Why Cyber Insurance Matters for Travel Agents

Australia’s travel industry has seen a massive shift to online platforms.

In fact, the online travel bookings market hit over $2 billion in 2024. 

This means a lot of client data is being handled every day, whether it’s a small travel agency or a bustling online booking platform.

From names and addresses to credit card details and travel itineraries, your business is a treasure trove of sensitive information. 

But this comes with great responsibility, especially in terms of protecting client data amid numerous cyberattacks with travel agencies as one of the prime targets.

According to the 2023-24 Annual Cyber Threat Report of the Australian Signals Directorate (ASD), around 1,100 cybersecurity incidents occurred for that financial year alone. 

This is why Cyber Insurance is becoming essential for travel agents:

• Data Breaches are Common: Although there’s been a decrease in data breaches, Australia is still ranked 16th with over 300,000 breached accounts in Q1 2025. Small businesses, like many travel agencies, are more vulnerable, accounting for 43% of cyberattack targets.
  
  
• Mandatory Reporting Laws: Since 2018, Australia’s Notifiable Data Breaches scheme requires businesses with an annual turnover of over $3 million to report suspected data breaches. Penalties for non-compliance can range from $360,000 to $1.8 million.
  
  
• Client Trust Is Everything: A data breach can potentially erode trust faster than a cancelled flight. Clients expect their details to be secure, and a breach can destroy the loyalty you’ve built for years.
  
  
• Financial Protection: Cyber Insurance can cover losses and other expenses, including legal fees, forensic investigations, and client notifications, so you’re not left paying out-of-pocket.

The Risks of Online Bookings

Online bookings can be a turning point for your business as a travel agent. 

But every click and transaction can come with risks. 

Here are the top cyber threats travel agents face:

These are the most common cyber threat in Australia with more than 29 million attempts of phishing attacks, making the country the 10th most targeted in 2024. 

These are often disguised as emails from those that pose as trusted sources such as the Australia Post or the Australian Taxation Office (ATO).

One wrong click can install malware that encrypts your data or steals client info.

11% of all cyber incidents which the ASD responded to involved ransomware. 

Alongside data theft extortion, ransomware remains to be a costly cyberattack.

Hackers can lock you out of your booking system and demand payment, disrupting your operations.

Business email compromise (BEC) and payment diversion fraud are targeted phishing attacks that might trick clients into paying fake invoices.

Businesses suffered nearly $84 million in losses due to BEC. 

Insider risks are a growing concern, be it an employee accidentally clicking a dodgy link or someone misusing access.

How Cyber Insurance Helps

As an insurance broker, we’ve seen how Cyber Insurance can minimise the risks travel agents face, covering your losses and giving you peace of mind so you can focus on growing your business.

Here’s what a typical Cyber Insurance policy can offer for travel agents:

1. Incident Response Costs

Covers expenses like hiring IT experts to investigate a breach or restoring your systems.

2. Legal and Regulatory Fines 

Helps pay penalties under Australia’s data breach laws if you fail to report an incident.

3. Client Notification and Support 

Funds the cost of notifying affected clients and offering credit monitoring to protect them.

4. Business Interruption

Compensates for lost income in the event that a cyberattack shuts down your booking platform.

5. Reputation Management

Supports public relations efforts to rebuild client trust after a breach.

For example:

If a phishing email tricks an employee into downloading malware, your policy could cover the cost of fixing the system, notifying clients, and managing any legal fallout. 

Without the right Cyber Insurance, these costs could easily run into the tens of thousands.

Other Tips to Stay Secure 

Cyber Insurance is a key part of your risk management, but it’s not the whole story. 

Here are practical steps to boost your security:

1. Train Your Team: Educate staff on spotting phishing emails and following secure practices.
   
   
2. Use Strong Passwords: Enforce complex passwords and two-factor authentication for your booking systems.
   
   
3. Update Your Software Regularly: Keep your platforms patched to close vulnerabilities.
   
   
4. Back Up Data: Store backups offline to avoid losing everything in a ransomware attack.
   
   
5. Work with an Insurance Broker: A broker can customise a policy that is suitable to your budget and risks, ensuring you’re covered without breaking the bank.

Why Work with Tank Insurance

Tailoring your Cyber Insurance policy can be complex and time-consuming, but it doesn’t have to be.

Here at Tank Insurance, our team of experts can give you advice, tips, and clear guidance. 

Also, we can:

• Help compare policies to find the best fit for your risks and needs.
  
  
• Explain the fine print in plain English, so you know exactly what’s covered and what’s not.
  
  
• Support you through claims, making the process as smooth as possible.
  
  
• Keep you up-to-date on Australia’s cyber laws and trends to keep your coverage relevant.

The online travel market in Australia is thriving, but so are cyber risks. 

Don’t let a data breach ground your business. 

Reach out to us today and let’s chat about your options, so you can get your travel agency ready for the digital journey ahead.