Travel and Hospitality
How to handle customer complaints in the travel sector legally
From flight cancellations to booking errors and delayed refunds, travel companies face a wide range of customer complaints. In an interconnected and experience-driven world, seamless service, instant resolution, and clear communication are not just value-adds but essentials. With such high stakes, even a small lapse can lead to customer dissatisfaction and, potentially, legal disputes.
For travel businesses, knowing how to handle these disputes legally, efficiently, and with empathy is vital to maintaining customer trust and ensuring regulatory compliance.
In this article, we explore best practices for legally handling customer complaints in the travel sector, combining travel consumer protection regulations with modern business process strategies.
Understanding the legal aspects of travel consumer protection
Travel consumer protection laws are in place around the world to ensure fair treatment of customers. These regulations often cover key areas such as cancellations, compensation, refunds, and service transparency.
In the European Union, EC 261 entitles passengers to compensation for delays, cancellations, or denied boarding. In the United States, the Department of Transportation enforces strict refund rules when flights are cancelled or significantly changed.In Asia Pacific, countries have their own varied frameworks that include travel insurance claims and operator responsibility for package tours. Travel companies, especially those operating internationally, must remain up-to-date with these laws to ensure compliance and avoid costly penalties.
Building a transparent and legally sound process for handling complaints
Customer complaints in the airline industry often stem from delays, cancellations, baggage issues, poor communication, uncomfortable seating, and hidden fees.To address these effectively, travel companies must implement clear internal policies and a transparent complaint process that outlines submission steps, response timelines, and resolution procedures. Informing customers of their right to escalate or seek mediation builds trust and manages expectations. A well-documented approach not only enhances the customer experience but also ensures compliance with travel consumer protection standards.
Handling consumer complaints: Legal process integration and outsourcing
Leading travel companies are now integrating legal services into customer support to enhance compliance and efficiency. Legal Process Outsourcing (LPO) providers offer support with contract reviews, regulatory updates, and legal documentation. These partnerships help track evolving travel consumer protection laws and offer real-time legal guidance for complex complaints. Embedding legal oversight into complaint resolution helps prevent disputes from escalating while preserving customer confidence.
Empowering frontline teams to respond within legal boundaries
Customer-facing teams play a key role in resolving complaints and must operate within legal boundaries. Proper training helps them identify legal risks, understand refund and compensation policies, and know when to escalate issues. Using standardised language for sensitive topics like cancellations or contract terms reduces miscommunication and protects against legal exposure. Equipping staff with accurate information and tools ensures faster, more consistent resolutions while maintaining compliance with travel consumer protection standards.
Leveraging alternative dispute resolution methods
Alternative Dispute Resolution (ADR) methods like mediation or arbitration are often recommended or required before legal action in many jurisdictions. ADR is cost-effective and efficient and can improve customer satisfaction compared to formal litigation. Including ADR options in your complaint-handling process shows a commitment to fair outcomes and a willingness to resolve issues collaboratively. This approach supports travel consumer protection standards while safeguarding brand reputation and reducing the risk of drawn-out legal disputes.
Using technology to improve legal complaint handling
Technology is reshaping how travel companies handle consumer complaints. AI tools help categorise issues, spot trends, and suggest actions using historical data, while case management systems maintain a legal audit trail for regulatory needs. Integrated platforms that link customer service, legal, and compliance teams ensure aligned, efficient complaint resolution. These digital solutions not only improve response times and customer satisfaction but also help businesses stay ahead of compliance risks and meet evolving travel consumer protection standards.
Creating a culture of compliance and responsiveness
Handling customer complaints reflects an organisation’s values, not just its procedures. Businesses that address issues with care can turn dissatisfaction into loyalty. A strong culture of compliance helps prevent mishandled complaints due to oversight or lack of knowledge. Proactive communication, such as notifying customers of disruptions and offering clear alternatives, can significantly reduce complaints. Analysing complaint trends to address root causes is also vital for long-term improvement and aligns with best practices in travel consumer protection.
As the travel sector becomes more complex, businesses must treat dispute resolution as a core part of their customer and legal strategy. The most successful companies will be those that combine legal rigour with customer-centric thinking, using each complaint as an opportunity to grow and adapt.
How can Infosys BPM help you turn complaints into a competitive advantage?
Navigate the complexities of regulatory compliance, third-party risk, contract management, and data privacy with confidence. The Legal Process Management (LPM) solutions from Infosys BPM are designed to support travel businesses in streamlining legal operations, reducing costs, and improving guest satisfaction. With deep expertise and next-gen technologies like Gen AI, we help you stay compliant, secure, and efficient in an evolving regulatory landscape. Discover how our tailored LPM solutions can streamline the process of handling customer complaints.
