Legislation and Ethics in Travel and Tourism: A Comprehensive Guide

This comprehensive guide explores the legal and ethical frameworks governing the travel and tourism industry. It delves into the regulatory landscape, including air, sea, and surface transport laws, as well as consumer protection legislation. The guide also examines ethical dilemmas faced by the industry and analyzes the corporate social responsibility (CSR) policies of TUI Group, a leading travel company.

LEGISLATION AND ETHICS IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION...............................................................................................................1
TASK 1...............................................................................................................................2
1.1 EXPLAINING REGULATORY AND LEGAL FRAMEWORK OF TOURISM AND
TRAVEL SECTOR.........................................................................................................3
1.2 DISCUSSION ON THE AIR, SEA AND SURFACE TRANSPORT LAWS WITH
RELATION TO CARRIAGE OF PASSENGER IN THE REGULATORY AND LEGAL
FRAMEWORK...............................................................................................................6
TASK 2...............................................................................................................................8
2.1 EVALUATION OF THE INFLUENCE OF THE PRINCIPLES OF PROTECTION,
SECURITY AND HEALTH IN VIRGIN HOLIDAYS........................................................8
2.2 ANALYSIS OF THE LEGISLATION RELATING TO EQUALITY IN REFERENCE
TO VIRGIN HOLIDAYS................................................................................................10
TASK 3.............................................................................................................................12
3.1 EXPLAINING CONTRACT LEGISLATION RELATED TO THE CUSTOMERS IN
TRAVEL AND TOURISM SECTOR.............................................................................12
3.2 EXPLAINING LEGISLATION ASSOCIATED WITH CONSUMER PROTECTION
IN RELATION TO TOURISM CUSTOMERS...............................................................14
TASK 4.............................................................................................................................16
4.1 ANALYSIS OF ETHICAL DILEMMA ENCOUNTERED BY THE TOURISM AND
TRAVEL INDUSTRY....................................................................................................16
4.2 ANALYSIS OF CSR POLICY OF TUI GROUP.....................................................17
CONCLUSION.................................................................................................................19
REFERENCES................................................................................................................20
1

INTRODUCTION
There are a number of legal and moral issues that exist in the tourism industry. In the
assignment, in order to facilitate the effective operations of the industries in the tourism
and travel sector basic knowledge of the legal and regulatory frameworks is essential. In
the assignment, leaflets in an information pack will be prepared by the travel law
consultant for the UKCBC training event. It will include the explanation on the legal
frameworks of the tourism industry in reference to Wales and England followed by a
discussion on the surface, air and sea transport laws with respect to the passenger
carriage. Further, a report will be prepared for understanding the regulations in relation
to the safety, health and security in the tourism industry. Moreover, the consumer
protection legislation will be discussed accompanied by explaining the role of ethics of
business in the tourism sector.
2

TASK 1
Information pack
3
LEGAL AND
REGULATORY
FRAMEWORK

1.1 EXPLAINING REGULATORY AND LEGAL FRAMEWORK OF TOURISM
AND TRAVEL SECTOR
The expansion of tourism industry at an
abrupt rate has transformed it into a
huge economic sector. In the legal
framework, the rules and the
agreements that have an impact on the
decision making in the tourism sector
are involved. Some of them are-
Development of tourism act (1969) -
This act was formed for establishment of
the British Tourist Authority and
England’s, Wales and Scotland’s tourist
boards. It is concerned with the
promotion of the tourism development to
and within Great Britain and provides
other provisions for funding and
accommodation for the tourism
purposes (Murphy, 2013).
Package Travel Regulations (1992) -
This law laid down the rules to be
followed by the tour operator companies
and they have to mention the same in
the terms and conditions section of the
company website and booklets (The
National Archives, 2018).
Transports Acts (1985) - With this act,
the liberalized and privatized bus
services were introduced all over Great
Britain. This was introduced by the
parliament of UK by the conservative
government governed by Margaret
Thatcher.
The regulatory frameworks are-
Strategic Rail Authority or SRA- This
regulatory body has been abolished in
2006 which was made for providing the
strategic direction to the rail authorities
in UK (Wardman and Whelan, 2011).
Figure 1: SRA
Source:
[https://howlingpixel.com/wiki/Strateg
ic_Rail_Authority]
Association of British Travel Agents
(ABTA) - It was found in 1950 which is a
travel trade association is made for the
travel mediators and the tour operators
in UK (Medlik, 2012). It works for
providing financial schemes, providing
reimbursement opportunity to the
4

