Travel and tourism industry is continuously expanding and providing significant contribution in the development of economy. By considering the continuous growth of the industry, it is essential to develop standard legal norms for the UK parliament for assurance of fairness and protection of interest of weaker party. Business entities operating in travel and tourism sector are required to act in accordance with the described legal norms else they will be liable to pay damages for non-compliance. Present study is focused on evaluation of legal and regulatory framework applied on travel and tourism industry. By considering this aspect, description of legal and ethical provisions will be provided which are applicable on travel and tourism in order to provide justified recommendations to the given case scenarios.
Legislation of the UK is bifurcated into criminal and civil law for better governance of operational activities. Description of these laws by considering travel and tourism industry is as follows:
Civil law is developed by the UK parliament to provide standard norms for the completion of regular operational activities in an appropriate manner and prevention of civil crime. Civil law is applicable on both organization and individual working. In accordance with the provisions of English law, civil crime can be defined as an act that is not justifiable to the public. Example of civil crime is providing non-satisfactory or poor services. By considering this aspect, Mr. David is initially required to complain to management of Going Abroad Ltd for the breach of civil obligation. If management of the tourism organization does not resolve their issue then, he can go to regulatory authorities such as Advisory, Conciliation and Arbitration Service (ACAS). They will provide advice to Mr. David for the legal claim by which he can avail remedy in order to compensate with his injury.
Formulation of criminal law is done to ensure that organization operating in travel and tourism industry is complying legal provisions developed by the UK parliament. It is because; criminal action shows breach of conduct to the norms described by government. For the criminal conduct, damages are paid to the government. These provisions are applicable in case such as; harassment, dealing in restricted conducts, sexual assault, discrimination, industrial espionage, embezzlement of tax and cash etc. Case proceedings for criminal conduct are dealt in crown courts. On the basis of described aspects, provisions of criminal law will be applicable in situations where management of Going Abroad Ltd had provided wrong information to the Mr. David. For this aspect, Going Abroad Ltd will be liable to pay penalty charges as they are using misleading facts in order to attract customers.
(B) Role and responsibilities of regulatory bodies in travel and tourism industry
In order to assure standard performance of organization operating in travel and tourism industry, various regulatory bodies are established for each sector. Description of these bodies with respect to the travel and tourism sector is as follows:
Air tourism and transport
For governance of air tourism and transport, Civil Aviation Authority (CAA) is responsible. They are obliged for the regulation of professional and private pilot through issue of license by assessing their qualification. They control air traffic by managing airlines. Further, they also provide standard norms for entities involved in the design, production and maintenance of aircraft. In accordance with the English law, all organizations operating in air tourism and transport are required to hold Air Travel Organizers’ Licensing (ATOL). Objective of these provisions is to ensure that provided money by customers is safe and organization will provide those services accordingly. Further, liabilities of transporter are described through provisions of Carriage by Air and Road Act 1979. Main objective of this act is to indemnify the potential losses of the customers.
Sea tourism and transport
International Carriage by Sea Act is applied by the UK government for regulation of operational activities of organization operating in sea travel and tourism industry. Provisions of this Act impose liability on the corporate entities to provide damages to the customers if they are not able to satisfy their standard duties. In addition to this, International Carriage by Sea Act prohibits business organizations from unfair dealings in order to protect interest of customers. Civil and criminal offenses in sea tourism are dealt in accordance with the provisions of Offenses at Sea Act 1799. Cited Act provides extension to the authorities of the UK jurisdiction to deal with offenses committed in overseas area. However, provisions of this Act are not applicable for foreign companies and non-residents.
Association of British Travel Agents (ABTA) is established for the governance of travel and tourism activities conducted through road. This body is governed by trade entity and provisions described under Carriage by Air and Road Act 1979. These regulations had formed right for the consumers by which they make claim for damages if; business entity had not provided satisfactory performances. In accordance with the provisions of this Carriage by Air and Road Act 1979, organizations operating in this sector are responsible for damages occurred to the customers due to their non satisfactory performance.
(A) Mangement Organization Manner
Rainbow Hotel is operating in travel and tourism industry of the UK thus; management of organization is required to comply with legal provisions related to the health and safety issues in a proper manner. In this aspect, director (Miss Kaur) has following responsibilities towards invited and uninvited visitors:
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In accordance with the provisions of this Act, director of Rainbow hotel is required to maintain safe working environment by considering hygiene factors. For this aspect, Miss Kaur is required to make proper arrangements for the safety of customers and staff members. Further, proper arrangements should be made for the areas where there is a risk of injury. Hazardous equipments should not be kept in the reach of public. In addition to this, employees should be provided with proper training so that they accomplish duties in an effective way.
