Analysis of Legislation, Ethics, and Regulations in Travel and Tourism

This report provides a comprehensive overview of the legal and ethical frameworks governing the travel and tourism industry. It begins by exploring the legal and regulatory frameworks, including relevant acts and regulations related to tourism, transport (air, surface, and sea), and consumer protection. The report then delves into health and safety standards, security parameters, and the implications of related legislations. It examines consumer protection legislations, contract laws, and the rights of customers within the travel and tourism sector. Furthermore, the report analyzes the role of business ethics, identifies ethical dilemmas faced by corporations, and evaluates corporate social responsibility (CSR) activities. The report covers topics such as the Tourism Act 1969, Transport Act, Package Travel & Tour Regulations, and the Equality Act 2010, offering a thorough examination of the legal and ethical considerations within the industry. The report concludes by summarizing the key findings and emphasizing the importance of ethical practices and compliance with relevant legislations for sustainable development of the travel and tourism sector.

Legislation and Ethics in the Travel and Tourism Sector

Table of Contents
Introduction..............................................................................................................................2
Task1 Understanding legal & regulatory frameworks in travel & tourism industry...................2
1.1Explaining the legal & regulatory framework of travel & tourism industry...........................2
1.2 Discussing laws governing air, surface & sea transport lying within legal & regulatory
framework................................................................................................................................3
Task 2 Understanding prevalent legislations & regulations governing health & safety
standards and security parameters in travel & tourism industry..............................................4
2.1Evaluating the implications of health & safety and security legislations of travel & tourism
industry.....................................................................................................................................4
2.2 Analyzing legislations with respect to equality...................................................................5
Task 3 Understanding the legislations of consumer protection prevalent in travel & tourism
industry.....................................................................................................................................6
3.1Explain contract legislation in relation to travel and tourism customers..............................6
3.2 Explaining consumer protection legislations for customers of travel and tourism sector...7
Task 4 Understanding business ethics role prevalent in travel & tourism industry..................9
4.1 Identification and analysis of ethical dilemmas of a large Corporation..............................9
4.2 Analysis of CSR activities of the Corporation...................................................................10
Conclusion.............................................................................................................................10
References.............................................................................................................................12

Introduction
Legal and regulatory framework of travel and tourism covers so many aspects depending on
the different parties involved in it. It falls under the preview of Tourism Act 1969; Travel Act
1985and Package Tour Regulations 1992.There is surface law, sea law and air law in
relation to the carriage of passengers within the legal and regulatory framework. There are
also impacts of the principles of health, safety and security legislation on the travel and
tourism sector. It falls under the legislation that relates to equality and the contract legislation
in relation to travel and tourism customers. Customers are also protected under summer
protection legislation in relation to safeguarding the interest of the customers. Travel and
tourism businesses cannot only go for profit making. These organisations have Corporate
Social Responsibilities with the objective to contribute towards betterment of the society. The
present study therefore would help us in understanding the various aspects of the travel and
tourism industry and the organizations operating within that industry. It will also be beneficial
in understanding the rules, regulations and legislations governing the travel and tourism
industry in a better way (Mok, Sparks and Kadampully, 2013).
Task1 Understanding legal & regulatory frameworks in travel & tourism industry
1.1Explaining the legal & regulatory framework of travel & tourism industry
The tourism industry and the legislation are connected to each other in a number of ways.
There are so many parties involved in tourism industry like suppliers, customers, contractors
etc. When these parties interact between one another, the role of legislations becomes
significant. If we take the example of a restaurant that serves food to the customers, that
falls under the legal and regulatory framework of legislations regarding the factors involved
in it like hospitality, food quality, and behaviour of the customers. As travel and tourism
industry is a growing industry, it covers following under tourism legislations:
i) Tourism Act, 1969
This Act focuses on the tourism organizations and their coordination as specified by “British
Tourist Authority”
ii) Transport Act, 1980 & 1985
This Act controls and regulates national & private bus transport companies along with their
routes.

