Legal and Regulatory Framework in UK Travel and Tourism Sector (UBC)

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LEGISLATION AND ETHICS IN TRAVEL AND TOURISM
SECTOR {UBC}

Executive Summary
Legal regulations play significant effect in business consideration. Here in this report legal
regulations and its implementation have been discussed on taking travel and tourism organisation
in UK. This report has been formulated from point of view of manager of Thomas Cook and
Trailfinders, UK based tour and travelling organisations. This report has made an emphasis upon
different regulations in surface, air and water body transportation system in UK. This report also
focuses upon employee act and their health and safety measures that a company is accountable to
take for. On the other hand, this report has also evaluated certain ethical dilemmas that play
impact on tour operation. Along with above mentioned variables Corporate Social Responsibility
(CSR) policy has been included in this report. At the end, concerning manager has provided
effective recommendation for up gradation of mentioning policy.

Table of Contents
Introduction......................................................................................................................................4
Company Background.....................................................................................................................4
Aim and objective............................................................................................................................4
LO1: Understanding legal framework in tourism (AC 1.1, 1.2, M1, M2, M3, D1, D2, D3)…….6
1.1 Explanation of legal framework.............................................................................................6
1.2 Discussion of air, sea, and surface transportation law...........................................................6
1.1 Explanation of legal framework.............................................................................................6
LO2: Understanding of regulation and legislation regarding security safety and health (LO2, AC
2.1, 2.2, M1, M2, M3, D1, D2, D3).................................................................................................7
2.1 Effect of health safety and security legislation on travelling sector......................................7
2.2 Equality legislation................................................................................................................9
LO3: Understanding of consumer protection legislation (LO3, AC3.1, 3.2, M1, M2, M3, D1, D2,
D3).................................................................................................................................................11
3.2 Explanation of consumer protection legislation...................................................................11
3.1 Explanation of contract legislation......................................................................................11
3.1 Explanation of contract legislation......................................................................................11
LO4: Understanding of Business ethics (AC 4.1, 4.2, M1, M2, M3, D1, D2, D3).......................12
4.1. Ethical dilemmas in travel and tourism sector....................................................................12
4.2 CSR Policy in travel and tourism sector..............................................................................13
Recommendation...........................................................................................................................14
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
Bibliography..................................................................................................................................18

Introduction
Legal and regulatory framework made significant influence of any business sector. This report
has focused on legal and regulatory framework of travel and tourism sector. In order to discuss
several impacts of regulatory framework, this report has stated different regulation and
legislation policies that are related to travel and tourism sector of UK. This report has been
formulated from point of view of manager of Thomas Cook Company, a UK based travel
organisation that deals operation in both domestic and international sector of travel business.
This report has been segregated into four parts of and these parts are consisted to legal and
regulatory framework of travel and tourism sector, health, safety and security policy of travel and
tourism sector. Manager of concerning organisation also stated about different consumer
protection legislation with special reference to concerning sector. Role of ethics in travel and
tourism sector with special reference to ethical dilemma and CSR policy have been included in
this report by manager.
Company Background
Thomas Cook is an international travel company of UK that operates business in domestic and
international travel operation. This company has been headquartered in Sunderland, UK and
operate their business with employee base of 1700 (Thomas Cook, 2019). Trailfinders is another
tourism organisation that operates their domestic and international business with 180 offices and
240 experienced travel agents. Both of these companies have witnessed an average of £1 billion
profit in previous financial year.
Aim and objective
Aim of this report is to produce effective legal and regulatory framework of travelling business
sector in UK. Objective of this report is to;
 To evaluate different legal frameworks that is in relationship with travel and tourism
business.
 To discuss different legal frameworks of air, sea and surface transportation.
 To observe effect of health safety and security legislation on travel and tourism sector.
 To discuss legislation over equality in travel and tourism business.
 To explain different consumer protection legislation regarding travelling sector of UK.

 To discuss ethical dilemmas of managers and business officials to conduct tour and
travelling business.
To evaluate CSR policy that is being followed by Hays Tour and Travelling Company to meet
their responsibilities towards society.

