chapter 13 legal responsibilities in travel and tourism

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Chapter 13 Chapter 13 Legal Legal Responsibilit Responsibilit ies in Travel ies in Travel and Tourism and Tourism

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Page 1: Chapter 13 Legal Responsibilities in Travel and Tourism

Chapter 13Chapter 13

Legal Legal ResponsibilitiResponsibilities in Travel es in Travel and Tourismand Tourism

Page 2: Chapter 13 Legal Responsibilities in Travel and Tourism

© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

All Rights Reserved

Legal Responsibilities in Travel Legal Responsibilities in Travel and Tourismand Tourism

TravelTravel Travel Agents and Tour OperatorsTravel Agents and Tour Operators Transportation and Common CarriersTransportation and Common Carriers TourismTourism Online Travel SalesOnline Travel Sales

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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In This Chapter, You Will Learn:In This Chapter, You Will Learn:

1.1. To understand fully the roles and To understand fully the roles and potential liabilities of travel agents and potential liabilities of travel agents and tour operators as each fulfills its tour operators as each fulfills its unique role in marketing and providing unique role in marketing and providing travel services.travel services.

2.2. To identify those common carriers To identify those common carriers typically utilized by the travel industry, typically utilized by the travel industry, as well as the recurrent areas of as well as the recurrent areas of potential liability inherent in each of potential liability inherent in each of them.them.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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In This Chapter, You Will Learn:In This Chapter, You Will Learn:

3.3. To evaluate tourism as it relates to To evaluate tourism as it relates to gaming, resorts and time-shares, and gaming, resorts and time-shares, and theme park operations, based, in part, theme park operations, based, in part, upon the unique liability issues and upon the unique liability issues and managerial responsibilities inherent in managerial responsibilities inherent in each of these growing areas.each of these growing areas.

4.4. How, from a legal perspective, the unique How, from a legal perspective, the unique characteristics of the Internet can impact characteristics of the Internet can impact restaurant and hotel managers’ efforts to restaurant and hotel managers’ efforts to integrate the power of the Web into their integrate the power of the Web into their own operations.own operations.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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TravelTravel

Legalese:Legalese:

Travel Law Travel Law – The laws regulating – The laws regulating business and individual behavior in business and individual behavior in the travel industry.the travel industry.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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TravelTravel

Legalese:Legalese:

International Travel Law International Travel Law – The – The ordinances, rules, treaties, and ordinances, rules, treaties, and agreements used to regulate the agreements used to regulate the international travel industry. international travel industry.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Five key components of the Five key components of the Travel IndustryTravel Industry

1.1. Preplanning ServicesPreplanning Services

2.2. TransportationTransportation

3.3. LodgingLodging

4.4. Food ServicesFood Services

5.5. Attractions and ActivitiesAttractions and Activities

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

All Rights Reserved

Search the Web 13.1Search the Web 13.1

Despite the popularity of the Internet as a Despite the popularity of the Internet as a way to “plan your own” travel, the services way to “plan your own” travel, the services of professional travel agents continue to be of professional travel agents continue to be in high demand. To view the Web site of the in high demand. To view the Web site of the largest of the travel agent associations, go largest of the travel agent associations, go to to www.astanet.comwww.astanet.com. This is the Web site . This is the Web site of the American Society of Travel Agents of the American Society of Travel Agents (ASTA). When you arrive, click on News, (ASTA). When you arrive, click on News, then Press Kit to read about the goals of then Press Kit to read about the goals of this effective organization.this effective organization.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.2Search the Web 13.2

Founded in 1941, the Travel Industry Founded in 1941, the Travel Industry Association of America (TIA) is a Association of America (TIA) is a Washington, DC-based nonprofit association Washington, DC-based nonprofit association that is recognized as the best source of that is recognized as the best source of research, analysis, and forecasting for the research, analysis, and forecasting for the travel industry. Its goal is to make the travel industry. Its goal is to make the United States the world’s most popular United States the world’s most popular travel destination. To view its Web site, go travel destination. To view its Web site, go to to www.tia.orgwww.tia.org. When you arrive at the . When you arrive at the site, click on About TIA to read about its site, click on About TIA to read about its goals and activities.goals and activities.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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TravelTravel

Legalese:Legalese:

Jurisdiction Jurisdiction – The authority given by – The authority given by law or treaty to a court to try cases law or treaty to a court to try cases and make decisions about legal and make decisions about legal matters within a particular matters within a particular geographic area and/or over certain geographic area and/or over certain types of cases.types of cases.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Travel Agents and Tour OperatorsTravel Agents and Tour Operators

