Here is a list of topics you should consider and questions you should be able to answer after reviewing your independent travel agency contract: If the terms contained in this agreement are violated, the responding party has the option to terminate this agreement. A few years ago, travel lawyer Mark Pestronk wrote an article for Travel Weekly outlining 12 contractual issues to watch out for in independent travel agency contracts with hospitality agencies. This information still stands the test of time! Clarity on commissions is a big problem. There are three main categories to keep in mind when it comes to commissions with respect to your independent travel agency contract: Failure to obtain or provide proof of insurance will be considered grounds for termination of this contract at the Company`s discretion. Not all independent travel agency contracts are created equal. Like any business, hospitality agencies vary in size and amount of resources at their disposal. They may not spend most of their time creating the perfect contract for their integrated circuits. Independent travel agency contracts are not universal (just like hosts!). In this case, each party refuses to renew this agreement, the agreement will be concluded on the day of rejection. Even if the host agency belongs to your best friend, you want to make sure that there is a contract between your agency and the host agency (do you want to know who all these host agencies are? Look no further.) Maybe it seems obvious that you should have a contract with your host agency. But if you`ve never sold travel as an independent contractor (IC), how would you know? Well, now you do it because you are here! The duration of your contract should be more than clear. One type of contract isn`t necessarily better than the other – it depends on what you`re looking for.
For example, if this is your first time working with that particular host and you don`t know them very well, Peter Lobasso suggested you start with a shorter independent travel agency contract (for example. B one year or less). This way, if you have had a bad experience, there will be an abrupt stop to your contractual commitment. Do you have any ideas? Would you like to share your experience with independent travel agency contracts? Share your findings in the comments below! Pestronk went the extra mile for HAR and provided us with a sample contract for an independent travel agency/hospitality agency! The company offers travel-related services and accommodations, including the following: According to Lobasso, “Litigation in another state is impractical, time-consuming and expensive, especially when multiple trial dates are required. You`ll also likely need to hire an out-of-state attorney to represent you, which will create a serious deterrent effect for one party – but not the other – to assert their rights under the contract in court. For example, imagine that the host is in New York and the IC is in California and a dispute arises. It goes without saying that the party who has to travel across the country to pursue or defend a lawsuit will be overburdened by the litigation. Peter Lobasso with ASTA shared a lot of interesting information about independent travel agency contracts. But I want to make it clear that this article refers to contracts between travel agencies with independent contractors (ICs) and host agencies. No agency contract with suppliers.
No contracts between agencies and consortia. No contracts between travel agencies and their employees. So, if you are an IC or a host agency curious to learn more about these types of travel agency contracts, you`ve come to the right place! Whew. If you have come this far, not only am I honestly impressed with your attention span, but I am also convinced that you are well equipped to deal with a contract with a hospitality agency – an independent travel agency. In the event that the Company becomes aware of a breach of any of the provisions of this Agreement, it has the right to terminate this Travel Agency Agreement in its entirety The Travel Agency shall keep in good condition all materials and goods contained in this Travel Agency Agreement. In short, error and omission insurance is a guideline for travel agents when a customer sues you for negligence. It doesn`t cover things like booking errors and direct debits (confusing given the name). Some travel agencies prefer to take the risk rather than take out E&O insurance. It is not mandatory, but it is important to take it into account. Jackie Friedman`s advice? “First and foremost, it is very important that the IC and the `host` they are connected have a mutually acceptable written agreement. As surprising as it may seem, I meet agents who have nothing in writing, and this can lead to problems on the street. “In addition, the Company undertakes to provide the Travel Agency with sales and marketing materials to promote the accommodations and services listed in this Agreement.
You`re probably here because you`re a travel agent. Not because you`re an aspiring lawyer. If you`re not fluent in legal language, it`s probably not natural for you to know what to look for in an independent travel agency contract. After all, how could you know what to look for in a contract if you have no idea what to expect? The travel agency offers companies and consumers the items listed in this contract as part of package tours. ! Read what you need to consider when changing host agencies! The Company provides the Agency with a non-exclusive license to offer the Company`s services and accommodation as part of vacation and travel packages. At the request of the company, the travel agency must provide proof of insurance for each month during the term of this travel agency contract. 3. Commission Compensation: According to Friedman, “the agreement should include a list of all compensation payments for compensation. This list would include direct debits, commission reminder, customer refunds, chargebacks.
“With regard to the deduction of commission payments, you can answer these questions: the travel agency will offer the services and accommodation listed above for professional and private customers in the context of package travel in accordance with the terms of this travel agency contract. In return, the company undertakes to pay commissions to the travel agency based on actual sales. According to anita Pagliasso, President of PATH: “To the extent required by PATH in an IC agreement, there are model contracts published by ASTA with guidelines that contain terms, conditions and commission details that are clearly stated.