travel agent service agreement

Travel Agency Agreement

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What is a travel agency agreement.

A travel agency agreement is a contract between a travel agent and another company that allows the agent to sell services on their behalf. The agreement contains information about what services are to be sold and what percentage of the sale the travel agent will receive in exchange for their booking services. This ensures that the travel agent has the legal right to sell the services and that they will receive payment for their work.

The travel agency agreement simplifies the relationship between travel agencies and companies and ensures the relationship is a mutually beneficial one.

Common Sections in Travel Agency Agreements

Below is a list of common sections included in Travel Agency Agreements. These sections are linked to the below sample agreement for you to explore.

Travel Agency Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.7 2 ex10-7.htm , Viewed October 14, 2022, View Source on SEC .

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Lawyers with backgrounds working on travel agency agreements work with clients to help. Do you need help with a travel agency agreement?

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Meet some of our travel agency agreement lawyers.

Attorney Garrett Mayleben's practice is focused on representing small businesses and the working people that make them profitable. He represents companies in structuring and negotiating merger, acquisition, and real estate transactions; guides emerging companies through the startup phase; and consults with business owners on corporate governance matters. Garrett also practices in employment law, copyright and trademark law, and civil litigation. Though industry agnostic, Garrett has particular experience representing medical, dental, veterinary, and chiropractic practices in various business transactions, transitions, and the structuring of related management service organizations (MSOs).

As a licensed AL lawyer with over 7 years of experience in the legal field, I have spent more than 15 years working in the business and finance sector. I am deeply passionate about immigration, contracts, & my expertise spans a wide range of projects. From handling ICOs & IPOs to navigating VCs, SaaS, OnlyFans, Wholesaler & Manufacturing Agreements, Prenups, Movie Finance, M & As, Visas, Green Cards and more. I have a comprehensive understanding of various contractual needs. Whatever your contract requirements may be, feel free to reach out to me—I can craft or work on any contract with precision and expertise.

Tim advises small businesses, entrepreneurs, and start-ups on a wide range of legal matters. He has experience with company formation and restructuring, capital and equity planning, tax planning and tax controversy, contract drafting, and employment law issues. His clients range from side gig sole proprietors to companies recognized by Inc. magazine.

My passion is protecting the passions of others. I have 5+ years of contract review, and all aspects of entertainment law including negotiation, mediation, intellectual property, copyright, and music licensing. I also have experience working with nonprofits, and small businesses helping with formation, dissolution, partnerships, etc. I am licensed in both Texas and California.

Nuo Jia (Lois) L.

Attorney Lois Li is a bilingual business and commercial attorney licensed in Michigan, U.S. since 2014, in Ontario, Canada since 2015, and in New York, U.S. since 2020. As an attorney licensed in two countries, Lois leads Alpine Law’s US/China/Canada practice. She is experienced in legal and contractual transactions in both English and Chinese. Lois has over six years of experience in assisting clients with business operations and legal services, and is specialized in advising companies with legal needs in International Business, Securities law, Cryptocurrency – Block chain, and Fin-Tech. Having served as both an outside and an in-house counsel, Lois worked with many startup and small businesses. With a strong understanding of core business and the ability to translate business needs into legal requirements, Lois has assisted many companies to establish policies and procedures, and drafted and negotiated employment and transaction contracts. Further licensed as a Registered Nurse since 2010, Lois specializes in healthcare law and is experienced in FDA, HIPAA, Medicare and Medicaid regulations. She has assisted many businesses in the medical and healthcare industry.

I am a corporate business and securities attorney licensed in Illinois with more than a decade of legal experience holding both a J.D. and Master in Law in Taxation. I specialize in advising technology companies in the cryptocurrency space with regulatory compliance (eg. securities law, FinCen, and MSB rules) and cybersecurity matters (eg. GDPR, HIPAA, and CCPA), licensing agreements (SaaS, End User Licensing Agreement, Master License Agreement and etc), brokerage agreements, vendor agreements, revenue share agreements, affiliate agreements, and other related business and technology contracts. Having served as both an outside and an in-house counsel, I have worked with many early stage and mid-size companies, including blockchain companies with issued tokens in the top 100 ranking. With a strong understanding of core business needs for cryptocurrency companies and the ability to translate business needs into legal requirements, I have successfully helped businesses in the cryptocurrency space establishing their contracts, meeting regulatory compliance requirements (SEC, FinCen), and negotiating contracts with partners and vendors.