Legalese:Legalese:

Fiduciary Fiduciary – A relationship based on – A relationship based on trust and the responsibility to act in trust and the responsibility to act in the best interest of another when the best interest of another when performing tasks.performing tasks.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Potential Liability Issues for Potential Liability Issues for Travel AgentsTravel Agents

1.1. Failure to provide promised Failure to provide promised services.services.

2.2. Failure to honor agreed-upon Failure to honor agreed-upon pricing.pricing.

3.3. Misrepresentation.Misrepresentation.

4.4. Failure to discover and disclose.Failure to discover and disclose.

5.5. Negligence.Negligence.

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Travel AgentsTravel Agents

Legalese:Legalese:

Class Action Lawsuit Class Action Lawsuit – A lawsuit filed by – A lawsuit filed by one or more people on behalf of one or more people on behalf of themselves and a larger group of themselves and a larger group of people who were similarly affected by people who were similarly affected by an event.an event.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.4Search the Web 13.4

The world’s oldest travel agency is The world’s oldest travel agency is the Thomas Cook Agency. Log on to the the Thomas Cook Agency. Log on to the Internet and enter Internet and enter www.thomascook.comwww.thomascook.com..

1.1. When you arrive, click on Here, under When you arrive, click on Here, under Corporate Web site.Corporate Web site.

2.2. Next select About Us.Next select About Us.

3.3. Finally, click Short History to read about Finally, click Short History to read about Cook’s international operations and Cook’s international operations and developmentdevelopment

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Tour OperatorsTour Operators

Legalese:Legalese:

Tour Operator Tour Operator – A company whose – A company whose primary activity is the planning, primary activity is the planning, packaging, and marketing of travel packaging, and marketing of travel services, including transportation, services, including transportation, meals, accommodations, and meals, accommodations, and activities.activities.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.5Search the Web 13.5

The National Tour Association The National Tour Association (NTA) monitors travel law related to (NTA) monitors travel law related to tour operators. Log on to the Internet tour operators. Log on to the Internet and enter and enter www.ntaonline.comwww.ntaonline.com

1.1. When you arrive, click on When you arrive, click on Government Relations.Government Relations.

2.2. Next select Sellers of Travel laws.Next select Sellers of Travel laws.3.3. Read the Travel Sellers law in the Read the Travel Sellers law in the

state that is closest to you.state that is closest to you.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Potential Liability Issues for Potential Liability Issues for Tour OperatorsTour Operators

1.1. Nonpayment for prearranged Nonpayment for prearranged services.services.

2.2. Nondelivery of promised services.Nondelivery of promised services.

3.3. Adhesion contracts.Adhesion contracts.

4.4. Liability for injury or accident.Liability for injury or accident.

5.5. Misrepresentation.Misrepresentation.

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Tour OperatorsTour Operators

Legalese:Legalese:

Adhesion contract Adhesion contract – A contract whose – A contract whose terms were not truly negotiated or terms were not truly negotiated or bargained and, as a result, may be so bargained and, as a result, may be so one-sided in favor of the stronger one-sided in favor of the stronger party that the contract is often party that the contract is often deemed unenforceable by the courts.deemed unenforceable by the courts.

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Analyze the Situation 13.1Analyze the Situation 13.1

As part of a 3-day “Mystery Tour”, As part of a 3-day “Mystery Tour”, Joan Larson of Apex Travel, Inc., a Joan Larson of Apex Travel, Inc., a Wisconsin-based tour operator, Wisconsin-based tour operator, contacted the Ragin Cajun restaurant in contacted the Ragin Cajun restaurant in Illinois, for the purpose of reserving 120 Illinois, for the purpose of reserving 120 seats for dinner on a Friday night in seats for dinner on a Friday night in September. The tour group arrived, and September. The tour group arrived, and one male group member, after three one male group member, after three drinks, began making rude and drinks, began making rude and suggestive comments to one of the suggestive comments to one of the restaurant’s female servers.restaurant’s female servers.

