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With the start of the new year, the ArentFox Schiff Hospitality Industry team reviews 10 of the most pressing legal issues for hospitality companies in 2023.  

1. Potential Down Market Pressures . Interest rate increases are driving up the cost of capital on both debt and equity, which we expect to persist in 2023 until the Fed indicates that it has achieved its terminal interest rate increase. With rate increases and increased return requirements, many deals will only pencil with adjusted asset values, which in turn contributes to market uncertainty. Review the results of our firm’s informal survey of the real estate market  here , and learn more about the firm’s experience  helping clients navigate turbulent markets . 

2. Labor and Employment Issues . Hospitality companies, in particular owners and operators, are still struggling to bring staffing back to pre-pandemic levels. At the same time, there is increased labor activism and scrutiny by antitrust regulators of labor markets in the US. And on top of that, joint employer issues will remain at the forefront, as the National Labor Relations Board (NLRB) considers a revision to the Joint Employer rule, with the comment period having closed December 21, 2022. The new rule could greatly expand the scope of joint employer liability, including by allowing for a finding of joint employment where an entity merely reserves but does not use the right to exercise control over “essential terms and conditions of employment.” Read more about  NLRB developments , including the potential impact on some franchise and management relationships.

3. Data Privacy Compliance . Regardless of the industry segment, time is running out to ensure that privacy policies comply with the latest laws. California and Virginia’s laws took effect January 1, 2023, and states like Colorado and Connecticut are next. Click  here  for an overview of these new requirements.

4. New Technology and Brand Protection Investment . The increased prevalence of new technology is making brand protection and meeting customer expectations increasingly complex, whether in the Metaverse, or using facial recognition or other AI services on properties. For more on managing risk while deploying new technology, see  guide  for hospitality companies in the Metaverse and the  latest on biometric risks and litigation .

5. ESG . In March 2021, the SEC proposed far-reaching climate-related disclosure rules for public companies that do business in the United States. Even without the final rule, we know that complying will be costly and complicated, and the risks of non-compliance will range from SEC enforcement to private lawsuits alleging “greenwashing” and “climate-washing.” Planning now can help ensure that sustainability efforts, like linen reuse programs, refillable amenities, auto dimming lights, local food sourcing, LEED certification, the installation of solar energy systems or the like, have maximum impact. Click  here  for more information on how to plan for ESG disclosures and their related risks, and check out  our resources on marketing sustainability efforts .

6. Franchising Scrutiny . The last 18 months saw franchisee associations asking the FTC to investigate 11 major franchisors under Section 6(b) of the FTC Act, and advocating for the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments.   Some states are also reviewing their franchise laws.   As emphasis on brand standards and pandemic-delayed property improvement plans (PIPs) increases, some systems could experience tension. As always, good communication between franchisors and franchisees, and early consultation with counsel if issues do arise, are wise preventative measures.

7. International Investment . While not a new issue, expropriation remains a serious risk in 2023 for investors in hotel properties located in foreign nations, and especially those that experience periodic political instability. Investors should consider carefully the structure of their investments with a view to minimizing the risks of expropriation under local law, including by avoiding or limiting direct capital investments, and considering, instead, the use of management agreements or joint ventures, among other approaches. In particular, careful consideration needs to be given to certain matters that are often overlooked or considered inconsequential in domestic contracts, such as choice of law provisions and dispute resolution mechanisms. Precise drafting of investment documents remains one of the important ways of providing protection for an overseas hotel investment.

8. Consumer Class Actions . With jury trials resuming nationwide, many companies will face lawsuits in 2023 that they have avoided over the past couple of years. Last fall saw more filings of purported consumer class actions, in particular claims under the ADA, state consumer fraud statutes, data privacy and protection, and similar laws. Companies should review their data management and retention policies, and litigation service process, to ensure they are protected, despite any remote work arrangements in place.

9. Intellectual Property Protection for New Offerings . Many hospitality companies are launching new brands to meet shifting demand in the post-pandemic travel environment. But new brands mean new intellectual property challenges, in the US and abroad, including trademark registrations, domain name disputes, and more complicated licensing arrangements.

10. COVID-19 Restrictions . Although a COVID-19 public health emergency declaration will remain in effect nationwide through at least mid-January 2023, the strictest restrictions in the US have mostly been lifted and seem unlikely to return in full. However, some Middle Eastern and Asian countries have not yet fully re-opened, and progress toward allowing more international travel may be slowed if we see a significant rise in cases in those regions this winter. China, in particular, seems likely to face strong COVID-19 headwinds in early 2023, despite shifting policy there. For more on the status of US regulations, click  here .

Eva J. Pulliam, Amy Antoniolli, Robert D. Boley, Gayland O. Hethcoat II, and Jessica Sprovtsoff also contributed to this article. 

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Home » All articles » Legal Issues in the Travel Industry: Liability, Regulation, and Consumer Rights

Legal Issues in the Travel Industry: Liability, Regulation, and Consumer Rights

Welcome to our blog post exploring the legal landscape of the travel industry! As globetrotters and adventurers, it’s important to be aware of the potential legal issues that may arise during our travels. From liability concerns to industry regulations and consumer rights, this article aims to provide a comprehensive overview of the legal aspects that impact our experiences as travelers. Whether you’re a frequent flyer or a first-time explorer, join us as we delve into the complexities of the travel industry and gain valuable insights into how to navigate its legal challenges.

Table of Contents

Liability Issues in the Travel Industry related to Legal Issues in the Travel Industry: Liability, Regulation, and Consumer Rights

The ever-present liability puzzle.

In today’s dynamic travel industry, where boundaries are constantly shifting, liability issues have emerged as a primary concern for both service providers and travelers. The interplay between legal frameworks, regulations, and consumer rights presents a complex puzzle for industry stakeholders to navigate. This article aims to unravel the enigma surrounding liability in the travel sector, shedding light on its various dimensions.

Liability Frameworks: The Foundation of Accountability

Liability in the travel industry is primarily governed by a diverse range of legal frameworks, including international conventions, national legislation, and contractual agreements. These frameworks aim to establish responsibility, determine fault, and provide remedies in cases of harm or misconduct.

International Conventions: A Global Safety Net

International conventions, such as the Montreal Convention for the Unification of Certain Rules for International Carriage by Air, play a pivotal role in the travel landscape. They provide a unified liability framework for airlines and passengers, ensuring clarity and consistency in cases of accidents, delays, or damages.

National Legislation: A Patchwork of Protections

At the national level, countries implement their own laws and regulations to address liability concerns in the travel industry. These laws cover various aspects, including hotel safety, tour operator responsibilities, and transport accidents. Travelers must familiarize themselves with the specific legislation of their destination to understand their rights and potential recourse.

Regulation: Balancing Safety and Industry Interests

Regulatory bodies, both at the national and international levels, play a crucial role in upholding safety standards, monitoring compliance, and resolving disputes. Their primary objective is to strike a delicate balance between consumer protection and the sustainability of the travel industry.

Enhancing Safety: A Fundamental Imperative

Regulations pertaining to liability often revolve around ensuring the safety and well-being of travelers. Adequate safety measures, risk management protocols, and quality assurances are critical components of this regulatory landscape. Strict compliance with these regulations is essential not only for traveler protection but also for the long-term viability of the industry.