holiday providers and raising the
standards in the travel industry.
Health and Safety Commission (HSC)
was dissolved in 2008 and found in the
year 1974. It was a non-departmental
public body (Sammer, et al. 2010).
Figure 2: HSC
Source: [https://seeklogo.com/vector-
logo/222674/health-safety-
commission]
Health and Safety Executive or HSE is
a crown status body in UK liable for
encouraging, regulating and enforcing
good health, safety at the workplace and
made for conducting research regarding
the occupational risks in the region of
Great Britain (Council, 2015).
International Air Transport
Association or IATA- It was formed in
1975 and works as a trade association
of the airlines at the global level. Till
2017, a total of 278 airlines were the
members of IATA. It provides aid to the
activities of airlines and assists in the
formation of the policy and standards of
the airline industry (Dobruszkes, 2011).
Figure 3 : IATA
Source:
[https://www.timetoast.com/timelines/
the-development-of-travel-and-
tourism--3]
Civil Aviation Authority or CAA- was
formed in 1972 as a statuary corporation
for the regulation of all the factors
associated with civil aviation in the UK
(Authority, 2016). It serves in UK and
the British Overseas Territories.
Air Travel Operators Licensing- is a
scheme introduced by the Civil Aviation
Authority for provisioning financial
security to the individuals who buy the
5

holiday packages and the flight facilities from the member tour operator
6

1.2 DISCUSSION ON THE AIR, SEA AND SURFACE TRANSPORT
LAWS WITH RELATION TO CARRIAGE OF PASSENGER IN THE
REGULATORY AND LEGAL FRAMEWORK
The categories of modes of
transportation for the commencement of
the journey of tourists from one place to
other is done via air, seaway or the
surface transport. Therefore, it is
essential to safeguard the tourists from
any danger or harm. For different modes
of transportation, there are different laws
regulated and governed by the legal
bodies. Some of them are-
Carriage of passengers by Road Act
(1974) - This act was formed for
bringing into effect the convention on
contract for the carriage of passenger
and luggage by road at international
level. It is made for ensuring the safety
of the tourists commencing their journey
by road (Gwilliam and Mackie, 2017).
The carrier (transportation firm or the
tour operator) are requested to abide by
the act.
Convention and protocols associated
with air transport
Warsaw Convention (1929) - It was
formed by uniting the number of rules
related to the air carriage at international
level. It is supposed to regulate the
responsibility for the carriage of goods,
person or luggage at the international
level through aircraft in return for a
reward. The act was amended in
Hague and Netherlands in the year
1955 and in Guatemala City and
Guatemala in the year 1971 (Goedhuis,
2013).
Figure 4: Warsaw convention
Source:
[http://xxsimposio.uw.edu.pl/destinati
on-warsaw/]
Denied boarding compensation
scheme- It is applicable to the
passengers travelling through flights
where reimbursement is provided in
cases boarding is refused by the air
service providers. The compensation in
7

the form of some percentage of air ticket
fare is given and is applied to the
airlines operating globally commencing
from EU and when the destination is
EU, only applicable to the member state
of EU who is licensed.
Regulations for sea and waterways
Athens convention (1974) - It is
concerned with establishing a regime of
dependency for the harm and loss
suffered by the travellers on the sea
route. This applies when the fault is
neglected by the carrier during the
course of the journey (Razeeq, 2012).
The convention is also directed towards
providing safe and secure transport
through the seaways and the
compensation is expected to be
provided by the service provider in case
of any loss or damage.
Figure 5: Athens Convention
Source:
[https://news.gtp.gr/2018/02/05/acvb-
international-conferences-athens-
2018-19-agenda/]
8

