Hospitality Law: Analyzing Contractual Obligations in Tourism

This assignment addresses a scenario involving the Royal Hotel in Sydney, which entered into a contract with a local newspaper for advertising to attract guests for a parade. The newspaper breached the contract by misplacing the advertisement. Additionally, a guest, Yutaro, agreed to extend his s...Read More

Running Head: HOSPITALITY LAW
HOSPITALITY LAW
Name of the student
Name of the university
Author note

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Issue
The issue that arises in the particular scenario is whether Yutaro is authorized to refuse to
make payment for staying the second night. Another issue is what action the Royal hotel can take
against the local newspaper.
Rule
The legal rule embodied in the Tourism and Hospitality law of Australia for non-
compliance of contractual terms is that if the party to the contract fails to obey contractual terms
then the other party is entitled to claim financial compensation for loss or damage (SHARMA
and Gursoy 2018). The preventive action is that thee should be the precise formation of
contractual parties’ obligations that are replicated in the contract. Thus after entering into the
contract, the parties are under a legal obligation to abide by the contractual terms (Baum et al.
2016. Furthermore, it is enshrined in the Tourism and Hospitality law that the hotel owners have
legitimate liberty to detain the property of guests until the hotel charges are cleared. The right
does not expand to the property or car of the guest that left or the guest's clothes( Atef and Al
Balushi 2017). The property must be returned to the guest once the hotel bill is paid by the guest.
There is no storage charge applicable and it is the duty of hotel owners to recompense the guest
in manner if the guest property is destroyed while in possession of the hotel. If the guest was
unable to pay the bill after complete six weeks then the hotel owner has the right to get the
property of the guest sold as a sort of legal action (Aureli and Forlani 2015). The sale of the
guest property should be made in the form of public auction and should be publicized a
minimum four weeks in advance in the local newspaper. There should be the intention on part of
the advert to sell out the property, full detail of goods, guest’s name to whom the property in
question belonged and full description of approaching sale. Furthermore the right in

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accumulation to any right, an undertaking of the claim for non-payment of the bill to the Small
Causes Court.
Application
The Royal Hotel, as part of the advertising campaign, enters into the contract with the
local newspaper for publication of color newspaper on the front page of the newspaper for three
consecutive days prior to the event. However, due to publishing errors, the advertisement is
printed on the fifth page which leads to a breach of contract terms on the part of the local
newspaper. Yutaro books a hotel and the receptionist asked whether he would like to extend the
hotel stay tonight. Yutaro decides to stay and his obligation arises to pay for extra night stay at
that point in time. He is permitted to pay for an extra night for the purpose of viewing the
procession from the hotel. However, the procession canceled due to bad temperatures. Yutaro
decides to leave and also refuse to make payment for an extra night for which he is permitted to
pay. It is held that in pursuance of tourism and hospitality law the local newspaper is bound the
carry the terms and conditions stated in the contract. in case of default, the local newspaper is
bound to pay pecuniary compensation to the hotel. Furthermore, the Yutaro is bound to pay for
the extra night under the law regulating tourism and hospitality and his obligation to make
payment start from very that point he agrees to stay and make payment for the same,
Conclusion
Thus it can be summarized from the scenario mentioned above that the Royal hotel can
initiate a suit for claiming monetary compensation for breach of contract. Yutaro is entitled to
make payment and in case of default the Royal Hotel has right retained the property of the guest
until payment is made.

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References
Atef, T. and Al Balushi, M., 2017. Omani tourism and hospitality students’ employment
intentions and job preferences. Quality Assurance in Education.
Aureli, S. and Forlani, F., 2015. The effects of formal networks on territorial tourism offers.
Current usage of network contracts in Italy. European Journal of Tourism Research, 10(July),
pp.76-94.
Baum, T., Cheung, C., Kong, H., Kralj, A., Mooney, S., Ramachandran, S., Dropulić Ružić, M.
and Siow, M.L., 2016. Sustainability and the tourism and hospitality workforce: A thematic
analysis. Sustainability, 8(8), p.809.
SHARMA, B. and Gursoy, D., 2018, June. HRM practices in the hospitality and tourism
industry: a review of the literature. In 8th ADVANCES IN HOSPITALITY AND TOURISM
MARKETING AND MANAGEMENT (AHTMM) CONFERENCE (p. 28).