1 LO1: UNDERSTANDING LEGAL FRAMEWORK IN TOURISM SECTOR (AC 1.1, 1.2, M1, M2, M3, D1, D2, D3)
1.1 Explanation of legal framework
There are several legal frameworks governing
the travel agencies, airports and travel
organisations. Brief discussions regarding
some of these regulatory framework bodies are
as follows:
 Strategic rail authority (SRA): SRA was
set up under the Transport Act 2000 in the
UK. Its main motive was providing the rail
industry a strategic direction. It was
abolished in 2006 and has been absorbed
by the Department for Transport.
 Health and safety executive: Health and
safety executive (HSE) is the national
workplace health and safety regulator in
the UK. It prevents death, ill health, and
injury related to travel and work. It is
operated by the government of UK and
was formed on 1st January 1975. It was
known as the Health and Safety
Commission until the year 2008.
 Maritime Authorities: It is an executive
agency working under the transport
department of UK. Its main job is to
prevent life loss at sea and it is the
responsibility of the organisation to
implement British and international
maritime law and safety policies.
However, from 2015, it has also been
involved in rescue and land-based
helicopter search operations.
1.1 Explanation of legal framework
 International Air transport association
(IATA): IATA is a trade association of the
airlines of the world. It supports airline
activities and helps in the formulation of
industrial policies and standards. Its
priorities include safety and security
during air travel along with simplifying
business.
 Air Travel Operators’ Licensing:
Abbreviated as ATOL, it is a CAA scheme
in the UK. It provides financial protection
for those people who have bought or
purchased flights or package holidays from
their member tour operator. It is mandatory
for several tour operators in UK to hold an
ATOL license.
 Civil Aviation Authority (CAA): CAA is
a statutory corporation in the UK that
supervises the issuing of licenses for pilots,
navaids calibrating, and equipment testing.
It also conducts several other inspections
relating to the safety and security of air
passengers (Agag et al. 2017).
1.2 Discussion of air, sea, and surface
transportation law
Several laws and regulations relative to
tourism and transportation have been by the
government of UK (Bangwayo-Skeete and
Skeete, 2017). There are independent laws for
surface, air, and sea in order to monitor the
safety of passengers.
Surface law: Surface law was passed in 1979.
It formulates as well as protects those
passengers who are on board on the carrier’s
permission. Under this law includes
mental/physical damages or disorder of the
passengers (Davies, 2018). This law also
governs the loss of luggage and also
safeguards interests of disabled passengers. .
Sea Law: Sea laws have been prepared by the
International Maritime Organisation under
the leadership and guidance of the United
Nations. It ensures security and safety of both
passenger and cargo ships. An organisation
named SOLAS does the task of regulating the
functioning of fire protection systems (Dredge
and Gyimóthy, 2015). 1974, Athens
Convention governs the injury and damages
that passengers have suffered while they were
on ferry or ship.
Air Law: 1929 Warsaw convention defines
the rules regarding international carriage
(Estol and Font, 2016). It also safeguards a
passenger’s rights to claim compensation in
case of personal injury or death.

LO2: Understanding of regulation and legislation regarding security safety
and health (LO2, AC 2.1, 2.2, M1, M2, M3, D1, D2, D3)
2.1 Effect of health safety and security legislation on travelling sector.
Travelling sector of UK has to face different legal and regulatory framework to conduct their
business work in domestic and international sector of tour and travelling business. This report
has been formulated under point of view of manager of Trailfinders and tourism sector. In this
regard, officials of UK government have focused on two basic parameters; consumer protection
and employee protection of travel organisations (Bor, 2017). These two variables are dependent
upon health, safety and security of both customers and employees. Part of this report has
discussed about legislations and regulations that make effect on employee base and employee
retention policy of Trailfinders organisation.
According to manager of Trailfinders, officials of this organisation follow Health and Safety at
Work Act, 1974 to ensure safety and security of their employees in organisational operations.
This act provide special emphasises upon three pillars; employee, employer and contractor.
According to this act, company is liable to appoint a safety executive who will be responsible to
maintain risk factors of health and safety of workers. According manager, this executive plays
role of leader in Trailfinders Company and is also liable to provide effective training to their
employees to maintain their health and safety. Manager has witnessed from Allison v London
Underground Ltd (2008) case that officials of Trailfinders to make emphasis upon their workers
in relation to workplace health and safety (Guttentag, 2015). Officials of this company are also
liable to provide insurance policy to their employees for ensuring their security in workplace
operation.