Lawyer Vets APC is a digital legal practice founded on the idea that legal services should be available to all– Not just a privileged few. In support of this mission, we leverage technology to reduce overhead, increase productivity, and put more money in our client's pockets.

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The Travel Agency Contract is the binding agreement between the travel agent and the tour company. It is the official authorization of the agents to work and take effective decisions on behalf of the company. The agency abide by the contract built and work accordingly to fulfill the terms agreed upon by both parties. It legitimates the agency to promote the company and works on its advertisement. The aim of the contract is to hand over the responsibilities of the company by the agency in exchange for the fee.

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Step 1: Mention Both the Names in the Contract

Step 2: mention purpose of the contract, step 3: write about the terms and conditions, step 4: be clear about the liabilities and charges, step 5: duration of contract, more in agency templates, travel agency template, travel agency budgeting template, travel bookkeeping template, travel agency financial model template, editable travel agency quotation template, travel agency management system template, travel agency business plan template, travel reservation tracker template, travel agency sales report template, travel insurance tracker template.

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FREE 10+ Travel Services Agreement Samples in MS Word | Google Docs | Pages | PDF

A lot of people loves traveling, especially for leisure since its one way of relaxing and going to a new city or country can be an exciting and fulfilling experience. Presently, more travelers are inclined to go with the DIY or Do-It-Yourself planning of their trips but a seeking help from a travel agency can be very helpful for newer travelers who wished to have their travel plans all mapped out. The same thing would go for bigger groups which entails a lot of planning and careful preparation. After seeking for a proposal from a travel company  and agreeing to its terms, a travel services agreement is then exchanged between both parties. Read more about this in our article for today and for templates you may want to check our free travel services agreement samples below:

Travel Services Agreement

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Travel agencies offer a wide range of travel related services such as airline and hotel bookings, leisure tours packages, boat and train tickets, cruise packages, visa assistance and many others. Although it may be cost effective to plan your travel by yourself, travel agents are still evidently able to assist a lot of clients since they offer hassle free and complete services from the start of your travel till you get back. Since they can do all the planning with your preference of course and all you have to do is pay the cost of the package and you enjoy your trip. Some travel agencies are not limited to leisure travel, since a number of these agencies also cater to business travel .

Assisting companies whose staff has the need to frequently travel. With a travel services agreement this is usually exchange whenever a travel agency assist big groups such as corporate accounts both for leisure and business travel, educational and incentive tours and leisure groups. But of course this is not limited to such, if individuals or smaller size groups wished to sign a travel services agreement, then they are welcomed to do so. A travel services agreement is document that consists of the arrangement between a client and the travel agency which states of the various travel services in which the client will be availing of including the terms and conditions.

As mentioned, a travel agency has a wide range of offers and travel related services. So, depending on the scope of services a client wishes to avail this all must be written down and included in a travel services agreement. Let us go through the basic components that comprises a travel services agreement.

This section contains the provision of travel management and related services such as, but not limited to, airline ticketing and airport transfer, hotel reservations and related services (visa service, travel insurance, car rental) and other travel management by the travel agent. This should also point to the client that travel agents has a wide array of suppliers and service providers whose own cost, terms and conditions are subject to change without notice.

Specify the list of travel services that is required of the travel agency such as the following examples:

• Airline, boat, rail or car rental fare and hotel quotation, submits different proposal to choose from and the best possible route and cost effective route towards the city of destination
• Issuance and delivery of airline, boat or rail tickets within 24 hours of receipt and may or may not include seat reservations or boarding pass only to the request of the traveler.
• Information on country visa requirements, health, immigration clearance, foreign exchange control regulation and other government restrictions, and assistance in obtaining travel tax exemption certifications, passports and entry visas to the country.
• Reconfirms and revalidates  airline tickets, re-issued tickets which are returned as a result of changed routing or fare structures and printed travel itineraries showing complete information on status of reservations on all carriers and hotels;
• Notifies travelers should there be any changes with the flight schedule, cancellation, train strikes or other relevant disruptions from air, land or sea travel. And helps organize any rebooking or refunds due to this untimely event.
• Investigation on any complaints from travelers and follow up the recovery of lost baggage
• Quotes all inclusive tour or cruise packages
• Organizes conferences and seminar packages

Arrangement of the terms of payments should be defined by both parties. Such as if the agency would require down payment for their services and to be paid in full after the tours or packages are availed. Or should there be a contract in which allows a company perhaps (usually for corporate accounts) to settle payment after an invoice has been sent, and to be paid on an certain date or period. Payment scheme must also be defined in your agreement, such as payment in credit card (if any there any additional bank fees), in cash or check. Also for the pricing, it must be stated that price and rates of certain travel products are highly subject to change. Such as airline, rail tickets, hotel and car rentals would rise or fluctuate depending on the season or if any promotions are offered by these suppliers.

