What Happens When a Traveler Cancels: Refunds, Penalties & Your Role

Travel plans change — and when they do, cancellations are bound to happen. As an agent using PaySecure, it’s important to understand what exactly unfolds when a traveler cancels a booking. How does refund work? What happens to your payout? How are penalties applied? Let’s break it down clearly.

Step 1: The Traveler Requests a Cancellation

When the traveler tries to cancel their trip from their Holidify account . travellers are shown the exact cancellation penalty applicable as on that date. If the traveller confirms, the trip gets cancelled. As an agent, please make sure that the cancellation policy is defined properly by you in the first place.

Step 2: Refunds Are Calculated Automatically

PaySecure ensures complete transparency. Here's how refunds are handled:

  • If the cancellation happens before the 100% penalty kicks in, the traveler is refunded the eligible amount. It will depend on how much the traveller has paid so far (Partial or Full) and the date on which cancellation is being done.

  • If the cancellation happens within the 100% penalty period, the traveler gets no refund.

The PaySecure service fee ( 3%) is non-refundable, but the remaining amount (minus penalties) is returned to the traveler.

Step 3: What You Receive (Agent Payouts)

Once the cancellation is processed, your payout, if applicable will get processed immediately after the refunds to travellers are processed. 

Your Payout = Travellers Paid (excluding PaySecure Fees) - Refunds given to traveller

Example:
If the trip amount was ₹50,000 (excluding PaySecure), and your policy states:

  • 40% penalty if canceled 30+ days in advance
  • 100% refund if cancelled within 30 days

If the traveler cancels 35 days before the trip:

  • Traveler gets ₹20,000 refunded
  • You receive ₹30,000 as payouts

Transparency for All Sides

  • Travelers see the refund breakup before confirming cancellation.
  • Once canceled, they get an invoice and a confirmation email.
  • You can track the updated booking status and payout in the My Payouts section.

What If the Agent Cancels?

This should almost never happen, unless there’s an emergency. 

If you (the agent) cancel a trip, Holidify expects you to inform support. In such cases, a full refund is issued to the traveler, including the PaySecure fee and no payout is released to you

Repeated cancellations may lead to penalties on you or affect your eligibility for PaySecure going forward.

Key Takeaways for Agents

  • Always define a clear cancellation policy in every quote.
  • Refunds are handled by Holidify — no manual intervention required.
  • Your payout is protected where applicable through defined penalties.

PaySecure simplifies the tricky parts of cancellations.

Your policies are enforced. Travelers are informed. You stay focused on delivering a great trip — not chasing payments or resolving refund issues.

June 19, 2025

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