Protecting your Travel Agency is Important, Here’s How to Ensure you can do just that!
Contributed By: 360 Coverage Pros
The small print, sometimes called the “birdseed” of contracts and other business paperwork, matters a great deal. A slight semantic misstep, poor word choice, or omission can lead to a costly lawsuit. Litigation has the potential to cause business closure. Sufficient terms and conditions for travel agents help prevent such a nightmare scenario.
Provide Terms and Conditions to Customers
The optimal terms and conditions provided to customers serve as rules that govern interaction. Such rules are primarily applicable to the upcoming customer trip. The purpose of such a rule book for travel agents is to help determine which party is right and which is wrong in the event of a dispute. The best terms and conditions spell out precisely what customers agree to, the conditions of service, and the details of each party’s legal rights.
The overarching purpose of including terms and conditions is to safeguard a travel agency from facing a costly lawsuit. In short, terms and conditions are an objective set of guidelines that prevent subjective viewpoints from determining which party emerges as the victor in a travel-related conflict.
Get ahead of potential problems by creating such a “rule book” at the outset of customer interactions. The stage will be set for profitable sales without the looming specter of legal liability. Avoid court with your travel agency, and you’ll be that much closer to meeting your quarterly revenue targets.
Travel Agency Terms and Conditions are Mutually Beneficial
Though presenting terms and conditions to travel agency customers carries inherent risk, as some might scoff at the idea of agreeing to such rules, they are an essential component of a business. Terms and conditions mitigate risk for travel agents but also benefit clients.
Take a moment to view a legal contract and travel waiver, including terms and conditions, from a client’s perspective. Such terms and conditions help protect your travel agency by preventing disputes and frustrating misunderstandings that chew up time, money, and energy.
Terms and conditions ultimately lay out crystal clear expectations at the start of the business relationship, ensuring both parties move forward in agreement that prevents costly and frustrating drama down the line.
What to Include in Terms and Conditions
The best terms and conditions include essential components such as:
- Force majeure clauses (to address the impact of unforeseen events such as the Covid-19 pandemic)
- Chargebacks
- Adjustments
- Refunds
- No-shows
Truly comprehensive terms and conditions encompass booking responsibility, liability for bookings, payment terms, and even the company’s cancellation policy. Lay out all of this important information upfront before making a sale, and both parties will move forward in full accordance.
Setting the Stage for Legal Success
Failing to include terms and conditions for traveling makes it much more challenging to pursue legal action. Imagine an unforeseen circumstance where a hotel or other service provider fails to meet client expectations.
Moreover, there is even the chance that the client will fall ill or change his or her mind and cancel the trip. If the liabilities and responsibilities of all relevant parties are not detailed in the terms and conditions, there is the potential for a costly lawsuit to unfold in the aftermath of a client conflict.
Address Expenses in the Terms and Conditions
Terms and conditions are incomplete without mention of rates and inclusions for specific services. Clients should be made fully aware of exactly what is included in a travel agency’s services. The details of all payment terms must be spelled out. This way, if a customer does not make payment on the trip, he or she will understand exactly what types of penalties will apply.
If there are cancellation fees, the possibility of price deviations, or any form of revisions, make them clear in the terms and conditions. Your policy on each of these possibilities must be made crystal clear, ensuring all parties understand the economics of the travel agency service.
Focus on Limiting Your Liability
A single lawsuit can devastate a travel agency or individual travel agent. Terms and conditions can prevent such an outcome with a thorough detailing of the limitations of liability. Such provisions are added to ensure the travel agency is not subjected to damages from provided services. Precautionary action minimizes travel agency liability, preventing clients from filing lawsuits that waste time, money, and resources.
Mind the Geography When Creating Terms and Conditions
Be hyper-aware of the idiosyncratic travel-related laws of your state. Each of the 50 states has distinct laws that govern the commercialization of travel services. If necessary, reach out to a business law attorney to better understand your state’s legal requirements. The entirety of the legally-mandated language is to be included in your terms and conditions.
The terms and conditions must also adhere to the requirements of the laws governing sellers of travel. Such laws can change, so update your terms and conditions appropriately across posterity.
360 Coverage Pros Professional Liability Insurance
Travel agents and travel agency business owners/managers must take every precaution when coordinating client trips. We support travel agents, agencies, tour operators, and host agents, helping these professionals add to their client roster while mitigating liability. Our liability insurance is available for travel businesses and those in the tax, veterinarian, beauty, dental, fitness, and other industries.
We provide comprehensive insurance at fair rates. Reach out to us today to learn more about our liability solutions for small businesses and independent contractors. You can contact us by phone at (877) 524-0265 or online through our convenient contact form.
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