Protecting Yourself With

Client Contracts

By Zigmund Sepanski
General Manager, AuthorizedAgents

You probably don’t think it will ever happen to you. You worked hard on finding a vacation for your client and send him off on that great annual trip. You’ve known these clients for years and they are such nice people — you don’t need some contract to protect yourself.

I don’t mean to scare you but do you think the following cases did not happen to a travel agent just like you? (Actually, I DO mean to scare you):

1. Your client gets injured while parasailing and sues you for not informing him that in Mexico this may be inherently dangerous.
2. Your client bought an oceanview room for his 10th anniversary and the resort put him in a “garbage view” room. As a result, he is so emotionally distraught he cannot enjoy his anniversary celebration — and sues you.
3. This stingy client buys a cruise from you and then finds it on the Internet for $25 cheaper. She cancels her booking with you and challenges the charge. You can’t even get your cancellation fees.
4. This client was denied boarding on a flight to Europe because his passport had a different spelling. He claimed that he gave the correct names to the travel agent and sues for the value of the trip, plus damages.
5. And finally, that nice client you’ve known for years was mugged in Jamaica and his wife had a heart attack during the unfortunate event. They will not sue you. But her daughter will.

In today’s litigious society you, a Home Based travel agent, are at risk every time you make a sale. You need to take steps with each client’s vacation to protect yourself. Errors and omission insurance can help you out in some cases. But even with E&O, it will become a “he-said-she-said” argument without a written agreement and your E&O company will not keep you around for very long.
If you are smart you will always have a written contract with your client, even if that client is miles away and brought to you from the Internet. If you don’t see them face to face, have them fax it, send it snail mail or, if they have a verified Internet signature, they can E-mail it to you.

What should be included in the contract? Here are some drafts of minimum sample language recommended by AuthorizedAgents.com:
1. This statement should be included about correct spelling of names:
Always makes sure that names you submit for travel are exactly the same as on a government issued picture ID!! Airlines may deny boarding if the name does not match your ID and name corrections are subject to penalty fees. Here is how we have the names spelled right now. Please cross out any incorrect spelling, print the correct spelling right next to it and fax it to us immediately at (fax number).

2. Trip specifics. Our client relationship program automatically drops in the following information into a confirmation form:
You and (names of party) are leaving (city) on (date) to (destination) and returning on (date). You will be staying in (resort) in an (type of) room and while there will be enjoying a (type) car.

3 What the client is paying for the trip. Again, you can have this auto fill:
Your package price is ($$$) and you made a deposit of ($$$) on (date).
Balance is due on (date). (Always move date back at least 5 working days)
We will use your credit card with the last 4 digits of (xxxx) for the payment.

4. Cancellation information:
Vacation or cruise packages can be canceled according to the cancellation rules of the individual components making up the package. We can provide you with a catalog or Web site of the suppliers so you can check out the cancellation policies. If you have cancellation protection you may cancel without incurring cancellation penalties from most suppliers within seven days of your trip. With cancellation protection, most air, hotel and rental car charges will be refunded, unless air is charter air, and all eligible cancellation penalties will be waived. The costs of the cancellation waiver and $100 per person AuthorizedAgents.com penalties are not refundable. We refund everything that our suppliers refund, except our $100 per person fee. (If you have face to face contact with the client, you should supply that client with a copy of the vendor cancellation policy.)

5. Waiver Information:
Suppliers charge a penalty to cancel or change after you put down a deposit. You can choose between two types of travel protection/insurance plans. The supplier protection plan is offered by the package supplier itself and has to be bought at time of purchase. The supplier-direct protection is usually good for ONE date, hotel, name change and protects you from most, not all, cancellation fees and some (not all) price increases when the package is not paid in full. It may not cover you from airline penalty. fees of $100 pp once a ticket is issued or our $100 pp cancellation/change fee.
The second type of protection is real insurance from a travel insurance company, such as CSA. It covers most cancellation fees in case of medical emergency, lost luggage, car accidents, medical evacuation.
You should pay in full at time of booking to have your price guaranteed. Unlike the mega Internet sites, we give you an additional option of placing a deposit and will notify you when we get notice of a price increase so you pay in full only then to avoid the price increase.

6. An important general disclaimer of responsibility:
This AuthorizedAgents.com is a reseller of travel, does not own the airlines, hotels, transportation, activity suppliers and is not responsible for carrier or supplier regulations, price increases, delays, malfunctions, accidents, strikes, crimes or other malicious, harmful or accidental acts, omissions, conditions of property, plane, car, hotel, excursions, weather etc. and offers no warranties of suitability for a particular purpose. No verbal promises were made.
We will be happy to submit your requests to hotels for bedding, floor levels, etc. Please be aware that these are requests only and hotels do not guarantee that they can accommodate each and every request.
Those are the basic items that should be included in the contract. In addition those of you who sell to states that have strict seller of travel laws, such as California, need to put in other information and you are required by law to disclose additional facts.
Hopefully, you see the value of client contracts. Enjoy your Home Based career and protect yourself with a simple contract.