What does it mean to act as the “principal” for a trip?

When you accept direct payment from a UK traveller for a package of ground services (accommodation, transfers, tours), you legally become the “organiser” or “principal” for those services.

This means you are responsible for delivering everything included in the package you provide.

Does acting as principal mean we must be licensed in the UK (ATOL/ABTA)?

No.
Acting as principal does not require:

– ATOL
– ABTA
– UK licensing
– UK registrations

Your obligations fall under your own country’s laws plus the general consumer protections recognised under the UK Package Travel Regulations (PTR) — because the client is UK-based.
You do not become a UK tour operator.

How does PTR affect us if we are based outside the UK?

PTR applies to the contractual relationship with the UK traveller, not to your jurisdiction.
In simple terms:

– You are responsible for the package you sell
– You must deliver what you promised
– You must provide assistance if something goes wrong

BUT you are not required to enter UK schemes or operate under UK regulatory systems.

What parts of the trip are we responsible for as principal?

Only the services included in your package:
✔ accommodation
✔ transfers
✔ tours
✔ local transport
✔ activities
✔ on-ground logistics
You are not responsible for anything the client books independently.

If the client books their flights separately, do we take on liability for the flights?

No.
Flights booked directly by the client remain the responsibility of:

– the airline (first line, under EU261/UK261)
– the client’s travel insurance

You do not assume financial responsibility for flight cancellations, rerouting or delays.

What does “assistance” mean under package travel law?

“Assistance” means:

– helping reorganise ground arrangements
– providing guidance and support
– helping communicate with suppliers
– offering local help if services fail

It does not mean paying for new flights, extra hotels, meals, or repatriation.

What happens if a hotel, transfer or activity fails on the ground?

As principal, you are responsible for the performance of suppliers included in your package.
If a supplier fails, you must:

– provide an alternative, or
– offer a partial refund/compensation

This is standard for DMCs selling directly to consumers.

What insurance should we have if acting as principal?

At minimum:
✔ public liability insurance
✔ professional indemnity insurance
✔ tour operator liability (if required locally)
✔ financial protection/guarantee systems required in your jurisdiction
You do not need UK-specific insurances or UK bonding.

Who handles customer complaints?

As principal, you handle complaints related to the package you supplied.
We (the UK agency) support communication but do not take legal responsibility for resolving complaints, because we are not the organiser.

Who should issue invoices and take payments?

You — the DMC.
You invoice the client directly, including our agreed commission uplift.
Once payment is received, you settle our commission via invoice.
This structure ensures the correct legal party (you) becomes principal.

If we take only a deposit, are we still the principal?

Yes.
The moment any money flows directly from the client to you, you become the organiser/principal for the services included.

Are we required to pay for repatriation or emergency flights?

Only if flights were part of the package you sold.
If the client books flights independently, the obligation to pay sits with:

– the airline
– the client’s travel insurance

You only provide assistance related to ground arrangements.

What do you expect from us as a DMC partner?

We expect:

– confidence in your own product and operations
– willingness to act as principal for the services you control
– appropriate insurance
– strong on-ground support for clients
– clear communication and reliability
– transparency in pricing and net rates

We do not expect you to take responsibility for flights or anything outside the package.

Why do you require the DMC to act as principal?

Because we are a UK-based designer/consultant thousands of miles away.
We cannot assume legal liability for services we do not operate and cannot control.
Responsibility belongs with the partner who delivers the service on the ground.
This model:
✔ protects the client
✔ protects you
✔ protects our brand
✔ places liability where it logically belongs

Does this structure disadvantage the DMC?

No.
This is the global standard model used by:

– U.S. travel advisors
– Australian travel designers
– High-end consultants worldwide

It simply places responsibility on the party actually delivering the service.