Hospitality and Travel

Using AI For Travel Planning: Who is Liable If Things Go Wrong?
Using AI For Travel Planning: Who is Liable If Things Go Wrong? 1000 667 James Hallam

In recent years, a number of  travel agents and tour operators have started using AI tools to streamline certain processes. At the same time, some travellers have started trusting AI to plan certain aspects of their trips, bypassing tour operators and other travel specialists entirely.

The problem is that AI can make mistakes. And when people use AI for travel planning, who is liable if things go wrong?

When Using AI For Travel Advice That Goes Wrong

In July 2026, a couple of hikers were walking the Polish Tatra Mountains, when they asked ChatGPT for a shortcut. The AI sent them on a route that proved to be impassible, and they eventually needed a helicopter to rescue them.

Similarly, in 2025 some Canadian hikers decided to ignore some severe weather warning, and instead followed a route plotted by ChatGPT. They too needed help from a search and rescue team.

There have also been instances of AI recommending locations that simply do not exist. For example, some travellers were directed to the “Sacred Canyon of Humantay” (sic) in Peru when they asked ChatGPT for areas of local interest.

Any traveller heading to a non-existent location would be disappointed at best. But through heading to remote areas, they could also find themselves lost, stranded, and at risk from certain hazardous conditions.

How Is The Travel Industry Using AI?

Some travel agents and tour operators are using AI to:

  • plan trips
  • anticipate upcoming trends
  • tailor experiences for their customers
  • offer real-time round the clock customer service

Read our full guide to some of the ways travel agents and tour operators are using AI.

The situations we outlined above occurred when travellers either outright ignored official travel advice, or else turned to AI instead of professional travel guides. Yet it is easy to imagine situations where AI could cause headaches for travel agents, too.

As we have seen, AI can get things wrong. As well as sending travellers to destinations that may not exist, it might advise routes that are impractical or outright dangerous, or book connections that may  be impossible for anyone to make. AI could also recommend unsuitable accommodation, such as somewhere that is inaccessible for a customer with mobility issues.

If a travel agent or tour operator is using AI to plan trips and tailor packages, who would be liable for any losses or expenses should the AI make mistakes? Would it be the AI that made the mistake in the first place, or the tour operator that sold the trip to the traveller?

Using AI For Travel Planning: Who is Liable If Things Go Wrong?

In July 2026, the UK Jurisdiction Taskforce published a Legal Statement on Liability for AI Harms. This statement is not a treatise. It does not outline any proposals for legal reform, and it does not constitute legal advice. Rather, it aims to establish some guidance on which parties would be liable for any harms arising from AI use.

The statement suggests that the law should view AI liability in terms of negligence. If a business owes a duty of care to a customer, then they will be liable for any losses that arise should they fail to meet the necessary standards of care.

The statement also explores the issue of vicarious liability. While a business cannot be held vicariously liable for mistakes an AI system makes, it can be held vicariously liable for any losses that arise from an employee acting wrongfully while using AI.

In short, this implies that travel agents or tour operators would be held liable if something goes wrong when they use AI to plan a trip. While the AI itself made the mistake, if the travel agent or tour operator did not do the necessary work to check the AI’s recommendations, then they could be held liable for any losses or other incidents that arise as a result.

How To Reduce The Risks of AI Liability Claims

If you are using AI systems to plan trips or design experiences for customers, there are a few ways you can protect your business and your customers from potential issues:

  • Never take the AI’s recommendations for granted. Never present anything to customers without first applying sufficient human oversight. Be sure to check the AI’s recommendations for accuracy and practicality.
  • Train your staff. Ensure that any member of staff that uses AI modules is properly trained to do so. Make sure everyone understands that AI can and does make mistakes, and invest in due diligence training where necessary.
  • Revisit your terms and conditions. Make sure your contracts with your customers reflect the inherent risks of using AI to plan journeys. You might also specify that, if travellers wish to make any changes to the trips you plan for them, then they do so at their own risk. This could cover your liability should any customers choose to ignore your advice and turn to AI for recommendations instead.

Are You Covered For AI Liability?

At James Hallam, we specialise in providing bespoke insurance packages to UK travel businesses. We work closely with ABTA, AITO, ABTOT, Advantage, ABTOI, PTS and ITT.

These specialist travel bodies are actively exploring the potential of AI for transforming the world of travel, which includes the potential risks.

So, if you want to transform your business operations with advanced AI tools, these travel bodies  will certainly be able to help. And at the same time, we can help you arrange the appropriate  insurance cover to help protect you  and your customers interests should the unexpected occur, subject to policy terms, conditions and exclusions..

Find out how we can help you today.

