Flight cancellations, disappointing hotels, lost bookings – when things go wrong on a trip, who is responsible? In the latest Travel News Power Panel, legal experts and industry leaders shared insights on how travel agents can limit liability and protect both themselves and their clients.
Legal frameworks
South African travel agents operate within a legal framework that provides guidance on liability and consumer rights.
Gareth Cremen, a partner at legal firm Cox Yeats, explains that the Consumer Protection Act 68 of 2008 is the cornerstone of consumer rights in the country, which affords consumers broad rights and imposes obligations on suppliers, including travel agents, to ensure fair and responsible business practices.
The Act also places a distinct obligation to disclose all dangers and unusual threats to passengers at a destination.
“This disclosure must take place as early as possible. This means at the time of making enquiries, and not once the booking has been confirmed,” says Cremen.
Additionally, the common law of agency and contract further dictates the obligations of travel agents, though organisations such as Asata offer voluntary compliance standards, Cremen notes.
Lynette Machiri, Customer Experience Leader at Flight Centre Travel Group South Africa, adds that other legal Acts, such as the Protection of Personal Information Act (POPIA) and the National Credit Act, also influence travel agency operations.
“POPIA regulates how travel agencies process their clients’ personal information. Where travel agents offer travel on credit to customers, the National Credit Act will apply,” she explains.
Duty of care and managing client expectations
A recurring theme on the topic of liability is duty of care. This includes providing accurate and complete information, ensuring bookings are made correctly and warning clients about potential risks.
“Under the CPA, travel agents must act in a way that does not mislead or deceive consumers and must disclose all relevant terms and conditions. Failure to do so could result in liability for damages,” highlights Cremen.
Machiri emphasises the importance of equipping clients with relevant information before travel.
“Travel agents have a responsibility to ensure that clients are aware of all the necessary information about travel products being booked, for example the location, extent to which goods or services are meant to be delivered, and applicable cancellation/change penalties,” she says.
When things go wrong
A key issue in travel liability is whether agents should be held accountable for disruptions such as flight cancellations, lost bookings or poor accommodations.
Cremen says that, generally, travel agents are not automatically liable for all issues that arise during a trip, particularly where they act as intermediaries and not as the principal providers of the services.
However, they may be held accountable if they misrepresented the nature or quality of the services, failed to disclose known risks or limitations, negligently made incorrect or incomplete bookings, and/or breached their duty of care.
With regard to third-party suppliers, “the principle of vicarious liability typically does not apply to third-party providers unless the agent acted as their principal,” Cremen notes. “Agents should contractually limit their liability through terms and conditions that reflect this intermediary role.”
Machiri adds that the role of travel agents is to book travel on behalf of their customers through third-party suppliers.
“If issues arise during a trip, the first port of call for resolution would be with the supplier of the product/service in question. Liability may apply to the travel agent if the issues arose due to the agent's negligence,” she says.
Handling force majeure events
Events beyond a travel agent’s control – such as political unrest, airline strikes or severe weather – raise additional questions about liability.
“Travel agents are not ordinarily liable for force majeure events,” says Cremen. “Provided they clearly inform clients of such potential risks, do not misrepresent their ability to mitigate these issues, and include appropriate disclaimers in their terms of service.”
Machiri adds that these events are out of the travel agent’s control. “They do, however, have a duty of care to encourage clients to take out travel insurance to cover unforeseen expenses arising from such events.”
Future of travel agent liability
With rising consumer expectations and an increasingly digital booking landscape, liability frameworks may need to evolve.
Otto de Vries, CEO of Asata, believes the industry must find a balance between consumer protection and realistic expectations.
“Travel advisers sit at the crossroads of client care and complex service ecosystems, requiring them to uphold a robust duty of care while recognising that certain challenges simply lie beyond their control,” De Vries states.
“As new technologies reshape how trips are planned and managed, the travel industry must adapt its liability frameworks to ensure they remain fair and forward-thinking.”
Machiri, however, warns against imposing broad legal liability on travel agents, as it could significantly impact the industry.
“I don’t think it’s feasible for travel agents to be held legally liable for bad travel experiences. There needs to be a clear line between the agent's responsibilities and the third-party provider's responsibilities. It would not be fair, or logical, for the travel agent to be held legally liable for the end-to-end delivery of every element of a travel experience.”
