If you’re reading that and thinking, “hang on, how can something be a small slice of sales but a huge slice of refunds?”, you’re not alone.
It’s the ticketing equivalent of the one friend who only drinks sparkling water, but somehow starts every argument.
In our latest hop-on hop-off dataset, API-connected sales make up 11% of bookings, yet they account for 31% of refunds. That gap is big enough to deserve its own plan. And a bit of an explanation.
Why API bookings create more refunds
This is rarely about “bad partners”, it’s probably more likely to be friction. API sales are made via other OTAs, resellers, and partners, so you don’t necessarily have full control over every element of its presentation.
API sales often mean:
- The guest bought from someone else’s shop front, with someone else’s wording, and sometimes someone else’s rules.
- The guest expects the same flexibility they get from flights and hotels, even when you’re selling a simple 24-hour ticket.
- Refund requests are easier to trigger through some channels than others.
- When something goes wrong (weather, route disruptions, staffing issues), the API channel can create a longer admin chain.
In plain terms: API sales are great at scale, but they add distance between you and the buyer. It’s within that distance that confusion can become a serious issue. And confusion is where refunds are born.
The goal: reduce refunds without nuking partner sales
If you’re thinking, “fine, we’ll just push everyone to direct”, that’s a nice dream. It’s also how you wake up with fewer bookings.
The value in a high quality distribution partner is remarkable, as it helps extend your sales reach beyond anything you could expect from a single, direct channel. But that doesn’t mean that there aren’t things you can do to keep things running smoothly.
Keep your partners, they will boost sales. But tightening up the rules, and making sure that they are incredibly clear from the get-go will help avoid customers feeling like they were overpromised. And even if the answer is “no”, make sure that your guest feels catered to and looked after.
Here are the moves that work, in order.
1) Set a cancellation window that matches how HOHO is actually bought
HOHO is heavily same-day and walk-up. The casual on-the-day element is baked into the name, as “hop-on, hop off” evokes a pretty relaxed, flexible mindset.
That means last-minute cancellations are common unless you make the boundary clear.
A strong default for API channels is:
- Free cancellation up to a sensible cut-off (for example, the night before, or a fixed number of hours before first use).
- No refunds once the ticket is used (scanned, activated, whatever “used” means in your setup).
- Clear exceptions for genuine disruptions you control (route paused, service not running, severe weather policy).
What matters is not the exact cut-off. It’s that you choose one, stick to it, and ensure it is shown at checkout in partner channels.
Link this section to your research page section on booking windows and same-day behaviour, because that’s the evidence for why last-minute rules matter in HOHO.
2) Rewrite ticket conditions like a human, not like a lawyer
Most refund pain starts with one sentence the guest didn’t read, because it didn’t look like it mattered.
You want conditions that pass the “bus stop test”. Could someone understand them while standing outside in the wind?
Focus on three lines:
- When the ticket becomes valid (purchase time vs first scan vs first hop).
- How long it lasts (24/48/72 hours) and what that actually means.
- What counts as use (first scan, first boarding, first validation).
Then add the one line that prevents the messiest requests:
“Tickets are flexible, but not refundable after first use.” – this line alone is a powerful reminder that the moment you use the ticket, it’s refund potential is gone.
That line sounds obvious to you. It is not obvious to everyone to buy through a third party. The way that you present the refund matters a lot, because refunding the right way can win you customer trust.
3) Add two nudges that quietly reduce refunds
You don’t need a big campaign. You need tiny nudges in the right places.
Refunds often happen because guests feel unsure, not because they truly want their money back.
A short message reduces that panic, include:
- Where to start (with a map link).
- When the ticket starts (in one line).
- How to get help (phone, WhatsApp, kiosk, staff point).
Nudge b: offer changes instead of refunds where possible
If you can offer:
- A date change
- A longer validity window (if unused)
- A conversion to a different product type
…you’ll keep revenue and reduce admin. OTAs also prefer this because it keeps their customer happy without a refund dispute. You also are able to demonstrate flexibility to the customer, rather than leaving them high and dry with a “sorry, but there’s nothing we can do”. Which to the customer just sounds like “we are taking your money”.
Link this section to your “tourist movement” insights (peak times, usage patterns) to explain why guests often change plans mid-day.
4) Make partners part of the solution (without starting a fight)
If API sales are driving a big chunk of refunds, your partners need a tighter brief. Throwing out the entire point of partners due to refunds will leave you with less volume, and less sales, even if it takes care of your refund problem.
Send a one-page partner note that covers:
- Cancellation cut-off (exact time)
- What “used” means (how it is measured)
- What you can offer instead of refunds (changes, rebooking, credit, where applicable)
- What information must be shown at checkout (validity start, duration, key exclusions)
Make it easy for them to comply. If they have to hunt for wording, they’ll wing it, and you’ll see it later in refund requests. Link this section to the refund chart and the channel split so the partner message feels more general than personal.
5) Keep your direct channel strong, without picking a fight with OTAs
You can reduce dependency on partners without declaring war on them. Maintaining a strong presence across various OTAs via a quality channel manager that simplifies the process frees up more of your time to build your own direct channel, too.
Do it by improving the direct experience for the people who are already about to buy:
- Fast mobile checkout (especially for walk-up QR posters)
- Clear product choice (most guests do not want to compare five ticket types)
- Confidence cues (start points, frequency, “you can hop on and off”, quick FAQs)
Then use one soft line on confirmation pages and stop signage:
Next time, book direct for the quickest support and the clearest rules.
It’s not anti-OTA. It’s pro-clarity.
If you want to ensure that your partners are working for you rather than stirring up refunds. Chat with us today, small changes now can drastically boost your bookings (and minimise complaints!)
Quick Checklist: Reduce API Refunds in 30 Days