Occupier’s Liability Act 1984
Provisions described under Occupier’s Liability Act are supported by tort legislation in which individual and business entities are required to take care of actions for the prevention of risk of injuries of the related parties. By considering the provision of this Act, director of Rainbow hotel is required to take care of activities conducted in the premises to reduce risk of injury of visitors and trespassers. In this aspect, case of British Railways Board v Herrington 1972 AC 877 can be considered where occupier was held liable to pay damages in order to compensate the injury of trespasser.
Doctrine of vicarious liability in English law states that individual is held liable for the negligence of other individuals who are influenced them. As per this approach, employer is said responsible for the action of employees conducted in the workplace in the course of employment. Due to this aspect, director of the Rainbow hotel is obliged to provide proper guidelines to the workers and monitoring their work in a proper way.
Data protection Act 1998
Provisions of this Act imposes obligation on the director of Rainbow hotel to protect information provided by employees and customers in an effective manner. They must not use this information for unjust benefit. For provided information should be secured in a data base so it can be derived while it is required.
Consequences of non-compliance of described provisions
In situation where, management of Rainbow Hotels will not be able to comply these norms then they have legal obligation for the payment of damages in order to compensate the injury of aggrieved party. For civil misconduct damages will be payable to the injured party while in criminal conduct damages will be payable to the government in form of penalty charges.
(B) Assessment of legislation regarding Equality in the English Legal System while engagement of employees
Discrimination on the basis of protected characteristics is ethical and legal misconduct as per the standard norms of UK legislation. All business entities are required to provide equal opportunities to the worker for the compliance of equality legislation described by English legal system. Being on a position of director, Miss Kaur is required to consider following legal norms while engagement of employees:
Employment Act 2002
This Act provides guidelines regarding standard behavior of employer towards their employees. In accordance with the provisions of this Act, employer must provide fair opportunities to the worker for recruitment and promotion without getting affected by their protected characteristics.
Employment protection (consolidation) Act 1978
Formation of this Act is done by combining provisions of Redundancy Payments Act 1965 and Contracts of Employment Act 1963. This Act was formulated by UK government to ensure payment of fair wages to the employees. Further, provisions of this Act also imposes restriction on discrimination in payment by considering race, gender, religion or ethical values of employees.
Disability discrimination Act 1995
Provisions of this Act states that, employers are required to make appropriable adjustments for the workers who are disabled but qualified for the business activities (Moriarty and Manthorpe, 2013). Employers are required to provide them fair opportunity for employment.
Human rights Act 1998
According to the provisions of Human rights Act 1998, employer should respect fundamental rights of employees and do not insert work policies which are contradictory to this.
Miss Kaur is required to assure that all the described legal provisions are complied in the Rainbow hotels else employees of the company will be entitled for the payment of damages. For this aspect, there are required to assure that employment polices are free form partiality and biasness.
(A) Difference between Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982
Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982 has been introduced to protect customers for unfair activities of seller. Provisions of these Acts imposes implied term in the contract where there is transfer of product and services by one party to the another. Provisions described under Sale of Goods Act 1979 is applicable only on product contracts while provisions of Supply of Goods and Services Act 1982 deals with the contract in which services are also provided along with the products. In SOGA 1979, protection can be availed by customers if provided good is not of satisfactory quality. Further, seller has obligation to ensure that delivered goods are in accordance with the provided description and free form material defects. On the other hand Supply of Goods and Services Act 1982 provides protection in situation where services are provided with diligent skill and care. Further, seller are required to complete their work in timely manner without making unreasonable delay in their work.
Difference between The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulation 1999
Exclusion clauses inserted in consumer contracts are considered effective if it satisfied provisions described under the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulation 1999. However, there are various differences in provisions of both the Acts. UCTA is part of primary legislation while UTCCR is part of secondary legislation (Miguéns and Mendes, 2008). Provisions of UCTA is applicable only on commercial contract but provisions of UTCCR deals with the both consumer and commercial contracts. Damages under UCTA can be claimed only if claimant is able to satisfy the test of reasonableness on the other UTCCR consider the claim of damages if test of fairness is satisfied. It is because, UTCCR aims to create balance between right and obligation of both the parties in order to provide justifiable decision in the dispute.
