Thomas Cook: Legislation, Ethics, and CSR in Travel and Tourism

This report delves into the legal and ethical considerations within the travel and tourism industry, using Thomas Cook as a case study. It examines the legal and regulatory frameworks in England and Wales, including consumer protection, health and safety, and transport laws. The report evaluates the impact of health, safety, and security legislation, as well as equality legislation, on the sector. It also analyzes contract and consumer protection legislation relevant to customers. Furthermore, the report explores ethical dilemmas faced by the industry and assesses Thomas Cook's Corporate Social Responsibility (CSR) policy. The findings highlight the importance of adhering to legal and ethical standards to ensure customer satisfaction, employee well-being, and long-term business sustainability. The report references key legislation such as the Health and Safety at Work Act 1974, the Data Protection Act 1998, and various transport laws, demonstrating the interconnectedness of legal compliance and ethical business practices within the tourism sector.

Legislation and Ethics in
Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Legal and regulatory framework of travel and tourism sector with reference to England
and Wales.....................................................................................................................................3
1.2 Surface, sea and air transport law in relation to the carriage of passengers within the legal
and regulatory framework of United Kingdom...........................................................................5
M1................................................................................................................................................6
TASK 2............................................................................................................................................6
2.1 Evaluating the impacts of principles of health, safety and security legislation on travel and
tourism sector with reference to Thomas Cook...........................................................................6
2.2 Analysing legislation that relates to equality with reference to Thomas Cook.....................7
M2................................................................................................................................................8
TASK 3............................................................................................................................................8
3.1 Contract legislation in relation to travel and tourism customers...........................................8
3.2 Consumer protection legislation in relation to travel and tourism customers.....................10
TASK 4..........................................................................................................................................11
4.1 Ethical dilemmas faced by the travel and tourism sector....................................................11
M3..............................................................................................................................................12
4.2 Corporate Social Responsibility (CSR) policy of Thomas Cook........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
BIBLIOGRAPHY..........................................................................................................................16

INTRODUCTION
The tourism industry is customer oriented, main objective of which is to render high
quality customer experience to the tourists. Companies operating in this industry regulate their
services at both national and international level. This is crucial for firms to derive the
involvement of business in welfare of society to work ethically and stay in market for longer
span of time (Belias and et.al., 2019). In the present report, tour operator company, Thomas
Cook, based in the UK is selected with reference to which there will be discussion on impacts of
principles of health, safety and security legislation on travel and tourism sector. Also, legislation
that relates to equality in this industry will be studied along with analysing the ethical dilemmas
faced by firms operating here. Moreover, Corporate Social Responsibility (CSR) policy of
Thomas Cook will be detailed.
TASK 1
1.1 Legal and regulatory framework of travel and tourism sector with reference to England and
Wales
Legal and Regulatory
Framework in England
and Wales
It can be termed as a
broader system consists of
many rules and regulations
imposed by the government
of UK that govern and
regulate the decision
making and agreements.
Tourism sector of the UK is
growing at a rapid pace and
thus, it is called as a large
economic sector
(Greenwood and Dwyer,
2015). Several legal and
regulatory frameworks are
there that vary from country
to country among which
some that are applied in
England and Wales are
given as below:
Laws influencing the rules of
travel industry of England and
Wales are:
1. Consumer Protection from
Unfair Trading Regulation
2008: This law was
established aiming that
consumers can be protected
against any kind of unfair or
misleading practice in tourism
sector of UK.
2. Health and Safety at Work
Act 1974: It involves various
duties on employers so that
health, safety and welfare of
employees, general public,
Regulatory framework of
England and Wales includes:
1. SRA (strategic rail
authority): Railway in England
and Wales is regulated by the
Railway Act 1993. It enforces
the license condition and
safeguards the interest of
visitors.
2. CAA (civil aviation
authority): When people travel
through air transport, this
authority protects their interest
in the UK (Vellas, 2016).
3. ATOL (air travel operators
licensing): This authority
protects the visitors using air
transport as well as buying air
tickets and tour package.
3