ATOL Regulations and How To Become Registered
ATOL Regulations and How To Become Registered 1000 667 James Hallam

The ATOL scheme provides travellers with financial protection when they book a package trip that includes some airline travel.

In this post we will explain what ATOL is, and how it works. We will also look at who needs a license, and outline the steps required to get registered. Finally, we will explain some of the penalties and other consequences you could face if you fail to get an ATOL licence when required.

What is ATOL?

ATOL stands for Air Travel Organisers’ Licensing. First introduced in 1973, the ATOL scheme provides travellers with financial protection when they book a package holiday that includes a flight. This protection is separate from their travel insurance cover.

What Does ATOL Do?

ATOL providers must provide their customers with an ATOL certificate whenever they book an ATOL protected trip. Among other things, this document will outline exactly who and what is covered by the ATOL scheme.

If an ATOL registered travel provider ceases trading while their customers are overseas, the ATOL scheme can help the customers to continue their trip through providing some financial support. This can include reimbursement for accommodation, car hire, and transfers, along with support with flights home where necessary.

Exemptions to ATOL Cover

The ATOL scheme does not cover all flights. There are also numerous exceptions to the ATOL coverage, including issues with accommodation, and missing or damaged luggage.

For more information, you can read a full guide to what ATOL does not cover.

When Do You Need To Be ATOL Registered?

The ATOL Scheme is run by the Civil Aviation Authority (CAA), and there is extensive guidance on their website concerning who needs an ATOL, and who is exempt.

Businesses that offer flight packages or flight-only sales to UK passengers are legally required to get an ATOL. This includes businesses based outside of the UK that advertise and sell to customers within the UK.

Travel agencies, tour operators, and online travel retailers may be required to get a licence as part of the Package Travel Regulations. Some travel agents may not be required to hold their own ATOL, such as those who only sell accommodation packages, or those who exclusively sell premade packages that include flights. However, even if a travel agency is exempt from the scheme, they must:

  • Exclusively work with providers who do own an ATOL.
  • Advise their customers on whether or not any flights they book through them are covered by the ATOL scheme.
  • Make it clear just what the ATOL scheme covers, and what it does not cover.
  • Ensure that their customers receive a valid ATOL certificate.

As part of the regulations, all ATOL holders must appoint an accountable person (AP) to ensure that their company complies with the CAA’s terms and conditions.

How To Become ATOL Registered

To get ATOL registered, you will first need to pay an application fee. This can be in the form of a fixed charge, and the amount you pay will depend on the size and nature of your business. At the time of writing, the fees range from £981 to £2,601.

You will also need to take a fitness and a finance test, so that the CAA can confirm that your business has the competence and the capacity to hold a licence. And ultimately, you will need to introduce a mechanism for protecting your customers’ money – with a bond, for example.

You will have to renew your licence once a year, and you will have to go through a similar assessment process every time you renew.

Though it is possible to get an ATOL licence from a franchise or an accredited body, many businesses choose to apply directly to the CAA. You can read the full CAA guidance to applying.

Penalties for Not Being ATOL Registered?

If you are legally required to get an ATOL, either as part of the CAA regulations or under the Package Travel Regulations, then you will face some severe penalties for non-compliance.

The CAA has numerous enforcement powers, and they can pursue criminal prosecution for businesses and individuals. They have also pledged to publicise some of their enforcement actions, in order to provide transparency for consumers, and to create a strong deterrent for non-compliance.

This essentially means that they are prepared to “name and shame” any travel providers that do not comply, which would likely lead to considerable reputational damage. So, even if they do not face prosecution, any business or individual that falls foul of the CAA regulations may struggle to ever trade again.

There may also be some insurance implications for non-compliance. Travel agents and tour providers often rely on scheduled airline failure insurance and supplier failure insurance to cover their own losses should a provider cease trading. But if your insurer finds that you failed to get an ATOL where necessary, or that you neglected to check that your providers were ATOL registered, then they may reject your claim.

How to Ensure You Are Fully Covered as a Travel Agent or Tour Operator

At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years.

We can advise you on whether you have a legal obligation to get an ATOL based on the packages you sell. We can also help you access the specialist insurance you need to ensure that, in the event of a supplier failure, you can cover your losses as well as your customers’ losses.

Find out more about our specialist insurance services for travel agents and tour operators.

 

Travel Industry Regulation Changes Coming in 2026 and Beyond
Travel Industry Regulation Changes Coming in 2026 and Beyond 1000 667 James Hallam

A number of regulation changes are set to transform the travel industry in the coming years.

In this post we will take a closer look at some of the upcoming changes, and assess how they might impact travel agents, tour operators, hotel owners, and all other businesses in the travel industry.

