CANCELLATION CHARGE Meaning and
Definition
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A cancellation charge refers to a fee or penalty imposed by a service provider or organization when a customer or client cancels a reservation, booking, contract, or service agreement. It is primarily intended to cover the costs and potential financial losses incurred by the service provider due to the cancellation.
Cancellation charges are typically outlined in the terms and conditions of the agreement, contract, or booking policy. They serve as a safeguard for service providers against potential revenue loss caused by cancellations, and they often increase in proportion to the proximity of the cancellation to the scheduled date.
The cancellation charge aims to compensate the service provider for the inconvenience, administrative tasks, and resources already allocated to the customer's booking or reservation. These charges are often justified by the fact that such cancellations prevent the company from reselling the time or resource to another party.
Cancellation charges can vary widely depending on the industry, urgency, and specific circumstances. For instance, in the hotel industry, cancellation charges may be a fixed percentage of the total booking value, while in the airline industry, they may vary depending on factors such as ticket class, route, and the time difference between the cancellation and the scheduled departure.
In summary, a cancellation charge is a fee imposed by a service provider to compensate for the loss of revenue and resources caused by the cancellation of a reservation or booking.
Common Misspellings for CANCELLATION CHARGE
- xancellation charge
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- dancellation charge
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Etymology of CANCELLATION CHARGE
The etymology of the word "cancellation charge" can be broken down as follows:
1. Cancellation: The word "cancellation" originated from the Latin verb "cancellare", meaning "to make resemble a lattice". This later evolved to "cancellatio" in Late Latin, which means "a striking out". In English, "cancellation" refers to the act of voiding or stopping an event, agreement, or reservation.
2. Charge: The word "charge" comes from the Old French noun "charge" or "chargier", which means "load" or "burden". It can be traced back to the Late Latin "carricare", meaning "to load a wagon".
When combined, the term "cancellation charge" refers to a fee or cost incurred when canceling or voiding an agreement, reservation, or service.
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