9
AIR, SURFACE AND SEA
TRANSPORT LAWS

TASK 2
INTRODUCTION
The report will include the description of the regulations and the legislation concerned
with the security, protection and health in the travel sector given by the manager of
Virgin Holidays. The influence of the health, protection and security principles and
legislation will be evaluated followed by analysis of the legislation relating to equality.
2.1 EVALUATION OF THE INFLUENCE OF THE PRINCIPLES OF
PROTECTION, SECURITY AND HEALTH IN VIRGIN HOLIDAYS
The travel sector has gained immense growth in the last decade in the form of creating
jobs and making great profits. A number of legislation have been formed for the safety
and security of the travellers. The present domestic and the European legislation
applicable are many. Taking into context Virgin Holidays, it I essential for the firm to
take into consideration a number of factors of that are responsible for providing best in
class training to the employees of the tour operator firm and therefore they abide by all
the rules and legislation formed. The below-mentioned legislation are explained along
with the impact of the principles of safety, health and security on them-
Health and Safety at Work etc. Act (1974) - This act was passed by the UK parliament
for protecting the safety, well-being and health of the individuals at the workplace.
Abbreviated as HASWA, it defines the basic configuration and authority in order to
encourage, regulate and enforce the health, well-being and safety at the workplace in
UK (Hall and Greeno, 2017).
Figure 6: Health and safety at work act, 1974
10

Source: [https://www.shponline.co.uk/health-and-safety-at-work-1974/]
11

The act gives emphasis on the accountabilities and duties of businesses, the
employees, goods contractors and suppliers. The enforcement of this legislation in
Virgin Holidays will prove to be effective and more people will work for such firm thus
contributing to overall growth and development of the tour operator company.
Occupiers liability act (1984) - This act was formed for amendment of the law of
Wales and England which states that the occupier of the premises has the liability to
protect and safeguard the trespassers in their premises. In this, the trespassers injured
can claim for some personal injury or their families can claim after their death expects
for claiming harm to the personal property (Bennett, 2011).
Data Protection Act (1998) - The act formed by the UK parliament is concerned with
the protection of the personal information and data that is stored on the computer
systems or in the filing systems (Taylor, 2011). This act creates the provisions for
holding and non-disclosure of the personal information of individuals.
Virgin Holidays need to protect the personal information of its employees and clients
and thus abide by the data protection law in order to preserve the ethical standards of
the industry.
12

2.2 ANALYSIS OF THE LEGISLATION RELATING TO EQUALITY IN
REFERENCE TO VIRGIN HOLIDAYS
In the tour operator industry like Virgin Holidays, it must be ensured that the workforce
must be given equal treatment with respect along with ensuring that the fundamental
rights of the individuals are safeguarded. In the tourism industry, the norms and
legislation with respect to providing equality to the individuals are an essential element
to be focused towards. Some of the legislation are discussed below-
Employment protection act (1978) - It is the fundamental part of the labour law of UK.
It has decedent act namely the Employment Rights Act (1996). This act has the
guidelines for providing the rights to the employees during the course of their
employment according to the contracts and the payment guidelines. The act combines 2
legislations namely the Redundancy Payment Act (1965) and the Contracts of
Employment Act (1963) (Kruppe, et al. 2013).
Human rights act (1998) - The act was passed by UK parliament and came into action
in 2000 aimed at incorporating the rights included in the European convention on
human rights (Cascio, 2018). The act is concerned towards safeguarding the
fundamental human rights of the people and it encourages the public bodies such as
the government and local authorities, councils etc. to treat each and every individual
with dignity and fairness.
Figure 7: Human Rights Act, 1998
Source: [https://you.38degrees.org.uk/petitions/save-the-human-rights-act-1]
13

Sex Discrimination Act (1975) - It is formed for safeguarding the rights of men and
women on the basis of gender or their marital status. It works for the establishment of a
commission with the purpose of working for eradicating any kind of discrimination and
thus promotes equal treatment and the equal opportunity for all genders in Great Britain
(Talbot, 2017).
Disability Discrimination Act (1995) - The act has been in 2010 replaced by the
Equality Act in UK except in the region of Northern Ireland. According to the law, it is
prohibited to practice any kind of discrimination against the disabled people related to
provisioning them some services, goods, education or the transportation facilities. The
act is concerned with the Civil Rights law and controlled by the UK’s legislative
commission (FBA, 2011).
CONCLUSION
The aforementioned report has outlined the fundamental regulations and legislatures
that are associated with the safety, well-being and security of the individual and property
in the travel and tourism sector, here Virgin Holidays. Along with this, the legislatures
related to providing equal rights to the people have been explained.
14