Consumer Rights: Empowering the Traveler

Consumer rights legislation forms an integral part of the regulatory framework surrounding liability in the travel sector. These rights cover areas such as fair pricing, transparency of terms and conditions, and access to accurate information. Travelers need to be aware of their rights and the mechanisms available for recourse in case of unsatisfactory experiences.

As the travel industry continues to evolve and grow, liability issues remain a constant challenge. Industry stakeholders must navigate through the intricate web of legal frameworks, regulations, and consumer rights to ensure a fair and safe travel experience for all. By understanding the foundations of liability, providers and travelers can work together towards a responsible and accountable travel industry.

Regulation of the Travel Industry: Legal Issues Explored

Liability in the travel industry.

In the world of travel, understanding liability is paramount for both service providers and consumers. A seamless experience is the common goal, but accidents and mishaps are not unheard of. So, who is responsible when things go awry?

1. Service Providers:

Travel agencies, airlines, and accommodation providers all have a legal duty to ensure the safety and well-being of their customers. They must deliver on their promises, ensuring that the services they offer are as described and meet industry standards. Failure to do so may result in liability for any damages incurred.

2. Consumers:

On the other hand, travelers also have a level of responsibility when it comes to their own safety. They must exercise reasonable care, follow guidelines, and act responsibly to avoid situations that could lead to harm. Ignoring established rules and regulations could diminish the liability of service providers.

Regulation in the Travel Industry

As with any industry, the travel industry requires regulation for smooth operations and to protect consumer rights. Regulatory bodies play a crucial role in monitoring and enforcing compliance to ensure a fair and safe environment for all parties involved.

1. Government Regulations:

Governments worldwide have specific regulations in place for the travel industry. These regulations encompass various areas, such as safety standards, visa requirements, and consumer protection. The aim is to prevent fraudulent practices, ensure fair competition, and protect travelers from exploitation.

2. International Agreements:

In addition to national regulations, international agreements between countries contribute to the regulation of the travel industry. These agreements address important topics like open skies policies, visa waivers, and mutual recognition of safety standards. They create a framework that promotes cooperation and facilitates travel between nations.

Consumer Rights in the Travel Industry

Consumer rights are a fundamental aspect of the legal framework governing the travel industry. Travelers are entitled to certain rights and protections to ensure a fair and satisfactory experience.

1. Right to Accurate Information:

Consumers have the right to receive accurate and truthful information about the services they are contracting. Travel providers must disclose all relevant details, including costs, itinerary changes, and any potential risks or limitations associated with the travel.

2. Right to Compensation:

In cases where a service provider fails to meet their obligations, consumers may be entitled to compensation. This can include reimbursement for expenses incurred due to service-related issues or even compensation for inconvenience caused.

3. Right to Safety:

The safety of travelers should always be a top priority. Service providers must take reasonable measures to ensure the well-being of their customers and address any safety concerns promptly.

In conclusion, the travel industry operates within a legal framework that regulates liability, sets industry standards, and protects consumer rights. Both service providers and consumers have roles to play in ensuring safety and the smooth functioning of the industry. By understanding and complying with these legal provisions, the travel experience can be made more secure and enjoyable for all.

The travel industry is a realm where consumers encounter various legal issues, including liability concerns, regulatory compliance, and the protection of their rights. It is imperative for both travelers and travel providers to understand these legal matters to ensure a safe and satisfactory experience.

Liability is a significant legal concern in the travel industry. Travel providers, such as airlines, hotels, and transportation companies, have a duty of care towards their customers. This means that they are responsible for ensuring the safety and well-being of their passengers throughout the travel process.

When a travel provider fails to fulfill their duty of care and a traveler suffers harm as a result, the provider may be held liable for any damages incurred. Examples of liability in the travel industry include accidents caused by negligent transportation operators, injuries due to unsafe hotel premises, and lost or damaged luggage.

The travel industry is subject to various regulations that aim to protect consumers’ rights and ensure fair business practices. Regulatory bodies, such as the Department of Transportation in the United States, enforce rules to hold travel providers accountable.

Regulations cover areas such as airline passenger rights, consumer protection laws, and fair travel advertising practices. These regulations help establish minimum standards for service quality, pricing transparency, and dispute resolution.

Consumer rights are a fundamental aspect of the legal framework in the travel industry. Travelers have the right to accurate and transparent information regarding their trip, including prices, services offered, and any restrictions or additional fees.

Furthermore, consumers have the right to expect services that meet reasonable expectations. This includes clean and safe accommodations, timely transportation, and appropriate customer service. If the travel provider fails to deliver the promised services or breaches these rights, consumers have legal recourse to seek compensation or resolution.

Consumer rights also encompass protection against unfair practices, such as deceptive advertising, hidden charges, or discriminatory treatment. Travel providers must adhere to these rights to maintain a trustworthy reputation and avoid potential legal consequences.

In conclusion, understanding the legal issues surrounding consumer rights, liability, and regulation in the travel industry is crucial for both travelers and travel providers. By knowing their rights and responsibilities, consumers can have a safer and more satisfying travel experience, while travel providers can ensure compliance with legal standards and maintain customer satisfaction.

4. Legal studies related to the travel industry

Introduction.

The travel industry, a thriving sector that provides individuals with the means to explore and experience new destinations, is bound by a complex web of legal regulations. These legal intricacies ensure that travelers’ rights are protected and companies are held accountable for their actions. In this article, we will delve into three key legal issues: liability, regulation, and consumer rights, and their implications for the travel industry.

Liability refers to the legal responsibility of travel companies for any harm caused to their customers. In the event of accidents or injuries during a trip, it is vital to determine who should be held accountable. Companies are responsible for ensuring the safety of their customers by adhering to safety regulations, maintaining proper equipment, and providing adequate warnings.

Regulation plays an essential role in ensuring the fair and ethical operation of travel companies. Regulations cover various aspects, including licensing requirements, health and safety standards, and environmental protection. These regulations hold companies accountable and ensure that they operate within the boundaries of the law, providing travelers with a safe and secure experience.

Consumer rights are of paramount importance in the travel industry. Travelers have the right to accurate and transparent information regarding the services they are purchasing. For instance, companies must disclose any hidden fees or restrictions for cancellations before a customer makes a booking. In cases of flight delays or cancellations, travelers have the right to compensation and assistance.

In conclusion, legal issues in the travel industry revolve around liability, regulation, and consumer rights. Companies must ensure the safety of their customers and be held accountable for any harm caused. Regulation ensures fair and ethical practices are followed, protecting both travelers and the environment. Finally, consumer rights protect the interests of travelers, ensuring transparency and fair treatment. By understanding these legal aspects, travelers can empower themselves and make informed decisions when embarking on their journeys.

References:

• Travel Law: Cases, Materials, and Problems; by K. L. Campbell and P. L. McMahon (2016)
• Travel Law: Rights and Regulation; by A. Leggat (2019)

In conclusion, the travel industry is subject to various legal issues surrounding liability, regulation, and consumer rights. It is crucial for both travel companies and consumers to be aware of their rights and responsibilities to ensure a safe and fair travel experience. While liability and regulation create a framework for accountability, consumer rights play a vital role in protecting individuals from unfair practices. By staying informed, advocating for their rights, and working together, industry stakeholders can navigate these legal issues and contribute to a more transparent and secure travel industry for everyone involved.

