Cancellation Fees

Question:

Dear respected Mufti Saheb,

Kindly advice how I can charge on cancellation for tour. Last few months, customer transfer cancel and i had to bear the cost of cancelation from supplier as well. Please check and advice

Cancellation

For Sightseeing Tours
– If notification of cancellation is received 7 working days (excluding Saturday, Sunday, Public Holidays) prior to departure date: There will be no cancellation charge except for a credit card processing fee of 4%.

– If notification of cancellation is received 3 working days (excluding Saturday, Sunday, Public holidays) prior to departure date: There will be cancellation charge 20% of the total payment.

– If notification of cancellation is received less than 3 working days (excluding Saturday, Sunday, Public holidays) prior to departure date: Full payment.

– If no show of any tours on confirmed date, there is no refund – full payment.

– Cancellation Fees listed here will apply to all reservations, unless the tour booked has specific rates or fees listed under “Specific notes”.

– All cancellations must be made directly with JHI Tour & Ticketing, not with providers.

– A cancellation must be made in writing using the cancellation form and send to us by email/ or scan the form and send it back to us via email.

 

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is not permissible to charge a cancellation fee based on a time frame[1].

However, it is permissible to charge a admin fee for making the reservation. This fee will be a fixed amount (e.g. $5), and can be included in the overall fee of the tour. If someone cancels, they will still be liable to pay the reservation fee. However, this fee has to be fixed, and will remain the same amount, whether the client cancels 7 days or 3 days prior to the departure date.

It is also permissible to charge the clients for any such losses which were incurred upon you due to their reservation. Hence, you may charge the credit card processing fee, and the cost of cancellation from the supplier (e.g. for the purchased tickets etc.).  

 

And Allah Ta’āla Knows Best

Arshad Ali

http://fatwa-tt.com


Trinidad

Checked and Approved by,


Mufti Ebrahim Desai.

 

 

 

[1] Contemporary Fatawa by Mufti Taqi (According to Shair’ah, it is not permitted to charge a monetary penalty)