This study explored the perceived values considered by Muslims when undertaking a halal holiday. The data for the study were gathered via 21 semistructured interviews conducted among Sri Lankan Muslims. Incorporating the theory of consumption values developed by Sheth, thematic analysis was used explore the key perceived consumption values that Muslim travellers associated with halal tourism. The findings of the study demonstrate that the perceived value associated with halal holidays is multidimensional, comprising both consumption and Islamic religious values such as Iman (faith), which refers to the conscience, and suggest that “Muslims should act within the Sharia (Islamic Law), and only choose what is halal and remember Allah when making decisions”. This study contributes to the body of knowledge on consumer perceived values by emphasizing that in the context of halal holidays, Islamic values captured by Iman play a significant role in customer expectations regarding perceived consumption values. Thus, tourism and hospitality organizations need to develop products and services that are Sharia‐compliant. Such initiatives would enable tourism and hospitality firms to demonstrate their responsiveness to specific cultural needs.