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This course provides a comprehensive overview of laws and regulations governing the tourism and hospitality industry. Legal implications of civil laws, areas of tort, contract law, labor relations laws, Equal Employment Opportunity laws, Title VII of the Civil Rights Act and the Americans with Disabilities Act, risk management, hospitality law, zoning, and unions will be discussed. Reciprocal obligations and human resources management will explore law and legal relationships that exist in the business context. Issues will be discussed from the points of views of innkeepers, restaurateurs, travel agents, lawyers and event planners.

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Hospitality Trends: 10 Legal Challenges for Companies in 2023

1. Potential Down Market Pressures . Interest rate increases are driving up the cost of capital on both debt and equity, which we expect to persist in 2023 until the Fed indicates that it has achieved its terminal interest rate increase. With rate increases and increased return requirements, many deals will only pencil with adjusted asset values, which in turn contributes to market uncertainty. Review the results of our firm’s informal survey of the real estate market  here , and learn more about the firm’s experience  helping clients navigate turbulent markets . 

2. Labor and Employment Issues . Hospitality companies, in particular owners and operators, are still struggling to bring staffing back to pre-pandemic levels. At the same time, there is increased labor activism and scrutiny by antitrust regulators of labor markets in the US. And on top of that, joint employer issues will remain at the forefront, as the National Labor Relations Board (NLRB) considers a revision to the Joint Employer rule, with the comment period having closed December 21, 2022. The new rule could greatly expand the scope of joint employer liability, including by allowing for a finding of joint employment where an entity merely reserves but does not use the right to exercise control over “essential terms and conditions of employment.” Read more about  NLRB developments , including the potential impact on some franchise and management relationships.

3. Data Privacy Compliance . Regardless of the industry segment, time is running out to ensure that privacy policies comply with the latest laws. California and Virginia’s laws took effect January 1, 2023, and states like Colorado and Connecticut are next. Click  here  for an overview of these new requirements.

4. New Technology and Brand Protection Investment . The increased prevalence of new technology is making brand protection and meeting customer expectations increasingly complex, whether in the Metaverse, or using facial recognition or other AI services on properties. For more on managing risk while deploying new technology, see  our guide  for hospitality companies in the Metaverse and the  latest on biometric risks and litigation .

5. ESG . In March 2021, the SEC proposed far-reaching climate-related disclosure rules for public companies that do business in the United States. Even without the final rule, we know that complying will be costly and complicated, and the risks of non-compliance will range from SEC enforcement to private lawsuits alleging “greenwashing” and “climate-washing.” Planning now can help ensure that sustainability efforts, like linen reuse programs, refillable amenities, auto dimming lights, local food sourcing, LEED certification, the installation of solar energy systems or the like, have maximum impact. Click  here  for more information on how to plan for ESG disclosures and their related risks, and check out  our resources on marketing sustainability efforts .

6. Franchising Scrutiny . The last 18 months saw franchisee associations asking the FTC to investigate 11 major franchisors under Section 6(b) of the FTC Act, and advocating for the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments.   Some states are also reviewing their franchise laws.   As emphasis on brand standards and pandemic-delayed property improvement plans (PIPs) increases, some systems could experience tension. As always, good communication between franchisors and franchisees, and early consultation with counsel if issues do arise, are wise preventative measures. For more on the firm’s franchise team, click  here . 

7. International Investment . While not a new issue, expropriation remains a serious risk in 2023 for investors in hotel properties located in foreign nations, and especially those that experience periodic political instability. Investors should consider carefully the structure of their investments with a view to minimizing the risks of expropriation under local law, including by avoiding or limiting direct capital investments, and considering, instead, the use of management agreements or joint ventures, among other approaches. In particular, careful consideration needs to be given to certain matters that are often overlooked or considered inconsequential in domestic contracts, such as choice of law provisions and dispute resolution mechanisms. Precise drafting of investment documents remains one of the important ways of providing protection for an overseas hotel investment. Learn more about the firm’s extensive experience with  international investments and dispute resolution .

8. Consumer Class Actions . With jury trials resuming nationwide, many companies will face lawsuits in 2023 that they have avoided over the past couple of years. Last fall saw more filings of purported consumer class actions, in particular claims under the ADA, state consumer fraud statutes, data privacy and protection, and similar laws. Companies should review their data management and retention policies, and litigation service process, to ensure they are protected, despite any remote work arrangements in place. Look out for a full review of class action trends coming from the  AFS Class Actions  team in early 2023.

9. Intellectual Property Protection for New Offerings . Many hospitality companies are launching new brands to meet shifting demand in the post-pandemic travel environment. But new brands mean new intellectual property challenges, in the US and abroad, including trademark registrations, domain name disputes, and more complicated licensing arrangements. For more firm resources on brand protection, click  here .

10. COVID-19 Restrictions . Although a COVID-19 public health emergency declaration will remain in effect nationwide through at least mid-January 2023, the strictest restrictions in the US have mostly been lifted and seem unlikely to return in full. However, some Middle Eastern and Asian countries have not yet fully re-opened, and progress toward allowing more international travel may be slowed if we see a significant rise in cases in those regions this winter. China, in particular, seems likely to face strong COVID-19 headwinds in early 2023, despite shifting policy there. For more on the status of US regulations, click  here .

If you have questions about any of these issues or want to plan ahead, contact a member of the  AFS Hospitality Industry  team. 

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Review Article of Hospitality Law: Managing Legal Issues in the Hospitality Industry (Wiley 2017)

• English Book Review
• Published: 15 December 2023
• Volume 37 , pages 283–291, ( 2024 )

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• Daniel Green   ORCID: orcid.org/0000-0002-4057-0660 1 , 2 &
• Januš Chaim Varburgh 2  

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In 2017, Barth and Barber released the third edition of their textbook “Hospitality Law: Managing Legal Issues in the Hospitality Industry.” This review focuses on the scope and depth of the legal areas it covers. It examines whether the book strikes the right balance between practicality, feasibility, and conventions within the hotel industry. The authors aim to provide guidance to hospitality students and hospitality managers in developing legal literacy for their professional lives. The review finds that Barth and Barber have successfully compiled a comprehensive and relevant compilation of legal issues within the hospitality industry. They support and illustrate their explanations with authentic case law and relevant examples, demonstrating the practicality of the work. While there may be some criticism regarding the depth of legal argumentation, it should be pointed out that this criticism should be viewed in light of the book's intended purpose. The primary goal was not to create an exhaustive analysis of the multi-faceted nuances in legal discourse within hospitality law. Instead, it aimed to sensitise and assist hospitality students and professional hospitality managers in the United States with their everyday decision-making processes. We suggest that the textbook could further benefit from integrating recent insights from applied (legal) linguistics and legal semiotics. It is concluded that the book remains a valuable resource for teaching hospitality law to non-legal professionals but also for researchers interested in the intersection of language and law in the hospitality industry.