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Analyze the Situation 13.1Analyze the Situation 13.1

When Steve, the restaurant manager When Steve, the restaurant manager approached Gene, the Apex tour leader, approached Gene, the Apex tour leader, about the situation, Gene maintained the about the situation, Gene maintained the comments were probably made in harmless comments were probably made in harmless fun and should be overlooked by the fun and should be overlooked by the restaurant. “Besides”, state Gene, “our bus restaurant. “Besides”, state Gene, “our bus is leaving to go back to our hotel in one is leaving to go back to our hotel in one hour and that particular tour group member hour and that particular tour group member lives several hundred miles away and is lives several hundred miles away and is unlikely to ever see that server again”. unlikely to ever see that server again”.

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Analyze the Situation 13.1Analyze the Situation 13.1

As the Ragin Cajun’s restaurant As the Ragin Cajun’s restaurant manager:manager:

1.1. What are your legal responsibilities to What are your legal responsibilities to your server?your server?

2.2. Who is responsible for controlling this Who is responsible for controlling this guest’s behavior?guest’s behavior?

3.3. How would you respond to Gene, the How would you respond to Gene, the tour operator?tour operator?

4.4. What potential liability does Apex What potential liability does Apex face in this situation?face in this situation?

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Transportation and Common Transportation and Common CarriersCarriers

Legalese:Legalese:

Common Carrier Common Carrier – A company or – A company or individual that is in the regular individual that is in the regular business of transporting people business of transporting people and/or freight for a fee. Examples and/or freight for a fee. Examples include airlines, cruise lines, trains include airlines, cruise lines, trains and buses.and buses.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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The Transportation IndustryThe Transportation Industry

AirlinesAirlines TrainsTrains Cruise ShipsCruise Ships BusesBuses Car rentalsCar rentals

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Transportation and Common Transportation and Common CarriersCarriers

Legalese:Legalese:

Tariff Tariff – The agreement between an – The agreement between an airline and its passengers. When airline and its passengers. When purchasing a ticket, the passenger purchasing a ticket, the passenger agrees to the terms of the tariff.agrees to the terms of the tariff.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Transportation and Common Transportation and Common CarriersCarriers

Legalese:Legalese:

Warsaw Convention Warsaw Convention – Short for the – Short for the Convention for the Unification of Certain Convention for the Unification of Certain Rules Relating to International Carriage Rules Relating to International Carriage by Air, signed at Warsaw on October 12, by Air, signed at Warsaw on October 12, 1929, this agreement set limits on the 1929, this agreement set limits on the liabilities of airlines that follow liabilities of airlines that follow established guidelines for the safe established guidelines for the safe operation of international airline flights. operation of international airline flights.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Transportation and Common Transportation and Common CarriersCarriers

Legalese:Legalese:

Signatory Signatory – An entity that signs and – An entity that signs and agrees to abide by the terms of a agrees to abide by the terms of a document.document.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.6Search the Web 13.6

Rail travel takes longer than air Rail travel takes longer than air travel, but passenger fares, in some travel, but passenger fares, in some cases, make it more cost-effective. Log cases, make it more cost-effective. Log on to the Internet and enter on to the Internet and enter www.amtrak.comwww.amtrak.com

1.1. At the site, price a passenger fare At the site, price a passenger fare between New York City and Chicago.between New York City and Chicago.

2.2. Now price the same trip by airplane on Now price the same trip by airplane on www.Travelocity.comwww.Travelocity.com

3.3. Compare the travel time involved with Compare the travel time involved with the fare savings. To whom do you believe the fare savings. To whom do you believe train travel would be most appealing?train travel would be most appealing?

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Transportation and Common Transportation and Common CarriersCarriers

Legalese:Legalese:

Maritime Law Maritime Law – Also called “admiralty – Also called “admiralty law” or “the law of admiralty”, the law” or “the law of admiralty”, the laws, regulations, international laws, regulations, international agreements, and treaties that govern agreements, and treaties that govern activities in navigable waters.activities in navigable waters.

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Potential Liability Issues for the Potential Liability Issues for the Transportation IndustryTransportation Industry

1.1. Legal jurisdiction.Legal jurisdiction.

2.2. Overbooking.Overbooking.

3.3. Responsibility for baggage.Responsibility for baggage.

4.4. Unplanned changes in itinerary.Unplanned changes in itinerary.

5.5. Industry-specific issues.Industry-specific issues.

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TourismTourism

Legalese:Legalese:

Gaming Gaming – Legalized gambling.– Legalized gambling.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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TourismTourism

Legalese:Legalese:

Time-share Time-share – A form of shared property – A form of shared property ownership in which a buyer acquires ownership in which a buyer acquires the right to occupy a piece of real the right to occupy a piece of real estate, such as a condominium in a estate, such as a condominium in a resort area, for a specific period of resort area, for a specific period of time each year.time each year.

