Being a Travel Agent in the Age of Terrorism: Part II, State Department Tools for the Agent Fiduciary

In the Introduction to this series, we noted the obligations of a travel agent, as a fiduciary and a professional, to exercise a high level of care for the well-being of the client. There are many aspects to that responsibility, and for smaller agencies, there are practical limits to what you can do. Nevertheless, there are some minimums that every agent should follow in the daily conduct of the business to protect your clients and, ultimately, your business.

The primary obligation is to be informed of significant events that may affect the safety of your client. Every member of staff that is dealing with clients about travel plans should be given the mandatory risk-assessment steps for every booking, including keeping records of what was disclosed and/or advised. Since no one can be an expert in the conditions in every country in the world, you should use the freely available tools and engage clients in their own education about the trip. In the end it is the client’s decision where to go, so it makes sense for the client to actively participate in the awareness-building process.

The principal tools are on the State Department’s website, containing Worldwide Cautions, Travel Alerts, Travel Warnings, Country Specific Information, and the Smart Traveler Enrollment Program (STEP). The information is under the Travel tab; it includes a useful Traveler’s Checklist that covers many subjects beyond terrorism risk. A wealth of detailed travel-related information is available for each country. Additional information about health-related situations can be found at the website for the Centers for Disease Control and Prevention where, for example, the latest cautions on the Zika virus can be found. You can sign up for email alerts from the CDC Health Alert Network.

One important fact is apparent from scanning the Alerts/Warnings list: most of the world is not under an Alert or Warning. Moreover, many of the issues covered in the Country Specific Information section may apply equally to the United States. Your challenge then is to provide context for the client’s visit to the State Department website, so that the client sees the experience as part of the normal workup of the travel plan you are helping them prepare. The agent should, of course, look at the information before directing a client to do so.

The STEP program warrants a special mention. This facility enrolls the client’s trip with the nearest U.S. Embassy or Consulate in every country to be visited. STEP also permits the client to sign up for Alerts/Warnings that may issue in the future for destinations being considered or planned for travel. I believe that a strong recommendation to every client to enroll in STEP is essential for anyone traveling outside the United States. Put it in writing. Email is fine, but keep the emails in the client’s file.

Is it possible that having clients look at the State Department or CDC website will discourage them from traveling? Sure it is, but your communication and sales skills can overcome that concern. You will, however, want to be careful about overselling a reticent traveler. A skittish traveler is likely to be a higher risk for cancellation if some bad news appears in the headlines after you’ve closed the sale. The goal here is to educate yourself, and the client, in a manner that makes selling the trip plan consistent with the client’s sensitivities. It is hard to imagine that anyone would object to being more informed and, if done correctly, it should be affirming rather than discouraging.

Another element of the travel preparation process is travel insurance. Every client should be offered travel insurance for every trip. If the offer is declined, record that fact in the client record, ideally with the client’s signature. Memories about the offer of insurance may be distorted if an uninsured trip interruption occurs; the decline record is critical in such cases.

Travel insurance is a complex product, like all insurance. If you are deeply conversant with the coverages, limitations, and exclusions, then it may be acceptable to discuss those aspects with the client. The better course is to refer detailed questions about the insurance to the insurer. This approach reduces the risk that the client does not understand the coverages based on your advice and later finds that an unexpected event is not protected.

Obviously, the referral of the client to a third party creates risks that must be weighed. The client is looking to you for travel advice: “Why are you referring me to a stranger?” If this occurs, it is fine to join the call, or request the information in writing for the client, but do not try to be an insurance agent. This not only creates licensing issues under state insurance laws, but also exposes you to unnecessary risk by claiming expertise you don’t have.

Next month, we will dig deeper into ways you can align client protection with agency fiduciary obligations.