When your clients book with TravelManagers they can relax before their holiday even starts, knowing that their hard-earned money is safe with TravelManagers. Financial protection of consumer travel payments is generally not guaranteed whilst in the hands of any travel intermediary, including many travel agents. At TravelManagers Australia we are committed to protecting your customers’ funds. Read on for a summary of how we offer what we believe is the most comprehensive and transparent financial protection in the Australian travel industry.
In the event that your clients are unable to obtain a refund of monies paid for their travel through their own travel insurance or their banking institutions, they may be eligible to make a claim on the TravelManagers Customer Fund (TCF). The TCF is a self-financed fund, whose monies are held in a separate legal entity, TravelManagers Customer Fund (TCF) Pty Limited, which is designed to protect them against the risk of an Approved Supplier not providing the Approved Services which they have paid for because of the financial failure of the Approved Supplier. Funds accumulate every month, are effectively ring-fenced from TravelManagers’ general cash provisions, and are set aside for the sole purpose to reimburse our clients in the unlikely event that one of our Approved Suppliers fails financially. The TCF is not insurance and nor is it a replacement for travel insurance. Your clients should take out comprehensive travel insurance for every trip they take. Visit our TravelManagers Customer Fund page for more information and full terms and conditions, and you can see a list of Approved Suppliers here.
Credit card chargebacks (CCCBs) are a risk to all travel advisors, because when you act as the merchant and the end supplier fails to provide the service because of insolvency, it is you who could bear the burden of 100% of the gross charge. Historically there has been little that could be done to protect against the risk of a CCCB.
TravelManagers Australia has its own credit card chargeback insurance to help protect its personal travel managers against the risk of a chargeback as a direct result of financial failure of a supplier since July 2019. Following the hibernation of AFTA’s AICS scheme, we believe we are the only company in Australia with this level of protection.
All client payments, either by credit card or direct deposit, are directly deposited into an Australian audited client trust account with ANZ Banking Corporation (BSB: 012 172 / Account: 4967-59407) and are held in trust until payment is made directly to each contracted travel supplier. Under no circumstances will TravelManagers accept cash payments, nor should your clients’ payments be made to any other bank account.
TravelManagers operates a separate bank account for its day-to-day operational expenses with client trust funds and operational funds managed independently of each other.
As part of our procedures in providing you with comprehensive financial surety TravelManagers has a Travel Agent Client Trust Account Fidelity Insurance (TACTAFI) policy via Lockton Companies Australia Pty Ltd, part of the Lockton Group, the worlds largest privately owned insurance brokerage. The policy is underwritten by Liberty Specialty Markets and the Australian operation is a branch of Liberty Mutual Insurance Corporation which is rated A (Strong) by Standard and Poors, global credit rating agency. This insurance protects your funds in the unlikely event that they are missing from, or not paid into the Insured Trust Account as a result of fraudulent or dishonest activity. If you wish to check that this insurance policy is in place please contact Lockton Companies Australia Pty Ltd, on 02 8366 2200. Protection is provided by Liberty Mutual Insurance Corporation and is subject to the terms and conditions of the policy. Each claim will be determined by Liberty Mutual Insurance Corporation on a case by case basis and, in some circumstances, insurance may not be available or declined. A copy of the policy is available on request.
The Directors of TravelManagers Australia engage CIB Accountants, an accredited chartered accounting firm, to independently audit and review TravelManagers Client Trust account. The Directors of TravelManagers Australia make available copies of these ‘Independent Audit Reports’ to you for total peace of mind. You can view them here. This together with our TACTAFI insurance provides you with the total comfort that your funds are secure in trust until payment is made to the relevant travel supplier. Refer to the following bullet for details of TACTAFI coverage.
Other companies may claim they have TACTAFI insurance, however it’s important to understand that a TACTAFI policy is only valid when a properly maintained client or trust account is preserved. That’s why we have our client trust account audited quarterly and we publish the results of these audits on our website. We believe we are the only travel company in the world to do this.
TravelManagers is accredited by the International Air Transport Association (IATA) to directly issue tickets on behalf of all major airlines. In granting such accreditation IATA requires audited financial oversight and applies strict financial criteria which are reviewed annually.