We’ll be looking at:

  • Package travel regulations (PTR) reforms expected in the coming years
  • Electronic travel authorisation (ETA) introduced towards the beginning on 2026
  • EU entry/exit systems (EES) introduced towards the end of 2025
  • European travel information and authorisation system (ETIAS) due by the end of 2026

Package Travel Regulations (PTR) Reforms

The Package Travel and Linked Travel Arrangements Regulations 2018 introduced a number of consumer protection provisions, including:

  • Regulatory obligations whenever two or more travel services are sold as a single package.
  • A requirement to provide detailed information before booking, including full price transparency.
  • A right for customers to cancel in the event of a price increase of 8% or more, or following significant material changes to their trip.
  • An obligation to provide customers with insolvency protection for any package they purchase. Under these regulations, organisers are also held liable for the performance of all services the customer receives as part of their package booking.

Over the past year, a Government consultation outlined a series of proposals to improve how these regulations operate:

  • The regulations will only apply to domestic packages when they include transport.
  • The regulations on linked travel arrangements will either be simplified, extended, or removed outright.
  • Relaxing any territorial restrictions on travel insurance cover.

You can learn more about this consultation, and the proposed changes to the regulations.

For travel agents and tour operators: Keep on top of proposed changes and upcoming dates for reforms which may affect your operations.

Electronic Travel Authorisation (ETA)

A new law introduced in February 2026 requires all visitors travelling to the UK from non-visa countries to hold an Electronic Travel Authorisation (ETA) before they depart.

ETAs are designed to strengthen immigration control while streamlining entry checks. Authorisation costs £20, and travellers can apply online or via a dedicated UK ETA app.

For travel agents and tour operators: Any travel agents and tour operators arranging for UK hotel stays and multi-destination trips will need to familiarise themselves with ETA rules, and to make them as clear as possible to customers upfront. If not, it could lead to serious disruption for customers, and even liability claims.

You can learn more about ETAs, and when they’re required.

EU Entry/Exit System (EES)

The EU introduced its new Entry/Exit System (EES) rules in October 2025. This is a new digital border system that applies to UK passport holders travelling to countries in the Schengen area.

Previously, visitors arriving in the EU would have received stamps on their passport. Under EES rules, visitors may instead have to register certain biometric details, including photos and fingerprints, when they arrive.

Travellers do not have to make any preparations before they arrive at the border, and they do not have to pay anything extra for EES registration. However, EES checks may result in longer waits at the border.

For travel agents and tour operators: Travel agents and tour operators will have to account for extended waits at borders when arranging for transfers and ongoing travel.

Read more about the EU EES rules.

European Travel Information and Authorisation System (ETIAS)

The European Travel Information and Authorisation System (ETIAS) is due to come into force by the end of 2026. Under ETIAS, UK passport holders may need to apply for a dedicated visa waiver when travelling to certain European countries.

The ETIAS will cost around £17, but it will be free for anyone aged 18 or younger, and for anyone aged 71 or over. Once a traveller has an ETIAS, it will last for three years, and can be used for multiple trips.

For travel agents and tour operators: As with the new ETA rules, travel agents and tour operators arranging for European hotel stays and multi-destination trips will have to familiarise themselves with ETIAS requirements, and communicate all of the costs and regulations with customers upfront. Otherwise, you may be held liable for any disruption or costs that customers incur throughout their trip.

Specialist Insurance Services For Travel Agents and Tour Operators

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. We can advise you on the insurance implications of any upcoming travel industry regulation changes, and we can also help you get the cover you need at a truly competitive price.

Find out more about our bespoke insurance services for travel agents and tour operators or call us on 0203 967 1923 or email david.mcgregor@jameshallam.co.uk.

The Risks of High Staff Turnover in Restaurants and the Food Industry
The Risks of High Staff Turnover in Restaurants and the Food Industry 800 533 James Hallam

High staff turnover is a perennial issue for restaurants and other businesses in the food and hospitality industry.

For most businesses, a high staff turnover can seriously impact the overall operational efficiency. But for restaurants, a high staff turnover can also contribute to some serious risks, for both the business and its customers.

How High is Staff Turnover in Restaurants and the Food Industry?

Recent figures from CIPD suggest that restaurants and other hospitality businesses are facing a staff turnover rate of 52.2%. This means that more than half of all staff they recruit in a 12-month period will be gone within a year.

Separate studies suggest that the average restaurant employee will spend just 110 days in their role. True, this figure is based on a study of US restaurants. But this simply highlights that high staff turnover is a problem for restaurants across the world.

So, what is it about the restaurant environment that makes staff churn so likely?

Why is Staff Turnover So High in Restaurants and the Food Industry?