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Barth, C., and D.S. Barber. 2017. Hospitality law: managing legal issues in the hospitality industry . Hoboken: Wiley.

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Green, D., Varburgh, J.C. Review Article of Hospitality Law: Managing Legal Issues in the Hospitality Industry (Wiley 2017). Int J Semiot Law 37 , 283–291 (2024). https://doi.org/10.1007/s11196-023-10074-3

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• Legal Issues in the Hospitality Sector
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The Hospitality Sector has many unique legal issues, and the number of crimes involving Hospitality Laws continues to rise. There were 2656 hotel crimes committed in New York in 2017 alone. Hotels and bars restaurants are the two most common sites of hospitality crimes . Legal issues in the hospitality sector most often involve the theft of guest property, the safety of a business’ staff, or failure to meet safety standards for the property.

Property Crimes Still Dominate the Hospitality Sector

The majority of hotel crimes are property related . Burglary and theft are the two most common crimes in hotels and most hospitality-based businesses. Hospitality businesses are expected to provide a safe environment to their clients. Many clients have begun seeking legal action not only against the thieves, but the service providers as well. Evidence suggests that this number is tied to poor security practices and that many property crimes could be avoided.

Security for Your Staff

Harassment and discrimination crimes continue to soar in the hospitality sector. One poll of 300 workers in the hospitality sector showed that 89% had been sexually harassed by guests or fellow employees at some point. Of those, around 56% said that the harassment came from a member of the public or a client. Staff safety and avoidance of bullying for physical and mental health reasons however, is a priority.

Furthermore, legal issues regarding tip pools and Fair Labor Management are expected to become an important topic soon. In countries like America and the UK, prices in the hospitality sector are expected to fluctuate due to recent changes in policy. This means businesses trying to maintain their same wages and practices may soon fail to meet minimum wage laws, overtime laws, and more.

Negligence Maintaining Buildings and Permits Persists

For management, the most common legal issues still involve business maintenance. Laws regarding expiring building permits and health codes are expected to become stricter soon. The rate of legal cases involving tax obligations and trademark issues has remained steady for the time being.

The hospitality sector currently faces several legal issues. Discrimination and harassment are unfortunately considered common in the hospitality sector. Property theft and burglary are the most common legal issues facing guests and clients in the hospitality sector. The most common legal issues for management in the hospitality sector continue to be issues regarding health codes, expiring building permits, and tax or trademark issues that businesses have chosen to ignore.

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" Tourism is a genuine driver of solidarity and development. Let us all fully harness its power to bring people and communities together, abiding by the Global Code of Ethics for Tourism. This way tourism can keep delivering better opportunities and sustainable development for millions across the globe. "

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As a fundamental frame of reference for responsible and sustainable tourism, the Global Code of Ethics for Tourism (GCET) is a comprehensive set of principles designed to guide key-players in tourism development. Addressed to governments, the travel industry, communities and tourists alike, it aims to help maximise the sector’s benefits while minimising its potentially negative impact on the environment, cultural heritage and societies across the globe. Adopted in 1999 by the General Assembly of the World Tourism Organization, its acknowledgement by the United Nations two years later expressly encouraged UN Tourism to promote the effective follow-up of its provisions. Although not legally binding, the Code features a voluntary implementation mechanism through its recognition of the role of the World Committee on Tourism Ethics (WCTE), to which stakeholders may refer matters concerning the application and interpretation of the document.

The Code’s 10 articles amply cover the economic, social, cultural and environmental components of travel and tourism:

Tourism's contribution to mutual understanding and respect between peoples and societies

3. The host communities, on the one hand, and local professionals, on the other, should acquaint themselves with and respect the tourists who visit them and find out about their lifestyles, tastes and expectations; the education and training imparted to professionals contribute to a hospitable welcome; 4. It is the task of the public authorities to provide protection for tourists and visitors and their belongings; they must pay particular attention to the safety of foreign tourists owing to the particular vulnerability they may have; they should facilitate the introduction of specific means of information, prevention, security, insurance and assistance consistent with their needs; any attacks, assaults, kidnappings or threats against tourists or workers in the tourism industry, as well as the wilful destruction of tourism facilities or of elements of cultural or natural heritage should be severely condemned and punished in accordance with their respective national laws; 5. When travelling, tourists and visitors should not commit any criminal act or any act considered criminal by the laws of the country visited and abstain from any conduct felt to be offensive or injurious by the local populations, or likely to damage the local environment; they should refrain from all trafficking in illicit drugs, arms, antiques, protected species and products and substances that are dangerous or prohibited by national regulations; 6. Tourists and visitors have the responsibility to acquaint themselves, even before their departure, with the characteristics of the countries they are preparing to visit; they must be aware of the health and security risks inherent in any travel outside their usual environment and behave in such a way as to minimize those risks.

Tourism as a vehicle for individual and collective fulfilment

Tourism, a factor of sustainable development

Tourism, a user of the cultural heritage of mankind and contributor to its enhancement

Tourism, a beneficial activity for host countries and communities

Obligations of stakeholders in tourism development

Right to tourism

Liberty of tourist movements

Rights of the workers and entrepreneurs in the tourism industry

Implementation of the principles of the Global Code of Ethics for Tourism

Full Text of the Global Code of Ethics for Tourism

• ENGLISH (brochure)
• ENGLISH (passport size)
• FRENCH (brochure)
• FRENCH (passport size)
• SPANISH (brochure)
• SPANISH (passport size)
• RUSSIAN (brochure)
• RUSSIAN (passport size)
• ARABIC (brochure)
• ARABIC (passport size)

The versions of the Global Code of Ethics for Tourism in non-official languages of the World Tourism Organization have been endorsed by official National Tourism Administrations of the countries and regions listed below. UN Tourism does not guarantee the accuracy of these translations with regard to those in the official languages of the Organization.

This site shall constitute the main source for the Global Code of Ethics for Tourism. Other sites onto which the Global Code of Ethics for Tourism has been uploaded are not under the control of UN Tourism. UN Tourism shall not be responsible for the content of any of these sites or any link contained therein. 

The Global Code of Ethics for Tourism in non-official languages

• ALBANIA (Albanian)
• ANDORRA (Catalán)
• AZERBAIJAN (Azerbaijani)
• BANGLADESH (Bangladeshi)
• BOSNIA AND HERZEGOVINA ( Bosnian ) ( Serbian ) ( Croatian )
• BRAZIL (Portuguese)
• BULGARIA (Bulgarian)
• CHINA (Chinese)
• CROATIA (Croatian)
• CZECH REPUBLIC (Czech)
• EGYPT (Arabic)
• FLEMISH COMMUNITY OF BELGIUM (Dutch )
• GEORGIA (Georgian)
• GERMANY (German)
• GREECE (Greek)
• HUNGARY (Hungarian)
• ICELAND (Icelandic)
• INDONESIA (Bahasa)
• ISRAEL (Hebrew)
• ITALY (Italian)
• JAPAN (Japanese)
• JORDAN (Arabic)
• LATVIA (Latvian)
• LITHUANA (Lithuanian)
• NIGERIA ( Hausa ) ( Yoruba )
• PALESTINE (Arabic)
• PHILIPPINES (Filipino)
• POLAND (Polish)
• PORTUGAL (Portuguese)
• REPUBLIC OF KOREA (Korean)
• ROMANIA (Romanian)
• SAN MARINO (Italian)
• SERBIA (Serbian)
• SLOVAKIA (Slovak)
• SLOVENIA (Slovenian)
• THAILAND (Thai)
• TURKEY (Turkish)
• UNITED REPUBLIC OF TANZANIA (Swahili)

Private Sector Signatories of the Commitment

In 2011, UN Tourism formulated a Private Sector Commitment to the Global Code of Ethics for Tourism, for the signature of private enterprises worldwide. In signing the commitment, companies pledge to uphold, promote and implement the values of responsible and sustainable tourism development championed by the Code. They further undertake to report on their implementation of the Code's principles in their corporate governance to the World Committee on Tourism Ethics.

