For travel advisors, the joy of planning unforgettable experiences for clients often comes with an undercurrent of risk—last-minute cancellations, supplier changes, and, increasingly, fraud and chargebacks. If you've ever had a client say, “I didn’t realize that deposit was non-refundable,” or worse, file a chargeback after receiving services, you know how devastating it can be.

Yet many travel professionals—especially those new to the industry—don’t realize that the single most important tool to protect your revenue and reputation isn't tucked into your CRM or buried in your supplier contracts. It’s your Terms and Conditions.

These often-overlooked documents serve as the backbone of your business operations. When written correctly, they’re not just fine print—they’re your legal safety net. They can mean the difference between winning or losing a chargeback, and between a smooth client experience or a costly misunderstanding.

Let’s break it down, step by step, so you can better understand what Terms and Conditions are, why they matter, and what must be included to truly protect your travel business.

First Things First: What Are Terms and Conditions?

At the most basic level, Terms and Conditions (T&Cs) are a written agreement between you and your client that outlines how you do business. They cover important details like:

• Refund and cancellation policies
• Payment schedules
• Planning fees
• Your role and limitations as a travel advisor
• Supplier terms that apply to the client’s trip

These aren’t just helpful—they’re legally binding when executed correctly. A client who signs your Terms and Conditions is acknowledging that they’ve read, understood, and agreed to your policies. That’s crucial when disputes arise.

Why Travel Advisors Need T&Cs—Even If You’re Just Starting Out

It’s common for newer travel professionals to believe that strong Terms and Conditions are only necessary for large agencies or high-volume businesses. But the reality is this: any travel advisor who books services for clients needs legal protection.

Here’s why:

1. They Protect Your Income

A chargeback—when a client disputes a charge with their credit card company—can reverse your commission and cost you thousands in fees. If you don’t have signed documentation proving your policies, you're likely to lose the dispute, no matter how legitimate your case is.

2. They Prevent Misunderstandings

Clients may not remember everything you tell them during a consultation. T&Cs provide written confirmation of what was agreed upon, minimizing confusion around refunds, changes, and fees.

3. They Help Deter Fraud

Fraud in the travel industry is on the rise, particularly with online, card-not-present transactions. Terms that require identity verification and outline procedures for dispute resolution help prevent bad actors from taking advantage of your business.

4. They Position You as a Professional

Using well-written, legally sound T&Cs signals to clients that you’re running a professional business. It builds trust—and often encourages clients to treat you with more respect.

What to Include: Key Clauses That Protect Your Business

Terms and Conditions should be tailored to the unique nature of your travel services and the types of clients you serve. At a minimum, make sure these critical areas are covered:

Refund and Cancellation Policies

This is one of the most common sources of conflict between clients and advisors. Your policies should spell out:

• When deposits are due
• What is and isn’t refundable
• How supplier penalties are passed along
• The process for client-initiated cancellations

Why it matters: If a client cancels last-minute and your refund policy wasn’t clear—or wasn’t acknowledged in writing—you’re far more likely to lose a chargeback or face client complaints.

Identity Verification

With so much fraud happening in the travel space, requiring government-issued ID for bookings isn’t overkill—it’s smart business.

Why it works:

• It deters fraudsters looking to use stolen credit cards.
• It provides documentation that the person making the booking is legitimate.
• It helps validate the transaction if a dispute arises down the line.

Chargeback Prevention and Dispute Resolution

Your Terms and Conditions should state that clients agree to contact you directly to resolve any issues before initiating a chargeback.

Why it matters:

• It gives you a chance to address concerns quickly and calmly.
• It serves as evidence in the event that the client bypasses your process.
• It reinforces your professionalism and process-driven approach.

Supplier-Specific Terms

Suppliers (like airlines, hotels, or tour operators) each have their own policies, which apply to the client's booking—even if you're the one planning the trip. Your T&Cs should state that clients are subject to those terms, and that you are not liable for penalties or decisions made by third parties.

Why it matters:

• It shifts liability to where it belongs—back to the supplier.
• It avoids confusion about your role.
• It protects you when suppliers make changes outside of your control.

A Word of Caution: Avoid Generic, One-Size-Fits-All Contracts

Many advisors—especially when they’re new—try to cut corners by downloading free contract templates from the internet. But these generic documents are often created without any knowledge of the legal and operational nuances specific to the travel industry.

That’s a risky move. They may not comply with consumer protection laws in your state or region. They rarely account for supplier relationships or travel-specific risks. They often lack key clauses that protect you against fraud and chargebacks.

Instead, seek out industry-tailored legal contracts created by experts with deep knowledge of the travel space—especially those who understand the intersections of consumer law, agency roles, and supplier accountability. In addition, ensure they’re updated as laws evolve and built with the real-world needs of travel professionals in mind.

How to Use Your Terms and Conditions in Practice

Having strong T&Cs only works if you actually use them. Make them part of your regular booking workflow:

• Send Them Early: Include them in your onboarding process before planning begins.
• Require a Signature: Use a system like DocuSign or a CRM that supports e-signatures to collect acknowledgment.
• Review Key Policies Verbally: During client calls, highlight critical sections—like refund rules, chargebacks, and ID requirements.
• Store Copies Securely: Save signed documents in your CRM or cloud storage, so they’re easy to retrieve if needed.

What Happens Without Them?

Imagine this: A client books a $4,500 vacation, then cancels two days before departure and files a chargeback. You assume your verbal explanation of “non-refundable” was enough. It wasn’t.

Without a signed agreement and clearly written policies:

• You have no proof of what the client agreed to.
• The bank sides with the client.
• You lose the revenue—and possibly the relationship.

Now flip the script: If your Terms and Conditions were signed and spelled out the refund policy, you’d have the documentation you need to dispute the chargeback and keep your revenue.

Final Thoughts: Don’t Leave Your Business Legally Exposed

Whether you're a solo advisor or part of a growing agency, having strong, legally prepared Terms and Conditions isn’t optional—it’s essential. They don’t just protect your money. They protect your time, your relationships, and your reputation.

If you don’t already have T&Cs tailored to the travel industry and how you operate, now is the time to act. Relying on verbal agreements, email threads, or generic contracts from questionable sources won’t stand up to scrutiny when problems arise.

Take your role seriously. Protect your business like the professional you are. Want to take the next step, click here to download your free checklist. 

ABOUT THE AUTHOR

After achieving notable success as a multi-million-dollar producing travel advisor and agency owner, Sheila Folk founded Travel Industry Solutions to provide innovative and comprehensive legal protection and operations tools to travel professionals. Backed by more than 20 years of experience in technology, product development, and risk management, Sheila is a sought-after speaker on such topics as customer attraction and retention, innovative practices, and business process optimization.