An Umrah agency usually asks for a deposit at booking and the balance a few weeks before departure. Cancellation fees must be set in advance in the terms of sale, and refunds made without delay, at the latest 14 days after termination under the EU Package Travel Directive.
How much deposit?
Many agencies ask for 25 to 30% of the price at booking. The amount should cover what the agency commits straight away, such as hotel and flight bookings, without putting families off. It is written in the terms of sale and repeated in the quote.
When is the balance due?
The balance is due on a fixed date before departure, often thirty days before. Two reminders, one a week before the due date and one on the day, prevent most delays. The agency should see every morning which balances fall due.
Paying in instalments
Paying in three or four instalments is spreading in the sector. It reassures families and fills departures earlier. Whether it goes through a payment provider or the agency’s own schedule, every instalment should be tracked in the booking record.
Cancellation by the pilgrim
In the European Union, a traveller may terminate a package before departure by paying an appropriate termination fee set in advance. Most agencies write it as a scale:
| Cancellation | Fee kept (example) |
|---|---|
| More than 90 days before departure | 10% |
| 90 to 45 days | 30% |
| 45 to 21 days | 60% |
| Less than 21 days | 100% |
This scale is only an example: it must reflect the costs the agency actually bears. Costs already paid and non-refundable, such as a visa, can justify adjusting the amount.
Cancellation by the agency
If the agency cancels, for instance because the minimum number of participants is not reached, it refunds everything paid. The terms should state that minimum and the date on which the decision is taken.
Refunds
Directive (EU) 2015/2302 requires refunds without undue delay and at the latest 14 days after termination. A dashboard listing refunds to make, with their deadline, prevents oversights.
Qafilo works out cancellation fees from your scale, keeps the amount to refund and its deadline in the booking record, and shows them every morning in “To do today”.
Frequently asked questions
Is the deposit refundable?
It depends on your terms and the cancellation date: if the scale sets fees below the deposit, the difference is refunded. If the agency cancels, everything is refunded.
Can we refuse cash?
The agency chooses which means of payment it accepts, within the limits set by its country’s law for cash payments. Every payment must be recorded and receipted.
What if the pilgrim does not pay the balance?
The terms may state that the booking is cancelled at the traveller’s expense after an unanswered reminder, applying the cancellation scale. This must be written clearly before booking.