A liability clause must also be defined in the agreement as to what extent is a travel agency liable. For example a travel agent arranges a full group package, should anything happen to one of the travelers, the most a travel agent can do is to offer assistance as to contact their travel insurance partner company (provided the client has also purchased the insurance along with the package). But any damages or cost incurred that isn’t at any fault of the travel agency, as they are not liable to pay or settle.

The agreement should constitute the proper scope of confidentiality and data privacy of its clients.

The agreement commences on the date the application is delivered and signed and shall continue for the duration of time the travel management services has been provided. The agreement may be terminated by either party upon on the agreed number of months.

A lot of travel agencies offer full packages that are less hassle rather than you arrange this all by yourself. And for more complicated and costly travel plans, it is best to acquire help from a travel agent who can adjust and arrange your travel plans for you that can fit your preferences. In fact large leisure or corporate groups still requires a travel agent to arrange their travel plans for them. Travel agents offer them peace of mind from all the complicated planning.

Contracts are important for both parties because these outline expectations, protect both parties if those expectations aren’t met and lock in the price that will be paid for services.

A corporate travel management is managing corporate travel in terms of    tracking various travel expenses and devising a comprehensive travel strategy. It aims to help businesses and their employees to optimize the way they deal with their travel need, traveler safety and security, credit-card management and travel and expenses data management .

An agreement is an important document that benefits and protects the best interest of the parties involved. With a well-written travel services agreement, this can ensure that all your travel needs are well defined and taken cared of.

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Travel Services Agreement Template

Document description.

This travel services agreement template has 16 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our travel services agreement template:

TRAVEL SERVICES AGREEMENT This Travel Services Agreement (the �Agreement�) is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Travel Service provide"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the "Client"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] PREAMBLE WHEREAS [YOUR COMPANY NAME] is in the business of providing travel management and other travel agency services;

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Travel Agent Contracts for ICs: 10 Things to Consider Before You Sign

⭐️ har article highlights: ⭐️.

• Sample Travel Agent/Host Agency Contract [Download]
• An overview of independent travel agent contracts [Infographic]
• 10 Provisions to look for in independent travel agent contracts
• Red flags in IC travel agent contracts
• Additional legal resources for travel agents

You’re probably here because you’re a travel agent. Not because you’re an aspiring lawyer. If you aren’t fluent in legalese, knowing what to look for in an independent contractor travel agent contract is probably not second nature to you. After all, how could you know what to look for in a contract if you don’t know what to expect in the first place?

Well, I’m here to make it a heckuva lot easier. I consulted with a few industry professionals; primarily Peter Lobasso, General Counsel for American Society of Travel Advisors (ASTA), and Jackie Friedman, Director of the Professional Association of Travel Hosts (PATH) and President of Nexion host agency. With their insights, you’ll know what you can expect in an IC/ host agency contract.

I also jump in annually to update this article with questions and concerns advisors bring up along the way!

Disclaimer: I hope it goes without saying that I am about as far from a lawyer as you can possibly get. But in the spirit of writing about contracts, I'm going to put it in writing: “I am not a lawyer.”

Have I completed law school and passed a Bar Exam? Heck no. I haven’t even watched an entire season of Law and Order for cripes sake! In that vein, this article is not in any way, on any planet, intended to serve as legal counsel.

Download a Sample Travel Agent Contract

Before I jump in, below is a sample contract you can download. This is a handy guide to keep with you as you go through the article so you can how my lay-speak in this article translates to actual legal-speak in a contract. Keep in mind that this sample contract is a boilerplate to let you know what you might generally expect with a contract. Actual host agency contracts won't be cookie-cutter like this one. Download it below:

This contract sample is brought to you by actual travel attorney, Mark Pestronk. Thanks a million, Mark! We'll hear more from Mark as you read on, so sit tight!

Independent Travel Agent Contracts [An Infographic]

Before we take a deep dive, here's the crib notes. This is a great summary of what you're about to read:

Independent Travel Agent Contracts: Big Picture Stuff

Peter Lobasso with ASTA shared a ton of great info on independent travel agent contracts. But I want to be extra clear that this article refers to contracts between independent contractor (IC) travel agents and host agencies .

