Passenger Sales Agency Agreement

In this case, the introduction of the new contract has no bearing on the fact that travel agencies can effectively demand the goodwill payment to which they are entitled in the event of termination of the agency contract. The law contains provisions for the good of the officer. These include the right to compensation for the notice of termination, which has not been duly carried out (incorrect termination). Although this right deviated from the new sales model, the Court of Appeal held in this case that, although the agency agreement is in force, no agreement can be reached to the detriment of the representative, since he is no longer liable for compensation to the client. If necessary, please contact the Dutch law firm AMS for any legal questions related to the agency agreement. At one point, airlines introduced a new distribution model. This model no longer operates on the commission line, but offers travel agencies the option to book tickets for their customers for a “net” fee from the airlines, with the possibility, if the travel agencies wish, to charge a surcharge on the tickets themselves. Customers must then pay this supplement or allowance. In an agency agreement, two parties, a seller of a product often designated as a contractor, and a commercial agent agree that the sales agent acts in exchange for a royalty for the creation of sales contracts for the client`s products.

This means that the sales agent does not sell his own products on his own account and at his own risk, but receives a commission on a portion of the turnover he has made for the client. This is why travel agencies have previously acted as commercial agents for the contractor, the airlines. However, the modified sales model put an end to this situation. In a recent case between, on the one hand, the Dutch Association of Travel Organisations (ANVR) and a group of airlines, on the other hand, the Court of Appeal had to rule on the appropriateness of an agency agreement. What is this agreement and what can you conclude in such an agreement? Thomas van Vugt, a Dutch lawyer specializing in the agency agreement, explains what the term means.

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