iii) Package Travel & Tour Regulations, 1992
This regulation controls delivering of responsibilities of tour operators to their customers.
The objectives of these legislations were mainly to promote standard procedures to
regularize the tourism industry defining rights and obligation of the parties involved in it.
Tourism laws are also affected by “Health and Safety Commission”,” International Air
Transport Association”,” Strategic Rail Authority”,” Civil Aviation Authority”
iv)Development of Tourism Act 1969
It has enacted rules, regulations and laws for regulating tourism industry in UK. It also
established BTA (British Tourist Authority) along with tourist boards in places like England,
Scotland etc.
Further, there are multiple laws that govern travel and tourism industry in UK.
Unfair Trading Regulation 2008
It safeguards the interests of the travel customers from unethical, unfair and misleading
trade practices in tourism industry.
Health and Safety Legislations
It protects customers from existing and potential risks at place of work. It has stipulated and
legally imposed duties and responsibilities for employers as well as employees.
Licensing Act 2003
This Act is responsible for providing license for sale of alcohol.
HSE (Health and Safety at Work Act 1974)
It is the sole legislation governing the health, safety and security of employees in UK. It
safeguards the interests of the employee stipulating duties and responsibilities for
employees as well as for the employers.
Health and Safety Commission
Under this Health and Safety Act 1974 was enacted to regulate the duties, obligations and
responsibilities of employees and their employers at place of work.
Strategic Rail Authority or SRA

Under this Railway Act 1993 regulates and governs British Railways and is also entrusted
with protecting the interest of the travel customers.
IATA (International Air Transport Association)
It was set up in 1945 and headquartered in Montreal; IATA mainly regulates the global
airlines industry.
Civil Aviation Authority or CAA
It is a UK Government agency that protects the interests of travel customers during their air
travels.
Air Travel Operators Licensing or AOTL
It protects air travel customers by regulating their air ticket purchasing for packaged tours.
Association of British Travel Agency or ABTA
It mainly regulates all tour operators as well as travel agents operating in and around UK.
With around 1200 members and 500 shops it is state of the art authority that fully controls all
tour operators and travel agencies.
1.2 Discussing laws governing air, surface & sea transport lying within legal &
regulatory framework
Air, surface and sea transport lying within legal & regulatory framework are governed by
surface law, sea law and air law. These laws are discussed below.
Surface Law
This law is governed by “The International Carriage of Passenger by Road Act, 1979”.It
protects the rights of the passengers on board. All the claims related to physical damages or
mental disorders of the passengers are taken care by this law.
Loss of luggage of the passengers is governed by the “Carriage by Railway Act, 1972”
(Medlik, 2007).All this laws regulates transport of goods and passenger. Interests of disabled
passengers are also safeguarded by this law.
Sea Law: Shipping safety and security is covered under this law. Environmental factors are
also regulated by this law. Rights of the passenger who travel by sea and inland waterways
is included in the regulation no 1177/2010and protected.

The International Convention for the Safety of life at Sea (SOLAS)-This covers fire safety
and life guarding equipment for sea craft with at least 12 nos. of passengers. Crew of the
ship is responsible for operation of the ship.
The Athens Convention, 1974 - Liability of the ship or ferry towards damages suffered by it
and its extent or limit is governed by this convention.
Air Law: The rules of international carriage and its documentation are defined by “The
Warsaw Convention of 1929”. In this convention international carriage is defined and
passengers are protected while using air transport. This covers passenger’s death
compensation and right to claim against personal injury but it is also obligation of passenger
to carry tickets while travelling. The Warsaw Convention of 1929 is replaced by the Montreal
Conference 1999 w.e.f 4th Nov, 2003.
UK government has made various kinds of legislation and code of conduct in order to
provide protection to customer while they travelling like air law, sea law, surface law etc.As
per the English legal system , aunique feature of English law is the doctrine of judicial
precedents where by the reported desicions of the court form a binding source of law for
future desicions.
“The Five Freedoms Agreement of 1944”covers all the rules and regulations related to
landing across territory for traffic, non-traffic, passenger landing, and cargo and specify its
territory.
Task 2 Understanding prevalent legislations & regulations governing health & safety
standards and security parameters in travel & tourism industry
2.1Evaluating the implications of health & safety and security legislations of travel &
tourism industry
The health & safety and security legislations of travel & tourism industry can be described
under following acts.
A. Health and Safety at Work etc. Act 1974: This act deals in health & safety and security of
an individual at work place. This is also applicable in travel & tourism. In this act, it is
employer’s responsibility to protect the employee at the place of work. The measures that
need to be taken are as follows:
 Workplace needs to be safe and properly maintained with proper entry & exit .Safety
measures should be available.

