a trust-building tool. Set clear, balanced terms while creating your quote, and you’ll avoid refund-related hassles down the line.

Not sure where to start? Use a standard cancellation template and fine-tune it over time based on your experience.

Need help setting it up? Reach out to your Account Manager or check the Help section in your dashboard.

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