American Airlines „Direct Connect” – Back in the Past – February 26, 2010 The airline has called its „Direct Connect” strategy of corporate transportation issues the issues I know of at least one situation in which an independent contractor has had great success in selling spring school trips to several destinations across the country. However, after several years of success, the independent contractor accepted, for unknown reasons, the deposits of the various groups and never passed these deposits on to the sellers. The trips were eventually cancelled and the independent contractor faced criminal proceedings. Unfortunately, the host agency was also held responsible and its affairs suffered dramatically. Do you have any thoughts? Want to share your experience with independent travel contracts? Share your previews of the comments below! In short, error and exit insurance is a policy for travel agencies when a customer sues you for negligence. It does not cover things like booking errors and debit memos (confusing, taking into account the name). Some travel agencies prefer to take the risk rather than take out E-O insurance. It is not mandatory, but it is important to take into account. We`re going to put a few more in the mix: here`s a list of things to consider and questions you should be able to answer after looking at your independent travel agency contract: repeat after me, „I`m an independent contractor, not an employee.” In the legal word, this distinction is considered a „relationship between the contracting parties.” Is it very obvious in your contract that you are an IC . .
. No employees? A successful relationship between a hospitality agency and an independent contractor consists of a written agreement and an open flow of communication between the two parties. Both parties have obligations to the other party: the Host Agency must ensure that the independent contractor has the necessary skills, training and support to succeed. The independent contractor is required to increase turnover and turnover while respecting the professional standards of the Host Agency. Five states have Seller of Travel (SOT) are state laws that regulate people who sell trips (yes, it`s you!). These laws provide consumer protection and a lot of bureaucracy for consultants. SOT laws are complicated . . .
and if you live or sell to FL, WA, IA, HI or CA customers, it is imperative that you meet your respective SOT requirements. The clarity on commissions is quite important. There are three main categories that you would like to keep in mind when it comes to commissions when it comes to your contract with an independent contractor for travel agencies: the duration of your contract should be very precise. One kind of contract term is not necessarily better than the other – it depends on what you are looking for. If you are working z.B for the first time with this host and you are not very familiar with them, Peter Lobasso suggested that you should consider starting with a shorter temporary independent travel agency contract (for example. B one year or less). This way, if you have a bad experience, it will be a hard stop to your contractual commitment. 1) Is the allocation of commissions clear and complete? You should indicate whether the „commissions” include other forms of travel agency revenue such as markups, overriding outlets, back-end overrides and fees.
If this is not the case, the agreement must specify what the term does not contain. Lobasso warns of the complexity of remuneration structures: „It is in the interests of both parties that the remuneration structure be as simple and clear as possible. Disputes often arise because the commission`s terms were unnecessarily complicated or virtually indecipherable. In some cases, it is deliberately designed in this way to induce the contractor to sign it, without really understanding how unfavourable the conditions were. To protect the autonomy of your business, make sure that the language of the contract recognizes you (or your agency) as an independent contractor.