 Employer’s duty is safeguarding employees by giving them training & information
related to safety and first-aid facility.
 At the same time it is the duty of the employee to use safety measures as well as
safe and protective equipment at work place when risk factor is there.
With the help of helath and safety legislation in the company, management can effecietly
take care about helath of employees at workplace.As per this above act, if any kinds of
accident occurs at workplace with employees then it is responsibility of organisation to
provide remedies and expenses to that employees. So it can be said that health and safety
legislation effective support to employees and provide protection toward their health.
B. Occupiers’ Liability Act 1984: It applies to the occupier of the premises and visitor as
mentioned in Occupiers’ Liability Act 1957.
Occupier’s ordinary duty:
An individual who occupies a premises owes the “common duty of care” to every visitor
except modified by agreement otherwise.
 In all circumstances it is duty to take care that visitor is safe in the premises he has
visited as per permission or invitation of the occupier.
 Relevant circumstances may require a normal degree of care or demand of care in
case of children or any special risk.
 In discharge of common duty of care to the visitor-
1. If damage has been occurred to the visitor by a danger: it requires determining whether
warning was given in advance to make visitor reasonably safe.
2. If damage has been occurred to the visitor by execution of erroneous work of construction,
maintenance or repair by an independent contractor: it requires determining whether before
giving the work to the contractor, occupier acted reasonably and satisfied himself regarding
competence of the contractor.
 Occupier is not under any obligation when his visitor accepted risk willingly.
 If persons enter the premises to exercise any duty of law treated to have permission
of occupier: it requires determining whether occupier’s permission was there or not.

C: Data protection Act 1988: This is applicable in case of protecting personal data of an
individual for implementing protection of individual rights of personal data. This is based on
eight principles. In brief a company can collect and use sufficient and accurate data in
accordance with the right of the individual within premises, with the consent of the individual
for limited purpose and limited time period and company should protect the data.
D: Doctrine of vicarious liability: This states that employer is held liable for the damage or
injury causes to another party by his employee during the course of employment. It also
requires determining that whether at the time of the incident, employee was at the work
place during working hours and with the proper reason.
2.2 Analyzing legislations with respect to equality
The Equality Act, 2010 put emphasis on treating of citizens and employees equally without
making any discrimination. It also attempts to simplify the law deleting inconsistencies. It is
essentially cumulative of the “Equal Pay Act, 1970; Sex Discrimination Act, 1975; Race
Relations Act, 1976; Disability Discrimination Act, 1995; Employment Equality (Religion or
Belief) Regulations, 2003; Employment Equality (Sexual Orientation) Regulations, 2003;
Employment Equality (Age) Regulations, 2006; Equality Act, 2006; Equality Act (Sexual
Orientation) Regulations, 2007”.Travel and tourism legislations ensure that tour operators
treat every customers equally by making their goods and services available to the customers
without making any discrimination (Annesley and Gains, 2013).Some are discussed below.
Equal Pay Act, 1970: This act ensures equal treatment between men and women regarding
pay and employment conditions.
Sex Discrimination Act, 1975: Safeguards people’s interests against any gender or marriage
discrimination related to training & employment and education etc.
Race Discrimination Act, 1976: This protects discriminations made on the basis of race,
colour and origin etc. in employment, education and domestic field.
Disability Discrimination Act 1995: This protects discriminations made for disable person in
employment, education and domestic field.
The types of discrimination are:
Direct Discrimination: when a person treats others unequally as per set law standards.