Whether you are working front of house or in the kitchens, and number of factors may be contributing to your high staff turnover:

  • Stress, a restaurant can be a particularly stressful place to work. It is a high pressure environment in which you must be constantly on your feet.
  • Low pay, meaning that any job that pays more will seem like a better alternative.
  • Inconsistent scheduling. If employees cannot be sure as to exactly when their shifts will be, it can lead to a poor work/life balance while making it difficult for them to budget.
  • A lack of training and support can make employees feel like they are isolated in their roles, and that things will never improve.

What Are The Risks of High Staff Turnover in Restaurants and the Food Industry?

High staff turnover in a restaurant means efficiency will suffer. The restaurant will face increased costs due to staffing gaps, overtime, and recruitment expenses. Customers may face longer waits and overall inferior experiences, and there will be increased pressure on all remaining employees.

This can lead to a vicious cycle, in which the issues created by a high staff turnover may force any existing employees to look for alternative work.

Yet there are other more serious risks associated with high staff turnover in a restaurant. Stressed or overworked employees may be more likely to make mistakes. This could lead to accidents or injuries, from dropped plates to cuts from knives and other sharp implements. And if someone in the kitchen is not paying attention to what they do, they may inadvertently give a customer food poisoning.

If something goes wrong as a result of a staffing issue, your restaurant could face a costly claim alongside the considerable expenses of dealing with your high employee turnover.

How Can Restaurants Reduce High Staff Turnover?

It is not enough to simply pay your employees more than other restaurants. You need to address your restaurant’s core culture, and work on creating an environment in which employees can feel supported, and in which they feel like they have a future.

This could include working towards:

  • Predictable work rotas, with overtime opportunities for anyone who wants them.
  • Lots of opportunities for advancement, and extensive training opportunities.
  • Incentives tied to performance, or to the time the employee spends in the role.
  • A culture of communication and support, in which managers and employees alike look out for, and respect, one another.

You could also review your recruitment processes, to ensure you are targeting people who will be a good fit for the job. This could include online questionnaires and assessments to help you determine whether candidates have the right traits for the role.

Finally, you should implement a structured onboarding process, so that any new starters get extensive support, training, and supervision throughout their first few months in the role. This will help them acclimatise to the restaurant’s culture, while also helping managers and other employees recognise and respond to any potential issues as early as possible.

Get Tailored Insurance Cover For Your Restaurant

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you get a specialist restaurant insurance package that truly meets your cover needs at a competitive price.

Get in touch for a free quote today.

 

How To Communicate and Respond to Government Travel Advice to Customers
How To Communicate and Respond to Government Travel Advice to Customers 800 400 James Hallam

In this post, we will explore your legal and professional duty as a travel agent or tour operator to respond to and communicate this Government travel advice to your customers.

What Travel Advice Does the Government Give?

The UK Government routinely provides travel advice for over 200 overseas countries or territories. This includes updates about the latest entry requirements, safety and security considerations, health risks, and relevant legal differences.

In a tumultuous political climate, this travel advice can differ from one day to the next. A country that was perfectly safe to travel to one week might be completely inaccessible the next.

Why You Need To Communicate Travel Advice to Customers

If the Government suggests that it is unsafe for people to travel to a destination, or if they outline certain precautions that travellers should take, then you may have a duty of care to let your customers know.

You cannot assume that your customers will access this travel advice themselves. If you are selling trips or packages to a certain destination, and the government releases some travel advice about this destination, then you should make every effort to communicate this advice to your customers.

If you do not communicate this travel advice, and something goes wrong during a customer’s trip, then you may be liable for any subsequent loss, damage, or expenses.

Plus, under the Package Travel and Linked Travel Arrangements Regulations 2018, you may have a legal obligation to notify customers of any risks associated with travelling to certain destinations. So, as well as a costly claim from an unhappy customer, and the reputational damages that would follow, you may also face legal action.

How To Stay On Top of Government Travel Advice

You can sign up for email updates featuring the latest travel advice for 226 overseas countries and territories.

Incidents in one country could have repercussions elsewhere. During the recent Middle Eastern conflict, for instance, travellers were advised against journeying to countries that were not directly involved in the fighting.

With this in mind, when registering for updates, it might be best to focus on areas and territories, rather than individual countries.

Sign up for all foreign travel advice updates or you can access each individual country or territory’s page to register for updates relating to that specific location.

How Travel Agents Should Respond to Government Travel Advice

In some cases, a global incident could simply lead to travel delays. But depending on the specific Government travel advice, you may have to:

  • Reroute your customers’ journeys, finding a different way for them to reach the same situation.
  • Cancel their trip entirely. And in the event of a cancellation, you may have to offer your customers’ a full refund, or you could instead offer to make alternative arrangements.

Whichever course of action you decide to take, it is vital that you find a means of effectively communicating both the situation, and what will happen next.

