Drafting travel agency terms and conditions: what belongs in them

Drafting general terms and conditions for a travel agency involves creating a fixed set of clauses that you declare applicable to every booking — and that comply with the Mandatory Package Travel Directive (Title 7A of Book 7 of the Dutch Civil Code). The core elements are: the duty to provide information, payment and deposits, cancellation and modification, the SGR guarantee scheme, and a sustainable liability arrangement. If you deviate from the law to the detriment of the traveler, that clause is void. Below, for each section, is a list of what should be included and where the pitfalls lie.

The short answer

1. Determine your role: tour operator (package tour) or just an intermediary? That is determined by the rules.
2. Duty to inform: include the mandatory pre-contractual information.
3. Payment and down payment: determine down payment percentage and remaining payment term.
4. Cancellation and modification: scale for cancellation fees plus modification and termination rules.
5. SGR guarantee and liability: state the insolvency guarantee and limit liability within legal limits.
6. Complaints and provision: complaints procedure plus proof that the conditions were provided in advance.

Drafting travel agency terms and conditions: start with your role

The first choice is decisive. If you put together package holidays yourself — a combination of, for example, transport and accommodation under one price — then you are a tour operator and the full Package Travel Directive applies. If you only mediate individual services from third parties, your terms and conditions primarily govern your mediating role and the requirements are less stringent.

A misjudgment here renders the rest of your terms and conditions unusable: an organizer acting as an intermediary misses the mandatory guarantee and liability rules and acts in violation of the law.

Include the duty to provide information

The Package Travel Directive requires you to inform the traveller before booking. Incorporate these points into your terms and conditions and booking process:

• the main characteristics of the travel services and the destination;
• the total price including taxes and all additional costs;
• the payment arrangement and the fact that it concerns a package holiday;
• the traveler's cancellation and termination rights;
• that there is an insolvency guarantee (SGR) and to whom a complaint can be lodged.

This information is binding. If you do not mention an additional expense, the traveler is not required to pay it.

Payment and down payment

Document the flow of money explicitly, otherwise disputes will arise:

• Down payment: it is customary to pay a percentage of the total travel cost upon booking (often around 15% in the industry). Specify the percentage and the timing.
• Remaining payment: set a fixed term before departure (for example, six weeks).
• Late bookings: for bookings made shortly before departure, the full amount at once.
• Consequences of non-payment: default, option to cancel, and the costs then due.

Please note: down payments covered by the SGR guarantee must comply with the rules of the guarantee scheme.

Cancellation and modification

This is the most strictly regulated part. Elaborate on at least the following:

• Cancellation by the traveler: a reasonable, escalating scale of cancellation fees (higher closer to departure). Unreasonably high percentages may be affected.
• Free cancellation: in the event of unavoidable extraordinary circumstances at the destination, the traveler may cancel free of charge.
• Changes made by you: you may make minor changes provided they are reported; in the event of a major change, the traveler may cancel free of charge or accept an alternative.
• Price change: only if your terms and conditions allow it, limited to fuel, taxes, and exchange rates, and no later than 20 days before departure. The traveler may cancel if the price exceeds 8%.
• Substitution: the traveler may be replaced under certain conditions.

SGR Guarantee Scheme and liability

As an organizer, you must arrange insolvency guarantee; usually through SGR. Include in your terms and conditions that prepaid funds and repatriation are covered, and under which scheme.

Regarding liability, the following applies: you are responsible for the proper execution of the entire package holiday, including services provided by third parties. You may limit liability—for example, to three times the travel sum—but not for personal injury and not for intent or negligence. A clause that excludes everything is void and undermines your entire set. Additionally, establish a complaints procedure: the traveler must be able to report defects on the spot so that you can rectify the situation.

Honest recommendation

If you exclusively broker individual services and do not put together package tours, you can draft a solid set yourself based on a reliable industry model — a lawyer is not strictly necessary in this case, provided you demonstrably provide the terms and conditions in advance. If you *do* put together package tours, writing them yourself is risky: void cancellation, pricing, or liability clauses only become apparent when a dispute arises. In that case, have your terms and conditions drafted or reviewed and verify that the SGR guarantee and duty to provide information are correct.

More background? Read what travel agency general terms and conditions are and how to have a travel agency general terms and conditions drafted. Need a set immediately? View our travel agency general terms and conditions.

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