Not agency contracts with suppliers. Not contracts between agencies and consortia. Not contracts between travel agencies and their employees. So if you're an IC or a host agency that’s curious to learn more about these kinds of travel agent contracts, you’re in the right place!

Independent travel agent contracts aren’t a one-size-fits-all kind of deal (just like hosts!). Not all independent travel agent contracts are created equal. Just like any business, host agencies vary in size and amount of resources at their disposal. They may not be spending the majority of their time creating a pitch-perfect contract for their ICs.

This means it’s up to you to do your due diligence . . . and that’s what we’re here for. To kick it off, here's four big-picture things to consider about your contract:

1. First Things First: Yes. You Need a Contract!

Maybe it seems obvious that you should have a contract with your independent advisors. But if you’ve never sold travel as an independent contractor (IC) how would you know?

Jackie Friedman’s advice? “First and foremost, it is very important for both the IC and the “host” they affiliate with to have a mutually acceptable written agreement. As surprising as it sounds, I come across agents that have nothing in writing, and it can create issues down the road.”

Even if the host agency is owned by your best friend, you want to make sure there is a contract between your agency and the host agency (want to know who all these host agencies are? Look no further .)

2. What Is the Term of Your Contract?

There are two primary types of contracts when it comes to term agreements 1 :

• Fixed Term: A fixed term contract has a set duration. Six months? A year? Two years? Depends on the contract . . . and that’s something you’ll want to know!
• Indefinite Term: Indefinite term contracts have limit. They can go on forever. An object in motion stays in motion unless acted upon by an outside force. Indefinite term contracts are the same way––they keep going until someone (the host or the IC) takes action to terminate (or amend) the contract.

The term of your contract should be abundantly clear. One type of contract term isn’t necessarily better than the other—it depends on what you’re looking for.

For example, if it’s the first time you’re working with this particular host and you’re not very familiar with them, Peter Lobasso suggested you consider starting with a shorter fixed term independent travel agent contract (for example, one year or less). That way, if you have a bad experience, there will be a hard stop to your contractual obligation.

3. Is the Right to Terminate Bilateral?

When considering independent contractor travel agent contracts, you have to look past the honeymoon period and think about what will happen if you want to break up with your host agency (or if you host wants to break up with you).

If things go south, do you, the IC, have the same right to terminate the contract as the host? For your sake, the answer to this should be yes. But more than that, it needs to be clearly written in your contract.

There are two kinds of terminations:

• For cause: This means that the contract terminates because one of contract parties (for our purposes, the IC or the host agency) violated the terms of the contract . . . pretty much a fancy way of saying that someone broke the rules.
• Without cause: This means there’s no “cause” except someone put in their notice to the other party.

You want to make sure you have the option to terminate your contract. In our boilerplate legalese, it looks like this, "This Agreement may be terminated by either Party in the event the other Party breaches this Agreement and does not cure such breach within fifteen (15) days after receipt of written notice of such breach."

4. REPEAT AFTER ME: "I'm AN Ic" (Not an Employee)

In legal speak, this distinction is considered defining “The Relationship of the Parties.” Is it abundantly clear in your contract that you're an IC . . . not an employee? If not, then clarify it!

On this topic, Friedman stated, “An IC is not an employee of the company and should not receive any benefits that the company may pay employees.”

To elaborate, Friedman pointed out the contract should be clear on the following details:

• There should be no taxes of any type withheld from an ICs compensation. The company must provide a form 1099 and any applicable state income reporting forms
• The contract should clearly indicate that both parties are able to contract with other business entities or individuals (more on this later!)
• There should be language that indicates that the IC is responsible for all business expenses. Many agreements outline some of these expenses.
• Duties of IC - cannot include requirements as to when and where the IC must work.

In order to protect the autonomy of your business, make sure the language of the contract recognizes you (or your agency) as an independent contractor. If you’re considered an employee in the eyes of the IRS, there may be trouble for you down the road .

How Does Your Business Model Impact Your Host Contract [VIDEO]?

Speaking of IC, during a Friday 15 episode , Steph spoke about the logistics of signing a host contract as an LLC vs. a Sole Proprietor. Take a look:

10 Provisions to Look for in an IC Travel Agent Contract

A few years back, travel attorney Mark Pestronk wrote an article for Travel Weekly that outlines 12 contract issues to watch for in independent travel agent contracts with host agencies. This info still stands the test of time!