How To Communicate Government Travel Advice to Customers

Verian Group and the Department for Transport drew from behavioural science in an attempt to determine the best way to communicate during travel disruption.

They created a communication toolkit, which offers the following advice to tour operators and travel agents:

Communicate Consistently and Frequently

You should communicate directly with travellers if issues with the Entry/Exit System (EES) and European Travel Information and Authorisation System (ETIAS) will affect a journey they have already booked.

You may have to send multiple updates as the situation develops, and you should ensure your messaging and advice is consistent with the official Government guidance.

The toolkit also advises operators to use trusted sources, and suggests that linking travellers directly to Government information could help them stay informed.

Set Expectations that Information May Change Quickly

Time stamp any information you share, and explicitly state that anything you share may be liable to change. Also make it clear that you will send further updates as the situation develops.

The toolkit suggests that you go for a “factual, professional, and helpful” tone, but that you remain “empathetic and apologetic when [the] impacts are more severe”.

What Should You Communicate?

Above all, it’s important to be specific. If your communications are too generic, travellers may ignore it, or they may be uncertain as to what steps they need to take.

  • “Known” information – Tell them exactly what the Government travel advice is saying, and provide clear explanations for how this might affect their journey. In some cases, they may just have to deal with delays or disruption. But in extreme situations, they may have to cancel their trip outright.
  • “Unknown” information – It is just as important to be clear about any uncertainty. You can emphasise any aspects of the situation that are less clear while remaining as detailed and specific as possible about how the situation might affect your customers. As we mentioned above, you can also promise to provide further updates as the situation develops.
  • Plans and solutions – Tell your customers what actions are being taken, and why. This could include steps you are taking to manage the situation, such as arranging for alternative modes of transport or accommodation. You could also highlight what travellers might expect to happen at transport hubs (longer queues at airports etc.)
  • Steps to take – If the Government travel advice suggests that travellers should take any extra steps when travelling to a location, be sure to advise your customers accordingly. For example, depending on the destination and the situation, they may have to check their documentation, or take out additional travel insurance. 

The Insurance Implications of Government Travel Advice

In extreme situations, the Government advises against all, or “all but essential”, travel to certain locations. If a customer decides to travel to this location despite these warnings, then their travel insurance may no longer cover them for the trip.

You may have to highlight this when communicating with your customers: That if they choose to go ahead with their booking, they do so at their own risk.

Specialist Insurance Services For Travel Agents and Tour Operators

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. We can advise you on the insurance implications of Government travel advice, and we can also help you get the cover you need at a truly competitive price.

Find out more about our bespoke insurance services for travel agents and tour operators or call us on 0203 967 1923 or email david.mcgregor@jameshallam.co.uk.

 

Hotel Fire Risk Assessment: What To Include
Hotel Fire Risk Assessment: What To Include 1000 667 James Hallam

We recently published a guide to some of the emerging risks that hotels must contend with in the coming years. Yet no matter what challenges the next few years bring, there is one risk that hotels will always have to contend with: Fire.

In this post we will explore the fundamentals of a hotel fire risk assessment plan, to help you understand and mitigate the fire hazards in your hotel.

Hotel Fire Risk Assessment: Understanding The Risks

When it comes to fire, hotels and B&Bs are considered high risk premises. This is because of the presence of temporary guests who will not be familiar with the building’s layout and fire safety procedures.

The building’s fire safety systems will need to be capable of alerting multiple people at the same time – many of whom may be asleep – while helping them to navigate an unfamiliar environment to safety.

The fire safety plan must also account for how some guests may have certain mobility impairments. Plus, some may not speak English, and some may be under the influence of alcohol.

Because of these unique risks, The Regulatory Reform (Fire Safety) Order 2005 specifies that any building where guests sleep for payment must have a written fire risk assessment in place, which must be reviewed regularly. This extends to hotels, guest houses, B&Bs, hostels, and serviced apartments.

What To Include In Your Hotel Fire Risk Assessment

  • Identify All Possible Fire Hazards – Depending on your facilities, this might include kitchens, laundry facilities, and electrical systems. You should also factor in accidental fires caused by guests (due to appliances they bring with them, and discarded cigarettes), along with the risk of arson.
  • Identify Who is At Risk – Beyond your guests, you will also have to account for the safety of your staff, to contractors and delivery drivers, and to members of the public who might be visiting the premises temporarily – such as those who eat at your restaurant without staying the night.
  • Outline Your Existing Fire Precautions – What have you currently got in place to alert staff and guests, to help them evacuate, and to contain or control a fire outbreak? This might include fire alarms, emergency signage and lighting, fire doors, and firefighting equipment.