Ethics convention

The UN Tourism Convention on Tourism Ethics, the first convention of the Organization, was approved by A/RES/722(XXIII) during the 23rd General Assembly which took place in San Petersburg, Russian Federation in September 2019.

World Committee on Tourism Ethics (WCTE)

Established in 2003, the World Committee on Tourism Ethics is the impartial body responsible for interpreting, applying and evaluating the provisions of the UN Tourism Global Code of Ethics for Tourism. For further information, please see UN Tourism General Assembly Resolution A/RES/607(XIX) of October 2011.

The Responsible Tourist

To facilitate the understanding of the principles of the  Global Code of Ethics for Tourism  by tourists, the  World Committee on Tourism Ethics prepared the " Tips for a Responsible Traveller " (2020 version)  to highlight those principles of the Code directly related to tourists, in order to help guide travellers in making their behaviour ever more responsible. 

Background of the Global Code of Ethics for Tourism

The Global Code of Ethics for Tourism sets a frame of reference for the responsible and sustainable development of world tourism. It draws inspiration from many similar declarations and industry codes that have come before and it adds new thinking that reflects our changing society at the beginning of the 21st century.

Related links

• UN Tourism ETHICS AWARD
• RESOLUTIONS ON THE GLOBAL CODE OF ETHICS FOR TOURISM
• Implementation Reports on the Global Code of Ethics for Tourism
• 20th Anniversary of the Global Code of Ethics in Tourism

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Chapter 11. Risk Management and Legal Liability

11.3 Laws and Regulations

Tort law and negligence.

Tort law in Canada refers to the “body of the law which will allow an injured person to obtain compensation from the person who caused the injury” (Tort Law, n.d.). Two categories of torts exist: intentional and unintentional.  Intentional torts consist of assault, battery, trespass, false imprisonment, nuisance, and defamation.  Unintentional torts primarily consist of negligence (Tort Law, n.d.). In tourism, most lawsuits involve negligence, with one party seeking financial compensation.

Take a Closer Look: Crocker v. Sundance Northwest Resorts Ltd.

The ruling in Crocker v. Sundance Northwest Resorts Ltd. provides an examination of the elements of a negligent action. The case describes an incident where a ski/snowboard resort hosted a tubing competition and allowed an intoxicated customer to participate. An accident occurred, and the customer was paralyzed as a result. The resort was found to be negligent as it failed to maintain an appropriate standard of care. Damages were awarded to plaintiff (the person suing) but were reduced for “contributory negligence on behalf of the plaintiff,” which means the injured person was also held partly responsible. The ruling can be found here: Crocker v. Sundance Northwest Resorts Ltd.

Tourism operators must consider their exposure to unintentional torts, primarily negligence. Negligence can be defined as “the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something a prudent and reasonable man would not do” (Cloutier, 2000, p. 13). In other words, if the safety standards of a business fall below an established standard and injury occurs as a result, the injured person may sue for negligence.

Pursuing legal action against an operation for negligence is a process that needs to be initiated by the party who has been injured (plaintiff). To be successful, four elements have to be proved: injury, duty to care, breach in the standard of care, and causation.

The first of these,  injury , means that it must be shown that the person suing did, in fact, receive an injury that resulted in damages. This might be physical damage, such as a bodily injury, or it may be damage to property.

The concept of duty to care refers to the relationship between the plaintiff and the defendant, a relationship requiring the defending party to care for the plaintiff. For example, in tourism, duty to care relationships exist between hotels and guests, tour guides and tour participants, and instructors and students. Is it expected that the person or organization in the relationship is responsible for ensuring the other person is safe from reasonable harm.

Take a Closer Look: The Steveston Hotel Case

The Steveston Hotel Case, made famous in 1999, still serves as a warning to establishments serving liquor. A hotel was held liable for 50% of the damages that occurred when it permitted a patron to drive home intoxicated. The case demonstrated that the hotel had a duty of care to stop serving an already intoxicated person, and to prevent the intoxicated party from driving. You can read more details of the case by visiting  Hotel Held Liable for Drunk Driving Accident .

Once a duty has been established, the next step is proving negligence is to show that there was a breach in the standard of care . Can it be shown that the defendant failed to work to the recognized standard? The standard may be established by professional organizations or simply by the “reasonable person test,” which is an assessment of what other individuals or operations would have done in the same situation. Tourism operators are responsible for determining what current standards in industry are; not being aware of industry standards is not be an acceptable defence in the courts.

The last element that needs to be proved is causation . This means that there must be a strong link between the actions of the defendant that caused injury to the plaintiff. As an example, if a ski resort failed to clear the ice off its pathways, and a guest fell and was injured on the icy path, it is likely that causation could be proved (Heshka & Jackson, 2011).

Take a Closer Look: Bindseil v. McDonald’s Restaurants of Canada Limited

The ruling in Bindseil v. McDonald’s illustrates the importance of causation. While Mr Bindseil developed colitis (a serious stomach condition) in the time following a meal at a McDonald’s restaurant, he was unable to prove that the meal had caused the colitis because the testimony of his medical experts was countered with experts testifying for McDonald’s. The ruling can be found here:  Bindseil v. McDonald’s Restaurants of Canada Limited .

Contract Law

Contracts are frequently used by tourism operators. Common types of contracts include contracts for service, employment agreements, rental agreements, and legal releases [waivers] (Cloutier, 2000). Given the importance of all of these types of agreements, it is vital that operators use documents that are valid and based in contract law. For a contract to be valid and legally enforceable, it must contain all of the following components: an offer and acceptance, consideration, an intent to enter into a legal relationship, and sufficient capacity (understanding) of those involved involved (Longchamps & Wright, 2007). Each of these is described below.

Offer and acceptance means that the “offer” (e.g., a rental car agency will advertise a car for rent) must be clear, unequivocal, and include all of the important and relevant terms in the contract. The acceptance also must be clearly expressed (e.g., the renter agrees to rent the car according to the terms and conditions offered by signing the contract). Once the offer is accepted, it becomes a promise with both parties being bound by the terms of the contract.

Consideration refers to the value that is exchanged between parties in the contract, such as money or services (e.g., the renter pays for use of the rental car). Sometimes consideration is waiving your legal rights for a right to participate in an activity.

