Definition of Cancellation Penalty
Cancellation Penalty refers to a fee that is charged to customers who cancel their flights after booking reservations. The fees levied for cancellation typically vary based on the agency or carrier from whom the booking was made. The Cancellation Penalty is essentially a form of compensation to cover the airline’s administration costs and lost revenue from the cancelled flight. This fee is usually payable when a passenger cancels their travel plans after the final payment for the booking has been made.
The Cancellation Penalty is an important factor to consider when making a travel booking, as it can significantly impact travel expenses. The amount of the penalty fee may depend on several factors such as the time frame in which the booking was made, the distance of the journey, the type of ticket that was purchased, and the policies of the airline. Some airlines may offer options such as flexible tickets that allow passengers to make changes to their travel plans without incurring a penalty.
It is important to note that the Cancellation Penalty is not the same as travel insurance. While travel insurance is designed to cover unforeseen circumstances that disrupt travel plans, the Cancellation Penalty is a fee paid to the airline or booking agency for cancelling a booked flight. Therefore, it is recommended that travelers consider purchasing travel insurance to protect themselves against any unforeseen situations that may disrupt their travel plans and potentially cause them to cancel their flight.
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