Travel offices can deduct service fees under new aviation circular, says Union Chief

2026-03-25 - 07:33

Mohammed Al-Mutairi, Chairman of the Union of Travel Offices, stated that the circular issued by the Directorate General of Civil Aviation regarding passenger rights under the current exceptional circumstances is clear and fair to all parties in the contractual relationship, whether the traveler or the travel office. He explained that Clause Four of the circular explicitly states, “Market entities are permitted to deduct agreed service fees and charges that were disclosed to the passenger at the time of booking, even if the bookings are non-refundable.” He emphasized that this provision establishes an important principle. Travel offices have the legal right to deduct their service fees, provided that they were agreed upon in advance with the customer and are clearly stated in the booking terms and conditions. He added that travel office fees represent compensation for actual services rendered, including booking procedures, follow-ups, and coordination with airlines and service providers — especially under exceptional circumstances that require increased operational effort. He stressed the importance of all parties adhering to the circular’s provisions as issued, ensuring a balance between protecting passengers’ rights and maintaining the continuity of travel offices in performing their vital role in the market. He concluded by affirming that the Union of Travel Offices supports any clear and fair regulatory measures and remains committed to raising customer awareness of their rights and obligations to ensure transparency and stability in the sector.