NSW travel agents required to disclose commissions and incentives under new rules

Closeup shot of two businesspeople going through paperwork in an office at night
By Alexandra Coulton


Travel agents in NSW will have to disclose commissions or incentives to their clients, according to new disclosure obligations for businesses across the state.

The new disclosure obligations, which come into effect from 1 July, require agents to make their clients aware of any commission or referral arrangements that involve a financial incentive from a supplier.

However, agents do not need to disclose the nature or values of the incentive.

Fair Trading has provided the following example of how the new obligations will apply;

“A customer goes to a travel agency to help book a hotel for their holiday. The travel agent finds a hotel through their database that is suitable and makes the booking. The customer pays at the travel agency.”

“The agency relays the money to the hotel but receives a percentage of the amount as their payment for connecting the customers to the hotel.”

Agents will have to make their clients aware of such arrangements before they make their purchase, however, Travel Weekly understands this does not have to be a verbal disclosure.

Suppliers will also have to make some changes under the new obligations, which require businesses to make terms and conditions that “substantially prejudice the customer” clearer.

This means they will have to disclose any terms that limit the liability of the supplier, shift liability for “damage to delivered goods” to the customer, allow the supplier to give customer information to a third-party or require customers to pay an exit fee.

For more information, go HERE.

Featured image: iStock/Charday Penn

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