Indirect Discrimination: when certain people groups are deprived of a particular service or
facility.
Perceptive Discrimination: It is based on standard perceptions for discriminations faced by
persons.
Harassment & Disability: Harassment is said to occur when people are subject to unwanted
denial from the part of client, supplier, contractor etc. Disability discriminations are explicitly
made on the basis of any disability or dysfunctional body of an individual depriving such
person of a legitimate goods or services from the part of the tour operators. There are
employment tribunals are put in place to take care of discrimination and harassments related
to legitimate employment related claims like compensation, retention etc. arising due to any
disability. Anyone suffering from any discrimination during touring period can claim remedial
measures as deemed suitable.
Task 3 Understanding the legislations of consumer protection prevalent in travel &
tourism industry
3.1Explain contract legislation in relation to travel and tourism customers
There is a binding contract for each tourism company for customers regarding service and
charges offered by the company. It ascertain all the conditions related to the detailed
specifications of tours such as time of arrival, time of departure, details of
destination ,charges for stay, etc. If the company fails as per the commitment the consumers
may withdraw the acceptance and terminate the contract. Following are the significance of
holiday contracts:
i) Both travel customer and travel agency/operators should have knowledge about legal
bindings with one another.
ii) As per package holiday contract terms, travel customers can claim compensations in case
of non-fulfilment of their promises and tour operators/agencies can claim payments for
service provided.
iii) Tour operators/agencies should inform and communicate the customers about the holiday
contract entered along with the applicable T & C.
i) Every contract has some standard element. They are as follows:

Offer: There are two parties in the offer. One is offeror and the other is offeree. Offeror
makes the offer to the offeree and the offeree accepts the offer. This is a statement of
service that is ready to be accepted. For instance when family members make a holiday tour
program, they enter into a contract with the selected tour operators who offer them with all
tour facilities like hotel accommodation, conveyance, sight-seeing etc. Then the offer is said
to take place since the party whom the offer was made had accepted it willingly.
Acceptance: Hereby the acceptance is confirmed by the offeree. This is when holiday tour
package is purchased by the offeree and become the customer after discussing in detail with
the travel agent.
Consideration: A contract become valid and complete only after a certain amount of
consideration. It is just an agreement in the absence of consideration and cannot be
challenged as per law. For example, in a holiday package, charges demanded by the travel
agent can be taken as consideration.
Capacity: It is the capability to be a party to a legal contract. One should possess valid age,
sound mind, and free intention to be capable as per legislation. For example, consumer
should declare that he/she is 18years and above before entering into a valid contract
enforceable by law.
Certainty: Both the parties to the contract should be clear about the terms and conditions of
the contract otherwise it shall deem to be invalid such as any miscommunication in respect
of accommodation for staying in a hotel will make the contract invalid. Therefore a holiday
contract should consist of the following:
i)Agreement between the parties
ii)Package details
iii)Customer’s preference
iv)Regulation of customer
v) Terms and conditions between the parties
vi) Details regarding place of stay
vii)Duration of stay
viii)Destination
Different variants of contract existing in travel-tourism industry are the following:-

Supply of Goods and Services Act 1982
Under this Act, supplier of travel goods and services are required to provide those services
as per the specific expectations of the customers along with maintaining standard quality of
the same. If the supplier fails to do so then the travel customers are entitled to sue the
suppliers.
Package Holiday Contracts
They are similar to other available contracts in travel and tourism industry and includes
certain T & C. They are,
i) They only take care of those things that have been accepted and agreed by the travel
customers with the service providers.
ii) Detail descriptions related to travel destinations, hotels, accommodations types, meals,
itinerary, places to visit, car hires; flights, costs etc. need to be mentioned in travel brochure.
ii) Things which are specifically requested by the travel customers.
iii) The unfair contract terms 1977 stated that company have no right to conduct any
wrongful practices and unfair activities with any customer.
iv) The unfair in consumer contract regulation 1999- As per this legislation, company
can not develop any false contract with customer in order to cheat with them. If
any organisation or business unit involve such unfair practices with customer
then customer have right to claim or sue against that particular organization.
In the event the package holiday differs from the description provided, the travel customers
are legally entitled to claim compensation as per Package Holidays Regulation 1992.
The essential term relating to a package holiday contract essentially relates to any
alterations in package price, accommodation types and facilities, transport type, departure
place along with destination, actual and advertised services should match etc. According to
Resulation12-13 any alterations should be notified to the travel customers immediately and
the customer should be allowed to take the final decision on whether to accept the changes
made or revoke the contract. It is obvious that when a contract is signed between parties
regarding accommodation, the conditions should maintain standards of cleanliness under
health and safety laws (Cimmino, 2016).
3.2 Explaining consumer protection legislations for customers of travel and tourism
sector

