Travel Agency and Tour Operator Employment Agreement

What a good one includes

• A detailed breakdown of the employee's specific responsibilities, including managing client inquiries, booking software operation, and supplier communications.
• Clear terms outlining base pay, commission percentages, when commissions are deemed earned, and how cancellations impact pay.
• A robust clause preventing the employee from poaching agency clients or exclusive local tour operators if they leave the company.
• Explicit protections for your agency’s customer relationship management data, client travel preferences, custom itinerary templates, and confidential wholesale pricing agreements.
• Clear guidelines on how educational travel and familiarization trips are approved, funded, and documented, including expectations for work deliverables during these trips.
• Provisions outlining the employee's role in preventing booking errors and how financial discrepancies or client refunds due to staff mistakes are handled.

Common mistakes to avoid

• Failing to define exactly when a commission is earned and paid, which often leads to costly disputes over bookings made before but traveled after an employee departs.
• Neglecting to restrict former employees from taking their loyal book of business and specialized local vendor contacts directly to a competitor.
• Failing to specify whether familiarization trips are paid working time, which can lead to wage-and-hour disputes or unapproved leisure travel on company time.
• Leaving out guidelines on who bears the financial burden for costly booking mistakes, such as entering incorrect travel dates or failing to secure visas.

Frequently asked questions