Refunds are not instant. This surprises many travelers. But in travel, refunds involve multiple steps, multiple organizations, and multiple approval systems.
This article explains why refunds take time. It is not because companies want to delay you. It is because the refund pathway involves airlines, hotels, travel agencies, settlement systems, and banks. Each has its own process.
For Nepali travelers booking international trips through professional travel agencies, understanding these timelines reduces frustration. It helps you know what to expect before you book.
Whether you booked a flight to Bangkok on Thai Airways, a Dubai package through Emirates, or a Malaysia trip via Kuala Lumpur, the refund process follows similar patterns. This guide explains each step clearly.
| Key Understanding: A refund is not a simple reverse payment. It is a multi-step process that moves through fare verification, policy compliance, supplier approval, settlement systems, and banking channels. |
Why Travel Refunds Take Longer Than You Expect
When you pay for a flight or hotel, your money moves through a chain. It goes from your bank to the payment gateway. Then to the travel agency. Then to the airline or hotel through settlement systems.
A refund reverses this chain. But it does not happen automatically. Each step requires verification and approval.
The Refund Journey: Step by Step
| Step 1 | Cancellation Request: You or your agency initiates the cancellation |
| Step 2 | Fare Rule Verification: Airline or hotel checks if refund is allowed under booking conditions |
| Step 3 | Supplier Approval: Airline or hotel approves the refund amount after deductions |
| Step 4 | BSP/Settlement Processing: Refund moves through airline settlement systems (BSP cycle) |
| Step 5 | Agency Receives Refund: Travel agency receives the refund from airline/hotel |
| Step 6 | Bank Transfer: Agency transfers refund to your bank account |
| Step 7 | Money in Your Account: Banking settlement completes and funds appear |
Each step takes time. Some steps depend on weekly or bi-weekly processing cycles. This is why a refund that seems simple can take 4-8 weeks to reach your account.
Who Controls, Who Coordinates, and Who Processes Refunds
Different entities have different roles in the refund process. Understanding who controls what helps you direct questions correctly.
Refund Responsibility by Entity
| Entity | Controls Decision? | Controls Timeline? | Primary Role |
| Travel Agency | No (mostly) | Influences | Coordinates & submits |
| Airline | Yes | Yes | Approves amount & policy |
| Hotel | Yes | Yes | Sets cancellation terms |
| BSP/Settlement | No | Yes (cycle-based) | Processes airline settlements |
| Bank | No | Yes | Final settlement & transfer |
| Payment Gateway | No | Partial | Processes card refunds |
Your travel agency coordinates the process. But it cannot control airline decisions or bank processing times. Professional agencies in Nepal work within these systems to get your refund processed as quickly as possible.
Different Refund Scenarios and Why Their Timing Varies
Not all refunds are the same. The type of booking, the reason for cancellation, and the supplier policies all affect how long a refund takes.
Airline Refund Timelines
Airline refunds are typically the slowest. They involve fare rule verification, BSP settlement cycles, and multiple approval steps.
Typical Airline Refund Timelines (From Kathmandu)
| Airline | Processing Time | Total to Bank |
| Qatar Airways | 7-14 days | 3-6 weeks |
| Emirates | 7-21 days | 4-8 weeks |
| Thai Airways | 14-21 days | 4-8 weeks |
| Malaysia Airlines | 14-30 days | 5-10 weeks |
| FlyDubai | 7-14 days | 3-6 weeks |
| Nepal Airlines | 14-30 days | 4-8 weeks |
| IndiGo | 5-7 days | 2-4 weeks |
Note: These timelines are estimates based on typical processing. Actual times vary by fare type, season, and banking conditions.
Hotel Refund Timelines
Hotel refunds are generally faster than airline refunds. They do not go through BSP systems. But timing depends heavily on the rate type you booked.
| Rate Type | Refund Eligibility | Typical Timeline |
| Flexible Rate | Full refund (before deadline) | 3-10 business days |
| Non-Refundable Rate | No refund (usually) | N/A |
| Partial Refund Rate | Partial (minus penalty) | 5-14 business days |
For Nepali travelers booking hotels in Bangkok, Dubai, Kuala Lumpur, or Singapore, the rate type determines everything. Always check cancellation terms before booking.
