Legislation and Ethics in the Travel and Tourism Sector: A Case Study

This report provides a detailed analysis of legislation and ethical considerations within the travel and tourism sector, using Thomas Cook as a case study. It explores the impact of health, safety, and security legislation, including the Health and Safety Act 1974, Occupier's Liability Act 1984, and Data Protection Act 1988. The report also examines legislation related to equality, such as the Sex Discrimination Act 1975, Disability Discrimination Act 1995, and Human Rights Act 1998. Furthermore, it delves into contract and consumer protection legislation, illustrating these concepts with a scenario involving a dissatisfied customer. The report concludes with an analysis of ethical dilemmas faced by the travel and tourism industry and the corporate social responsibility (CSR) practices of the IHG group.

Legislation and ethnics in travel
and tourism sector
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Evaluating the impact of the principles of health, safety and security legislation on travel
and tourism sector........................................................................................................................3
2.2 Analyzing legislation related to equality...............................................................................4
Task 3...............................................................................................................................................6
3.1 Writing a letter to the travel assistant by explaining contract legislation in relation to the
travel and tourism customers.......................................................................................................6
3.2 Creating a poster by explaining consumer protection legislation in relation to travel and
tourism customers........................................................................................................................7
Task 4...............................................................................................................................................8
4.1 Analysing ethical dilemmas that are facing by travel and tourism sector.............................8
4.2 Analysing the corporate social responsibility of IHG group.................................................9
CONCLUSION..............................................................................................................................11
References......................................................................................................................................13
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INTRODUCTION
Travel and tourism industry is one of largest business domains in the UK. UK is
eighth largest tourist destinations worldwide. It contributes large amount of revenue towards the
UK GDP. There is a large regulatory framework related to this industry whether mode of
transportation is waterways, airways or roadways. Thomas cook has been selected for this
project report. In this project report, rules and regulations are explained in detail. Along with
this, legislation related to equality is explained briefly. In middle part of the report, contract
legislation in relation to travel and tourism customers is discussed in detail. In end part of the
report, types of ethical dilemma faced by firms operating in travel and tourism sector are
discussed in detail. It also explains the CSR activities of the business organization.
TASK 1
Enclosed in power point presentation
TASK 2
2.1 Evaluating the impact of the principles of health, safety and security legislation on travel and
tourism sector
Thomas cook is one of the world largest travel and Tourism Company in UK. The
company have many retail travel centres across the globe. It is very important for Thomas cook
to follow all rules and regulations strictly. These rules and regulations may be related to the
health and safety of customers. It is also responsibility of Thomas cook to ensure the safety of
all its employees in order to boost their confidence to give best outputs. Following are the
regulations which needs to be follow by Thomas cook:
Health and safety act 1974- Thomas cook needs to comply all the guidelines of the act. By
conduct training sessions for its employees to provide technical assistance before using any
devices. This act provide several benefits to the employees in terms of health and safety of
personnel of organization. The employer is liable for any injury takes place at workplace to
employees. It is important for Thomas cook to take care about the needs of staff in order to
avoid legal complications.
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Occupier’s liability act 1984- As per this law Thomas cook require to create abundant amount of
security arrangements in order to ensure the safety of its clients life. The guidelines of the
act provide support to the aggrieved party in case of injury to the person sue to negligence of
employer. Then the employer is liable to compensate the innocent party for loss or damages.
Contrary to this, if any individual which is client of Thomas cook get injured due to its
negligence then Thomas cook will not be liable to make any sort of compensation to its
clients. This is because incident comes in existence due to negligence of client not firm.
Data protection act 1988- This law makes it necessary for the firm to create and maintain
database of its clients in systematic order. Under this law it is responsibility of an employees
of an organisation to make sure that information of the clients is not shared with any
unauthorized person. The internal staffs are responsible to maintain the confidentiality. In
order to implement this provision of law effectively Thomas cook can prepare a rule under
which before sharing of information employee of an organisation will take prior permission
from top executive for information sharing with unknown person.
