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Check for cyber-crime policies!

14 Aug 2020
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Due to the increasing incidents of cyber-crime, international booking agents are moving toward dealing exclusively with local suppliers who have robust cyber policies in place.

“European booking (travel) agents who place bookings with African suppliers have been burnt one too many times by under-delivery on client expectations and being forced to bear the brunt of litigation due to the European Union Travel Directive. They have also suffered reputational damage,” explained underwriting director of SATIB Insurance Brokers, Carla Gillham.

She pointed out that, for local suppliers to remain competitive among international booking agents, and their competitors, cyber insurance was a prerequisite for sustainability and competitive advantage.

“EU booking agents will be reluctant to expose themselves to the cyber risk of local businesses who don’t have cover,” added Carla.

Recent examples of cyber security threats include phishing scams where funds are intercepted and bookings made on fictitious websites for accommodation/service providers that don’t exist.

Another example, according to Carla, is claims against booking agents by clients who have paid for five-star star advertised lodging only to arrive at sub-standard facilities.

“In terms of the EU directive, these international booking agents can be held liable due to the failure of African service providers and, as such, will look to source contracts with reputable local providers that are adequately insured, so that they are better protected,” she said.

Cybersecurity webinar

SATIB is hosting a webinar on cybersecurity for the tourism and hospitality industry, with experts Candice Sutherland, Terence Govender, and Christo Snyman discussing common threats, best practices and considerations.

The webinar will be held at 10h00 via Zoom on August 19.

To pre-register, click here

 

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