JapanIs there a max cancellation fee for travel agencies?
Yes, under Japan’s Travel Business Act, cancellation fees charged by registered travel agencies are capped at the actual damage incurred — typically up to 20% of the travel fee for cancellations made 20–8 days before departure, and up to 30% for cancellations within 7 days.
What the Law Says
Japan’s Travel Business Act sets strict limits on cancellation fees that registered travel agencies may charge customers. These limits depend on how far in advance the cancellation occurs relative to the scheduled departure date.
Under the Travel Business Act, a travel agency may only charge a cancellation fee that reflects the actual damage it incurs due to the cancellation. The law prohibits charging arbitrary or punitive fees.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has issued official guidelines specifying maximum allowable rates: up to 20% of the total travel fee if cancellation occurs between 20 and 8 days before departure, and up to 30% if cancellation occurs within 7 days of departure.
These caps apply only to registered travel businesses operating under the Travel Business Act. Unregistered operators are not bound by these limits and may impose higher or unregulated fees.
Statutory TextA travel business operator shall not collect from a customer a cancellation fee exceeding the amount equivalent to the damage actually incurred by the operator as a result of the cancellation.
— Travel Business Act, s. 35 — Cancellation Fees
Statutory TextThe Minister of Land, Infrastructure, Transport and Tourism may issue guidelines concerning the standard amounts of cancellation fees based on the timing of cancellation relative to the departure date.
— Travel Business Act, s. 35, Paragraph 2
What to Do
Check your contract for the cancellation policy — it must comply with the Travel Business Act’s caps.
If charged more than 20% (for cancellations 20–8 days prior) or 30% (within 7 days), request a refund of the excess amount.
Contact the travel agency in writing to dispute an unlawful fee, citing Section 35 of the Travel Business Act.
File a complaint with the local Consumer Center or the MLIT if the agency refuses to adjust the fee.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.