TASK 3
3.1 EXPLAINING CONTRACT LEGISLATION RELATED TO THE CUSTOMERS
IN TRAVEL AND TOURISM SECTOR
The travel consultant in here, Virgin
holidays have to prepare a leaflet for the
travel assistants for providing a
description of the contract legislation
and the legislation for consumer
protection.
Figure 8: Contracts in travel and
tourism
Source:
[http://veerpalkaur.blogspot.in/2015/0
5/explain-contract-legislation-in.html]
The tour operator firms decide upon the
contract which is an agreement settled
between parties which requires the
consent of them and obligation is
enforced by the court. The various types
of contracts are mentioned below-
 The contract for supply goods
are enforced at the time of sales
or buying of goods
 Contracts for the provision of
services to the people
 Contracts related to packaging
holidays that include the consent
of the tourists and agreeing to
some terms and conditions
(Davison and Sebastian, 2011)
The contracts created have some
standard elements in general. They are-
Offer- It is an assurance to refrain from
actions that are done in return for a
promise to do the same. It requires
mutual consent of the offeror and the
offeree.
Acceptance- It depicts the assent of the
offer and agreeing to its terms and
conditions. The method of acceptance
of the offer must be as per the medium
mentioned in the contract such as a
signed agreement or an official meeting.
Consideration- This involves some
exchange of values in order to convince
the other party to enter the agreement.
15

This may be the charges of the package
in case of the travel agents or the tour
operator, Virgin Holidays. This gives
assurance of the law abidance rather
than just a piece of agreement
(Thomson Reuters, 2018).
Capacity- In order to enter into a
contract, the person must qualify the
age range, have a sound mind, must
have free intention etc. In the case of
holiday contract, for example, the
minimum age of the individual must be
18 years.
Certainty- The terms and conditions
defined in the contract must be clear to
both the parties in order to avoid any
confusion otherwise the contract may be
declared invalid. For instance, in case of
the holiday package, the
misunderstanding regarding the
accommodation may lead to conflicts
(Thomson Reuters, 2018).
The holiday contracts have certain
conditions specified depicted below-
 The agreement between the tour
operator/agent and the clients
 The complete information about
the holiday package detailed in
the form of advertisement
through brochure or websites
 The preferences of the
consumers
 Customer regulations
 The terms and conditions that are
common to both the parties like:
 The name and place of the
stay along with holiday
duration
 The destination
 The implied terms
 The amount for
consideration
 Other relevant factors
associated with the holiday
destination
(De Groote, 2016)
16

3.2 EXPLAINING LEGISLATION ASSOCIATED WITH CONSUMER
PROTECTION IN RELATION TO TOURISM CUSTOMERS
The legislation of the consumer
protection are concerned with
preserving the rights of customers and
their interests from violation by the tour
operator firms or the travel agencies.
Some of the acts are described below-
Trade Description Act (1968) - This act
prevents the manufacturers, the service
industry providers or the retailers from
misguiding the customers regarding
their money spending on the services
offered by them (Koffman and
Macdonald, 2010). Under this law, in
case any provider claims false services,
then the firm may be punished by the
judiciary. The trade officers have the
liability to check-
 The application is given by the
provider related to any dishonest
trade description
 The offer of supply implied by the
dishonest trade description
 Making the untruthful statements
regarding provisioning of any of
the amenities, here the holiday
package
Vicarious liability- It is a kind of
secondary liability where a party is
partially responsible for the illegal
activities of some other third party
(Giliker, 2010). It occurs in situations in
tourism sector where the agents offer
false information to the customers and
the firm hiring the agent is held
responsible partially for the unlawful act.
Figure 9: Vicarious liability
Source:
[http://www.contactlabour.co.za/labo
ur-news/21-issue-september-2016-
vicarious-liability]
Consumer Protection Act (1987) -
This act formed by UK government
makes the necessities regarding the
liability of the people for any kind of
damage caused by the products that
turned out to be defective. Also, the
17

manufacturing party has the legal
obligation to remark the necessary
information about the product according
to the health and security norms set by
the law (Howells and Weatherill, 2017).
The act provides aid in-
 Establishment of product liability
 Establishment of the legal bodies
 Elimination of the price
indications that are unlawful
 Eradicating the supply of second-
rate goods
Package Tours Regulations (1992) -
This type of regulation lays down the
guidelines that the holiday providers
need to follow and requires that the
package is sold in UK at an inclusive
price, must be of at least 1 day duration
and must include the transport and
accommodation facilities (Chen, et al.
2013).
Uberrimae Fidei- It is a legal
agreement that needs high standards of
good faith. The most common type of
Uberrimae Fidei is the insurance
contracts. It is a legal doctrine governing
the insurance contracts (Lowry, et al.
2011). It can be understood that the
parties involved in the insurance
contract are expected to deal in good
faith by making a clear declaration of the
material facts in the proposal of
insurance. It provides aid to the insurer
to safeguard itself.
18

