What is the refund policy if the agency cancels?

If the DMC cancels your tour because of internal operational failures, then they’re legally bound to hand back a full refund for every deposit you made. Reputable companies will also try to lock in a replacement operator on your behalf.

But when the cancellation happens because of major force majeure events (think global pandemics, border closures), most agencies usually provide credit vouchers for later trips rather than cash reimbursements, and this depends heavily on what the hotels permit.