Q:My agency has had legal problems this year
with ex-employees, clients and suppliers. I am frustrated because
every time I consult a lawyer, I end up deciding that I can't do
anything. What's wrong, and how can I prevent these problems in the
first place?
A: You have put your finger on what I call the
fundamental legal dilemma of travel agencies. For the majority of
legal problems, there are two alternate and unsatisfactory answers:
Either you have no legal right, or if you do, it will cost more
time and money to litigate than the claim is worth.
To avoid these unhappy outcomes, you should rely on the
litigation-deterring power of the following five measures.
First, require all your employees to sign agreements under which
they promise not to use or disclose your client information and not
to solicit your clients or employees, after termination of
employment. While the exact prohibitions will need to vary from
state to state, a clear contract will help prevent departing
employees from stealing your clients.
Second, require your tour, cruise and FIT clients to sign a
disclaimer under which they acknowledge that you are not
responsible for supplier problems. The more complex or
adventuresome the trip, the more necessary the disclaimer. It will
deter most claims and reduce your legal costs for the rest.
Third, put your most important corporate accounts under
multiyear contracts that clearly define each party's duties and any
fee-based pricing formulas. These contracts not only will help
avoid misunderstandings that can lead to litigation, but they will
also help deter the account from switching agencies if service
problems arise.
Fourth, get all supplier promises in writing. Avoid relying on
oral assurances from sales reps, who will either deny their
statements or get transferred to Singapore just when you need
them.
Fifth, develop and implement a manual of standard procedures for
your staff to follow in making reservations, finishing PNRs and
issuing travel documents.
Then, train your employees to follow the procedures to avoid
mistakes.
If you follow all five steps, you will reduce your legal
problems by at least 75% and reduce your legal frustration level
even more.
Mark Pestronk is a Fairfax, Va.-based attorney specializing
in travel law. He answers your questions in the Crossroads Legal Issues forum. To contact Mark directly,
e-mail him at [email protected].