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TourismTourism Legalese:Legalese:

Amusement Park Amusement Park – An entertainment facility – An entertainment facility featuring rides, games, food, and featuring rides, games, food, and sometimes shows. Theme parks are sometimes shows. Theme parks are amusement parks in which the rides, amusement parks in which the rides, attractions, shows, and buildings revolve attractions, shows, and buildings revolve around a central theme or group of around a central theme or group of themes. Examples include the Disney and themes. Examples include the Disney and Universal Studies owned amusement Universal Studies owned amusement parks.parks.

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Search the Web 13.7Search the Web 13.7

Log on to the Internet and enter Log on to the Internet and enter www.nagra.comwww.nagra.com

1.1. At the site, click on About NAGRA.At the site, click on About NAGRA.

2.2. Next, click on Vision and Goals.Next, click on Vision and Goals.

3.3. Why would standardization among Why would standardization among regulations be important for the regulations be important for the continued development of the continued development of the gaming industry?gaming industry?

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Potential Liability Issues for Potential Liability Issues for Gaming OperationsGaming Operations

1.1. Accountability for reckless gaming Accountability for reckless gaming behavior.behavior.

2.2. Employee working conditions.Employee working conditions.

3.3. Internet gambling.Internet gambling.

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Potential Liability Issues for Potential Liability Issues for Resort/Time-Share OperationsResort/Time-Share Operations

1.1. Economic and Environmental Economic and Environmental impact of resorts and resort impact of resorts and resort activities.activities.

2.2. Deceptive sales tactics.Deceptive sales tactics.

3.3. Rights in event of default.Rights in event of default.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.8Search the Web 13.8

The time-share industry has been The time-share industry has been helped tremendously by the entrance of helped tremendously by the entrance of large and well-established hotel large and well-established hotel companies seeking to promote the companies seeking to promote the resorts they own and operate.resorts they own and operate.

Log on to the Internet and enter Log on to the Internet and enter www.hiltongrandvacations.comwww.hiltongrandvacations.com

1.1. Click on Discover Ownership.Click on Discover Ownership.2.2. Click on How It Works.Click on How It Works.3.3. Do you believe Hilton does a good job Do you believe Hilton does a good job

explaining the advantages and explaining the advantages and limitations of a time-share purchase?limitations of a time-share purchase?

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TourismTourism

Legalese:Legalese:

Nondisturbance clause Nondisturbance clause – A clause in a – A clause in a contract that stipulates that leases or contract that stipulates that leases or other ownership investments in the other ownership investments in the property will be allowed to continue property will be allowed to continue uninterrupted in the event of a uninterrupted in the event of a default or insolvency by the default or insolvency by the landlord/seller.landlord/seller.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Potential Liability Issues for Potential Liability Issues for Amusement ParksAmusement Parks

1.1. Safety of activities.Safety of activities.

2.2. Performance expectations.Performance expectations.

3.3. Litigation related to employee Litigation related to employee training.training.

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Analyze the Situation 13.2Analyze the Situation 13.2

Sandra Wilkens was a roller-coaster Sandra Wilkens was a roller-coaster enthusiast who, along with others, attended enthusiast who, along with others, attended the Harley Amusement park’s “Roller Fest”, a the Harley Amusement park’s “Roller Fest”, a POP (pay one price) event featuring unlimited POP (pay one price) event featuring unlimited roller-coaster riding by all attendees. Sandra, roller-coaster riding by all attendees. Sandra, 25 years old, paid the $50 admission fee and 25 years old, paid the $50 admission fee and was, at the time of her fatal accident, riding was, at the time of her fatal accident, riding the Superman, a wooden double-loop the Superman, a wooden double-loop coaster. On the final loop, Sandra was thrown coaster. On the final loop, Sandra was thrown from the coaster and killed. Witnesses say from the coaster and killed. Witnesses say she was standing in the coaster car as it she was standing in the coaster car as it approached the final loop. approached the final loop.

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Analyze the Situation 13.2Analyze the Situation 13.2

Sandra’s family filed suit against the Sandra’s family filed suit against the park and its state ride inspectors, claiming park and its state ride inspectors, claiming negligence because Sandra was placed in a negligence because Sandra was placed in a car where she had the ability to stand up. car where she had the ability to stand up. Park officials countered that all riders were Park officials countered that all riders were informed, via a public address system, not informed, via a public address system, not to stand during the ride’s operation. In to stand during the ride’s operation. In addition, they pointed to posted signs that addition, they pointed to posted signs that warned riders not to stand up during the warned riders not to stand up during the entire length of the ride. entire length of the ride.