Capacity refers to the ability of individuals to enter the contract. If a person signing a contract does not have sufficient capacity, the contract will not be binding. The most common reason for not having sufficient capacity is age. In most cases, a person who has not reached the legal age of majority cannot contract with someone else. Other requirements for capacity include having sufficient mental capacity, and being the authorized signatory (the person with the authority to sign on behalf of an organization) (Longchamps & Wright, 2007).

The implications of contract law to the tourism and hospitality industry are extensive; any contact signed needs to have unambiguous terms, be clearly accepted, have an exchange of value, and be signed by an adult with full mental capacity or by an authorized signatory of the organization. Failing to adhere to any of these conditions will likely result in the contract being considered void.

For many tourism operators, waivers are considered a key part of their risk management process. Waivers are particularly important in the adventure, outdoor, and sport tourism sectors where there is a greater risk of personal injury, and have been proven as an effective risk management tool.

Take a Closer Look: Sample Waiver

Waivers are frequently made available by businesses online. To view a sample of a waiver for a snowcat operator on the Valhalla Powdercats website .

A waiver is a form of contract that transfers acceptance of the risk to the participants by requiring them to acknowledge the risks present in the activity. It also requires participants to waive their right to take legal action if an accident occurs. In Canada, these have been repeatedly successful in defending against lawsuits. Despite their effectiveness, there have been cases where waivers have failed to protect an organization, often because the waiver was poorly written or delivered incorrectly (Importance of Waivers in Recreation Programs, n.d.).

To be effective, a waiver should include the following four components:

• It should clearly outline the risks in the activity; this is ‘voluntary acceptance of risk’ in that the signee accepts the risks of the activity.
• It should waive the participant’s right to pursue legal action against the tourism operation in case of negligence; this is a ‘waiver of claims’ in that the signee agrees not to pursue legal action.
• It should be relatively short and easy to read, be easily recognized as a legal document, and include a place for signature that can be witnessed by a company employee. Current best practices indicate a waiver should not be signed by a friend of the signee or another guest.
• It should be signed by participants only when they have been given ample time to read and understand it well in advance of the event or activity. Failure to provide enough time may be interpreted by the courts as signing under duress, which would make the contract void and mean that the waiver could not be used as a defence against negligence

The components above are brief summary of what components should be included in waiver documentation; legal counsel should be sought to draft a waiver for specific operation (Importance of Liability Waivers in Recreation Programs, n.d.; Karroll v. Silverstar Resorts , 1988).

Take a Closer Look: Loychuk v. Cougar Mountain Adventures Ltd.

This case illustrates the effectiveness of a waiver program for a tourism operation. It involves two participants in a zip-line tour in Whistler, BC. A mistake made by an employee of Cougar Mountain Adventures resulted in the participants colliding on the zip-line at high speed. Negligence was admitted, but because of the effectiveness of the waiver in both the way it was drafted and delivered, the courts dismissed the claim. The ruling can be found here: Loychuk v. Cougar Mountain Adventures Ltd.

Statutory Requirements for Tourism and Hospitality in BC

All tourism companies must adhere to the laws in the jurisdiction in which they operate. In BC there are certain statutes (laws) that are particularly relevant to tourism and hospitality. These are outlined in brief below.

Hotel Keepers Act

The Hotel Keepers Act allows an accommodation provider to place a lien on guest property for unpaid bills, limits the liability of the hotel keeper when guest property is stolen and/or damaged, and gives the provider the authority to require guests to leave in the event of a disturbance (Hotel Keepers Act, 1996).

Take a Closer Look: Hotel Keepers Act 

The Hotel Keepers Act is posted online as a resource for managers and staff at BC accommodation properties. Take a closer look at the act by visiting  Hotel Keepers Act .

Hotel Guest Registration Act

The Hotel Guest Registration Act requires hotel keepers to register guests appropriately, which includes noting a guest’s arrival and departure dates, home address, and type and licence number of any vehicle (Hotel Guest Registration Act, 1996).

Liquor Control and Licensing Act

The sales and service of alcohol in BC hospitality establishments is highly regulated by the provincial government through the Liquor Control and Licensing Branch (LCLB) .

Spotlight On: BC Liquor and Cannabis Regulation Branch

The Liquor and Cannabis Regulation Branch (LCRB) is responsible for regulation of liquor service, private and public liquor stores, the importing and manufacture of alcoholic products, and distribution of those products. For more information, visit the Liquor and Cannabis Regulation Branch .

Hospitality operators and their staff must be aware of fundamental requirements of the Liquor Control and Licensing Act , which defines the ways in which alcohol can be made, imported, purchased, and consumed in BC. As these requirements change frequently, it is the responsibility of operators and staff to keep up-to-date on the particulars of liquor legislation.

Take a Closer Look: BC Liquor Law Handbook

The Government of BC has put together a handbook of information regarding the selling of liquor. View Liquor Primary Licence: Terms and Conditions [PDF] online.

Travel Industry Regulation

As part of the Business Practices and Consumer Protection Act, the Travel Industry Regulation outlines the requirements for licensing, financial reporting, and the provision of financial security for travel sales. Additionally, it requires licensed travel agents to contribute to the Travel Assurance Fund, which compensates consumers if a travel provider is unable to provide the purchased product due to insolvency (Travel Industry Regulation, 2009).

Occupiers Liability Act

The Occupiers Liability Act specifies the responsibilities of those that occupy a premise such as a house, building, resort, or property to others on their property. It includes a definition of a premise, as well as the duty of care the occupier has to care for the condition of the premises, activities on the premises, and the conduct of other people (third parties) on the premises. It also outlines when occupiers liability is excluded, such as on Crown land or private roads (Occupiers Liability Act, 1996).

Take a Closer Look:  Cempel v. Harrison Hot Springs Hotel Ltd.

The legal ruling in this case highlights the responsibility of a hospitality organization under the Occupiers Liability Act to keep premises in safe condition even for trespassers. Ms. Cempel had trespassed onto hotel property, fell into a particularly dangerous hotspring, and suffered severe burns as result. The hotel was found partly responsible for her injuries and was required to pay damages. The ruling can be found here: Cempel v. Harrison Hot Springs Hotel Ltd.

Resort Associations Act

The Resort Associations Act was developed to provide opportunities to fund a variety of promotional services for a resort community. It outlines the organizational structure for the community and allows funding through member fees for activities such as marketing, planning special events, developing signage, and acting as a central booking agency (Resort Associations Act, 1996). To meet the criteria for this Act, resort areas are required to be within a designated resort region, have alpine ski lift operations, and provide year-round recreational facilities or commercial overnight accommodation (Government of BC, 2015).

Spotlight On: The BC Laws Website

All BC statutes are available online at the BC Laws website, operated by the Government of British Columbia. For more information, visit the BC Laws website .

Assault, battery, trespass, false imprisonment, nuisance, and defamation.

Primarily consist of negligence.

Failing to meet a reasonable standard of care toward others despite being required to do so.

Proof the plaintiff did in fact receive an injury resulting in damage; can be bodily injury or property damage.

The relationship between the plaintiff and defendant (monetary, supervisory, custodial or otherwise) that requires a responsibility on behalf of one party to care for the other.

Failure of a defendant to work to the recognized standard.

A strong link between the actions of the defendant and the injury to the plaintiff.

