While Florida does not require travel agents to have a state license to operate in Florida, it does require that any individual or business that sells travel be registered. Specifically, any person or entity that sells pre-arranged travel or tourism travel services for a fee must register as a “Seller of Travel.” This is required by the Florida Sellers of Travel Act. Travel agents must register with the Florida Department of Agriculture and Consumer Services (FDACS).
A travel agency that is concerned about its legal obligations in Florida would benefit from a lawyer consultation with a Florida lawyer.
Sellers of travel are required to provide proof of assurance in the form of a performance bond, in an amount not to exceed $25,000, or $50,000 if they sell vacation certificates. “Vacation certificates” are essentially coupons that entitle an individual who holds one to a discounted or free vacation. Travel companies and the providers of travel services may use certificates as promotional tools.
What Are the Responsibilities of Travel Agents?
A travel agent is a professional who works with clients to plan and then make reservations for travel-related services. These services usually include such things as airplane flights, train trips or cruises, hotels, and car rentals. They may reserve spots for their clients on packaged vacation tours, which include all of the necessary services for a trip.
A travel agent usually focuses on facilitating transactions with the providers of travel services, e.g., large hotel franchises, and arranging the logistics of a trip so that it works in terms of timing and convenience for the client.
Travel agents typically work with the suppliers of travel services, e.g., airlines, cruise lines, hotel chains, and tour operators. They are familiar with and routinely use booking systems to devise customized travel plans that meet the preferences of their clients.
Of course, telemarketing travel scams are common today. Telemarketing is the selling of products via the telephone. It is probably best practice not to purchase travel services and pay for them with a credit card over the phone from an agent that a person does not know.
What Are the Legal Duties and Obligations of Travel Agents?
As agents of their clients, travel agents have a fiduciary responsibility to act in their clients’ best interests. Their fiduciary responsibility includes the obligation to meet a high standard of care and diligence when performing their job.
Travel agents must make and confirm reservations, including any changes to the itinerary, and deliver tickets to their customers. They are also responsible for disclosing all of the fees that a client may have to pay in the course of a trip, such as charges at ports.
A travel agent should disclose the complete final price of a trip. They need to stay abreast of price changes and inform clients about them. They should clearly inform clients about costs so there is no misunderstanding.
Additionally, travel agents have a duty to inform their clients about other information that is relevant to their travel. They should tell them about the availability of travel insurance. They should communicate to clients negative information that could affect their travel plans, and especially their safety, e.g., possible dangers that are not public knowledge.
Travel agents can access information through trade journals and travel associations. This allows them to stay informed about issues that might affect a client’s trip, which a client may not know.
What Is Travel Insurance and How Does It Work?
There are a number of risks for which a traveler may want travel insurance coverage, for example, the following:
- Loss of Belongings: The airlines might lose a person’s luggage. They may lose belongings, cash or credit cards to thieves. They might be the victim of identity theft. Travelers would be well advised to have insurance to cover these losses.
- Interruption of the Trip: Trips are frequently interrupted for any number of reasons, most commonly extreme weather conditions. Airlines may cancel flights because they lack the necessary personnel for a flight or because of unexpected mechanical issues with airplanes. Again, a person could end up staying unexpectedly in expensive lodgings in a foreign location for days. It would be wise to have insurance for this risk.
- Unexpected Illness: Yet another common risk that is covered by travel insurance is the fact that a person cannot cancel their travel reservations if they become ill or otherwise unable to take the trip. They may have to pay for expensive travel arrangements of which they cannot take advantage. This is a risk that travel insurance often covers.
It pays to know what kinds of coverage standard travel insurance offers and to purchase the coverage necessary for some of the common risks.
Is Trip Insurance Required in Florida?
A person who has made plans to travel is not legally required to purchase travel insurance; however, many professionals in the travel industry and other financial advisors recommend it. A person might consider what risks they might realistically encounter on a specific trip.
For example, if a person plans to travel to a foreign country, they need to know if they have insurance that would cover medical care in that country. A person can ask their health care insurance company if it would cover care they receive in a foreign country. If it would not, they need to purchase health care insurance that would cover the costs of treatment they might receive in another country.
In addition, a person would want insurance that would cover the cost of medical transport back to the United States. This is something that might be very costly, and most people would want to have insurance to cover this eventuality.
Another common risk is the risk of having a car accident. If a person plans to rent a car in a foreign country, they definitely want to know whether their home nation’s car insurance would cover the loss, and if not, they want to buy insurance from the car rental company.
Can My Travel Agent Be Liable for Problems I Encounter on My Trip?
It is possible for a travel agent to be liable for problems that a traveler encounters on a trip they take that has been arranged by a travel agent. Travel agents can be held responsible for problems encountered by clients because they violate applicable regulations or make mistakes through lack of due diligence. They would want to consult a lawyer about how to sue a company that sells travel services.
For example, if a travel agent fails to communicate relevant information or inquire about the status of a resort property, they may be liable if their client suffers an economic loss of some kind because of the agent’s fiduciary duty.
However, it is also possible that a supplier of a travel service, e.g., an airline or a hotel, could be responsible for injury to the client, e.g., because the airline fails to provide a booked flight, or a client slips and falls on the wet surface of a hotel floor. Then liability would fall on the supplier rather than the agent.
When a person decides to sue a travel company, they would likely claim breach of contract, negligence, or breach of fiduciary duty. A travel agent might also be sued for failure to fulfill their professional obligations under professional liability law, i.e., essentially for professional malpractice.
Do Travel Agents Need Insurance in Florida?
As noted above, travel agents themselves need to submit proof of assurance when they register in Florida. This is usually done by submitting a performance bond to the FDACS. The amount of the bond does not have to exceed $25,000 or $50,000 if the agent sells vacation certificates.
A vacation certificate is simply a document that entitles a person who holds it to a discounted or free vacation. Travel certificates may be used as promotional tools by travel companies or resorts to create business.
A travel agent’s performance bond should cover the agent if they are liable for economic losses suffered by their client, because the agent failed to fulfill their obligations under a contract or their duty of care. But a travel agent may want to discuss other insurance coverage options they have in order to make sure that their coverage is adequate.
Do I Need a Florida Lawyer if I Have a Claim Against My Travel Agent?
If you are a travel agent and are unclear about your potential liability to your clients, you want to meet with a Florida business lawyer. Your lawyer can advise you as to how you might be liable to clients and what kind of insurance coverage you need to address the risks.
If you have had a bad experience on a trip that was arranged for you by a travel agent, you too want to talk to a Florida business lawyer. Your lawyer will be able to advise you as to whether your travel agent may be liable and what your next steps are in asserting your rights.