Duty of care and vicarious liability- Thomas cook needs to follow all rules and regulations
related to duty of care. According to this law, it is responsibility of the Thomas cook to
make sure that life of its employees and business clients is safe. It must make sure that
clients does not face any problem during their travel to any destination. Firm also needs to
comply with rules and regulations that are related to the vicarious liability. The owner is
liable for any accident occurred with the employees at the workplace.
Thomas cook strictly need to follow all the rules and regulations in order to run its business in
smooth manner. It helps them to continue their business operations and cater the needs of its
clients.
2.2 Analyzing legislation related to equality
Legislation related to equity state that employer must not do discrimination among the
employees on the basis of cast, creed, religion and color etc. Thomas cook must treat all its
employees equally in order to promote equality among its employees in the organization. It can
be said that by treating employees equally Thomas cook will follow relevant legislation in order
to utilize its employees in efficient and effective manner. Some of the laws related to
discrimination are given below.
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 Sex discrimination act 1975- Thomas cook is complying with this law in order to
provide equal employment opportunities to all gender whether they are male or female.
As per law firms operating in any industry cannot discriminate among people in terms of
employment on the basis of sex, color and marital status. In such a situation Thomas cook
is needs to follow this law in order to create good image of the firm among its
stakeholders. Disability discrimination act 1995- This act state that discrimination cannot be done with
people in terms of employment merely on the basis of their disability. It has been
observed that many firms does not give employment to those that are crippled. Due to
this reason even one in mentally sound and capable to do job does not get work in an
organization. Thomas cook give employment opportunities to the individuals (Disable
people) on jobs where they can easily work. This reflects that firm is strictly following all
rules and regulations in proper manner. Human rights act 1998- Human rights act provide authorities to the employees of an
organization. It means that employees works in an organization and they must have some
rights so that employer cannot exploit them. These rights are covered in human rights act
1998. As per this law employees have a right to provide feedback to the management in
relation to the department in which they are working. Employment act- As per this law business firms needs to give pension and leave benefits
to their employees. This law also explains the right of the employees and under this they
can ask their employer to adopt sufficient number of health and safety measures. Thomas
cook needs to strictly comply with this law by adopting several health and safety
measures.
 Race discrimination act 1976- Under this act it is stated that no organization can involve
in discrimination related acts. Firms cannot discriminate employees on the basis of race
and religion Firms must try to prevent discrimination on the basis of color such as black
and white and must treat all employees equally.
So, these are some of the laws that must be strictly followed by a Thomas cook in order
to make sure good working environment is provided to the employees in an organization. By
complying with these laws firm can ensure safety of its client.
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TASK 3
On the basis of the cited case situation Thomas Cook has been selected for this section
who offers holiday packages to the different tour operators. Presented case situation entails that
recently customer of Spain came back to the travel agency that he was not happy with the
services which are offered by the resort. He claimed that services of the hotel and resorts are not
in accordance with the information which is provided to him at the time of booking.
3.1 Writing a letter to the travel assistant by explaining contract legislation in relation to the
travel and tourism customers
To,
The Travel assistant
Date: 8th July, 2016
It is reported to the management team that they need to undertake all the essentials which are
required to create legal relationship. Offer, acceptance, lawful consideration and intention are the
main elements which must be present at the time of making contract in relation to tour packages.
Travel and tourism sector includes wide range of industries such as aviation, hospitality etc. Being
a consultant it is reported to the travel assistant that they need to comply with the following laws
and legislation which are highly related to the travel and tourism industry are:
Holiday contract: According to this, business organization requires specifying all the terms and
conditions in a precise manner. On the basis of this aspect, travel assistant needs to include
detailed information in the contract in relation to the destination, hotel and resorts etc. Along
with this, travel agency also needs to mention price of the holiday or tour packages which are
agreed by the customers.
Supply of goods and services Act (1998): This law entails that travel agency needs to supply
services in accordance with the contractual terms and conditions. It is the responsibility of the
firm to offer all the facilities such as accommodation, dinning for which it has made promise.
