A Limpopo man is crying foul after a travel agency, Travel and Sport, charged him a 100 percent cancellation fee on the US trip for his daughter even though he cancelled a month in advance.

Mokoto Valley Mahlane says Travel and Sport has refused to refund him the entire R30,000 paid towards the 2023 educational tour for his then Grade 10 daughter, Kgothatso, who had been selected to join a group of about 50 learners from Hoerskool Merensky in Tzaneen.

Kgothatso was among the high school pupils selected for a prestigious academic achievers’ trip to the United States, scheduled for September and October 2023, at a cost R63,900 per learner.

Mahlane told African Times he paid Travel and Sport a R30 000 deposit, but cancelled four weeks before the trip after he struggled to raise the balance of R33,900.

He claims Natasha Erasmus, an operations manager at Travel and Sport, later informed him that the outstanding amount had risen to R45,290.

Unable to raise the remaining money, Mahlane says he cancelled his daughter’s participation on 31 August 2023, about four weeks before the scheduled departure.

“After we didn’t manage to pay up the whole trip, we asked them to give us a refund, to refund us. That’s when they wrote an email.

“After I made some more follow-ups, she (Natasha) wrote an email saying that because we didn’t go on the trip, the cancellation fee is 100%.

“I was so shocked to hear the cancellation fee was 100%. To my knowledge, I know that when you cancel, in any agreement, they will tell you about the 10%,” Mahlane said.

Mahlane says Travel and Sport refused to refund him anything, effectively imposing what he describes as a 100% cancellation fee.

He says the cancellation was not a decision taken lightly. Kgothatso had been looking forward to what he describes as a once-in-a-lifetime opportunity, but the family could not secure sufficient financing to settle the outstanding amount.

“That is the percentage that I know [10% cancellation fee] After all, we wanted our kid to go to the USA, but unfortunately, we had no money to pay for the trip. We had no money. She (Kgothatso) was so disappointed. You can feel especially a teenager between 15 and 17 years at an adolescent stage. You know, that was her dream trip. So, after that she was so disappointed.

“We even tried to go and make a loan to the bank. They didn’t give us a full loan so that we can pay up the trip. It was disappointing on our side,” Mahlane added.

Travel and Sport says cancellation terms were accepted

Travel and Sport disputes the suggestion that Mahlane was arbitrarily charged a 100% cancellation fee.

Responding to questions from African Times, Erasmus said the 2023 Top Achievers tour proceeded as planned despite Mahlane’s cancellation.

“The traveller’s participation in the tour was cancelled after the client failed to meet the contractual payment obligations applicable to the booking,” Erasmus said.

According to Erasmus, the booking became binding once Mahlane accepted the company’s Booking Form and Contract Agreement and/or paid the required deposit, as set out in Clause two of Travel and Sport’s terms and conditions.

She said the company’s payment schedule had been communicated to Mahlane and that numerous reminders had been sent when payments fell behind.

Travel and Sport also says it attempted to assist Mahlane by making payment arrangements, but these arrangements were repeatedly not honoured.

“The client was therefore given several opportunities to remedy the outstanding payments before the traveller’s participation was ultimately cancelled,” she said.

Erasmus confirmed, however, that the cancellation occurred approximately four weeks before the scheduled departure, a point Mahlane says should have been taken into consideration.

She said that, by then, the booking fell within the cancellation window contained in Clause 8.5 of the company’s terms and conditions.

That clause provides for a 100% cancellation charge where a booking is cancelled within 12 weeks of the original departure date.

Travel and Sport says this does not mean every cancellation attracts the same penalty.

Erasmus stressed that Travel and Sport does not apply a 100% cancellation charge to every cancellation, irrespective of when or why it occurs.

“The applicable cancellation charge is determined in accordance with the cancellation provisions contained in the Terms and Conditions and the stage at which the cancellation takes place,” she said.

In Mahlane’s case, Erasmus said, the company had already made arrangements and incurred commitments relating to his daughter’s participation. No replacement traveller had been secured after the cancellation.

The company maintains that the charge was contractual rather than arbitrary.

Consumer law question

The dispute also raises questions about the reasonableness of cancellation charges under South Africa’s Consumer Protection Act.

Erasmus said Travel and Sport was aware of the requirement that cancellation charges be reasonable in the circumstances.

She said the company considered several factors, including the timing of the cancellation, commitments already made, the lack of a replacement traveller and the opportunities given to Mahlane to bring his account up to date.

“In this case, considering the late stage at which the traveller’s participation was cancelled, the absence of a replacement traveller, the arrangements already made in respect of the booking, and the extensive opportunities afforded to the client to remedy the outstanding payments, Travel and Sport maintains that the application of the contractual cancellation provisions was reasonable in the circumstances,” Erasmus maintained.

She said the company’s terms and conditions, including the provisions governing payments and cancellations, were made available to Mahlane during the booking process.

Erasmus also referred to Clause 23, which records the client’s acknowledgement and acceptance of the terms and conditions.

Ombud points Mahlane towards the NCC

The dispute had previously been taken to the Consumer Goods and Services Ombud (CGSO).
Travel and Sport told African Times that it had submitted its response and supporting documentation to the ombud and was subsequently informed that the matter had been closed.

However, according to the Consumer Goods and Services Ombuds report seen by African Times, was supposed to receive his full amount upon cancellation. The document further states that the matter fell outside the ombud’s jurisdiction and referred Mahlane to the National Consumer Commission (NCC) for further assessment.

The NCC spokesperson, Phetho Ntaba, had not responded to questions from African Times at the time of publication.