Travel agencies as well as travel agents are subject to California laws. Travel agencies are businesses that make arrangements for people who are taking trips. This can include booking their airline tickets and their hotel rooms.
Both travel agencies and travel agents are governed by travel law, which regulates the industry. Travel laws include international laws, federal laws, state laws, and common law.
Every state, including California, has consumer disclosure and fraud statutes. There are also refund policy requirements for companies that sell and arrange travel services.
In California, travel agencies and agents are subject to specific laws, including the Seller of Travel (SOT) law. The SOT law requires agents to register with the California Attorney General’s Office.
This registration requirement means that they have to meet the Travel Consumer Restitution Corporation (TCRC) standards, including obtaining a Seller of Travel bond, joining the consumer protection fund, and, in some situations, opening a trust account.
All registered agents have to display their California Seller of Travel (CST) number on all of their advertising. A California lawyer can help both agents and customers ensure that a travel agent is following all of the requirements under professional liability law as well as how to sue a company if a client has had any issues with their travel agency or agent.
What Are the Responsibilities of Travel Agents?
A travel agent has many different responsibilities. The definition of a travel agent is a professional who sells and arranges accommodations, transportation, tours, and other aspects of trips for travelers.
A travel agent is considered to be a fiduciary, or representative, of their client. These agents are responsible for handling general issues related to arranging travel plans.
A travel agent is tasked with:
- Making and confirming a client’s reservations
- This may include itinerary changes and delivering tickets
- Vouching for the reliability of a supplier
- Providing a warranty for services
- Providing the identity of the tour operator or supplier who is responsible for services
- Providing advice on the availability of travel insurance
- Giving information about any health and safety hazards
- Sharing any needed information, including travel documentation
- Informing clients of any restrictions on transportation tickets
- Investigating the availability of travel services, for example, if a hotel is over booked or a flight gets cancelled
What Are the Legal Duties and Obligations of Travel Agents?
State courts provide that travel agents have a higher standard of care because of their special relationship with their clients, including special duties and obligations that they owe to the client.
The duties and obligations a travel agent has include a duty to:
- Warn the customer
- Investigate and disclose
- Inform
- Make reservations
- Confirm reservations
The agent’s duty to warn the customer includes a duty to reveal any negative information they know about the client’s destination. One example is when a client is going to a high crime area.
An agent’s duty to investigate and disclose includes a duty to investigate their client’s plans and be knowledgeable about the area where the client is going. This includes knowing about conditions that may affect the client’s travel plans, including community events that can cause delays or interference with their travel.
The agent’s duty to inform requires the agent to inform clients about important travel information, including:
- Limits on ticket changes
- Documents the client needs to travel
- Whether certain countries have specific requirements
- The availability of travel insurance
An agent also has a duty to make reservations at their client’s request. In addition, the agent has a duty to confirm those reservations and ensure they are ready for the client.
What Is Travel Insurance and How Does It Work?
Travel insurance is a type of insurance that reimburses the traveler for costs when certain events occur during their trip. This insurance is meant to cover individuals for financial implications if issues come up while they are on their trip.
Travel insurance can include costs the individual incurred before the trip, including non-refundable tickets or hotels. It can also cover costs for events that happened during the trip, such as medical expenses and travel interruptions.
There are five main categories of issues that travel insurance typically covers, including:
- Trip cancellation
- Travel medical coverage
- Emergency medical evacuation
- Major medical coverage
- Accidental death or flight accident
Travel insurance can be purchased when someone books a trip. If a potential customer wants to, they can have an attorney review the terms and conditions of the travel insurance before they purchase.
Is Trip Insurance Required in California?
Trip insurance is not required in California, but instead, is optional coverage that a client can purchase before they take their trip. It is common for an individual’s health insurance or homeowner’s insurance policy to cover lost property and medical costs, both at home and when they are traveling.
Travelers can also buy trip interruption or trip cancellation insurance, which covers losses that are not covered by other insurance. These policies can help protect the cost of the trip if it has to be cut short because of unforeseen circumstances.
Travel, especially abroad, can be very expensive, so it can be helpful to purchase insurance for peace of mind so that someone can get reimbursement if something happens on their trip. It is important for individuals to be aware that there are telemarketing travel scams that can try to take their money for fake trips and even fake insurance policies.
Can My Travel Agent Be Liable for Problems I Encounter on My Trip?
In some situations, a travel agent may be liable for problems that someone encounters on their trip, including:
- Violations of their general duties
- Fraudulent misrepresentation
- Violations of applicable state regulations
There are many different examples of issues that travelers commonly encounter on trips, such as:
- An injury
- Discrimination
- Lost, stolen, or damaged baggage
- A delay
- A cancellation
- A violation of consumer protection laws
- A deceptive port charge
Sometimes, when a client books their vacation, they are required to sign a travel agency contract that may include:
- Payment terms
- Baggage fees
- Additional fees
- Travel documents
- Confirmations
- Governing laws
- Travel agent obligations
- Cancellations
- Any other necessary clauses
Before an individual makes any large purchase through a travel agency or agent or purchase travel insurance, it can be helpful to have a lawyer consultation. If an individual has any type of dispute about their travel, their attorney can also explain if they can sue a travel agency.
Do Travel Agents Need Insurance in California?
Yes, a travel agent in California would benefit greatly from having business insurance that protects them from liability. Under the Seller of Travel Act, they may also be required to have a surety bond, a trust account, or Errors & Omissions (E&O) insurance that protects consumer payments.
A California agency can obtain professional liability insurance and general liability insurance. Professional liability insurance will protect an agent for errors they make during their business activities. It can also help if an agent is sued by a client for not providing services they were due under the contract.
General liability insurance can protect travel agencies and agents in their offices where clients come. This type of insurance typically provides protections when clients are injured at the office, such as in a slip and fall.
Do I Need a California Lawyer if I Have a Claim Against My Travel Agent?
If you have any type of questions or concerns about your California travel agent or agency, a California business lawyer can help. As discussed above, California has specific requirements for agents in the state.
An attorney can help a traveller review documents, including contracts and insurance, to determine if you have a claim. You can use the free attorney matching services provided by LegalMatch to find a business attorney in California today in as little as 15 minutes.