Travel Package Refunds (Multiple Components)
Package refunds are the most complex. A single package may include flights, hotels, transfers, and activities. Each component has its own refund policy and timeline.
| Package Refund Reality: When you cancel a Thailand package, the airline refund, Bangkok hotel refund, Pattaya hotel refund, and transfer refunds all process separately. Your total refund arrives in parts, over different timelines. |
How BSP Settlement Systems Affect Your Refund
BSP stands for Billing and Settlement Plan. It is the system that processes payments between travel agencies and airlines. Most international airlines use BSP for ticket sales and refunds.
BSP operates on fixed cycles. In Nepal, the BSP settlement cycle is typically bi-weekly. This means refunds can only be processed during specific windows.
How BSP affects refund timing:
- Agency submits refund request to airline
- Airline approves refund and schedules for next BSP cycle
- BSP processes refund during settlement window (every 2 weeks)
- Agency receives credit from BSP
- Agency transfers to your bank account
If your refund request arrives just after a BSP cycle closes, it waits until the next cycle. This can add 2-3 weeks to your refund timeline through no fault of your agency or the airline.
Nepal Banking and Payment Systems: Why That Matters
For Nepali travelers, banking systems add another layer to refund timing. Domestic and international transfers follow different processes.
Banking Factors That Affect Refund Timing in Nepal
| Factor | Impact on Refund |
| NEFT/RTGS Processing | Domestic transfers process same-day or next business day during banking hours |
| SWIFT Transfers | International refunds via SWIFT take 3-7 business days and involve intermediary banks |
| Weekends & Holidays | Nepali banks closed Saturday; Friday is half-day; public holidays add delays |
| Dashain/Tihar Period | Extended bank closures during festivals can delay refunds by 1-2 weeks |
| Credit Card Refunds | Refunds to Nepali credit cards take 7-14 days after processing; appears in next statement |
| Foreign Currency | USD/EUR refunds converted to NPR at prevailing rate; exchange rate may differ from booking date |
| For Nepali Travelers: If you paid through banks like Nabil, NIC Asia, Global IME, or Nepal Investment Bank, your refund follows their processing schedules. Contact your bank if the agency confirms refund was sent but you haven’t received it. |
Step-by-Step Refund Journeys for Common Scenarios
Different cancellation reasons follow different paths. Here are the most common scenarios for Nepali travelers.
Scenario 1: Flight Cancelled by Airline
| Example: Qatar Airways cancels your KTM-DOH-LON flight due to operational reasons Path: Airline initiates → Full refund processed → BSP cycle → Agency receives → Bank transfer to you Timeline: 3-6 weeks typically Refund Amount: Full fare (airline cancellation = no penalty) |
Scenario 2: You Cancel Your Flight (Voluntary)
| Example: You cancel your Emirates KTM-DXB flight 10 days before departure Path: Agency submits → Fare rules checked → Penalty applied → BSP cycle → Refund minus fees Timeline: 4-8 weeks typically Refund Amount: Fare minus cancellation penalty (varies by ticket type) |
Scenario 3: Hotel Booking Cancelled
| Example: You cancel a flexible-rate Bangkok hotel 5 days before check-in Path: Agency submits → Hotel confirms → Direct refund to agency → Bank transfer to you Timeline: 1-3 weeks typically Refund Amount: Full amount if within free cancellation window |
Scenario 4: Complete Package Cancellation
| Example: You cancel a 5-day Thailand package (flight + 2 hotels + transfers + tours) Path: Each component processed separately with different suppliers and timelines Timeline: 6-12 weeks for complete refund (components arrive separately) Refund Amount: Varies per component; some may be non-refundable |
How You Can Track Your Refund Progress
Waiting for a refund can be frustrating. Here are practical steps to track your refund if you booked through a professional travel agency in Nepal.
