Legal Lingo: What to Know When Hiring and Training New-to-Industry Travel Advisors

Recent surveys report that there are strong economic projections for our industry, along with a resurgence of travel advisors.

It’s about time.

Although our business model has evolved over the past two decades, we are at a point where travelers — especially millennials and baby boomers — are turning to us for their travel planning or considering this profession as a viable career.

But while we trumpet the uptick, we must be vigilant in our hiring decisions. From a legal perspective, agencies should be mindful of the implications of bringing on the next generation of advisors.

When hiring new agents, what do we need to worry about?
Each time we welcome a new advisor to our team, we take on legal obligations. An employer is vicariously liable, which means that they could be responsible — and could owe money damages — for the errors and omissions made by employees and, at times, even independent contractors (ICs).

We often base our success and opportunities for growth on bringing in talent who can open the doors to new business. Each opening, however, has the potential for increased liability. This exists because “agency,” broadly defined, is a legal concept that can create employer liability for the actions of those who are actual, apparent or implied agents of “the master” (i.e., you).

So, any misleading or wrong representations made by your agent, such as not telling a customer that their deposit is nonrefundable, can create legal problems.

We often base our success and opportunities for growth on bringing in talent who can open the doors to new business. Each opening, however, has the potential for increased liability.

How can we protect ourselves?
Vicarious liability demands that proper supervision and training of employees is essential.

To guard against financial and reputational harm, be sure that your insurance policy covers you for these claims. In the context of ICs, consider requiring those employees to procure their own insurance policy.

Another way to lower the risk of vicarious liability is to be selective: Make sure your travel agents are trained, and commit to training them well. After all, since these advisors are not required to be licensed, we need to be careful and self-police those who are entering our industry.

As you consider hiring new employees, first look at their background. Do they hold any certifications or designations? What professional organizations do they belong to? What trade publications do they read regularly?

To protect ourselves, it’s important to be selective: Check references (including customers who they have worked with); hold training sessions; develop a process for the dissemination of new information; and, above all, communicate with one another (which is a task that can be challenging when everyone isn’t working under the same roof).

Equally, training doesn’t stop upon hiring; we always need to stay abreast of developments. Make sure that they learn the basics, including what’s important to convey to consumers and what is necessary to document. (And if the customer demands something impracticable, document that the employee’s advice was discarded.)

With this, we will enjoy future good times in our industry. And, with some thoughtful planning, we can avoid potholes in the road ahead.

The Details
The Ment Law Group
www.mentlaw.com