Cancellation holidays are actually tour packages being offered at a cheaper rate just for the purpose of breaking even or sort of soften the blow for the travel agency or airline and the hotel or resort in which a client has a reservation but cancelled in the last minute. Usually these tour packages were booked months before the scheduled flight especially when the time that the client wanted to avail of the package would fall on the “peak calendar days” of the airline or the hotel. It is usually hard to get accommodations during the peak dates even if you book them months ahead. Availability of the flight and the room will be looked into and sometimes clients were advised to wait for the call within one week to confirm if the requested schedule is okay.
Finally it was approved and the client was all set and just waited for the coveted day of departure to finally come. Then the dreaded thing happened, after all the trouble the client went through something came up and the trip won’t push anymore. Woes to the client who tried and waited for the day to come plus the refund will not be paid in full because there are appropriate cancellation fees that needed to be paid but not enough to cover for the loss of the hotel and the airline. Woes to the hotel and the airline, closed deal were loss and they could not do anything about it and that is where cancellation holidays come into view.
Clients who have been waiting for (sad to say but true) other’s cancellation due to some misfortune are just too happy and too glad to avail of the cancellation holidays offered by the agency. The original cancelled package is intact and the only truth that needed to be changed is the names of the persons staying at the hotel that availed the whole package. The situation brought joys to the new clients because they can have that vacation at a very reasonable price. Joys to the hotel and the airline company as well as the travel agencies because even if they break even, they did not lose a single cent unlike when a particular flight suddenly lack a passenger or two they won’t be able to cancel just because of that. They still have to fly even if the flight is not full (this is also true to lean seasons when the aircraft won’t be able to fill up the necessary number of passenger just to break even, airline usually offer a very low fare so that people will be enticed to fly).
You might think that airline companies or the hotel won’t get any benefits from having cancellation holidays but they do get a lot from it more than you think especially on the side of the aircraft provider. They were saved from the possible loss and the new clients get to enjoy a wonderful vacation in a very cheap price. The only one who might be having some dull day is the clients that made some last minute cancellation.