Millions of Muslims from all over the world perform Umrah and Hajj every year. There were 250,000 pilgrims from Malaysia in 2017, and the number is expected to grow by 20 percent in 2018. This projected increase will create a huge demand for Umrah and Hajj travel agencies’ services in Malaysia. At present, there are 328 Umrah and Hajj travel agencies registered under Malaysia’s Ministry of Tourism and Culture (MOTAC). However, the supposedly bright outlook maybe marred by undesirable consequences. Along with the increase in the number of Umrah and Hajj travel agencies, there also tends to be an increase in fraud Umrah packages offered by fake agents in Malaysia. Such incidents will cause sadness and anger in the victims and other involved parties. Umrah package fraud involving fake agents in Malaysia has attracted the attention of many including the public, the government, the private sector, even the media. Nevertheless, studies on correlation between Muslim travellers’ perception of the quality of service by Umrah travel agencies and their decision to purchase the Umrah package are scarce in Malaysia. Hence, this study investigated Muslim travellers’ perception of Umrah and Hajj travel agencies’ service quality and its influence on their decision to purchase the Umrah package, in an attempt to discover why some Muslim travellers fell into fake agents’ trap in Malaysia. A total of 319 Muslim respondents completed the questionnaire on service quality perception, specifically service quality elements and loyalty. The data obtained was examined using SPSS version 25 for descriptive and regression analysis. Umrah and Hajj travel agencies as well as relevant government agencies could use the findings of the study to assist with formulating plans and policies to improve the quality of service by Umrah and Hajj industry players and awareness among Muslim travellers on the importance of being able to identify bogus agencies. The limitations, implications andsuggestions for future research are also discussed.