How to Devise Your Action Plan

Once you understand your risks, and the measures that are currently in place to address them, you might identify some areas for improvement. This might include:

  • Ongoing staff training, to ensure they understand the risks, and the actions they are to take if an alarm is raised.
  • Routine inspections of your fire safety equipment, and replacement of any perishable items as often as necessary.
  • Specifying who is responsible for every action, with a target completion date for any changes or improvements you wish to make.
  • Reviewing your action plan at least once a year, or immediately following any fires or alarms (even if they are false alarms). You should also review your plan should you ever make any changes to your hotel building or operations.

Other Risks For Hotels

Beyond our guide to the emerging risks for hotels, you will find a number of guides on our site to help you understand and mitigate the various risks associated with running a hotel business:

Get the Tailored Hotel Insurance You Need

Specialist hotel insurance can cover your hotel against many of the risks you will face, including fire risks.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.

Find out how we can help you today.

Most Common Travel Insurance Claims
Most Common Travel Insurance Claims 1000 667 James Hallam

In this post we will list some of the most common travel insurance claims. This will include claims that customers make on their travel insurance, along with claims they make against travel agents and tour operators.

What Are The Most Common Travel Insurance Claims?

Common travel insurance claims include:

  • Medical expenses
  • Travel cancellation
  • Trip curtailment
  • Missed or delayed transport
  • Lost or damaged luggage

We’ll look at each of these in more detail below, including how common they are and how they might affect travel agents.

Medical Expenses Insurance Claims

According to data from Which?, medical expenses account for over 50% of all travel insurance claims. This is to cover treatment for illnesses or injuries travellers sustain abroad. Medical claims can be high, occasionally as much as a million pounds or more for a complex medical case which includes air repatriation.

Travellers may make a claim under their own personal travel insurance policy, which should specify a certain level of medical cover. If they are travelling to a location where healthcare is expensive, or if they are planning certain high-risk activities, then they may choose to take out a higher limit of medical cover.

However, travellers can claim damages and compensation against their travel agents or tour operators too. If you sell a package travel arrangement, then you may be liable for any injuries or illness the customer may sustain caused by the negligence of you or your suppliers.

Travel Cancellation and Trip Curtailment Claims

The second most common travel insurance claim, accounting for over 25% of all total claims. If a customer must cancel their trip due to an illness, a family emergency, or a natural disaster, then travel cancellation insurance can cover the lost expenditure.

Travellers may also claim for trip curtailment, should they need to cut their trip short due to an emergency or an unexpected event. With trip curtailment insurance, travellers can get reimbursed for any unused portions of their trip, along with any additional expenses they may incur through travelling home early.

Missed or Delayed Transport Claims

If industrial action or inclement weather delays travel, or causes a traveller to miss a connection, then their travel insurance can cover the costs of any alternative transport or accommodation they need to book. Some policies will even cover them for food and drink they purchase while they wait for a delayed connection.

Lost or Damaged Luggage Claims

Most travel insurance policies will provide a certain level of baggage insurance, which provides cover for any lost, stolen, or damaged bags or personal belongings. Customers may choose to extend this cover if they plan to travel with high-value items, or if they are visiting an area with relatively high crime rates.

Can Travel Agents And Tour Operators Be Liable For Claims?

As we have seen, some of the most common travel insurance claims will be covered by a traveller’s personal insurance policy. Yet travel agents and tour operators may be liable for certain claims, if they or their suppliers have made mistakes.

Customers may choose to make other types of claims against travel agents too. If something goes wrong with the booking, or if they are dissatisfied with the trip, they may take action against the travel agent or tour operator that sold them the experience.

Professional indemnity insurance can cover travel agents and tour operators for these sort of claims. This can cover any compensation the customer may be due, along with any legal fees that may arise as a result of the dispute.

How To Ensure You Have All The Cover You Need As a Travel Agent

It should be clear by now that travel insurance claims can get complicated. Travel is inherently risky, and if something goes wrong, it may not be immediately clear just who is liable. So, how can you ensure you have all the cover you need for any claims that may be made against your travel agency?

This is where an insurance broker can prove invaluable. An experienced insurance broker will take the time to get to know your travel agency, the types of trips you sell, and the sort of customers you sell them to. They can then help you understand all the risks your agency faces, before helping you access the bespoke travel insurance you need to cover these risks.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We provide a one stop shop service for the travel industry, and over 700 travel agents and tour operators depend on us for dedicated business insurance services. Also, we act as the trusted insurance advisor to ABTA and AITO.

Find out how we can help you today.

 

Destination Training For Travel Agents: What Questions To Ask
Destination Training For Travel Agents: What Questions To Ask 1000 667 James Hallam

Destination training allows travel agents to build the knowledge, skills, and insights necessary to offer truly unforgettable travel experiences.