The ability of a person to enter into a legal agreement; depends on the age and mental state of the person (among other factors).

The value exchanged between parties in the contract (money, services, or waiving legal rights).

A document used as risk management technique where the responsibility for the risk is transferred to the participant through contract and voluntary acceptance of risk.

Requires hotel keepers to register guests appropriately, which includes noting the guest’s arrival and departure dates, home address, and type and licence number of any vehicle.

The BC government agency responsible for legislation and control of alcohol and cannabis sales, service, manufacture, import, and distribution in the province.

Defines the ways in which alcohol can be made, imported, purchased, and consumed in BC.

Part of the BC Business Practices and Consumer Protection Act that outlines the requirements for licensing, financial reporting, and the provision of financial security for travel sales.

Specifies responsibilities for those that occupy a premise such as a house, building, resort, or property to others on their property.

Developed to provide opportunities to fund a variety of promotional services for a community; the act defines what it means to be a resort community.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Legal Issues In The Tourism Industry

INTRODUCTION

India has always been a tourist-magnet spot and it has always attracted a large number of tourists from all around the globe. India’s scenic beauty and aesthetic value has always drawn tourists towards the country and hence the tourism industry continues to grow and flourish with each passing day.

However, one has to be well-aware with all the legal formalities which one has to comply with in order to enjoy their stay without any hindrance or legal trouble. Hence, ignorance of the laws of the land should not be the approach of any tourist. Given the already lengthy and incommodious legal system, it is important to be well-versed with the law to prevent any legal difficulties of any sort.

In this article, YLCC brings you the legal issues in the tourism industry. Read on!

LAWS REGULATION TOURISM IN INDIA

There are mainly three laws regulating the foreign tourists in India, with which every foreign tourist must comply with:

• Passport (Entry Into India) Act, 1920;
• The Regulation of Foreigners Act, 1939; and
• The Foreigners Act, 1946.

Apart from the abovementioned, there are some other laws and regulations present for regulating tourism in India. They are:

• Passport (Entry Into India) Act, 1950;
• Foreigners Order, 1948;
• Foreigners (Tribunals For Assam) Order, 2006;
• Foreigners (Tribunals) Order, 1964;
• National Tourism Policy, 2002; and
• Registration of Foreigners Rules, 1992.

There are certain other guidelines issued by State/ Central government which much be followed for domestic tourist operators, Inbound tourist operators, Adventure tourist operators and such.

LEGAL ISSUES IN THE TOURISM INDUSTRY:

RESTRICTED/ PROTECTED AREAS OBSTRUCTIONS [1]

According to the Foreigner (Protected Areas) Act, a foreigner has to obtain a Protected Area Permit (PAP) to visit certain restricted/protected area which might not be a place of tourist attraction. Such a restriction is imposed due to the security or protection reasons.

A foreigner is not permitted to visit such areas unless they present a satisfactory reason to the Government of India. Even the Indian citizens who are not residing in such prohibited areas require an Inner Line Permit (IPL) to visit such areas. As for NRIs and OCI holders, they have to apply for PAP and are not eligible for IPL.  

The PAP can be issued by:

• The Indian Embassy or Consulates abroad;
• Ministry of Home Affairs, Lok Nayak Bhawan and Government of India; and
• All Foreigner Regional Registration Offices (FRROs).

Along with having an Indian Visa, certain special instructions are laid down which are needed to be followed while issuing PAP:

• A foreigner must enter or exit the Northeastern states by air only;
• The PAP is only valid for more than one tourist groups;
• The PAP cannot be extended under any circumstances, or for any reason;
• The tourists are permitted to visit only the designated places and for the designated time only;
• No other area should be visited other than the areas which are indicated in the permit;
• Only the specific tourist route and specific entry/exit points shall be followed as mentioned in the permit;
• The permit holder must keep numerous copies accessible as they might be required to submit a copy at each entry/exit point; and
• The permit holder should largely make use of the national highways while travelling via road within the Northeastern states.

An exception to the abovementioned instructions is that citizens of Pakistan, Bangladesh, China and Myanmar (Burma) can get the permit only with the approval of the Ministry of Home Affairs.

FOREIGNERS REGIONAL REGISTRATION OFFICE COMPLICATIONS

Every foreign tourist must register themselves within 14 days at the Foreigner Regional Registration Office, unless stated otherwise in visa. However, in case of a tourist from Pakistan, he/she shall register himself within 24 hours. Any foreign tourist can register themselves at the airport itself. However, only the foreigners who are visiting India for a period of more than 180 days needs to register themselves and not otherwise. [2]

As for the tourists from Afghanistan, they need to register themselves within 14 days at the Foreigner Regional Registration Office, unless they plan to visit India for less than 30 days. [3]

Usually this is not a hectic procedure but if one fails to comply with it, it can cause some serious legal trouble for the tourist and hence it is advised to abide by the rules and regulations of the country.

ISSUES RELATED TO STAYING IN A HOTEL

Staying in hotels in India is bit of a hassle for the foreign tourists as they have to abide by the Section 14 of the Registration of Foreigner Rules, 1992. [4] According to Section 14, every hotel keeper ought to make a report and furnish the particulars necessary for recording, and sign of every visitor and on the arrival of the visitor at the hotel, his name and nationality shall be registered and maintained for the purpose mentioned in Form F. As for the foreign tourists, he shall furnish all other particulars mentioned in Items 4-10 of the said register. Along with that, at the time of his departure, he must furnish all the particulars necessary for recording in the said register, the date and the time of his departure and also the address to where he is proceeding.  Every particular, except the signature of the visitor or hotel keeper, shall be recorded by the keeper in English language or any other Indian language, if he is so able.

The hotel keeper, within 24 hours of the arrival of the foreign tourist, shall transmit a copy of Form C and duly completed from the particulars furnished by such a foreigner to the Registration Officer. The register shall be available for inspection all the time on the demand of any Registration Officer, any magistrate or any police officer not below the rank of head constable.

Hence it is again important for all the tourists (Indian or Foreigner) to comply with all the rules mentioned under Section 14 in relation to their stay in any hotel.

SUBSTANCE LAWS FOR THE FOREIGN TOURISTS [5]

There are certain substantial laws which every foreigner should keep in mind while visiting India so as to not get involved in any legal trouble. As for the alcohol usage, the age limit varies from 18 to 25 depending upon the state. As for certain states (Gujarat and Bihar), alcohol is banned overall and hence its illegal in those states. Hence, it is important for the tourists to be aware of the laws should also defer from public drunkenness. Transporting/carrying alcohol from one state to another should be also avoided given the varying laws on alcohol.

As for the consumption of drugs, it is uniformly banned in the whole of India and any tourist should not engage in the consumption of it either. Again, the consumption, export, import and sale of beef and beef products is completely banned in a number of states and hence the tourists should be aware of the same.

It can be well concluded from this article that there are certain legal issues in the tourism industry especially when it comes to foreigner tourists. In order to enjoy a legal-trouble free vacation, one must comply with all the rules and laws mentioned in the article. Hence, following these trips and abiding by the law will not only help in a hassle-free trip but will also improve the tourism industry in the country.

