Tour Operators Trade Associations and Regulation

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Tour OperatorsTrade Associations and Regulation

• Thriné Hely

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Agenda

• This week we will be looking at
• Trade Associations
• ABTA
• FTO
• BITOA
• AITO
• Regulation
• Package Travel Regulations 1992
• CAA - Air Tour Organisers Licence

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Learning Outcomes

• After this session students should be able to
• Identify major influences on organisations in the
  industry
• Work effectively in a small group

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Trade Associations

• Association of British Travel Agents
• Formed in 1950
• Trade body for retail agencies and tour operators
• Two roles
• Commercial and regulatory
• Set guidelines for members
• Independent self-regulatory body
• Bonding arrangements
• Arbitration service for consumers
• Has lost some of its prestige in the industry
  since the Package Travel Regulations 1992

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Federation of Tour Operators

• Formed in 1967 as Tour Operators Study Group
  (TOSG)
• Changed name to FTO in 1994
• Members must be invited to join
• Turnover should be high - in excess of 500M
• Respected in the industry
• Responsible for the majority of the sector in
  terms of turnover
• Currently has 11 members
• Members meet once a month
• Discuss industry issues
• Make decisions and ensure they are implemented

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FTO Continued...

• Works in the interests of the public
• Airports, accommodation, safety, health and
  hygiene
• Produce videos and training manuals on safety
• Works to bring about change and improvements
• Key decision makers in industry
• Lobby political parties in the UK and abroad
• FTO Trust Fund
• First bonding scheme in 1970 (before ABTA and
  CAA)
• Non-licensable turnover requires 27 bond
• Members of International Federation of Tour
  Operators

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British Incoming Tour Operators Association

• Established 1977
• Represents commercial and political interests of
  incoming T/ops
• Members include t/ops, national and regional
  tourist boards, heritage sites, hoteliers,
  transport operators
• Members exhibit at domestic and overseas
  exhibition
• Encourages
• ethical best practice
• Eco friendly practice

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Association of Independent Tour Operators

• Aims
• Encourage higher standard
• Instil confidence with the public
• Membership
• Strict criteria for membership
• Bonding Scheme
• Administered by AITO Trust Limited
• Approved under the Package Travel Regulations

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Take a Break Back in 5 minutes
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Package Travel Regulations 1992

• Aim
• To harmonise standards across the EU
• Directive
• 1990 - adopted for implementation
• Discussion took place before implementation in
  1992 for operation from 01 January 1993
• Regulations
• Two principles
• Provide financial protection for prepayments
• Require tour operators to provide what is promised

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Items Covered

• Safety of customers
• Health, fire, hygiene, swimming pools etc
• Responsibility for all components of holiday
• Cannot attribute to sub-contractors
• Negligence must be proved
• UK customers can get redress in UK courts
• Accurate brochures
• Penalties
• Compensation for changes to itinerary (no late
  changes)
• No last minute surcharges
• Surcharges under 2 cannot be levied at all
• Holidaymaker compensation
• Guaranteed refund if operator goes bust

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Air Tour Organisers Licence

• Civil Aviation Authority (CAA)
• Consumer Protection Group (CPG)
• All holiday packages with flights
• 10 of projected turnover
• Air Travel Trust Fund - established 1974
• Levy placed on all package hols. For two years
• If a company goes bust the bond is used to
• Repatriate customers already on holiday
• Return deposits
• Return all money (less insurance) if full payment
  has been made