Negotiating with Travel Suppliers for Flexible Cancellation and Refund Policies

When negotiating with travel suppliers for flexible cancellation and refund policies, it’s important to approach the conversation with clear objectives, a collaborative attitude, and a well-prepared strategy. Here are some steps to effectively negotiate these terms:

1. Research and Preparation

   • Understand Supplier Policies: Before negotiating, familiarize yourself with the supplier’s existing cancellation and refund policies.
   • Benchmarking: Compare policies of different suppliers to understand industry standards and identify leverage points.
   • Know Your Needs: Clearly define what flexibility you need, such as full refunds, partial refunds, or rescheduling options.

2. Build a Relationship

   • Establish Rapport: Develop a positive relationship with the supplier, emphasizing long-term cooperation and mutual benefits.
   • Communication Channels: Use appropriate communication channels, such as direct calls or face-to-face meetings, to facilitate better understanding and trust.

3. Present Your Case

   • Explain Your Position: Clearly articulate why you need flexible cancellation and refund policies, emphasizing the importance for your business.
   • Highlight Benefits: Explain how these policies can benefit the supplier by ensuring continued business, loyalty, and positive word-of-mouth.

4. Negotiate Terms

   • Flexibility Options: Propose various flexibility options, such as extending cancellation windows, reducing cancellation fees, or allowing credit for future travel.
   • Compromise: Be prepared to find a middle ground. Offer concessions where possible, such as agreeing to higher upfront costs in exchange for more flexible terms.

5. Leverage Volume and Loyalty

   • Volume Commitments: If applicable, use the volume of business you provide as leverage to negotiate better terms.
   • Loyalty Programs: Highlight your loyalty and long-term relationship with the supplier as a basis for requesting flexibility.

6. Formalize Agreements

   • Written Agreements: Ensure that any agreed-upon terms are documented in writing to avoid misunderstandings later.
   • Regular Reviews: Agree on periodic reviews of the terms to adjust them based on evolving needs and circumstances.

Siamak Ekhtary
Business Developer
Gate of Nations GmbH