Pestronk went the extra mile for HAR and provided us with the sample independent travel agent/ host agency contract above! Did you miss it? Download it here .

Our article will help decipher the contract's legalese, so if you're more of a visual learner, you can download it and go through the sample contract as you read the article!

We’re gonna throw a few more into the mix: Here’s a list of topics to consider and questions you should be able to answer after looking at your independent travel agent contract:

1. Commissions (in 3 parts):

Clarity on commissions is a pretty big deal . There are three main categories you want to keep in mind with commissions when it comes to your independent contractor travel agent contract:

1.1 Commission Payment Structure

How will you get paid? Your contract should tell you:

• What is your commission split?
• What is the schedule for/ frequency of commission payments?
• How are commissions paid? (Check, automatic deposit, carrier pigeon?)
• When will commissions be paid? What steps need to occur before payment is disbursed (i.e. vendor pays host, invoice is received, etc.)? When steps are complete, how many days after can you expect your payment?
• If you use a lead program, does that impact your commission split, and do the leads belong to you? ( You can read more on lead programs here .)

1.2 Commission Payment upon Contract Termination:

What happens if you or your host terminate the contract? The contract should address that hypothetical scenario:

• Will you still be paid commissions for bookings that haven’t traveled if the contract is terminated (for or without cause)?
• If so, how far out will the host continue to pay the commissions?
• Can you transfer bookings if you leave your host?

1.3 Offsets to Commissions

According to Friedman, “The agreement should include a list of any offsets to compensation. This list would include debit memos, commission recall, customer refund, chargebacks.” When it comes to deducting commission payments can you answer these questions:

• Can the host deduct fees from scheduled payments?
• If so, what for?
• How long do you have to pay back the charges if your commissions do not cover the charges?

The compensation should be very clear in your contract. How do you know if it’s clear enough? Lobasso’s tip is to, “Ask someone who knows nothing about how your business operates to review the commission plan and then explain how it works and how much the contractor would earn given a sale of a certain amount . . . If the commission can’t be calculated based solely on what appears on the printed page, that’s a pretty good indication that the structure as drafted is not sufficiently clear and revisions are in order.”

Why does it need to be so clear? Because if things go sour and you need to litigate or bring in an arbitrator, that judge or arbitrator will do just that: attempt to easily understand what is owed to you per what’s written in the contract.

Yep. It’s so important I’m bringing ‘em up again. When it comes to terms you should be able to answer:

• What is the term of the agreement?
• How much notice do you (or the host) need to give if you want to terminate the contract with or without cause?
• Is the right to terminate bilateral?

3. Dual Affiliation Disclosure:

Some contracts may require dual affiliation disclosure, which can be particularly important if you consider switching hosts or going with more than one host agency at the same time.

!Read up on what you need to consider with switching host agencies!

• Do you need to disclose when/if you decide to work under an additional host agency?
• Are there contractual restrictions if you choose to work with host B while you’re still contracted with host A?

4. E & O (Errors and Omission) Insurance Requirements:

In short, Errors and Omissions insurance is a policy for travel agents if a client sues you for negligence. It does not cover things like bookings errors and debit memos (confusing, considering the name). Some travel agents prefer to assume the risk instead of getting E&O insurance . It’s not mandatory, but it’s an important thing to consider.

While some hosts may provide E&O coverage, others might require that you purchase your own E&O insurance. Still, others may not provide or require E&O insurance. One isn’t necessarily better than the other, but you need to know the contractual requirements surrounding E&O insurance. From your contract you should know:

• Is it necessary for you to have your own E & O insurance?
• If so, how much coverage is required?
• If the host provides E&O insurance, what is your coverage?

5. SOT (Seller of Travel) Compliance:

Five states have Seller of Travel (SOT) are state laws that regulate people who sell travel (yep, that's you!). These laws offer protections for consumers and a lot of red tape for advisors. SOT laws are complicated . . . and if you live in or sell to clients in FL, WA, HI, or CA, it’s imperative that you’re adhering to their respective SOT requirements .

From your contract you should know:

• Are you subject to seller of travel compliance for any of the 4 states with such regulations?
• Are you subject to compliance with any other local laws/regulations?

