Travel agent John Frenaye, a respected industry writer and President / CEO of JVE Group in Annapolis, MD, gave wise advice on March 21st to fellow travel agents in the online travel newsletter Travel Research Online (www.travelresearchonline.com). Frenaye cautioned agents that in this weak economy tour operators may be financially vulnerable to uncertain consumer travel demand. He warned it is vital for agents to sell travel insurance in order to financially protect their business in case a supplier goes bankrupt after clients have prepaid for their trip.
“Who is your client going to blame when their trip does not appear but their money has disappeared?” John wrote. “Right or wrong, you will be involved. So, what is the solution? Pick the right supplier and sell travel insurance! … I am talking about a full fledged bona-fide third party insurance policy underwritten by a surety that is rated by A.M. Best. Please, please do not make the mistake of thinking that a supplier’s trip cancellation waiver is insurance. It is not. And if the supplier defaults, your client has no recourse.” Our thanks to John for sharing his insights with industry peers. We could not have said it better.