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What are travel agency terms and conditions? They are the standard rules that a travel agency or tour operator declares applicable in advance to every booking — regarding payment, deposits, cancellation, changes, liability, and the statutory guarantee scheme. They form the legal foundation of the travel agreement. For package holidays, they are subject to mandatory law: the Package Travel Directive (in the Netherlands, Title 7A of Book 7 of the Dutch Civil Code) determines what you may and may not agree upon. Conditions that deviate from this to the detriment of the traveler are void.
The short answer
- What: standard rules that the tour operator declares applicable to every booking.
- Why: distribute risks, fulfill disclosure obligations, arrange payment and cancellation.
- Legal status: valid provided it is provided in advance — but for package holidays limited by mandatory law.
- SGR guarantee: for package holidays, it is mandatory that insolvency guarantee is arranged.
- Border: provisions to the detriment of the traveller that deviate from the law are null and void.
What exactly are travel agency terms and conditions?
General terms and conditions are the stipulations that a travel agency establishes in advance for use in multiple bookings. Not the core of the trip — the destination, the date, the price — but the surrounding agreements: when to pay, what happens in the event of cancellation, who bears which risk, and how a complaint is handled.
It is important to distinguish between the two roles. As a tour operator, you put together a package holiday yourself and sell it under your own name — in this case, the strict rules of the Package Travel Directive apply. As a travel intermediary (reseller), you only arrange a trip for someone else; your terms and conditions then primarily govern your intermediation role. Anyone doing both needs a suitable set of terms and conditions for both roles.
The legal status: valid, but limited
Terms and conditions are only valid if the traveler could reasonably have taken notice of them before or at the time of concluding the booking (Articles 6:233 and 6:234 of the Dutch Civil Code). In practice: providing the terms and conditions or making them clickable and downloadable before finalizing the online booking. If you fail to do so, the traveler may invalidate a clause.
In addition, mandatory law applies to package holidays. The rules regarding the duty to provide information, changes, cancellation, and liability may not be restricted to the detriment of the traveller. A clause that excludes all liability, for example, does not hold up in the case of a package holiday.
The duty to provide information
The Package Travel Directive imposes an extensive pre-contractual information obligation on the organizer. Before booking, it must be clear, among other things:
- the main characteristics of the travel services (destination, transport, accommodation, meals);
- the total price including taxes and any additional costs;
- payment arrangement and the fact that it concerns a package holiday;
- cancellation and termination rights;
- that there is an insolvency guarantee (in practice often SGR).
This information is binding and forms part of the agreement. If you fail to inform the traveler about additional costs, the traveler is not required to bear them.
Cancellation, modification and the price
The law regulates much here in a mandatory manner. A few main points:
- Cancellation by the traveler: permitted at all times, subject to a reasonable cancellation fee. In the event of unavoidable extraordinary circumstances at the destination (e.g., war or natural disaster), cancellation is free of charge.
- Changes by the organizer: minor changes are permitted, provided they are reported. In the event of a major change, the traveler may cancel free of charge.
- Price change: only permitted if the conditions explicitly allow it, subject to strict limits (fuel, taxes, exchange rates) and no later than 20 days before departure.
SGR Guarantee Scheme and liability
A package tour operator is legally obliged to arrange insolvency guarantee: if the travel agency goes bankrupt, the traveler receives a refund of any prepaid money and, if necessary, is repatriated. In the Netherlands, this is usually handled through the Stichting Garantiefonds Reisgelden (SGR). The terms and conditions state whether and through which scheme this is arranged.
Regarding liability following applies: the organizer is responsible for the proper execution of the entire package holiday, including services provided by third parties such as hotels and carriers. Liability may be limited (for example, to three times the travel sum), but not in cases of personal injury or intent or negligence. A brief example of a case study: a tour operator who hired a transfer bus that failed to show up remained personally liable for the missed connection — the traveler did not need to contact the bus driver.
Honest recommendation
Anyone who only occasionally brokers a one-off service and does not put together package tours can often get by with a simple set of terms and conditions and does not immediately need a lawyer — a good industry standard may suffice in that case, provided it is properly provided. However, as soon as you offer package tours yourself, the Mandatory Package Travel Directive applies: the risk of void or misleading clauses is then real. In that case, have your terms and conditions reviewed, and ensure that the SGR guarantee and duty to provide information are correct.
Want to read more? See drafting travel agency terms and conditions and having a travel agency terms and conditions drafted. Need a set immediately? View our travel agency terms and conditions.
Frequently Asked Questions
The standard rules that a travel agency or tour operator declares applicable in advance to every booking: regarding payment, deposit, cancellation, modification, liability, and the guarantee scheme. In the case of package holidays, these are limited by the Mandatory Package Travel Directive (Title 7A Book 7 of the Dutch Civil Code).
Yes, provided that the traveller could reasonably have become aware of it before or at the time of booking (Art. 6:233/6:234 BW). However, in the case of package holidays, provisions that deviate from the law to the detriment of the traveller are void, regardless of whether they were agreed upon.
A tour operator puts together a package holiday itself and sells it under its own name — the full Package Travel Directive applies. A travel agent (reseller) merely arranges a trip for another party. The role determines which conditions and obligations apply.
A package tour operator is legally required to arrange insolvency guarantee. In the Netherlands, this is usually done through SGR. The terms and conditions must state that the guarantee is provided and through which scheme; if this guarantee is missing, you are acting in violation of the law.
No. With package holidays, you are responsible for the entire trip, including services provided by third parties. You may limit coverage (for example, to three times the travel sum), but not in cases of personal injury or intent or negligence. A complete exclusion is void.
Only if your terms and conditions explicitly allow it and within strict limits: exclusively for fuel, taxes, or exchange rates, and no later than 20 days before departure. In the event of a price increase exceeding 8%, the traveller may cancel free of charge.
Cancellation is always permitted, but usually subject to a reasonable cancellation fee. Free cancellation is possible in the event of unavoidable extraordinary circumstances at the destination, such as war or a natural disaster that seriously affect the trip.
