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Cancellation of booked trips

Discussion in 'Indonesia' started by Indah, Mar 18, 2020.

  1. jjmochi

    jjmochi Contributor

    # of Dives: 100 - 199
    Location: Hong Kong
    @Indah do you not have business interruption insurance?

    I find your proposal quite outrageous. If the difference is the 10% discount you should at minimum agree to refund all except the 10%. In the alternate scenario another person would have paid no deposit. Your opportunity cost here by booking this person and allowing them to reschedule is only the 10% vs another guest who pay full price with no deposit then cancel with no penalty. Your argument that the money has already been spent/is needed to keep the place afloat has no credibility given you allow the option of booking with no deposit.

    Businesses should have contingency planning and sufficient liquidity for such scenarios, that is exactly why business interruption insurance exists.

    Is the cost of a short term disruption (call it 3 to 6 months of lost income) worth permanent damage to reputation? No one is suggesting you change your cancellation policy so guests can always cancel with no penalty. I would have more sympathy if these were voluntary cancellations for fear of getting the virus, but when government restrictions make it impossible to go, you should be reasonable and allow them to reschedule.

    This is what virtually all tour groups in China, HK, Korea, etc have done when the travel bans were put into effect in Feb. This is what airlines have to contend with when travel restrictions force them to cancel flights and refund guests. I don’t see why dive resorts should be an exception.
    Dan and outofofficebrb like this.
  2. Ministryofgiraffes

    Ministryofgiraffes Contributor

    # of Dives: 1,000 - 2,499
    Location: Toronto
    I’d keep a very close eye on this trip. I bet it doesn’t sail empty and if I found out it didn’t sail, you can bet your ass I would want a full refund.

    BLACKCRUSADER Contributor

    # of Dives: I'm a Fish!
    Location: Taiwan
    No bailout plans in Taiwan either. My wife and I also own a guest house and we refunded in full any customers due to the current virus situation. We had a group booked to come from Japan but all foreigners are now banned from entering Taiwan. Even local in country customers we give a refund to in full no questions asked. Yes we have a cancellation policy as well especially for peak holiday times.

    In fact we have a local group coming tomorrow I wanted my wife to consider to cancel but they are regular local clients who all know each other. Its a bit tough to say suck it up buttercup not my fault you can't fly or you suddenly need to get a visa or if you go to said country like Indonesia you go into mandatory 14 quarantine and your travel insurance wont pay as Indonesia is now considered a level 3 country by Taiwan so anyone from Taiwan who goes to a level 3 country gets no insurance coverage and will need to pay around US$ 200 a day plus medical expenses what ever they turn out to be.

    Yeah so I cancelled my Bali trip. Only one place refused to refund or reschedule. All the others understand and refunded.

    BLACKCRUSADER Contributor

    # of Dives: I'm a Fish!
    Location: Taiwan
    In light of the current situation yes. Many flights around the world are cancelled or being cancelled. Qantas stops international flights so if I was flying Qantas how would I get home? many countries are forcing mandatory 14 day self quarantine so even if they could come they would be holed up in their room and cannot go outside. There are fines, US$32,000 in Taiwan to one guy who decided to ignore quarantine. By law you have to give your cell number and have it on at all times and government uses location tracking.
  5. Indah

    Indah Contributor

    # of Dives: 5,000 - ∞
    Location: Weda, Lembeh and Rao Morotai
    thanks for the food for thought.

    BLACKCRUSADER Contributor

    # of Dives: I'm a Fish!
    Location: Taiwan
    My dive buddy for Bali trip was to fly from UK to Dubai then Taiwan then Bali then Singapore Dubai UK

    Emirates cancelled the flight to Taiwan as all foreigners are barred from entering Taiwan. Oh Well. Then Bali institutes needing a medical check and a visa... oh well cant be done in time and then UK gov issues a DO NOT TRAVEL to anywhere advisory oh well. Then Singapore bans anyone who has been in Indonesia even on transit flights. Oh well

    Resort tells my dive buddy no refund take a hike.. oh well.

    Just food for thought. :) If there was no issue in traveling or no virus and a last minute cancellation I understand no refund policy. We told them more than a week in advance as Taiwan just announced the ban on foreigners traveling to Taiwan on 18 March we were due to go to Bali 24th. Also no Indonesian Embassy in Taiwan you can get to over the weekend to get a visa anyway.
    Indah likes this.
  7. chillyinCanada

    chillyinCanada ScubaBoard Supporter Staff Member ScubaBoard Supporter

    I have seen this cancellation clause or similar, a number of places around the world.
    I've used similar to my advantage more than once. A 16 room hotel in the middle of nowhere, so to speak, we should not be surprised. Nor should we be disparaging. I wonder how many people got their money back after the tsunami.
  8. Jay

    Jay Need to dive more!

    # of Dives: 100 - 199
    Location: Melbourne, OZ.
    FWIW - I've got a fully paid LOB which sails in two months. I'm asking for a reschedule and have also proposed a 20% haircut of they refund. The idea of the haircut being to help with the operation's fixed costs.

    I'm concerned paying large non-refundable deposits (via TT) in the future too far ahead.

    However, I'm also concerned that some of my favourite shore based dive op's might fail. I'm thinking of proposing pre-paying 2021 trips ... say with 50% deposits ... to help with 2020 cashflows.
    Mike1967 likes this.
  9. chillyinCanada

    chillyinCanada ScubaBoard Supporter Staff Member ScubaBoard Supporter

    Good on you.
    Jay likes this.
  10. chillyinCanada

    chillyinCanada ScubaBoard Supporter Staff Member ScubaBoard Supporter

    Read this please

    'Bali will die': Fears for future in Indonesia's tourism hotspot

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