Figure 1: Legislation on travelling sector
(Source: Given by researcher)
Manager has also stated Occupiers Liability Act 1984 is being followed by organisational
operators of concerning organisation. In making example of British Railways Board v
Herrington, manager has stated that organisational officials maintain their liability on their
employees to perform jobs and operations. In order to maintain this liability, officials provide
them adequate training and technical instruments for ensuring their safety and security. Along
with providing them training and instrument, officials also maintain security of their customers
in organisational operations.
Along with those above mentioned act and regulations, manager has also stated that this
company provide special emphasis upon protection of their intellectual property according to
Data Protection Act, 2018. Intellectual property of this company refers to business plan, tourist
attraction strategies and their HR policy. This act framed a coursework upon individual policy of
different travel organisations to maintain their business in healthy and stable competitive market
(Laitamaki et al. 2016). These policies are based upon their profit generation and employee
retention policy. In question of vicarious liability and duty of care, manager has witnessed
Yewens v Noakes case and stated in this report that company officials maintain effective
communication strategy to convey message or instructions to their customers.

Purpose of these acts and their proclamation is to maintain health and safety aspects of
employees during operational performance. It has been mentioned in UK legal papers that
employers of an organisation are liable for ensuring health safety and security of their employees
as well as their customers. Government is also liable to eradicate any type of threats regarding
work safety issues. Government has stated in Health and Safety at Work Act, 1974 that
organisation is liable to enlist security measurements into workplace. According to manager of
concerning organization, officials have insulated techniques for providing safety to their
employees during office.
2.2 Equality legislation
Workplace equality is another significant legal justification, as stated by concerning manager in
this report. It has been mentioned in this report that officials of Trailfinders Company followed
Equality Act 2010, UK to maintain equality for their employees in workplace. It has been
witnessed in international sphere of business that many organisations that conduct operation in
international sector make effective step to mitigate crisis related to inequality. Manager has
stated that equality has been followed by organizational operators in gender biasness, cultural
conflict and racism.
Gender biasness depends upon male and female ratio in organisational workplace. UK has been
mentioned as one of the industrially developed countries among business environment.
Therefore, manager of concerning organisation has stated that they hire both male and female
employees to perform their operation. In order to avoid discrimination based on gender gap,
officials of concerning organization have instructed their HR officials to communicate with
every employee and solve their problems. It has been stated by manager in this report that
organisational officials take step according to complain. Manager has also stated in this report
that according to verdict of Smailes v Clewer Court Resident company is liable to observe
demand of their female employees and responsible to take any decision to ensure their security
and safety during workplace operation.
In case of cultural conflict, manager has stated that this company deals in business in
international market with different internal and external office and employee base. Employees of
this company are belonging to various country and cultural base. Thus, officials of this
organization insulate equality act, 2010 to mitigate crisis’ of employee confliction. Manager has
also stated that this company infuse certain leadership management to maintain effective

communication with their employees according to their cultural base. Leaders are liable to show
respect to every culture and notion to motivate employees to perform teamwork and think
beyond their cultural base.
Racism has been stated by manager as one of the reason of inequality in organisational
background. This racism affects occupational background of any company and reason for
unskilled labour. It has been earlier mentioned in this report that this company possesses 240
experienced guides who does not share same cultural background. Thus officials should maintain
effective leadership as well observation on their employee base to prevent racism into business
operation (Li et al. 2017). In this regard, manager of concerning organisation has stated that
operators arrange seminar and meeting and often social gatherings to encourage effective
communication among their employee base. They also insulates training sessions to upgrade
adaptability and professionalism to their employees according to perform joint tasks with
employees belong to different cultural background.