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(B) Explanation of EU and UK legal responsibilities of holiday Tour Operators for description of services rendered by them
Organizations operating in travel and tourism industry are required to operate in a fair manner. Further, they should not provide misleading facts to the customers in order to manipulate their purchase decisions. Objective of these legislatory norms is to protect interest of customers and prevent organization from unfair transactions. Description of consumer protection legislation in context of package holidays is enumerated as below-
Trade Description Act 1968
Provision of Trade description Act 1968 states that travel and tourism entities are required to describe vital facts in their brochure. However, they are entitled to make use of trader's puff to attract customers but this fact doesn't imply that management can use misleading facts in their brochure. In addition to this, they are required to charge fair price from the customers in accordance with the quality of services provided.
Package Travel Holidays and Tour regulations 1992
In accordance with the provisions described under Package Travel Holidays and Tour regulations 1992, tourism entities are required to provide services similar to the description given in the brochure (The Package Travel, Package Holidays and Package Tours Regulations, 2014). There must not be material difference between described and actual services. In situation where customers are not provided with the appropriable services then they are entitled to make claim of compensation from the organization. In situation where organization deny for the compensation, then parties are entitled to take their case to ACAS for further advise. Provisions of this Act cover liability under both civil and criminal law. Civil law imposes obligation for providing satisfactory services while criminal law provides duty for compliance with the law.
Consumer protection Act 1987
This Act is developed to protect customers from the unfair actions of the selling parties. Provisions of Consumer Protection Act are also applied on travel and tourism entities to ensure standard performance on their part. However, they can make reduction in their obligation by insertion of exclusion clause but such terms are considered effective only if it properly incorporated. Although organization cannot reduce obligation regarding act which can cause personal injury or death to the person.
(A) Identification and analysis of instances of ethical dilemma faced by travel and tourism entities
Organization engaged in wildlife tourism have ethical and legal responsibility towards the environment but along with this there is also continuous increase in demand of customers. This aspect creates issue between preference of sustainability and profitability through operational activities. It is because, increasing tourism activities in nature place have adverse impact but if demand is not satisfied then benefit is taken by competitor entities. This dilemma can be solved by promoting sustainable tourism by organizations. In this form of tourism, they can consider environment aspects along with the profitability factors. In this manner, management will take care of actions that can have adverse impact on environment and attempt to find other suitable alternate for that aspect.
Ethical dilemma for environment factors faced by travel entities such as British Airways
In order to provide better customer services, travel organizations are required to expand their business activities. For this aspect, they are required to consume excessive natural resources which is harmful to the society. In addition to this, if expansion is not done then benefit of this opportunity is taken by competing firms. In order to resolve this dilemma expansion can be done by considering ethical aspects. For example, expansion is not supported by the activities such as deforestation. Further, resources are used with the sustainability approach through applicability of updated technologies. In this manner, travel and tourism entities are able to maximize their output with minimum consumption of resources.
(B) Analysis of corporate social responsibilities of British Airways
Corporate social responsibilities can be defined as duties of business towards the external environment in order to implement the approach of sustainability in their work policies. With the increasing environmental issues all organizations are required incorporate corporate social responsibilities in their operational policies.
British Airways is one of the leading tour and travel entity in UK. Management of company is concerned with the environmental sustainability along with the factors of profitability (About British Airways, 2015.). In this aspect, they had added following factors in their objectives:
Minimizing emission of carbon die oxide through operational activities
Improvement in technology to reduce adverse impact on environment
Reduction in pollution occurred due to noise.
In addition to the above described aspects, they are contributing funds to social care entities. They are marketing their operational activities through charity event by considering cost and profitability factor. Management of company has also applied regulatory norms in their operational activities to reduce adverse impact on environment.
In accordance with the present study conclusion can be drawn that legislation of UK had developed various regulator bodies for the governance of operational activities of travel and tourism industry. Penalty charges for the non-compliance of legal terms is enforced by considering bifurcation of legislation in civil and criminal law. Organization operating in this industry are required to assure implementation of health and safety legislation and equality law in their operational activities. For this aspect, they are required to promote fairness in workplaces by preventing biased practices. In addition to this, management of travel and tourism entities must not use misleading guidelines to attract customers. Further, along with the profitability they should also take care of social and ethical aspects in order to reduce adverse impact of their operational activities of environment. Annual report of British Airways shows that management of company is focused towards their corporate responsibilities along with the profitability.
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Bennett, H., 2014. Principles of the Law of Agency. Bloomsbury Publishing.
Blanke, J. and Chiesa, T., 2013. The travel & tourism competitiveness report 2013: reducing barriers to economic growth and job creation. World Economic Forum.
Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach. Routledge.
Carlsen, J. and Andersson, T., 2011. Strategic analysis of public, private and not-for-profit festival organizations. International Journal of Event and Festival Management.
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