What Is A Travel Agency Agreement? (2025 Updated)

Contents

When you’re running a Travel Agency business in 2025, you face a range of industry-specific risks and evolving consumer expectations, so it’s vital to have a robust contract in place with your customers.

Having a lawyer draft your Travel Agency Agreement – or reviewing your existing one with our contract review service – will ensure that your business and its reputation are protected against emerging legal risks and regulatory changes.

Generally, a Travel Agency Agreement will cover important matters such as outlining what services are included as part of your package, detailing payment obligations, stipulating cancellation fees, and limiting your liability for any mishaps that could occur during a client’s journey. For further clarity on the legal fundamentals, you might also refer to our article on what makes a contract legally binding.

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

Travel Agency Agreements cover all the key terms you need in managing your relationship with clients, ensuring both parties clearly understand their rights and obligations.

The Agreement varies depending on the specific services provided by the travel agent and the operational framework they follow. However, below are some of the main elements that Travel Agency Agreements typically cover.

Agency and Third-Party Terms

Travel agents act as intermediaries between travellers (clients) and a range of travel service providers such as airlines, bus, rail and cruise companies, accommodation providers like hotels, and tour operators. In today’s digital environment, many bookings are processed online which means closely linked third-party terms must also be transparent.

A Travel Agency Agreement will make it clear 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, including clauses related to cancellations and refunds;
If a refund is applicable for a booking made by the travel agent on behalf of the client, the refund will only be credited back once received 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 breaches its obligations. This limits the travel agent’s liability and ensures that any misinformation (for example, a promised tour activity that is not delivered) is a matter for the travel service provider to resolve.

Client Obligations

As a travel agent, it is crucial to ensure that clients understand they are responsible for possessing a valid passport (and, if applicable, visa), appropriate travel insurance, necessary travel documents (such as airline tickets), and meeting any relevant health requirements.

Clearly stating these obligations in your Agreement prevents clients from shifting responsibility onto your business should any issues arise – a mistake that could prove costly and time-consuming to rectify.

Pricing

Prices for travel-related bookings, such as flights and accommodation, fluctuate frequently due to factors like availability, currency exchange rates, fuel costs, and changes in taxation and airfares. In 2025, these dynamics are even more pronounced as market conditions evolve.

Your Travel Agency Agreement should explicitly state that pricing is subject to change and is only guaranteed once the client has paid in full for the booking.

Booking Changes

It’s always wise to ensure that clients are fully informed about their rights and responsibilities when it comes to changes or cancellations. With the rise of online booking platforms and instant payment systems in 2025, clarity in this area has become even more critical.

Typically, a Travel Agency Agreement will specify that clients are liable for any additional fees incurred by the travel agent when changes are requested – be it alterations of names, dates, or destinations. This protects your business from unforeseen costs.

In addition, given the recent updates to consumer protection regulations, travel agencies are encouraged to offer transparent explanations about refund processes and any extra charges. Keeping your terms updated and compliant with the latest standards is essential; you may wish to review our guide to legal requirements for starting a business for further insights.

Need help?

If you’d like our help drafting or updating your Travel Agency Agreement to meet 2025’s standards, feel free to get in touch! We’ve assisted many travel agency businesses in ensuring they’re legally protected and fully compliant with current regulations. For additional support, check out our contract review service and other legal resources on our website.

Embeth Sadie

Embeth is a senior lawyer at Sprintlaw. Having previously practised at a commercial litigation firm, Embeth has a deep understanding of commercial law and how to identify the legal needs of businesses.