CANCELLING A HOLIDAY BOOKING?

CANCELLING A HOLIDAY BOOKING?

With the holiday season looming, consumers are clamouring to secure last-minute accommodations for their family vacations and new year’s getaways. In the past consumers were pressured to deposit very large amounts of deposit to secure date months in advance, however that is no longer the position.

What follows below is the explanation on why the suppliers can no longer get away with the blanket” no refund” cancellation policy which was once widely used and abused.

The Consumer Protection Act, No.68 of 2008 (‘the Act ‘), regulates the cancellation of advanced bookings by the consumers. Among other things, this Act establishes the consumer’s rights and provides accessible redress for consumers who are subjected to exploitation in the market place. Last but not least, the Act seeks to balance the rights of the consumer’s and those of the suppliers.

According to Section 17 of the Act, a supplier is entitled to require the consumer to pay a reasonable deposit in advance for the booking reservation at some other date. The consumer is also allowed to cancel such booking at any stage, subject to the supplier being entitled to charge a reasonable cancellation fee.

Criteria for determining a reasonable cancellation penalty

1.The length of cancellation of the booking

2.The nature of the services or goods that were reserved

3. Whether or not there is any alternative booking to fill a cancelled booking

4. The general practice of the relevant industry.

Although the Act does not entirely solve the tension surrounding the cancellation of bookings, it is trite that both suppliers and consumers would be wise to familiarize themselves with the consequences that flow from it.

If you are a supplier and are not sure of how you are required to show the proportionality between the cancellation fees and the actual loss suffered by your business, or you are the consumer and you are not certain of your right to challenge a seemingly unreasonable cancellation policy, please come to Duvenage Attorneys and we will gladly assist you.