6. State of Jurisdiction:

It’s not uncommon for agents to engage with host agencies outside their state of residence. For this reason, it is important to understand what your contract provides for with respect to which state will have jurisdiction over any controversies that arise from the contract. Oftentimes (but not always, the state of jurisdiction will be where the host is located since the host is the one drafting the contract. This means if you need to pursue legal recourse against the host agency (or vice versa), the host may have the home-court advantage.

According to Lobasso, “Litigating a case in another state is inconvenient burdensome, time-consuming, and costly, especially if multiple court appearances are necessary. You’ll also more than likely need to get an out-of-state attorney to represent you, all of which create in one party—but not the other—a serious disincentive to assert his or her rights under the contract in court. Imagine for example, that the host is in New York and the IC is in California and a dispute arises. It goes without saying that the party that needs to travel cross-country to sue or defend a suit will be disproportionately burdened by the litigation.”

Long story short? If you feel your host has defaulted on commissions, the cost to pursue litigation (lost time, travel expenses, hiring an out-of-state lawyer) may very well exceed the amount of restitution you (may or may not) be awarded if the jurisdiction is out of state.

7. ADR (Alternative Dispute Resolution) or Arbitration Clauses:

Some contracts may stipulate an ADR/ arbitration clause in order to avoid court altogether. If there is an arbitration clause, it means that both parties are giving up their right to sue. However, this doesn’t mean that arbitration isn’t costly.

Through arbitration, you will have to hire an arbitrator (usually a retired judge) and possibly a lawyer to represent you or your agency. An arbitration clause—if included in your contract—should outline who’s responsible for the cost of arbitration.

Wondering what to do if your host isn’t paying commissions? Check out this article here.

8. Schedule of Rental Fees for Office Space or Equipment:

This may not apply to many home-based agents. But if you are the exception and not the rule (you rebel, you), the rental rate should be clearly outlined in your contract with a breakdown of equipment (desk, chair, etc.) and services (i.e. internet) included.

Lobasso mentioned that this provision is primarily a concern for the host since “charging the IC for these items supports a finding that the worker is not an employee.”

9. ICs Risk of Loss:

Starting a travel agency is like starting any business—there is financial risk involved. Your independent travel agency contract with the host agency will indicate that the IC assumes this risk. As Friedman state, “the agreement should outline the relationship of the parties and the IC’s risk of loss in the event that commissions do not cover expenses incurred.”

Red Flags to Look for in Travel Agent Contracts

Now, what you can expect in an IC travel agent contract. There are also a few things you do not want to see in a contract . . . a few qualities that should put your spidey senses on high alert. Here are a few red flags to look out for, according to Lobasso:

1. Unclear or indefinite terms

Are certain terms used that are not defined in the agreement? Are the timeframes for the performance of the parties' obligations clearly stated? (For example, when the IC receives a commission.)

2. Ambiguity

For our purposes, Lobasso describes ambiguity as, “Any inexactness in the drafting that leaves a provision of the contract open to more than one reasonable interpretation. In my experience, this sort of thing is one of the primary reasons why parties end up in court, and more often than not it’s completely avoidable.”

If something isn’t clear to you, ask your host. But it’s not enough for the host to explain or define terms to you verbally—any clarification should be reflected in the contract.

3. Compensation structures that are overly complicated.

Lobasso warns agents against complicated compensation structures, “It’s in both parties interest that the compensation structure be as simple and clear as possible . . . Disputes often arise because the commission terms were unnecessarily complicated or practically indecipherable. In some cases, it’s intentionally drafted that way in order to induce the contractor to sign it without really understanding just how unfavorable the terms were.”

4. Non-Compete Clauses

As an independent contractor, you should be exactly that . . . independent. So if there is a non-compete clause in your contract, that could be cause for some surprise.

Lobasso explained non-compete clauses in IC/host contracts like this, "While often seen in employment agreements, non-compete clauses typically don’t (and shouldn’t) appear in IC agreements. While inclusion of such a provision could be warranted under certain circumstances, generally speaking, the IC, by virtue of its status as an independent business, is free to render services to whomever it wishes. "

For a little more information on non-compete clauses (and restrictive IC/host contracts in general), you can read Mark Pestronk's article here .

5. Non-diSparagement clauses

Non-disparagement clauses are newer on our radar. Essentially, a non-disparagement clause means that an IC couldn't "say" anything negative about the host, its employees, or services in any form of communication (verbal or written, in public or private forums). Even with our stringent review integrity guidelines , as a review site, this is obviously something that sets off our spidey senses.

