How This Group Travel Agreement Works
Under this agreement, your travel agency operates strictly as a booking agent. You arrange and coordinate travel services on behalf of your clients, but you do not accept, process, or hold any payments. Instead, travelers pay suppliers directly using their own credit cards.
This structure — known as a **gross booking model** — keeps your agency out of the payment chain. That distinction matters because it limits your financial exposure if a supplier fails to deliver, goes bankrupt, or changes its pricing after the booking is made. Your role is to facilitate the trip, not to guarantee the supplier’s performance.
What This Agreement Covers
Agency Role and Booking Responsibilities
Supplier Payments and Credit Card Transactions
Refunds, Cancellations, and Chargebacks
One of the most important protections in this agreement is the refund and chargeback clause. Since payments go directly to suppliers, any requests for refunds, cancellation credits, or chargeback disputes must be handled between the traveler and the supplier. Your agency does not control these transactions and is not responsible for resolving payment disputes.
This is especially important for group travel, where cancellation policies can vary widely between suppliers and one traveler’s cancellation can affect the pricing or logistics for the entire group.
Supplier Terms and Conditions
Each supplier — whether it is an airline, hotel, cruise line, or tour operator — operates under its own set of terms and conditions. This agreement requires travelers to read, understand, and comply with those supplier-specific terms before booking. Your agency is not responsible for enforcing or interpreting supplier policies.
Traveler Responsibilities Under This Agreement
Your group travel terms and conditions should leave no ambiguity about what is expected of the traveler. Under this agreement, travelers are responsible for:
- Understanding and agreeing to all terms before the trip is booked
- Meeting all payment deadlines set by the suppliers
- Providing accurate personal information for bookings (passport names, dates of birth,
etc.) - Complying with supplier requirements including check-in times, baggage rules, and documentation
- Obtaining valid travel documents, visas, and health requirements for their destination
Clearly outlining these responsibilities upfront reduces disputes and protects your agency if something goes wrong because a traveler failed to meet a requirement.
Liability and Force Majeure Protections
This is where your group travel terms and conditions become essential for protecting your business. The agreement includes a liability limitation clause stating that your agency is not liable for the acts, omissions, or failures of any third-party supplier. If a hotel overbooks, a tour operator cancels, or an airline changes its schedule, your agency is not financially responsible.
The agreement also includes a force majeure clause covering situations beyond anyone’s control — natural disasters, pandemics, government travel bans, political unrest, strikes, and severe weather events. In these situations, your agency is not obligated to provide refunds or alternative arrangements. This clause became especially critical for travel agents during the COVID-19 pandemic, and it remains one of the most important protections you can have in your contracts.
Why Travel Insurance Matters for Group Bookings
This agreement includes a strong recommendation — and documentation — that travelers purchase comprehensive travel insurance. For group travel, insurance is especially important because one disruption can cascade across the entire itinerary.
Travel insurance can cover trip cancellations, medical emergencies abroad, lost luggage, travel delays, and supplier insolvency. By recommending insurance within your group travel terms and conditions, you add an additional layer of protection for both your travelers and your agency. If a traveler declines insurance and something goes wrong, this agreement documents
that the recommendation was made.
Who Should Use This Agreement
This Group Travel Terms and Conditions (Gross) template is designed for travel agents and travel advisors who:
- Book group trips where payments are made directly to suppliers
- Act as a booking agent rather than a tour operator
- Want to clearly define liability boundaries with their clients
- Need a professional, legally-informed contract they can customize for their agency
Frequently Asked Questions
A gross booking means the traveler pays the supplier directly for all travel services. The travel agency earns a commission from the supplier but does not handle the traveler's payment. This is different from a net booking, where the agency pays the supplier a net rate and collects payment from the traveler directly.
Yes. The agreement clearly states that the agency is not liable for the actions or failures of third-party suppliers. If a supplier cancels or fails to deliver, the traveler's recourse is with the supplier, not your agency.
Absolutely. This template is designed to be customized with your agency name, contact details, and any additional clauses specific to your business. Travel Industry Solutions provides the framework — you make it yours.
Yes. Having every traveler in the group sign the agreement before any bookings are made creates a documented record that they understood and accepted the terms. E-signatures are accepted and make the process easy for both you and your clients.