TASK 4
INTRODUCTION
The report will focus on the role of business ethics in the tourism industry. It will include
the analysis of the ethical dilemmas and the corporate social responsibilities of the TUI
Group.
Figure 10: TUI Group, UK and Ireland logo
Source: [https://www.designweek.co.uk/issues/11-17-may-2015/thomson-
consigned-to-history-as-tui-masterbrand-rolls-out/]
4.1 ANALYSIS OF ETHICAL DILEMMA ENCOUNTERED BY THE TOURISM
AND TRAVEL INDUSTRY
The business ethics is concerned with the examination of the ethical problems that can
arise in the business environment. The ethical dilemmas that the tourism industry face
include the income leakage, the green issues, the ethics of false advertisement,
employment issues and the unethical customer issues (Dawson, et al. 2011).
The idea of the first to provide support to the local economies is an ethical dilemma for
the firm as there the issue of income leakage occurs. The TUI group provides the all-
inclusive holidays which has a fixed budget. The money which is supposed to be spent
on enhancing the quality of life of the local people is leaking out. This means that only a
19

small percentage of the actual money that the consumers pay goes to the local
economy.
In some cases the unethical consumers who are themselves not aware of being
unethical impact the economy of the tourist destination in a negative manner. The
resorts developed by the foreign corporations are provisioned by the tour operators and
the money goes to them regardless of the location of the resort. Also, some customers
are way too loyal to a particular brand and therefore choose the one and thus this is
unethical for the local people (Kubanski, 2016).
In the case where the local resources are limited, these are used by the enclave tourism
resorts and this proves to be very much unethical for the local residents. Also, providing
the employment to the local residents in the resorts offers them low income over what
they could have received from the local establishments. This leaves their living
standards unfulfilled.
4.2 ANALYSIS OF CSR POLICY OF TUI GROUP
The Corporate Social Responsibility (CSR) policy is based on the conduct of good
business for a good society. The TUI group has a sustainable policy that complies with
the idea of Corporate Social Responsibility. The firm is taking efforts to provide the
benefits to the local authorities. The firm planned to deliver till 2015, the greener and
fairer holidays that meant to be benefitting the locals and protecting the environment
and it was successfully achieved (Kubanski, 2016).
According to TUI statistics, till 2014, the number of featured hotels having the
sustainability certification was 5.900 and it rose to 66% in the next years. The firm has
taken the challenge to make the most of the social and economic influences of tourism
in all its destinations and is working for minimizing the negative impact on the
environment (Kubanski, 2016).
The TUI group is working for minimizing the carbon dioxide emissions by up gradation
of the airlines and coach fleet making it modern and fuel efficient. It will help in
lessening the negative impacts of global warming to some extent. The firm has started
to put pressure on its suppliers in order to befit the local communities and thereby
20

transform itself into a fully ethical organization. The end of the all-inclusive holiday
model will provide encouragement to the tourists to spend in the local shops and hotels
and thus will enhance the life of the locals. The money in return will be paid in the form
of taxes and then it could be spent on the development of public services.
Another campaign started by TUI group is offering employment to the local communities
rather than employing of the holiday representatives from UK. This would help the local
people to provide support to their families in financial terms (Kubanski, 2016). The firm
is also working for the protection of human rights thus employing the people in equal
ratios both male and female. The firm has also signed the Global Code of Ethics for the
purpose of tourism.
Summarizing the whole discussion, the TUI group has the vision to make the travel
experience of people better while reducing the environmental impact, offering respect to
the cultures and traditions and providing economic benefits to the local communities.
CONCLUSION
In the report, the ethical dilemmas and issues faced by the tourism firms have been
explained accompanied by giving a description of the CSR activities and policies
adopted by the TUI group.
21

CONCLUSION
The tourism industry has to abide by certain policies and regulations in order to function
in an ethical manner. In the report firstly a leaflet has been made depicting the legalized
and regulatory framework in the travel industry that also comprises of the laws in
surface, air and sea that needed to be followed for the carriage of the travellers
according to the regulatory frameworks. Secondly, a report has been made for
describing the regulations and acts that are related to the well-being and safety in the
tourism industry. Moreover, another leaflet depicts the legislation for the consumer
protection that includes the contract legislation. Lastly, another report has described the
role of the business ethics in the tourism industry providing an explanation of the ethical
dilemmas encountered and the CSR activities adopted by TUI group.
22

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