Laws and Tourism
Laws in tourism sector
involve issues such as
environmental protection,
IPC and CRPC, health and
safety legislation, contract
law, etc. (Peralta, 2014).
Tourism laws are all about
rules and regulations
imposed by government to
protect the interest of
individuals who travel from
one nation to another
through any mode of
transportation whether it is
by air, sea or land.
visitors or clients can be
protected against any kind of
harm (Boniface, Cooper and
Cooper, 2016).
3. Licensing Act 2003: This
act is imposed by the
Parliament of UK to establish
a single integrated scheme to
provide license in England
and Wales for the purpose of
supplying alcohol as well as
to offer entertainment or late
night refreshment.
5. Data Protection Act 1998:
This acts was also imposed by
the Parliament of UK with an
aim to protect the information
of visitors safe and
confidential by storing their
data on computers or through
any other way like organized
paper filing system (Lu and
et.al., 2016).
4. ABTA (association of
British travel agency): Its
purpose is to deal with travel
agents and travel operators
with maintain high standards.
Courts that come under the
same are:
1. Magistrates’ court: Its work
is to handle civil and criminal
cases occurring in tourism
sector of England and Wales.
2. Country court: Cases that
come here are related to the
land.
3. Crown court: These deal
with the criminal suits in
England and Wales (Weiss and
Dupont, 2018).
1.2 Surface, sea and air transport law in relation to the carriage of passengers within the legal and
regulatory framework of United Kingdom
Transport law related to
carriage of passengers
under legal and regulatory
framework of UK
Surface Law: Major aim
behind this act is to
safeguard the interest of
passengers on board. In case
of any claims against the
physical damages or mental
disorders if occur to
passengers are taken with
due consideration by this
law. It is governed by The
International Carriage of
Passenger by Road Act, 1979
Air Law: This law is
regulated by The Warsaw
Convention of 1929 as per
which in case if passenger
meets with a personal injury
or death while travelling
through air then he/she can
claim for the compensation.
2. Warsaw convention 1929:
This convention covers the
international carriage where
passengers are safeguarded
against death or personal
injury if occurs and provided
with right to claim for the
compensation for the losses
suffered by them (Convention
for the Unification of Certain
Rules Relating to
International Carriage by Air,
Signed at Warsaw on 12
October 1929 - Warsaw
Convention 1929, 2010).
However, they must carry
4

(Greenwood and Dwyer,
2015).
Also, it is responsible for
taking care of the loss of
luggage of passengers that
comes under The Carriage
by Railway Act, 1972.
Transport of goods, interest
of disabled passengers as
well as all people travelling
through land are taken with
care by this law in the UK.
Sea Law: This is a kind of
contract law which covers
the shipping safety and
security. Also, this
legislation is responsible for
taking care of the
environmental factors
(Peralta, 2014).
However, the extent to which
liability of the ship or ferry
will be governed against
damages suffered it by is all
decided by The Athens
Convention, 1974.
All rules and regulations for
same come under The Five
Freedoms Agreement of 1944
in relation with landing
across territory for traffic and
non-traffic. Also, cargo and
passenger landing are
covered under this (Boniface,
Cooper and Cooper, 2016).
Important acts to be
considered under surface,
sea and air transport
1. Carriage of Passenger by
Road Act 1974: All
passengers who are travelling
through road in the UK are
protected through this act and
in case of they face any
injury, the carriage is
responsible to provide
compensation for the same to
travellers (Lu and et.al.,
2016).
tickets while travelling.
3. Denied boarding
compensation schemes 1997:
Passengers are protected
through this act as well in
which all those who are
travelling through air
transport, their standards are
raised. In case of any delay or
cancellation of flight due to
some reasons, passengers are
provided with protection by
the carriage (Vellas, 2016).
4. Montreal conference 1999:
This act replaced The Warsaw
Convention 1929 in UK and
came into force in the year
2003 on 4th November. This
serves as the single piece of
legal system aiming to re-
establish the uniformity and
forecast of rules in relation
with carriage of international
passengers, cargo as well as
their baggage (Weiss and
Dupont, 2018).
5