In this post we will outline what you might expect from your destination training, and explore how asking the right questions can help travel agents make the most of this opportunity.

What is Destination Training?

Destination training is a specialist course that can help travel agents understand travel trends, customer preferences, and the risks and opportunities associated with popular destinations.

Destination training may involve attending an in-person course or workshop. On rare occasions, it may involve travelling to a specific tourism destination for on-the-ground learning. But nowadays most destination training providers use online learning modules.

Some travel agents will choose to undertake routine destination training, as it can help them stay ahead of emerging trends.

Destination training is not to be confused with a familiarity trip. A “fam trip” is not a formal training course. It is a dedicated excursion for travel agents to help them promote a new package or property.

The Benefits of Destination Training

Destination training can offer travel agents the opportunity to:

  • Develop expert knowledge of popular destinations
  • Understand emerging travel trends and evolving customer preferences
  • Build relationships with hotels, tour operators, frontline staff, and other providers
  • Learn about the risks associated with popular destinations and transport options

What Questions to Ask During Your Destination Training

These are the questions you should bear in mind during your destination training. If you reach the end of the course and you find these questions are still unanswered, you should look for an opportunity to ask them yourself.

Who Chooses This Destination, and Why?

What makes a popular travel destination so popular? And how are providers in the destination adapting to evolving customer trends?

For instance, if the destination is particularly popular, you might wish to know what, if anything, providers are doing to address overtourism concerns. You might also enquire about what providers are doing to meet the growing preference for more sustainable travel options.

It is also important to understand what sort of traveller chooses each destination. Business travellers, or holidaymakers? Families, solo travellers, or young couples? And if the destination is popular among a certain demographic, what exactly do they find so appealing?

How Will Customers Travel To This Destination?

Travel agents sell transportation services along with accommodation and experiences. It is important to understand the specific travel options for every destination, along with the potential risks associated with each.

Again, you might bear in mind the growing preferences for sustainable travel options. Do customers have to travel by boat or plane to reach a destination? Is it possible to get there using greener transport options?

Are There Any Risks Associated With This Destination?

As well as transport risks, take the time to understand on-the-ground risks associated with popular or emerging destinations. These might involve enquiring about extreme weather, civil or political unrest, crime statistics, and potential health concerns.

The better you understand these risks, the better you can advise your customers on taking suitable precautions and the better you can protect your agency from risk.

What Insurance Will I Need To Sell Trips To This Destination?

This is another reason why it is important to understand the risks associated with any destination. This will help you ensure you have the right cover in place to ensure total peace of mind for you and your customers.

Once you understand these risks, we can help you get the cover you need at a competitive price.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We have provided specialist business insurance for tour operators and travel agents for over 20 years.

We provide a one stop shop service for the travel industry, and over 700 travel agents and tour operators depend on us for dedicated business insurance services. Also, we act as the trusted insurance advisor to ABTA and AITO.

Find out how we can help you today.

 

Risks Facing Hotels in 2026, and How To Mitigate Them
Risks Facing Hotels in 2026, and How To Mitigate Them 1000 667 James Hallam

In this post we will take a look at some of the trends and challenges that hotels may have to deal with in 2026. We will also explore how hotels and other hospitality businesses may manage and mitigate these risks.

Key Risks Facing Hotels

In 2026, we expect to see a range of risks continuing to impact the hospitality industry. In particular, we expect to see hotels continue to face the following challenges:

  • Cyberattacks
  • Rising Costs and falling profits
  • Staff shortages

We’ll look at these risks in more detail and explore what hotels can do to help mitigate the risk.

Cyberattacks for Client Data

Cybercriminals are getting smarter every year. Advances in artificial intelligence means that their cyberattacks are getting harder to detect, and harder to resist.

Hotels are prime targets for cybercriminals. Hotels store lots of valuable client data on their systems, and it is unlikely that your hotel staff will have received dedicated cybersecurity training to help them understand the risks.

How can your hotel meet the growing risk of cybercrime?
Through investing in staff training, and in advanced cybersecurity solutions. You could also acquire specialist cyber insurance. In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident.

Be sure to read our full guide to cyber insurance, and what it covers.

Rising Costs, Falling Profits

In recent years, hotels have struggled with rising energy prices and supply costs. And the problem is that guests are also feeling the pinch. If fewer people can afford holidays, then hotels across the world will see their profits tumble.

How can hotels mitigate the risk of rising costs?
There are a few ways in which hotels can stay afloat in this precarious economic landscape:

Hotel Staff Shortages

Across the world, hotels are struggling to attract and retain the skilled staff they need to deliver exceptional customer experiences. Low wages, demanding working conditions, and a lack of career progression means that many have left the industry to look for better paid and less stressful opportunities.