LO3: UNDERSTANDING OF CONSUMER PROTECTION LEGISLATION (LO3, AC3.1, 3.2, M1, M2, M3, D1, D2, D3)
3.1 Explanation of contract legislation
Contract legislation has been formulated in
UK market to maintain business operation by
joint performance and teamwork. It has been
mentioned earlier that this report has focused
upon evaluating regulatory framework in
organisational operation. However, it has been
stated that Hays Travel deals its business in
travel organisation. Thus this organisation
follows this legislation and rules to maintain
supply chain management. In this regard,
organisational officials follow different legal
verdicts.
Parking eye Limited v Beavis case has been
followed by manager. This case has focused
upon maintain supply chain and
communication in organisational operation. It
has been stated by manager of concerning
organisation to perform tasks by maintaining
teamwork. Therefore manager has stated that
this organisation follow in English contract
law which has been implemented in 1480 and
lastly regulated in 2017.
3.1 Explanation of contract legislation
According to above mentioned law, manager
has stated that company is liable to maintain
communication among employee base and
communication between management and
employees. Thus, officials of concerning
organisation maintain effective leadership and
management style to maintain social contract
of their employees along with management.
Internal as well as external responsibilities
have been referred as a part of contract law of
UK. It has been mentioned by manager that
internal responsibility of an employee deals
with liability towards company operations and
profit generation. On the other hand, external
liability refers to employee’s responsibility
towards employees and stakeholders. Manager
has stated that employees and customers are
referred as internal and external stakeholders.
3.2 Explanation of consumer protection
legislation
This report has been formulated form point of
view of manager of travel organisation.
Trades Description Act 1968 claims barriers
to consumers to get misled by organisational
officials. Thus, company officials are liable to
provide service according to their
advertisement. This law imposes ethical
consideration to travel organisation's operation
to conduct their business. It has been stated by
manager that this legal regulation helps
employees to reduce their ethical dilemma.
Consumer Protection Act 1987 emphasises
upon liability of producer upon company
officials. In case of travelling industry,
manager has stated that officials and
employees are liable to protect belongings of
customers. This act also induces customer’s
protection during business operation. Ethical
dilemma of employee can be reduced by
application of this regulation. On the other
hand, more responsibilities have been induced
to officials for their business perfection and
expansion.
Package Tours Regulations 1992, refers to
booking of travellers for certain holiday
package. Hays Travel Company follows this
regulation to maintain tour in case of their
international holiday packages. During this
tour operation, organisational officials are
liable to maintain their business policy and
customer base. On other side, officials are also
liable to observe their employee base during
operation.

LO4: Understanding of Business ethics (AC 4.1, 4.2, M1, M2, M3, D1, D2, D3)
4.1. Ethical dilemmas in travel and tourism sector.
Concerning manager of Thomas Cook has focused upon maintain ethical consideration of
business circulation in travel and tourism sector of UK. In order to make this report, manager has
provided on ethical theory of business operation. This report has also evaluated relationship of
law and social ethics on travel and tourism sector.
Kant and Utilitarian philosophy: Kant’s theory deals with extreme moral value of employees
in operational performance. On the other hand, Utilitarian philosophy depends upon individual
morality for getting pleasure of goodness. However, as argued by Mason (2015), in case of travel
and tourism business context, manager has referred that employees of concerning organization
have to face certain level of ethical dilemmas. For discussing that, manager has segregated
responsibilities that form ethical dilemma in organisational perspective of employees has been
stated in this report.
Business responsibility: Business responsibility of employees refers to be liable to both
organisation and customers. In relation to tour and travelling industry, organisational officials
provide instructions to their employees to generate profitable outcome. On the other hand,
employees are also liable to convey comfort to their employees according to service charge.
Thus, this factor can be marked as a reason of ethical dilemma.