diff --git a/prisma/schema.prisma b/prisma/schema.prisma
index fee840e..b26f263 100644
--- a/prisma/schema.prisma
+++ b/prisma/schema.prisma
@@ -1779,6 +1779,7 @@ model ItineraryHeader {
   toDate                    DateTime                    @map("to_date")
   toTime                    String                      @map("to_time") @db.VarChar(30)
   itineraryStatus           String                      @default("draft") @map("itinerary_status") @db.VarChar(30)
+  cancellationReason        String?                     @map("cancellation_reason")
   isActive                  Boolean                     @default(true) @map("is_active")
   createdAt                 DateTime                    @default(now()) @map("created_at")
   updatedAt                 DateTime                    @updatedAt @map("updated_at")
diff --git a/src/modules/user/handlers/itinerary/cancelUserItinerary.ts b/src/modules/user/handlers/itinerary/cancelUserItinerary.ts
index 929dd4a..7c9b3f2 100644
--- a/src/modules/user/handlers/itinerary/cancelUserItinerary.ts
+++ b/src/modules/user/handlers/itinerary/cancelUserItinerary.ts
@@ -39,14 +39,21 @@ export const handler = safeHandler(async (
     body.itineraryHeaderXid !== undefined && body.itineraryHeaderXid !== null
       ? Number(body.itineraryHeaderXid)
       : NaN;
+  const reason =
+    typeof body.reason === 'string' ? body.reason.trim() : '';
 
   if (!Number.isInteger(itineraryHeaderXid) || itineraryHeaderXid <= 0) {
     throw new ApiError(400, 'Invalid itineraryHeaderXid.');
   }
 
+  if (!reason) {
+    throw new ApiError(400, 'Cancellation reason is required.');
+  }
+
   const result = await itineraryService.cancelUserItinerary(
     userId,
     itineraryHeaderXid,
+    reason,
   );
 
   return {
diff --git a/src/modules/user/services/itinerary.service.ts b/src/modules/user/services/itinerary.service.ts
index a0e7b0d..3f5aeb2 100644
--- a/src/modules/user/services/itinerary.service.ts
+++ b/src/modules/user/services/itinerary.service.ts
@@ -2462,7 +2462,11 @@ export class ItineraryService {
     };
   }
 
-  async cancelUserItinerary(userXid: number, itineraryHeaderXid: number) {
+  async cancelUserItinerary(
+    userXid: number,
+    itineraryHeaderXid: number,
+    cancellationReason: string,
+  ) {
     return this.prisma.$transaction(async (tx) => {
       const itinerary = await tx.itineraryHeader.findFirst({
         where: {
@@ -2638,29 +2642,23 @@ export class ItineraryService {
         },
       });
 
-      const cancelledItinerary = await tx.itineraryHeader.update({
-        where: {
-          id: itineraryHeaderXid,
-        },
-        data: {
-          isActive: false,
-          itineraryStatus: 'cancelled',
-        },
-        select: {
-          id: true,
-          itineraryNo: true,
-          title: true,
-          itineraryStatus: true,
-          isActive: true,
-        },
-      });
+      await tx.$executeRaw`
+        UPDATE "itn"."itinerary_header"
+        SET
+          "is_active" = false,
+          "itinerary_status" = 'cancelled',
+          "cancellation_reason" = ${cancellationReason},
+          "updated_at" = NOW()
+        WHERE "id" = ${itineraryHeaderXid}
+      `;
 
       return {
-        itineraryHeaderXid: cancelledItinerary.id,
-        itineraryNo: cancelledItinerary.itineraryNo,
-        title: cancelledItinerary.title,
-        itineraryStatus: cancelledItinerary.itineraryStatus,
-        isActive: cancelledItinerary.isActive,
+        itineraryHeaderXid: itinerary.id,
+        itineraryNo: itinerary.itineraryNo,
+        title: itinerary.title,
+        itineraryStatus: 'cancelled',
+        cancellationReason,
+        isActive: false,
       };
     });
   }