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What is TAANZ? TAANZ Protection vs Travel Insurance

TAANZ offers financial protection against the failure of member travel agencies in New Zealand. It complements, but doesn't replace, comprehensive travel insurance, covering a distinct set of risks - our guide explains what you need to know when making travel plans
Updated 11 November 2024

Summary
  • The Travel Agents' Association of New Zealand, or TAANZ, is a trade association for travel agents, travel brokers, and tour operators in New Zealand. It's a membership organisation established with a focus on upholding high standards of service, security, and professionalism within its membership.
  • TAANZ is important because any New Zealander booking travel with a TAANZ agent is protected in case the agency goes bust, setting it apart from non-TAANZ travel agents. And the reality is that even before the global pandemic, travel agencies frequently go bust, leaving New Zealanders out of pocket. This case in November 2019 is one of many examples; others include the 2022 collapse of We Are Bamboo and 2020's Travel Globe failure.
  • Most notable was the collapse of STA Travel which caused thousands of New Zealanders to lose $11m+ in deposits. 
  • Many travel agencies belong to TAANZ which means any deposits or money advanced to the travel agency will be protected in case it fails before you depart on your trip. In 2021, Flight Centre applied to join TAANZ for the first time per this travel industry article, and Fligt Centre now appears as a TAANZ member.
  • You can check to see if a travel agency is a TAANZ member by searching for them using the TAANZ tool here.

Our guide covers:

What is the TAANZ Bonding Scheme?

TAANZ has established a Bonding Scheme designed to protect customers against the financial failure of TAANZ members. It ensures that if a TAANZ member fails to properly account to suppliers or intermediaries for money received from customers, the customer still receives the tickets or services paid for.

The Bonding Scheme is mandatory for all full members of TAANZ, who are therefore termed TAANZ Bonded Agents. Allied members, primarily suppliers of travel and services, are not part of this scheme.

What does TAANZ Bonding mean?

Being TAANZ Bonded means that if your travel agent fails financially, your tickets or booked services will still be honoured, or you will receive a refund. It provides a clear and simple process to follow in the event of such an issue. However, the protection is capped at NZD$100,000 for claims resulting from anyone TAANZ member's failure.

What is covered by the TAANZ Bonding Scheme? When do I need to claim?

The Bonding Scheme primarily covers failures of the TAANZ member to account properly for monies received from customers. It applies if the member receives the money but doesn't pass it on to the supplier or intermediary, resulting in the customer not receiving the tickets or services paid for. However, it doesn't cover defaults on the part of other suppliers of services or intermediaries, even if they're TAANZ members.

How do I know if TAANZ covers me?
  1. When booking your travel, ensure your agent is a TAANZ Bonded Agent. This information should be displayed on their website and other business materials.
  2. Also, you must directly pay the TAANZ member to be covered by the Bonding Scheme.
  3. You can check to see if they're a member here

When do I need to claim under the TAANZ Bonding Scheme, and how is this done?
If your travel agency goes bust and you're out of pocket (meaning you've paid for travel that hasn't been provided), you will need to make a claim. 

The first step is to contact TAANZ's Wellington HQ - claims must be lodged within three months of the default date, and only New Zealand-domiciled customers can make claims.

Know This: Do I still need travel insurance if a company is covered by TAANZ? 
Yes, having a TAANZ Bonded Agent does not replace the need for personal travel insurance. TAANZ coverage primarily deals with the financial failure of the agent, while travel insurance covers personal effects, delays, medical issues, and other potential travel problems. You can read more about travel insurance here.

TAANZ Protection vs Travel Insurance: What's the Difference?

While TAANZ Bonding offers a degree of financial protection, it is not a substitute for comprehensive travel insurance. Here's how the two differ:

1. Scope of Protection

  • TAANZ: The TAANZ Bonding Scheme protects you from financial loss if a TAANZ member agency fails to account for the money you've paid for travel-related services. It is limited to the agency's financial failure and doesn't cover issues that might occur during your travels.
  • Travel Insurance: Travel insurance covers a broad range of potential issues, including trip cancellation or interruption, medical emergencies, loss or delay of baggage, and more. It protects the agency's financial failure, covering situations that might occur before or during your travels.

2. Medical Coverage

  • TAANZ: TAANZ does not offer any medical coverage. It's a financial protection scheme to ensure you receive the services you paid for.
  • Travel Insurance: Depending on the policy, travel insurance can offer extensive medical coverage, including emergency medical treatment, hospitalization, and even medical evacuation.

3. Claims and Reimbursement

  • TAANZ: Claims under the TAANZ Bonding Scheme must be lodged within three months of the default date, and only New Zealand-domiciled customers can make claims.
  • Travel Insurance: Depending on the provider and policy, travel insurance offers a wider window for claim submissions. Plus, coverage extends to residents of many different countries, not just New Zealand.

Important: While the TAANZ Bonding Scheme offers valuable protection against the financial failure of a travel agency, it should be seen as a complementary measure to a comprehensive travel insurance policy, not a replacement.

Frequently Asked Questions

What is TAANZ?

TAANZ, the Travel Agents Association of New Zealand, protects consumers through a Bonding Scheme. This ensures that customers will receive financial protection if they deal with a TAANZ member and there are issues with their travel booking.

How does the TAANZ Bonding Scheme work?

The scheme ensures protection for members of the public who directly deal with a TAANZ member and experience default on the part of the TAANZ member to account for money received for travel-related bookings.

What does it mean to be a TAANZ member?

TAANZ membership signifies that a travel agent adheres to the financial standards established by TAANZ and participates in the Bonding Scheme. It assures customers of protection against the member's failure to account for monies received for travel-related services.

How do I know if I'm covered by TAANZ?

When dealing with a travel agent, ensure they are a TAANZ member. This should be indicated on their marketing materials and official documents.

What are the limitations of the TAANZ Bonding Scheme?

Claims on the Bonding Fund must be lodged within three months of the date of the member's default. Additionally, the fund only responds to bookings made by New Zealand-domiciled customers. It is also important to note that the fund does not cover non-travel-related products or services.

How can I claim the TAANZ Bonding Fund?

Claims can be lodged with the Chief Executive of TAANZ. You will need to provide details of your transaction with the TAANZ member and the issue that arose.

Should I still get travel insurance if the company is covered by TAANZ?

Yes, you should still consider taking out personal travel insurance. The TAANZ Bonding Scheme provides financial protection against specific issues related to your travel agent. Still, it does not cover personal effects, delays, medical issues, or defaults on the part of travel service providers.

What protection does the TAANZ Bonding Scheme offer?

The scheme offers protection up to NZD$100,000 against the failure of any one TAANZ member to properly account for money received from customers.

What types of travel businesses can be members of TAANZ?

TAANZ membership is open to various travel businesses, including travel agencies, tour operators, and other travel service providers who meet the organisation's financial responsibility and customer service criteria.

Does the TAANZ Bonding Scheme replace travel insurance?

No, the TAANZ Bonding Scheme does not replace travel insurance. The scheme protects against financial loss related to the actions of a TAANZ member, but it doesn't cover other potential travel issues like medical emergencies, lost luggage, or trip cancellations.

How does TAANZ ensure the professional standards of its members?

TAANZ has a set of standards that all members must adhere to, including financial, ethical, and service standards. The association also provides ongoing education and resources to its members to ensure they stay updated with industry changes and best practices.
​Important: Do you need Travel Insurance? Too many New Zealanders take the risk and travel without it. Our Compare Travel Insurance guide helps you find affordable coverage from trusted insurers with a history of paying claims. We also compare by country to help you make finding what you need easier: 
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