A verbal agreement has no record. It is a memory. That is fine until
your memory differs from your client's.
That distinction does not matter most of the time. Most clients never
dispute anything. Most trips go smoothly. Most conversations about fees,
payment approvals, and itinerary changes stay exactly where they belong: in the
past. The problem is that "most of the time" is not a professional
standard, and the cases that fall outside it do not announce themselves in
advance. That is where liability exists.
When a client suffers a loss and looks for someone to hold responsible,
the question is never whether the advisor said the right thing. It is whether
there is any record that they did.
Payment authorizations are among the most easily disputed parts of a
booking if not done right, and they also feel the most routine. A client
approves a charge by phone. The advisor processes it. Weeks later, the client
disputes the transaction with their bank because they do not remember the
amount charged. A chargeback gets filed. At that point, the advisor needs to
demonstrate that the client authorized the charge, what amount was authorized,
and when. Verbal approval, with nothing confirmed in writing, is very difficult
to defend against a card processor or a bank. A written confirmation creates a
record that a phone call cannot create.
Fees and surcharge disclosures carry the same exposure and are just as
easy to underestimate. Resort fees, port taxes, fuel supplements, service
charges: advisors mention these routinely, often in the same conversation as
the booking. The client says, "Fine," and moves on. By the time the
final invoice arrives, the client sees a line item they do not recognize and
cannot remember discussing, and they call to say nobody told them about it. If
the agent only communicated verbally, with nothing sent in writing, the advisor
has no record of what was communicated when the client booked. A summary of
what is and is not included, sent before the deposit is paid, closes that gap
before it is created.
Itinerary changes are the scenario most advisors underestimate until it
happens to them. A supplier modifies a tour, a connection changes or an
excursion gets substituted. The advisor calls the client and explains. The
client agrees. Months after the trip, the client disputes the change and seeks
compensation for what they did not receive. A one-line email after that call,
something along the lines of "as we discussed, the afternoon excursion has
been changed to snorkeling, please let me know if you have questions,"
takes thirty seconds and closes the door on a dispute entirely.
Cancellation terms are the most common source of disputes, and the most
preventable. An advisor explains the policy clearly over the phone at the time
of booking. The client cancels six weeks later and is surprised by the penalty.
They say they did not understand the policy and that the advisor made it sound
more flexible than it was. If the terms were explained verbally and the client
agreement was never signed, the advisor is left trying to prove a conversation
went a certain way. Not because they did anything wrong, but because the record
does not exist.
The common thread in these situations is not negligence. It is a
communication style built around conversation, which is faster, warmer, and
more natural than documentation. It works well right up until it does not, and
when it stops working, every undocumented exchange becomes a problem the
advisor has to solve with their word against someone else's.
Written follow-ups do not have to be formal or time-consuming. Terms and
conditions for bookings, a confirmation email after payment authorization, a
fee statement before a deposit is paid, and a confirmation after an itinerary
change are practices that protect advisors from the liability associated with
verbal agreements.
A verbal agreement occurs when an advisor trusts the relationship more
than the process. The relationship may hold and most of the time it does. But
when it does not, the process is the only thing left to stand on.
Disclaimer: This
commentary is provided for your information only—it is not legal advice,
it is not a substitute for legal advice, and it does not
create attorney-client privilege. If you seek legal advice, please consult with
a qualified attorney. You are responsible for using the information appropriately, and neither
Travel Industry Solutions nor Travel Pulse is responsible for your
use of it.
ABOUT
THE AUTHOR
Nicole Foster is the Director of Legal
Affairs at Travel Industry Solutions, where she helps travel advisors and
agencies operate with clarity, compliance, and confidence. She is a licensed
lawyer in Ontario and brings a client-first legal perspective shaped by her
background in private legal practice.Having grown up in the travel industry,
Nicole offers a unique dual perspective that blends legal rigor with an
insider’s understanding of how travel businesses operate day to day. She
focuses on translating legal requirements into practical, plain-English
solutions—streamlining contracts, strengthening documentation, and improving
processes so advisors can spend less time managing risk and more time serving
travelers.
For more information on
Travel Industry Solutions, visit www.travelindustrysolutions.com, email [email protected], or follow us on
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