Hence, by taking consideration both these laws travel assistance can build effective image in the
mind of customers.
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3.2 Creating a poster by explaining consumer protection legislation in relation to travel and
tourism customers
Enclosed in poster.
According to the cited case situation travel assistant requires to undertake all the laws and
legislation which provides high level of protection to the customers. Through this, business
organization is become able to build distinct image in the mind of both existing and potential
customers by offering the high quality services. Right to get accurate information: According to this aspect, business organization needs
to provide all the information to the customer about the packages in a detail. In this
regard, tour agency needs to give clear information about the airways, hotels, restaurants,
airways, destination etc. to the customers which are the part of tour packages. Right of safety: Tour agency also has responsibility to design packages by taking into
consideration the health and safety aspect of personnel. In this, company is assigned with
the accountability to make proper safety arrangements by assessing the level of hazards. Right of privacy: On the basis of this aspect, business organization needs to maintain
confidentiality in relation to the personal information of customers. In this regard, tour
agency needs to ensure that hotel and resorts do not disclose the personal information of
customers without their prior permission. Right to get quality services at fair price: In accordance with this law, company requires
offering quality services at reasonable prices. Moreover, as per the laws and legislation
no firm can create monopoly by charging the higher prices. Further, company also needs
to provide services to the customers according to the advertisement placed by them.
 Recording and maintenance of record: Travel agency also needs to build and maintain
proper record of the personal information of customers. Minimum 5 year records must be
maintained by the company.
 Policy about cancellation: This aspect offers right to the customers in relation to the
cancellation of booking. On the basis of this aspect, it is not mandatory for the visitors to
make use of services for which they have made booking. In this, company has also right
to cancel the booking of guest by taking suitable charges for it.
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TASK 4
For this scenario, IHG has been selected which is one of the main parts of travel and
tourism sector, It offers high quality and luxurious stay facility to the customers for making their
holiday experience more memorable.
4.1 Analysing ethical dilemmas that are facing by travel and tourism sector
In the present era, there are several ethical dilemmas which are facing by the travel and
tourism sector including IHG. Now, tourism is one of the main industries which makes vital
contribution in the economic growth and development. However, most of the times company is
facing problem in relation to implementing the business plan due to the ethical problems. Along
with this, for attaining success in the competitive business environment it is highly required for
the firm to build customer loyalty and satisfaction. In this, by performing business activities in an
ethical manner business unit can enhance its goodwill at marketplace. IHG faces ethical
dilemmas while performing their activities in the following manner: Issues relation to sustainable environment: By taking into consideration the aspects of
liberalization and globalization business organizations which are operated in the
hospitality industry makes focus on expansion (Gorman, 2007). Moreover, after the
introduction of globalization and liberalization it becomes easy for hospitality firms to
operate at global level. In this, now all the top level hospitality firms including IHG
places high level of emphasis on the expansion of business operations with the aim to
maximize their productivity and profitability. In this, activities of IHG and other
hospitality firms place direct or negative impact on environment. Moreover, operations
and functions of hospitality firm may cause of environmental pollution due to garbage. In
this, if business units fail to employ effectual waste management techniques then it may
result into high environmental pollution. In this way, IHG and other hospitality firms are
hesitated to expand their business operations at large level. Political regimes: In the present era, travel and tourism is one of the main industries
which make vital contribution in the growth and development of economy. In this, due to
the increasing tax rates companies are obliged to charge high prices of the services
offered by them (Hall, 2008). Along with this, for attracting large number of tourists
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IHG also makes use of promotional tactics. In this, company has dilemma to place
suitable advertisement by taking into account the rules and regulations made by
government.
