Cancellation Fee

Updated: 2017-12-07.

A cancellation fee is a charge against a traveler who had previously made a reservation or purchase and then cancelled it against the company’s policies.

In terms of transportation, a passenger might have purchased a basic fare ticket which does not have any allowances for changes/cancellations without either forfeiting the entire amount or paying this charge. In the hospitality industry, a guest at a hotel may be charged this fee if they cancel their room too soon to their arrival date, for example.

Cancellation fees are those charged for a complete cancellation; Change fees are charges for altering some aspect of the purchase or reservation.

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