M1
From the above, Travel law consultant have to follow all the legislation of travel and
tourism industry such that Consumer Protection from Unfair Trading Regulation 2008, Health
and Safety at Work Act 1974, strategic rail authority, civil aviation authority etc which helps a
company to sustain its brand image in market. On the other side, in UK, the travel and tourism
industry have to comply with surface, sea and transport law in order to carried of passengers.
TASK 2
2.1 Evaluating the impacts of principles of health, safety and security legislation on travel and
tourism sector with reference to Thomas Cook
Several health, safety and security legislation are there that put direct impact on the
functioning of Thomas Cook like:
 Health and Safety at Work Act 1974: As per this act, Thomas Cook is liable to give due
consideration to the health and safety of employees at workplace. In this, whatever
employee is performing in firm, employer is liable for the same. However, in this case,
permission from the employer must be granted to employee to perform specific task. The
governing authority of this act is health and safety commission (Sheehan, Grant and
Garavan, 2018). In case if firm does not follow this act at workplace or if an employee
gets harmed while performing any task, firm will be liable to give penalty for same,
imposed by the government.
 Duty of Care: In accordance with this legislation, Thomas Cook is responsible for taking
care of its consumers and at workplace, under vicarious liability, liability of supervisor is
there for any act done by the subordinate at workplace.
 Data Protection Act 1988: According to this act, personal information of employees
working in Thomas Cook is to be safeguarded. Also, it is applicable for the travelers or
visitors and their right to get the personal information protected is covered under the
same as implemented in March 2001 (Vargas-Sánchez and Moutinho, 2018). This
personal information includes bank and house details, contact number along with any
other information that is crucial to be there with the firm.
6

2.2 Analysing legislation that relates to equality with reference to Thomas Cook
To follow equality at workplace is significant for any organization irrespective of any
sector and so as in Thomas Cook, UK. In travel and tourism industry, following equality plays a
vital role as making discrimination on the basis of gender, race or disability leads to create
serious consequences for the firm as per laws imposed by the government. Some of these acts are
like:
 Racial Discrimination Act 1965: According to this, Thomas Cook is obliged to
eliminate the discrimination done with employees at workplace on the basis of race,
color, nationality, origins or ethnic and liable to treat them equally on all grounds (Hall,
Gossling and Scott, 2015). Non-compliance of the same may lead business to pay huge
penalty imposed by the regulatory authorities of UK.
 Disability Discrimination Act: In accordance with this act, people who are disabled and
working in Thomas Cook are supposed to be treated equally like that of others. They
have been provided with all rights like all those who are not disabled and so, in case if
firms makes discrimination with them on the grounds of salary, workplace environment,
etc., they have right to sue against them (Barker, Cave and Gordon, 2015).
 Human Rights Acts 1998: All rights of people that are covered in European convention
on human rights in the UK come under this act which Thomas Cook is liable to follow to
protect itself from any kind of obligation made from the side of UK government.
 Sex Discrimination Act 1975: This legislation is related with the provision which made
for sex discrimination according to which Thomas Cook is not allowed to discriminate
the employees based on their sex at workplace. There are in total 87 sections that are
covered under sex discrimination act as imposed by UK act of parliament (Leung and
Baloglu, 2013). Thus, in this act, both men and women are provided with equal
protection at workplace against any kind of discrimination or harassment as well as it
promotes equality among the individuals.
M2
It has been analyses that the quoted firm has to comply with all the legislation and new
rules which are made by government because it will help to create positive impact upon business
as well as customers. On the other side, Thomas Cook also make sure that they uses Racial
7