[1] Protected/Restricted Area Permit for India, IMMIHELP,  https://www.immihelp.com/protected-restricted-area-permit-india/ , (last visited Jan 25, 2022).

[2] Tourism Laws in India, all that you should know, LATESTLAW,  https://www.google.com/amp/s/www.latestlaws.com/amp/did-you-know/tourism-laws-in-india-all-that-you-should-know , (last visited Jan 26, 2022).

[3] Pragya, Tourism in India: A guide on the common legal issues, IPLEADERS, (Jan 25, 2022, 8:26 PM),  https://blog.ipleaders.in/tourism-in- india-a-guide-on-the-common-legal-issues/. 

[4] The Registration of Foreigners Rules, 1992 § 14.

[5] Shreya, Travelling to India- Laws to keep in mind, LEGALSERVICEINDIA, (Jan 26, 2022, 10 AM), https://www.legalserviceindia.com/legal/article-5400-travelling-to-india-laws-to-keep-in-mind.html .

YLCC would like to thank Riya Singh for her valuable insights in this article.

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The 5 Top Legal Issues for Travel Advisors

Photo: Shutterstock.com

Last week, at the American Society of Travel Advisors (ASTA) global convention in San Francisco, CA, travel industry attorney Jeffrey Ment, who has more than 30 years of experience in the industry, gave attendees a rundown of five Important Legal Topics for Travel Advisors.

It is always going to be better to have a lawyer diagnose potential legal issues personally for your agency. But for advisors who want a refresh on why having counsel to speak with is so important, or those who want to be aware of things that could affect their business, here are the top five legal issues for travel advisors from Ment’s session: 

1. Social Media and Duty of Care There have always been questions about the duty of travel advisors to inform and advise clients about potential dangers in destinations they are traveling to. But a recent news story about a travel agent being sued after a client was killed in Mexico has brought those questions back to the forefront.

The story involves a travel agent who was sued after his client was allegedly killed during a trip to a Cancun all-inclusive. The travel agent had posted about minimizing danger in Cancun after a U.S. State Department warning advised Americans to exercise caution when traveling to the destination. The agent, in one post, passed along information from the Cancun Sun, a newspaper that Ment said: “is hoping to promote tourism in Cancun.”

While the end of that story isn’t written yet, the question for travel advisors is how far you go in posting on social media. The client’s death “is not the fault of the travel agent,” Ment said, but there are some steps that travel advisors can take to best protect themselves and their business.

Ment recommends passing along “verifiable, good reliable data and think twice before posting,” he said. “There is a fine line between promoting and encouraging travel.”  

He also said that all advisors should be “careful” in what they say, including avoiding certain phrases, including stuff as “risk-free, harmless,” or 100% safe.”

2. Compliance with Seller of Travel Laws Sellers of travel laws can be a tricky thing for a lot of travel advisors—questions over what law applies in which states, and how those laws affect advisors with clients in other states, are fairly common, especially among new entrants.

“It’s a tough topic. There’s a difference between what the law states and what you may have to do or not do,” Ment said.

Currently, four states have Seller of Travel Laws on the books—California, Washington, Hawaii, and Florida. Each of those states has different requirements for obtaining the license; each license is costly when it comes to time and money for advisors.

Hawaii, for instance, requires that advisors living in the state or servicing clients in that state have a bank account from a branch in Hawaii, a state that doesn’t have a ton of national chains located there. The other states might only require a bond that is easier to obtain than opening a Hawaii-based bank account.

Advisors need to be able to make their own decision about getting a license. That time and money consideration have to be balanced with how much business they are doing in that particular state. Should an advisor forego business also forego the requirements for obtaining a license? That’s up to each individual business owner.

“Is it important to you? How many clients do you have? Are you located there? Are you a member of a host agency or consortia that have a license? Maybe you already get the benefit of that already,” Ment added.

3. Independent Contractor (IC) Agreement Terms Independent contractors (ICs) are the fastest growing segment of the travel advisor community by almost every measure. And with that growth has come an equally increasing set of legal concerns, including what should and shouldn’t appear in an IC agreement.

One of the trickier points in IC agreements is non-compete clauses, which protect agency owners or host agencies from having their ICs working elsewhere while they are still connected. Those clauses “are a very interesting legal issue,” Ment said because of how they limit an “independent” worker’s ability to work. Ment said the agreements would be “scrutinized pretty closely if a judge is ever asked to do that.”

That doesn’t mean that agency owners can’t have non-compete clauses as part of their IC agreements, it just means that they have to be careful how they word and enforce them. For instance, the agreements should use “non-solicitation” and “non-disclosure” more than “non-compete.”

There are also considerations depending on what state advisors operate in. Several states and districts do not allow non-competition clauses for ICs, including California, North Dakota, Washington D.C., and Oklahoma, places where advisors should “be very careful about having them,” Ment said.

The bottom line, like many of these legal issues, is that it’s best to ask a lawyer about specific responsibilities and wording. ASTA also has a template agreement for all members on its website, too.

4. Errors and Omissions and Other Insurance Considerations Errors and omissions insurance (E&O), or professional liability insurance, is another of these regular occurring issues for travel advisors and agency owners to be aware of. Mistakes happen, and this kind of insurance helps protect advisors against those mistakes when they do inevitably occur.

Advisors part of a host might already have E&O insurance as part of that relationship, but it is important to ask about that, Ment said. And each provider covers different things in their E&O offerings, so it’s also important if advisors are getting the insurance on their own, to read the full policy.

Ultimately, the general definition is that E&O Insurance “covers the professional liability when you are in the performance of travel agency operations,” which includes

More importantly than that, according to Ment, is what it doesn’t necessarily cover, namely: - Breach of contract. - Allegations of fraud, consumer protections, unfair trade, or unfair competition. - Intentional things, such as property damage, fraud, or dishonesty. - Pricing or dispute with fees. - Violation of non-compete clauses with ICs. - Refund arguments.

It’s not just E&O insurance that advisors should be aware of. There’s General Liability insurance, which covers some general risks for business owners. That insurance is important for advisors who run a brick-and-mortar, but “is not important” as others if you don’t, Ment said.

There is also cyber liability insurance, which protects those who transact business over the internet. It helps protect against the risk of safeguarding protected information like credit card numbers or emails.

5. Business Trademarks The advent of the internet over the past few decades has created another concern for advisors—trademark considerations. Advisors and agency owners, who are now seemingly competing against all other agencies worldwide, should consider it, Ment said.

“The new world is if you are advertising, marketing, building a brand, selling your brand, it is important to at least have the conversation,” Ment said.

Trademarking is an incredibly specialized area of the law, which increases the need for advisors and agency owners to talk to outside counsel should they want to go through the process.

“It is important because it kind of identifies who you are. It can keep other people from becoming someone that looks like you,” he said.

The considerations that advisors should make before undertaking the process include: - What’s my business name? - Is it important to me? - Am I getting business from it? - Am I marketing it?

“If you’re doing it and it’s helping you establish yourself, it might be something to consider,” he said. “I have a lot of agency clients of mine in the Disney space, and it’s very competitive. So some of them try to trademark these different pieces of their business because they think it will help set them apart.”

“It is a good idea. You should consider it,” he added.

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