How can hotels tackle staff shortages?
How can you recruit and keep talented workers in such an environment? Through endeavouring to be the best possible employer:

  • Pay your staff as generously as you can. Also think about benefits, including healthcare, paid sick leave, pension contributions, and staff discounts. Yes, all of this will increase your overheads. But investing in your staff can lead to vastly improved customer satisfaction scores; while reducing staff turnover will help you make savings on recruitment costs.
  • Think about the work/life balance. Hotels run round the clock, which can lead to unpredictable rotas and unsociable hours. Consider ways you can help your staff manage these demands, such as through flexible hours, job sharing, time-off-in-lieu, and so on.
  • Aim to create a culture of open communication. Encourage your staff to talk about their concerns, and you may be able to intervene and offer solutions before any serious problems arise. Your frontline staff may also have some great ideas on how you might improve your hotel’s overall operational efficiency too.

Will Your Hotel Insurance Give You The Cover You Need in 2026?

Finally, as we enter the new year, it may be worth reviewing your hotel insurance to ensure it is still giving you the cover you need. The risk landscape for hotels is changing all the time, so a “comprehensive” policy from a few years ago may not necessarily cover you for all risks today.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We are committed to protecting your hotel, your staff, and your guests from every risk you might possibly face in 2026 and beyond.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

 

What AI Tools Are Travel Agents Using and How Do They Affect The Industry?
What AI Tools Are Travel Agents Using and How Do They Affect The Industry? 1000 667 James Hallam

Many travel agents have turned to advanced AI tools to help them in their day to day role. In this post we will look at some of the key AI tools travel agents are using, and explore how they are changing the industry.

How Travel Agents Are Using AI

There are a number of uses of AI for travel agents to help them with their day to day tasks, and to do an outstanding job for their customers. There are a number of key ways travel agents are using AI at the moment, including to help:

  • Plan trips and anticipate up-coming trends
  • Tailor exceptional experiences for their customers and their interests
  • Offer real-time customer service

We’ll explore the specific AI tools travel agents are using to help with each of these tasks and what exactly they can help with.

AI Tools For Travel Agents Planning Trips and Identifying Trends

Some AI tools are specifically designed to make life easier for travel agents when it comes to planning complex trips:

  • Pruvo – This application uses AI models to monitor hotel prices after booking, sending automatic alerts if it detects a price drop. Travel agents can use this service to help their clients make significant savings on the cost of accommodation.
  • Mindtrip – This application can plan personalised trips based on a user’s preferences. The travel agent may need to check on the quality and the feasibility of the app’s suggestions, but this can still make planning tailored travel itineraries a lot quicker and easier.
  • Clickup – This application relies on dedicated AI prompts to help travel agents identify trending destinations and generate personalised itineraries, all while navigating the complex regulatory landscape.

AI Admin Tools For Travel Agents

These AI tools can automate certain admin tasks, which can help travel agents streamline their processes:

  • Legalese Decoder – Ever struggled to understand how certain laws and regulations may impact international travel? This application uses AI to simplify complicated legal documents, to help you ensure your trips stay compliant with all relevant laws. Skimit is a similar tool that can summarise lengthy articles and documents, helping travel agents stay on top of the latest travel trends.
  • Runware – Formally known as PicFinder, this is a tool that can automatically source high quality images to suit your specific content needs. Combined with an AI outreach tool such as Hotreach, this can make content marketing a lot easier for travel agents.

AI Customer Service Tools For Travel Agents

Finally, many travel agents have started to explore the potential of chatbots for providing high quality, real-time customer service around the clock. Previously, customers had to call or email their travel agents and wait for a response, which may have taken hours, or even days. But with chatbots, customers can quickly get the information they need, precisely when they need it.

Advanced chatbots are driven by Natural Language Processing (NLP). This gives them a greater understanding of context and nuance, which makes them much more effective at responding to customer requests and queries. They can even handle cancellation requests and visa questions.

Kayak on ChatGPT is one such chatbot that can help users quickly make detailed travel plans. Some travel agents are looking for ways to integrate such chatbots into their apps, websites, and booking platforms, enabling them to deliver high quality customer service and tailored travel experiences with ease.

Looking To Enhance Your Travel Agent Services With Advanced AI Tools?

At James Hallam, we specialise in providing bespoke insurance packages to UK travel businesses. We are the trusted insurance brokers to ABTA and AITO, and we have close partnerships with ABTOT, Advantage, ABTOI, PTS and ITT.

These specialist travel bodies are actively exploring the potential of AI for transforming the world of travel. So if you want to revolutionise your processes with advanced AI tools, our trusted partners will certainly be able to help. And at the same time, we can help you ensure you have the dedicated insurance you need to cover you and your customers for whatever the future might hold.

Find out how we can help you today.

 

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