Discrimination Act 1965, Disability Discrimination Act, Human Rights Acts 1998, Sex
Discrimination Act 1975.
TASK 3
3.1 Contract legislation in relation to travel and tourism customers
Contract
It can be termed as an
agreement that is made in
between two parties
consisting of rights and
obligations that arise
depending on the nature of
issue for which contract has
been made (Supanti, Butcher
and Fredline, 2015). Court is
the authority that enforces all
rights and regulations.
Importance of Contract
Major importance of contract
in firms operating in travel
and tourism sector of UK
like Thomas Cook is that the
travel company and
passengers get aware that
they are bind with each other
legally (Hall, Gossling and
Scott, 2015).
Another importance is that
travel company under
contract is having right to
claim for the payment. On
the other hand, consumer can
also claim for the
compensation in case if
he/she would not get the
Contract is also important to
make consumer informed that
a contract has been
established in between him
and the firm.
With the help of contract,
travel company informs the
traveler about all terms and
conditions he needs to comply
with (Leung and Baloglu,
2013).
In travel and tourism sector of
UK, majorly three types of
contracts are there that are
being followed by the firms
like Thomas Cook.
1. Supply of goods contract
2. Contract for provision of
services
3. Package holiday contract
Some of the acts that come
under the same are:
1. Supply of Goods and
Services Act 1988: As per this
act, supplier is liable to make
supply of the goods and need
It is because; after entering
into the contract made by
supplier, consumer starts
expecting something in
return. In case of Thomas
Cook, visitor expects to have
good accommodation of the
hotel with a clean room.
However, in case of non-
fulfilment of same, consumer
can sue the supplier (Sheehan,
Grant and Garavan, 2018).
2. Holiday Contract: This is
also like that of other
contracts of travel and
tourism including specific
terms and conditions of
Holiday contract which must
be agreed by the individual
dealing with holiday company
like Thomas Cook (Supanti,
Butcher and Fredline, 2015).
Secondly, details regarding
location, hotel, rates, etc.
must be mentioned on the
brochure. Further, any
important information by the
traveller must be provided to
consumer.
8

promise made by firm
fulfilled (Barker, Cave and
Gordon, 2015).
to offer services based on the
contract made (Beliasand
et.al., 2019).
3.2 Consumer protection legislation in relation to travel and tourism customers
Consumer Protection
Legislation
For the purpose of promoting
and encouraging tourism in
the travel sector, consumer
protection legislation has
been imposed under which
tour operators like Thomas
Cook become liable to
provide competitive pricing
with facilitating increased
participation of consumers
(Hall, Gossling and Scott,
2015).
To develop the services is the
duty of supplier and
preventing consumer from
any of inappropriate business
practice is his responsibility.
To protect the interest of
consumers, relation between
tour operators, suppliers as
well as tourists plays a vital
role (Barker, Cave and
Gordon, 2015).
In order to protect the well-
being of consumers, it is vital
to consider the laws imposed at
national and international
levels that are followed by
Thomas Cook like:
1. Trade Description Act 1968:
Under the same, complete
details about the goods and
services being traded is given.
The Merchandise Marks Act
has replaced it in the year 1887
to 1957 which included
provisions like wrong
description of goods and
services that are being traded
(Leung and Baloglu, 2013). It
helps in the safeguarding the
consumers who faced the issue
of wrong description of goods
and services provided by
company. Under section 14 of
the act, firms like Thomas
Cook are liable to provide
correct description regarding
goods and services that they
are offering and in case it is not
there, consumer has right to
sue against the firm (Belias and
et.al., 2019).
2. Consumer Protection Act
1987: This act was imposed
with an aim to safeguard the
interest of consumers where
travel companies like
Thomas Cook are under
obligation of providing
quality products and services
to consumers that would not
harm them in any case (3
Components of the Consumer
Protection Act (1987), 2017).
Also, consumers should be
well-informed about the
products and services given
by the tour operator.
3. Package Travel
Regulation: According to
this act, the tour operator like
Thomas Cook is under
obligation that they have to
provide complete details
regarding their tour package
to the consumers (Sheehan,
Grant and Garavan, 2018). In
case if the details given in the
information sheet do not
match with what has been
told to consumer then he can
breach the contract for unfair
trading.
9

