As a travel professional, your primary job is to sell travel, right? Yes. But your responsibilities go beyond that. As a trusted advisor, you also must protect your clients, their finances, and their privacy, both online and offline. This is especially important if you are an independent contractor (IC) who, while looking out for your clients, must also prioritize yourself and your business. And, as an IC, you wear several hats.
Risk management is one of those hats! Effective risk management is essential for safeguarding your agency and your clients. There are many components of a travel agency’s risk management program, some of which are outlined below.
And for a very timely update, we invited our industry colleague, practicing attorney, and professional educator Thomas Carpenter for an insightful session, Managing Legal Risk in Your Travel Business, on October 4 at noon (ET). Register soon, so you don’t miss out!
Additionally, our Premium Library subscribers can enjoy 24/7 access to even more microlearning on business nuts and bolts, such as in our previously recorded session, Mastering the Currents: Comprehensive Risk Management for Travel Professionals by Sheila Folk, CEO of Travel Industry Solutions. Not a Premium Library subscriber yet? Click here to learn how to join.
Now, let’s take a look at Your Risk Management Checklist.
As a travel advisor, you should consider several key areas to ensure your agency can navigate challenges and protect its reputation.
Client Protection and Safety
- Insurance Coverage: Be sure to offer travel insurance that adequately covers all contingencies, particularly trip cancellations, medical emergencies, and lost baggage.
- Health and Safety Protocols: Stay updated on health advisories and safety standards for destinations and communicate these to clients to mitigate risks.
Compliance and Legal Considerations
- Regulatory Compliance: To avoid legal issues, be sure to adhere to industry regulations, such as those set by the Department of Transportation or international travel bodies. Be constantly in the know for these regulations.
- Contractual Obligations: Review and understand the terms of agreements with suppliers, ICs, and clients to manage liability and ensure clear communication. For example, if you handle group travel, always understand what you are signing. Or, if you are bringing on a new IC, ensure that you have the correct agreement.
Data Protection and Cybersecurity
- Client Data Security: Just as you want your information protected, so do your clients. Always encrypt and secure data storage and familiarize yourself with the Payment Card Industry Data Security Standard (PCI DSS) compliance regulations.
- Cyberattack Preparedness: Phishing is still a major issue in the travel industry. Develop protocols for responding to potential data breaches, including regular system updates and password protection.
Crisis Management and Response
- Emergency and Communication Strategies: August travel to the southern US or Caribbean—enough said! Create communication plans for your clients and team members, so you can help your clients with a smooth travel experience.
Financial Risk Management
- Supplier Reliability: Preferred supplier relationships are critical for many reasons, one of the most important is that you better understand their financial stability and reliability. When creating the partner agreements, be sure to check that these suppliers are members of USTOA, consortia, etc.
By closely reviewing these topics and creating plans in each area, you and your travel agency can build a risk management plan that not only protects your clients but also protects your business.
Effective risk management is about anticipating potential issues and having the proper strategies in place to address them swiftly and efficiently.