Consumer’s rights and interests are protected by the consumer protection legislations that
these are not violated by the travel and tourism agents and business owners.
“The Trade Description Act of 1968 prohibits the false or misleading indicator of prices of
goods, services, accommodation and other related services. [Brotherton, (2008)]” Officers of
Trading Standards need to inspect for the following:
 Incorrect description related to trade given by the provider
 Offer to provide or supply “any services, facilities or accommodation” based on incorrect
trade description
 Incorrect statements about the “ services, facilities or accommodation” by the provider
As per the consumers right and providers duty as laid down under “The Consumer
Protection Act of 1987” the legal responsibility of the manufacturer is to provide required
information regarding product as stipulated by the countries health and safety laws. It also
restricts the unfair business practices along with the following:
 restricts supply of goods of poor quality
 define product liability
 regulate legal authorities
 illegal price indications restricted
The Act also safeguards the travel customers against any kind of malpractices, unsafe and
unhealthy services and empowers local councils to take legal action against sale of travel
services that are detrimental to customer health.
“Consumer Protection from Unfair Trading Regulations 2008 (CPR)” is another legislation
that protects consumer rights by the following controls:
 Authentic charges
 applicability of right surcharge
 Availability of room prices
Providing services while renting room
 Disclosure of price at the bars.
 Minibar Charges
 Charges of swimming pools, gyms etc.

“The Package Travel, Package Holidays, and Package Tours Regulations of 1992 assure
the miscommunication shall be corrected at the end of the service provider on making the
necessary arrangements. It explicitly provides the minimum requirement for a contract to be
a holiday contract. In order to be valid it must include two or more facilities such as
accommodation, transport or other tourist services”. Under the Regulations the travel
agencies and operators are legally bound to provide accurate travel related information both
through information sheet and travel brochure failing which the customers can revoke the
contract and can claim compensations as well.
Again under Regulation 2008 safeguards and protects the travel customers from unfair and
unethical trade practices in travel and tourism sector. Information provided in information
sheet, travel brochure or in advertisements that tend to mislead customers fall under the
purview of this Regulation.
Again, under the Hotel Proprietors Act 1956, the hotel owner becomes liable to compensate
any property or property damage incurred by the guests staying at the hotel despite the fact
that the owner or his staffs are not responsible for such damage or loss. The law becomes
applicable when,
i)the guest has booked sleeping accommodation,
ii)the property does not include any vehicle or animals.
Moreover, Food Hygiene Regulations 2006, Food Act 1984 and Food Safety Act 1990
governs food safety procedures, procurements maintaining suitable standards and thereby
ensuring that the foods served in hotels are fully safe and hygienic for the travel and tourism
customers. Similarly air travel organizers must have Aviation Travel Organizer’s License
which protects consumers financially by insurance, bonding etc.
Task 4 Understanding business ethics role prevalent in travel & tourism industry
4.1 Identification and analysis of ethical dilemmas of a large Corporation
The complex nature of the industry of the travel & tourism is mainly due to the fact that there
are a lot of factors that are still growing and needs to be regulated. Factors such as
hospitality, management etc are found to be dependent on a number of other factors but still
are independent of one another. Hospitality essentially concerns about creating valued