Steps to Track Your Refund:
- Contact your travel agency first. They can check if the refund has been submitted and its current status with the airline or hotel.
- Ask for the refund reference number. Airlines provide Application IDs or reference numbers for refund requests.
- Check airline website directly. Qatar Airways, Emirates, and Thai Airways have online refund status checkers using PNR and ticket numbers.
- Monitor your bank account. Refunds may appear without prior notification. Check your statement regularly.
- Contact your bank if delayed. If agency confirms transfer but you haven’t received it, your bank can trace the payment.
| Remember: Successful refund initiation does not mean instant money in your account. The refund may be approved but still moving through settlement and banking systems. |
Frequently Asked Questions About Travel Refunds
Why hasn’t my airline refund reached my bank yet?
Your refund may be at any point in the process: waiting for airline approval, in BSP settlement queue, being processed by your agency, or in bank transfer. Ask your agency which stage it is at. Most delays happen during BSP cycles or bank processing.
Does travel insurance speed up refunds?
No. Travel insurance covers losses, not refund speed. However, if your ticket is non-refundable and you have a covered reason for cancellation (illness, emergency), insurance may reimburse you separately from the airline refund process.
Can I expedite my refund?
Generally, no. Refund timelines are determined by airline policies and settlement systems. However, choosing faster payment methods (direct bank transfer vs credit card) and booking refundable fares helps. Your agency can prioritize submission but cannot speed up airline or BSP processing.
What if my travel agency refuses to process my refund?
Professional travel agencies in Nepal do not refuse legitimate refunds. If there is a dispute, ask for written explanation of refund eligibility per the fare rules. You can also contact the airline directly with your ticket number. Most issues arise from misunderstanding non-refundable fare rules, not agency refusal.
How long should I wait before following up?
For airline refunds: follow up after 4 weeks if booked through an agency. For direct bookings: check after 2-3 weeks. For hotel refunds: follow up after 2 weeks. Give extra time during Dashain, Tihar, and year-end periods when processing slows.
Will I get the same amount back that I paid?
Not always. Refund amounts depend on: fare rules (cancellation penalties), timing (closer to departure = higher penalty), reason (airline cancellation = full refund), and currency exchange rates (if booked in USD but refunded later, NPR amount may differ).
What Professional Travel Agencies Do to Help With Refunds
Experienced travel agencies in Nepal understand that refunds are stressful. They work to make the process as smooth as possible.
Signs of professional refund handling:
- Proactive communication: Explains refund timelines and policies before you book
- Clear documentation: Provides written confirmation when refund is submitted
- Regular updates: Keeps you informed of refund status without you asking
- Quick submission: Submits refund requests promptly after cancellation
- Transparent deductions: Explains any fees or penalties clearly
- Banking assistance: Helps trace payments if bank transfer is delayed
| Key Insight: A good agency cannot make refunds instant. But they can make the process transparent, keep you informed, and advocate for you with suppliers when issues arise. |
Travel Refunds Aren’t Instant — But They Are Predictable
Refunds take time because they involve multiple systems: airlines, hotels, BSP settlement, and banks. Each step has its own timeline and requirements.
For Nepali travelers booking international trips through professional travel agencies, understanding this process reduces anxiety. You know what to expect. You know who controls what. You can plan accordingly.
Quick Reference: Typical Refund Timelines
| Refund Type | Expected Timeline |
| Airline refund (via agency) | 4-8 weeks |
| Hotel refund (flexible rate) | 1-3 weeks |
| Package refund (complete) | 6-12 weeks |
| Bank processing (Nepal) | 1-7 business days |
| Knowing expectations gives peace of mind.A good agency helps you understand before you book. |
Save this guide for reference. Talk to our advisors if you want pre-booking refund clarity. Understanding policies before you pay prevents surprises later.
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