TASK 4
4.1 Ethical dilemmas faced by the travel and tourism sector
Travel and tourism industry of UK is growing at a fast pace and increasing profits and
revenue every year. However, along with growth, there are many issues being faced by this
sector that should be addressed positively. Firms operating in this sector like Thomas Cook aims
at providing an ethical experience and an environment which is free from ethical dilemmas. For
the same, constant interaction in between travellers and the tour providers and operators is of
utmost importance. To run business ethically, it is highly important to consider the
environmental protection while rendering any services to tourists (Bartsch, 2016). It is the
responsibility of Thomas Cook to ensure that the cultural differences should not be there while
organizing any tour. Further, it is crucial to provide right information and knowledge to visitors
so that they can be guided properly while travelling in a nation.
It has been assessed that there are many cases where tourists have been exploited as well
as discriminated on the basis of their culture, colour and heritage values. Also, sometimes, main
concern of the travellers is of language barrier. Thus, to resolve this issue, Thomas Cook has to
make effort to improve the communication between citizens and tourists. Further, a lot of factors
are there that contribute in the depletion of social values as well as natural resources and so, need
to be taken care of as they add ethical dilemmas to the sector. Further, the economic instability is
one more reason by which Thomas Cook sometimes get affected because of not having
favourable travel costs (The ethical dilemmas in tourism and hospitality, 2014). Therefore, it can
be said that with making successful efforts like considering on green issues in business,
providing advertisements with keeping in mind the cultural values of people, following
investment and finance ethics, Thomas Cook can effectually deal with ethical dilemmas being
faced by the travel and tourism sector of UK.
For the purpose of understanding importance of running business ethically, Kant’s
Ethical Theory (Kant’s Moral Philosophy) proves to be highly helpful as per which the major
principle based on morality is the standard of rationality. As per Kant, all immoral actions are
irrational because these lead to violate the Categorical Imperative i.e. an objective which is
rationally important to be present in a business. According to Kant, a business can knowledge of
only those things which it can experience (Kant's Moral Philosophy, 2016). He focused on a
10

universal ethical principle, that is, humanity. He said that humanity is the major factor that a
business should always respect and accordingly, rules should be framed. Further, he believed that
although God and immorality of the soul cannot be seen but, business should always hope that
souls are immortal and God is really present who designed this world based on the principles of
justice.
M3
There are so many ethical issues which are face by the travel and tourism industry such
there are many cases where tourists have been exploited as well as discriminated on the basis of
their culture, colour and heritage values. But it is quite essential to overcome such dilemmas and
that is why quoted organization has to make effort to improve the communication between
citizens and tourists.
4.2 Corporate Social Responsibility (CSR) policy of Thomas Cook
CSR (corporate social responsibility) refers to the liability of firms towards society to
make efforts for their welfare and provide benefits through various means. In travel and tourism
sector, there are many responsibilities of firms like Thomas Cook towards society like they need
to use eco-friendly resources so that no harmful effects on people would be there as well as
environment can also be protected against any risk. Firm is required to make contribution
towards cultural and social program with giving due consideration on waste and pollution
reduction process (Supanti, Butcher and Fredline, 2015). With making fruitful efforts like
involving the society in programs, giving employment opportunities to local residents of nation,
getting indulged in fair practices will result in make the firm able to gain competitive advantage
over others with sustainability.
In travel and tourism sector of UK, Thomas Cook is having high goodwill and market
share. As per them, just doing business effectually is not enough and making initiatives for the
welfare of society is equally important. For the groups that are economically and socially
backward, company has made lots of efforts to improve their position (Crotti and Misrahi, 2015).
Thomas Cook is having its own CSR (corporate social responsibility) committee according to
which they are focusing on following areas: Education and employability – Company is providing diploma degrees in the field of
travel and tourism to people through rendering vocational education who are
11

economically backward and cannot afford required qualification to live their life in a well
manner. Rural tribal areas – Thomas Cook has made many efforts to bring development in the
rural and tribal areas of nation with focusing on their health, education, ecology as well
as on empowering the women (De Grosbois, 2016). Health and sanitation – It has been seen that at tourist destinations, there is lack of
sanitation facilities and so, to improve the same, Thomas Cook has made initiatives like it
provided proper sanitation and environment friendly toilets which are maintained on
regular basis in terms of their cleanliness.
 Providing funds – Company provides funds to many associations like emergency and red
cross society or in case if in some nation, man-made or natural disaster occurs. Also, they
donate in charities approximately 14% of their profit every year (Mossaz and Coghlan,
2017).
CONCLUSION
From the above report, it can be concluded that there are huge impacts of principles of
health, safety and security legislation being followed in Thomas Cook as in case of their non-
compliance, firm may have deal with serious consequences like employee or visitor can sue firm
against the same. Also, it has been assessed that to follow equality at workplace is highly
important for Thomas Cook like any other firm in travel and tourism sector of UK to protect
itself against any penalty imposed by government. Further, it can be articulated that, Thomas
Cook is giving due consideration on business ethics and corporate social responsibilities that will
help the firm in gaining sustainability and competitive edge over others in the market.
12