relationship and meeting the varied needs and requirements of the existing and potential
travel and tourism customers. It also involves providing the goods and services at best
possible price. There also have been instances of dilemmas of cross cultural nature. Political
unrest and instable government such as Russia, Syria etc also tend to affect the travel and
tourism sector with respect to a particular tourist location. The negative and unfavourable
conditions of such places certainly hinder growth and development of travel and tourism to a
great extent.
Social and cultural elements also tend to affect travel and tourism on the basis of societies,
communities etc of the tourist destinations. The tourism customers are primarily categorized
on the basis of their age as well as the economy. Accordingly countries that are
economically weak like Vietnam, Bangladesh etc tend to facilitate travel and tourism through
providing convenient visa without much documentation. Conversely, stronger economies
such as USA, UK etc that are guided by stringent travel and tourism rules and regulations
involve hefty documentation along with lengthy paper work for visa permit.
Recent studies show that dilemmas affecting travel and tourism sector mainly revolve round
bribery and corruption, gender discrimination, sexual harassments, causing harm to natural
resources, sale of unhealthy food etc. Corruption essentially involves bribery, extortion etc.
Most of the countries have legislations to help facilitate the right of women in work place
ensuring equal opportunity in employment. However, the recent enactment of “Equal
Treatment of Men and Women Act” has resulted in certain cases of violation of equal
opportunity in employment.
It has also been found that there has been a considerable increase in the numbers of child
labours used for the purpose of employment in most developing countries. Such
employment is mainly in the form of helpers, cleaners, workers etc. Increase in
unemployment rate, poverty and lack of social security have been the reasons behind the
growing number of child labour across the globe. While , organisation building holiday
homes in the Caribbean island then it have faced various kinds of dilemma related to
financial resources, human resources, marketing activities, customer requirement and their
choice etc. Customer preferences and demand is the huge dilemma for the organidsation
because different customer require various kinds of services so it is very difficult for
company to se;lect one of the services which provide effective level of customer satisfaction.
Another important dilemma is prices because company have to sets is services prioces
according to income level of customer. By conducting market research company acn easily
face various kids of dilemma because with the help of market research it can easily analyse
actual customer demand, current prices of rival products, available rivals etc.

Moreover, child trafficking, pornography etc that are illegal in the eye of law in developing
countries are on a rise.
4.2 Analysis of CSR activities of the Corporation
Business organizations adopt some social strategies as a service towards the community.
This is what we generally call Corporate Social Responsibility or CSR. “It refers to activities
such as Environmental protection, equal opportunity, and practicing sustainable
development (Crane, et al., 2010)”.Tourism organizations may contact with the local
authorities to know their requirements and thus business organization can define their
responsibility towards the society. Tourism businesses can set their objectives to conserve
heritage, environmental sources and other social valuables towards delivering their
Corporate Social Responsibility. Their primary objective should be to preserve natural
sources and therefore encourage travel and tourism. Along with their business objectives
they should also be engaged in philanthropy for charity purpose. So, the Corporate Social
Responsibility may include giving protection to endangered wildlife, promoting cost effective
rates to the travel and tourism consumers taking care of “social and cultural values”. For
fulfilling this responsibility any business would require engagement of employee and funds
for charitable purposes. In the present phase of globalization organization has to deliver
Corporate Social Responsibilities to sustain in the society and contribute for its betterment.
In the context of the present task we can give an example of a large Corporation like
Thomas Cook. “Thomas Cook has been the first one to create the concept of a package
holiday in order to promote social responsibility and they claim to be as inspiring today as
well. Thomas cook has developed a separate code of conduct to promote the said activities
in order to contribute towards the community. The company observed an increase of 80% of
Local Label sustainable excursions in the year of 2014. The company also launched a One
Millions Heats Programme to promote the relationship between the employees and the
customers. It has become a leaner and innovative business by reducing wastage making it
more efficient by 35%.The company had set a certain targets in 2010, under a 10-year plan
to which following steps have been taken are employee engagement, using consumer
campaigns like, Travel Foundation’s Make Holidays Greener promoting charity and raising
funds [European Cities Marketing, 2015]”.To provide ethical product and services to
customer is the one largest corporate social responsibility for company. It can deliver the
environment friendly services through which nether any animal nor human being can
negatively affects. At the time of production and manufacturing company should care about

the environment. it should organise employees welfare programs so as they can gain the
opportunity for growth.
Conclusion
In the context of the present study, it can be summed up that important issues relating to
health and safety along with security with respect to a country involves protection of services
related to accommodation as well as other associated services should be made priority for
tour operators, tourism and travel providers. The travel and tourism regulations and
legislations are found to treat all equally without making any discrimination on the basis of
gender, age, religion etc. The mechanism of decision making is found to be impacted by
ethical dilemmas applicable for a particular situation. Ethics dealt in this study can be in the
form of business, marketing as well as accounting in nature. Therefore, proper knowledge of
the ethical dilemmas can also affect decision making in the travel and tourism industry to a
considerable amount. Like any other industry, the travel and tourism industry also need to
follow the path of sustainable development for effective growth and success. Corporate
Social Responsibility can be an effective means through which travel and tourism
organizations can achieve sustainable development for its overall wellbeing (Clift and Page,
2015).
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