What Is A Travel Agency Agreement?

When you’re running a Travel Agency business in New Zealand, there are industry-specific risks involved, so it’s crucial to have a robust contract in place with your customers.

Having a lawyer draft your Travel Agency Agreement will ensure that your business and its reputation are safeguarded against legal risks in New Zealand.

Generally, a Travel Agency Agreement will cover essential matters such as the services included in your package, payment obligations, cancellation fees, and limiting your liability for unforeseen events during the journey.

What Type Of Terms Are Included In A Travel Agency Agreement?

Travel Agency Agreements cover all the key terms you’ll need in your relationship with your clients in New Zealand.

The Agreement varies depending on the specific services provided by the travel agent and the terms under which they operate. However, below are some of the main aspects that Travel Agency Agreements usually cover.

Agency and Third-Party Terms

Travel agents act as intermediaries between the traveller (the client) and travel service providers (such as airlines, bus, rail and cruise companies, accommodation providers like hotels, and tour operators).

A Travel Agency Agreement will clarify that:

• The client authorises the travel agent to make bookings on their behalf
• The terms and conditions of the travel service provider will apply to all bookings made by the travel agent on behalf of the client, including terms relating to cancellations and refunds
• If a refund is applicable for a booking made by the travel agent on behalf of the client, the travel agent will only credit the refund back to the client once they have received it from the travel service provider
• The travel agent is not liable for any loss or damage suffered by the client if the travel service provider fails to fulfil their obligations under their terms & conditions. This limits the liability of the travel agent, ensuring that if the travel service provider provides incorrect information (e.g., they promise certain activities as part of a tour but fail to deliver), the client will need to pursue the travel service provider, not the travel agent.

Client Obligations

As a travel agent in New Zealand, it’s important to ensure that the client is responsible for ensuring they have a valid passport (and, if required, visa), insurance, travel documents (such as airline tickets), and that they meet any health requirements.

If these obligations are not clearly stated as the client’s responsibility and something goes awry, the client may attempt to hold your business accountable. This could lead to significant expenses!

Pricing

Pricing for travel-related bookings, such as flights, often fluctuates due to availability, currency changes, fuel price variations, and increases in taxes and airfares.

Travel Agency Agreements should make it clear that the agency may need to adjust or withdraw its pricing at any time, and that pricing is only confirmed once the client has paid for the booking in full.

Booking Changes

It’s always wise to ensure that the client understands their rights and obligations regarding booking changes or cancellations.

Typically, a Travel Agency Agreement will state that the client is liable for any additional fees that the travel agent may incur when the client requests changes to bookings, including alterations of names, dates, or destinations.

Need help?

If you’d like our assistance drafting a Travel Agency Agreement, please feel free to get in touch! We’ve assisted numerous travel agency businesses in New Zealand to launch successfully and ensure they’re legally protected. Call us on 0800 002 184.

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