 Contribution to sustainable environment: Travel and Tourism sector also has
accountability to perform their business operations in an effectual way for making
environment highly sustainable. For this purpose, IHG and other firms of Travel and
Tourism sector needs to make focus on organizing social and environmental audit. By
this, companies can assess the aspects which helps them in reducing the environmental
pollution to the large extent. All these activities of the firm impose high level of cost in
front of it. This aspect negatively affects the objective of business enterprise namely
profit maximization. In this context, when firm conducts various audits then it may result
into high cost (Haulage, 2010). Along with this, when company makes use of its fund for
purchasing the environmental protection equipment’s then it may result into increase in
the cost of services. Due to all these elements profitability of IHG will be affected in the
negative direction.
In order to respond with the all the above described ethical dilemmas IHG needs to frame
competent strategic and policy framework. For this purpose IHG needs to produce or generate
services in such a manner which may result into less environmental damage. Hence, by taking
into consideration the concept of ethical consumerism IHG can reduce the negative impact which
its activity will place on society. Along with this, by employing eco-friendly approaches
company can perform its business operations and functions more ethically. Further, company
also needs to build sound strategies which help them in making optimum use of resources.
Hence, by keeping in mind all these factors company can manage all the ethical aspects more
effectively and efficiently.
4.2 Analysing the corporate social responsibility of IHG group
Corporate social responsibility (CSR) is the part of business practices in which company
takes initiative for offering the benefit to society. Now, every company is engaged in CSR
activities with the aim to build or sustain competitive edge over others. Moreover, now
customers also give preferences to the companies who take part in CSR activities at large level.
Thus, now companies make focus on greener business operation rather than others. In this, IHG
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also undertakes several initiatives for the well-being of society and other stakeholders. Moreover,
IHG offers its services in more than 60 countries of the world. In this, for attracting large number
of customers it is vital for the firm to perform CSR activities. Corporate social responsibilities
which are performed by IHG are enumerated below:
 Waste management: In order to minimise the impact of hotel's activities on society IHG
provides direction to the personnel in which they need to manage their waste. Besides
this, company also motivates their personnel to make competent waste management plan
for handling, storage and effectual disposal of waste (Morgan, Pritchard and Pride, 2011).
Further, business unit also encourage their personnel to prepare menu by considering the
seasonal and available ingredients. Amenity recycling: With the participation of 277 hotels IHG has recycled and distributed
417938 lbs. of soap and other amenities. Along with this, firm has distributed 1.4 million
bars of soap to the developing world.
 Complying with the laws and legislation: IHG undertakes all the legal aspects while
performing the business activities and functions. Company offers equal employment
opportunity to the people of society. Thus, it does not discriminate people on the basis of
age, sex, race, religion etc. In addition to this, IHG also makes focus on making proper
safety arrangements for the personnel or guests by assessing the level of hazard. This in
turn, helps business organization is preventing accidents at workplace (IHG Green
Engage™ system, 2016). On the basis of all the above aspects it can be stated that IHG
offers benefit to both employees and customers.
 Along with this, IHG had made contribution in the reduction of carbon by 11.7%. In
addition to this, company has also launched carbon calculator by taking into account the
HCMI methodology. Through this, company is become able to monitor the
environmental aspects more effectively and efficiently. Further, company has also
provided training to the personnel approximately 2000 and thereby enhanced their
competency level. Through this, personnel are become to deliver quality services and
thereby make their career or future brighter in the hospitality sector. Company has also
made effort in relation to persuade the personnel about the ways through which they can
perform business activities in an eco-friendly manner.
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CONCLUSION
From the above report, it can be concluded that Thomas Cook can build distinct image at
marketplace by complying with the laws related to the travel and tourism sector. It can be
revealed from the report that company needs to follow all the health and safety legislation while
designing the tour packages. Moreover, now visitors are highly conscious in relation to their
health and safety. In this, by taking into account all such aspects Thomas Cook can attract
number of customers towards their tour packages. Besides this, it can be inferred that Thomas
Cook can attract and retain Talented personnel by maintaining the law of equality within the
business organization. In this way, with the help of skilled personnel company can enhance its
productivity and profitability. Further, travel company also needs to keep in mind the consumer
protection laws and legislation while designing and offering tour packages to the customers. It
can be stated that IHG has made vital contribution for the growth and development of society
and other stakeholders.
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