What does this look like in the real world? Here's one real-world example: If you sign a contract with a non-disparagement clause, and then later leave a truthful review that the contracting organization finds unfavorable, they can compel you to remove the review by withholding commission payments.

Additional Resources for IC Travel Agent Contracts

Still a little nervous about putting your John Hancock at the bottom of a host agency contract? There’s more support for you. If something is unclear in your contract, you can ask your host agency to clarify and amend the contract.

Wonder if a host is legit? Well, if the reviews on our site aren’t enough, here are two other travel organizations that can help you find out:

1. PATH (Professional Association of Travel Hosts)

there are organizations such as PATH (Professional Association of Travel Hosts) that have pretty stringent requirements for membership. One of those requirements is to provide a contract to ICs.

According to PATH president, Anita Pagliasso, “As far as what PATH requires in an IC agreement, there are sample contracts that have been published by ASTA with guidelines, which includes terms, conditions and commission details clearly stated. We have made a copy of ASTA's recommended agreement available to PATH members.”

2. ASTA (American Society of Travel Advisors

You can also look to see if the host agency is a member of ASTA, which holds their members to a high standard. On that note, ASTA also provides significant support to ICs through their “Member Advantage Program.” According to the ASTA site, “As an ASTA member, you will receive a free 15-minute initial consultation, a written estimate subject to the attorney's qualifications, and fifteen percent (15%) off each attorney's regular fees. Our attorneys can provide counsel on issues such as sale, merger or acquisition of travel agencies, employment and supplier contracts, CRS negotiations, etc.”

Not too shabby, eh? ASTA's membership is $199 for independent agents who sell less than 1M in travel annually and $355 for members selling above that threshold . (Membership costs increase with sales: you can see the ASTA's full list of membership dues here). And if you're looking to dig into more legal resources on the site you can take a detour here .

Ready to become a travel advisor? We have just the thing.

The one thing that all travel agent rates, promotions, loyalty programs, and discounts have in common is that you have to be a travel agent.

HAR's free 7-Day Setup LITE course offers a daily email for a week to connect you to the resources you need in the order you need them. If you want more structured support, I recommend also checking out the free trial for HAR's 7-Day Setup Accelerator course trial as well! (Signing up below will start the 7DS with instructions on how to register for the 7DS Accelerator trial).

Phew. If you made it this far, not only am I frankly impressed by your attention span, but I’m also confident that you’ll be well-equipped to decode your host agency/ independent travel agent contract.

Like I said earlier, I’m a far cry from a lawyer. I want to extend my sincere thanks and appreciation to Peter Lobasso (an actual lawyer) and Jackie Friedman (president of Nexion Travel Group) who liberally offered their industry expertise! Also a special thank you to Mark Pestronk for providing us with a sample contract that you can use for your own purposes! Thank you three for sharing trade secrets (and for making me seem 100x smarter than I really am when it comes to travel agent contracts).

Do you have any thoughts? Want to share your experiences with independent travel agent contracts? Share your insights in the comments below!

Editor's Note: This post was originally published in Feb. 7th, 2019, and updated and republished on date listed.

• “Term agreement” refers to the duration of the contract ↩

About the Author

Mary Stein has been working as a writer and editor for Host Agency Reviews since 2016. She loves supporting travel advisors on their entrepreneurial journey and is inspired by their passion, tenacity, and creativity. Mary is also a mom, dog lover, fiction writer, hiker, and a Great British Bake Off superfan.

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• Failure to Disclose Health and Safety Hazard Information: While the travel agent normally has no duty to investigate ultimate service providers for compliance with safety and health laws, the agent may be jointly liable in circumstances where the agent knew or should have reasonably known of specific risks and did not communicate them to the traveler. Some jurisdictions have found travel agents liable for failure to investigate crime levels in destination areas or advise of epidemics or needed shots/vaccines, or advise of need for travel insurance.
• Failure to Disclose Identity of Supplier: A travel agent must disclose the identity of a supplier or tour operator ultimately responsible for delivering the travel services. If the agent fails to make such a disclosure, the agent may be jointly liable for any harm or injury caused to the traveler by the supplier or tour operator.
• Assuring the Reliability of Suppliers or Tour Operators: By doing so, the travel agent may be jointly responsible for harm or injury to the traveler under a variety of legal theories, including breach of warranty and negligent or fraudulent misrepresentation.

