SOP: Handling a supplier cancellation

By Demo Advisor · Updated May 12, 2026

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Purpose: Standardize our response to a supplier-initiated cancellation so clients feel taken care of, rebookings happen fast, and we don't accidentally give up commission or rights we're entitled to.

Who runs this

Primary: Booking advisor

Backup: Operations lead

Trigger

Supplier email/call: booking canceled by them, not us or the client

SLA

Contact the client within 4 business hours

Rebooking options within 24 hours

Step 1 — before you call the client

Step 2 — call the client

  1. Call, don't email. This is bad news and relationship work.

  2. Open with: "I have some news about your [trip]. [Supplier] contacted me this morning — they've had to cancel [specific booking]. I'm going to walk you through what that means and what your options are."

  3. Explain what the supplier is offering (refund, credit, alternative sailing/dates, etc.).

  4. Give them time to react. Don't rush to "solutions" — acknowledge the disappointment first.

  5. Commit to an action: "I'll come back to you within 24 hours with 3 rebooking options. Is there a date we can talk then?"

  6. Follow up same-day with a written email summarizing what you discussed.

Step 3 — identify alternatives

Same supplier, different date

Simplest. Most suppliers give priority + price-match to rebooking on a different date.

Good for: flexible clients, supplier-loyal clients (Disney, Virgin, etc.).

Similar product, different supplier

Match as closely as possible — same destination, same cabin category, similar dates.

Good for: fixed-date clients, clients who are done with the original supplier.

Step 4 — present the options

  1. Send 3 options, priced + linked. Don't over-research — you're not locking them in, you're showing what's possible.

  2. Include the supplier's original compensation (credit, refund, etc.) in the math for each option.

  3. Be upfront about price differences — if the alternatives cost more, say so; if there's a way to absorb the difference, say that too.

  4. Recommend ONE. Clients overwhelmed with options freeze; a recommendation unfreezes them.

Commission implications

Supplier cancels, client refunds

We lose the original commission. Rebooking with same supplier usually earns new commission. Rebooking with different supplier requires a new booking and earns that supplier's commission.

Supplier cancels, client rebooks

Most suppliers preserve commission on same-supplier rebookings. Some (Disney, Virgin) go further and give us a bonus for retaining the client. Different-supplier rebooking earns full commission on the new booking.

Common failure modes

Supplier refuses to honor the original price

Symptom: rebooking quoted at new rack rate, not original quoted rate.

Response: Escalate to the supplier's BDM (business development manager) for your agency. Consortium agreements usually require price-matching on cancellations. Have the original booking confirmation ready.

Client demands we pay the difference

Symptom: new option is $800 more and client expects us to eat it.

Response: Your call based on client value and relationship. If they're a repeat high-value client, absorbing the difference is sometimes worth it. If they're a one-off: explain politely that supplier cancellations aren't our responsibility and help them find something that fits their budget.

After the dust settles

  1. Log the full incident in the client's CRM file.

  2. File any insurance claims for non-refundable expenses (if applicable).

  3. Update commission tracker with the new booking's expected commission.

  4. Schedule a check-in email 2 weeks before the new departure.

  5. If the supplier's cancellation was egregious, note it in our internal supplier-rating sheet so we can steer future clients accordingly.

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