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Moscow is unlike any other city on Earth. It is the wealthy economic center for one-sixth of the world's land mass and has over 120 ethnic groups and nationalities. A diverse and vibrant city with a strange combination of traditional Russian architecture and newer Soviet tastelessness, Moscow is an adventure waiting to happen!

Reasons to travel to Moscow

But what makes it so popular among tourists is the concentration of Moscow attractions. When you travel to Moscow you definitely want to see the red-bricked walls of the Kremlin , to take a picture in front of St. Basil's Cathedral , and probably visit the world-famous Bolshoi Theater . All of these places are located within a very small area around Red Square , so seeing them on a walking sightseeing tour of Moscow is convenient and allows you to avoid traffic jams.

The concentration of Moscow's main sights is one of the facts that make this city a world-class tourist destination. The majority of its attractions is centered in one small area, and the Kremlin is the hub of this concentration.

These sights extend into the realm of fantasy and are a must to put on your Moscow itinerary: the colorful domes of the Cathedral of St. Vasily the Blessed, the neo-gothic consumer wonderland that is the GUM , or state department store, and the timepiece of Russia's New Year's celebrations, the Spassky clock tower, all tower over the beautiful Red Square.

The neighboring Kitay-Gorod, or "Basket-Town" (likely a reference to the construction method of the city walls surround it), remains a significant concentration of traditional Russian structures serving as a commercial center. The Bolshoi Theater, the Lubyanka, and the hotels that tower above the Manege Square all are situated within the Boulevard Ring, an urban open-space doubling as a heavily-trafficked roadway created after the Great Fire of 1812, the one that left Napoleon's Army starving deep within wintry Russia.

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As Europe's largest metropolis, and the 5th largest city in the world, Moscow comes with its share of traffic blunders. It seems that all of the world's most expensive black cars are here, and that most of the city's car owners do not understand the difference between sidewalks and parking lots. Still, while the traffic situation leaves much to be desired, the Moscow subway is superb.

The advanced Metro system carries up to 3 million passengers a day and its trains run every few minutes. With stations that could rival art museums, the Metro is one of Moscow's great must-see sights. Travel in Moscow Metro at least once to see that there is nothing like it in the world.

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The peak of the Moscow travel season is May through September. However, you may prefer to savor Moscow tourism delicacies during the low travel season. The snowy winter months offer just as many entertainment options as one can find during summer.

You can celebrate New Year's Eve or see Russia's biggest ice rink on Red Square, taste blinis or visit one of the numerous winter markets. Any popular St. Petersburg - Moscow tour hides a handful of memorable experiences the whole year round!  

Although the best time to visit Moscow is from May to September, the city in winter still enchants with its towers and lights. Its great celebrations on the day of the October Revolution (held on November 7, a discrepancy resulting from the difference between the traditional Russian Julian calendar and the Gregorian calendar in use around the world today), and New Years Day make it the place to be. Of course, the best way to plan your trip is through one of our package tours to Moscow. If you are planning a trip to Russia , don't hesitate to contact our experienced travel experts who'll be glad to help.

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The famous GUM is a large department store in the Kitai-gorod part of Moscow facing Red Square.

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Our classic tours include tours of Moscow and Saint Petersburg, two main Russian cities.

Moscow is a big and busy  megalopolis and Russia’s capital city, where more than 12 million people live and work. Our capital city is happening place; it is mysterious, elegant, luxurious, fashionable, clean and bright, with its unique legends, traditions and events. It is with great pride that we show the Red Square and the Kremlin, our Underground and Tretyakovskaya Gallery, among other stunning attractions.

Saint Petersburg is our second capital,  the second largest city in the Russian Federation. This wonderful city has a strong and lively aristocratic spirit, uniquely Russian royal architecture, magnificent museums and theatres. Saint Petersburg bears the royal heritage of Russia, which can be felt in its air, its streets, parks, monuments, museums and citizens.  In Saint Petersburg tours, we will take you to the Hermitage, Peter and Paul Fortress, Faberge Museum and Orthodox Cathedrals. We’re sure you will love it!

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Just try any of Visit Moscow Tours’ tour packages or any individual city tour, and we promise that you will want to come back to Russia again.  Russia is huge with countless amazing places to visit. There are so many unique experiences to be had and energies to be felt that one tour is definitely not enough to explore this vast land. It is also a very safe destination to travel, and we have a tradition of warm hospitality. Our people adore and take care of visitors as our own guests, and even if they do not know your language very well, they still try to be helpful and hospitable.

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