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Analyze the Situation 13.2Analyze the Situation 13.2

Further, they said, the ride was Further, they said, the ride was operating properly, all rider restraints had operating properly, all rider restraints had been inspected and approved that been inspected and approved that morning, and Sandra had taken morning, and Sandra had taken inadvisable action to defeat the restraining inadvisable action to defeat the restraining devices built into the ride. devices built into the ride.

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Analyze the Situation 13.2Analyze the Situation 13.2

1.1. What level of responsibility should the park What level of responsibility should the park operators be assigned for Sandra’s operators be assigned for Sandra’s behavior?behavior?

2.2. List five specific actions the park List five specific actions the park management could take or institute to help management could take or institute to help eliminate such guest behavior in the future.eliminate such guest behavior in the future.

3.3. What similar situations might you face in What similar situations might you face in your own area of hospitality where your own area of hospitality where responsibility for guest injury may be all or responsibility for guest injury may be all or partially related to guest behavior?partially related to guest behavior?

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Search the Web 13.9Search the Web 13.9

E-commerce sites, by definition, must E-commerce sites, by definition, must allow consumers to buy while at the sites. allow consumers to buy while at the sites. PayPal is one example of a credit-card PayPal is one example of a credit-card processing company required to allow such processing company required to allow such purchasinig. Log on to the Internet and enter purchasinig. Log on to the Internet and enter www.paypal.comwww.paypal.com

1.1. When you arrive, click on Merchant Tools.When you arrive, click on Merchant Tools.2.2. Next, review the Buy Now and Shopping Cart Next, review the Buy Now and Shopping Cart

options.options.3.3. Describe the differences between these two Describe the differences between these two

options.options.4.4. Which do you believe would be the best choice Which do you believe would be the best choice

for a business in the hospitality industry?for a business in the hospitality industry?

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Online Travel SalesOnline Travel Sales

Legalese:Legalese:

Global Distribution System (GDS) Global Distribution System (GDS) – An – An interconnected computer system that interconnected computer system that connects travel professionals connects travel professionals worldwide to those companies selling worldwide to those companies selling travel services. travel services.

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Legal Issues Related to Online Legal Issues Related to Online Travel SalesTravel Sales

1.1. Parties to the contract.Parties to the contract.

2.2. Data interface issues.Data interface issues.

3.3. Data security/ownership issues.Data security/ownership issues.

4.4. Forum (venue) selection issues.Forum (venue) selection issues.

5.5. Lawful advertising.Lawful advertising.

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Search the Web 13.10Search the Web 13.10

Hospitality managers and service providers Hospitality managers and service providers seeking to offer consumers the ability to seeking to offer consumers the ability to reserve online can choose from a variety reserve online can choose from a variety of options. Log on to the Internet and of options. Log on to the Internet and enter. enter. www.webervations.comwww.webervations.com

1.1. When you arrive, click on Online When you arrive, click on Online Reservations.Reservations.

2.2. Describe the differences between a Describe the differences between a “reservation request” and a “real time “reservation request” and a “real time reservation”.reservation”.

3.3. Why would a hotel manager elect to Why would a hotel manager elect to choose one or the other?choose one or the other?

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Legal Issues Related to Online Legal Issues Related to Online Travel SalesTravel Sales

Legalese:Legalese:

Forum (venue) selection clauseForum (venue) selection clause – A – A statement in a contract identifying statement in a contract identifying the agreed-on tribunal for resolving the agreed-on tribunal for resolving legal disputes related to the legal disputes related to the contract’s terms.contract’s terms.

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What Would You Do?What Would You Do?

You are the manager of a franchised, 90-You are the manager of a franchised, 90-room limited-service hotel property located room limited-service hotel property located across the highway from 7 Flags. One of the across the highway from 7 Flags. One of the most popular packages your hotel sells includes most popular packages your hotel sells includes a two-night stay (in on Friday, out on Sunday a two-night stay (in on Friday, out on Sunday morning), complimentary breakfast, and tickets morning), complimentary breakfast, and tickets to 7 Flags. You purchase the tickets, in quantity, to 7 Flags. You purchase the tickets, in quantity, from the 7 Flags group sales department. Your from the 7 Flags group sales department. Your packages are marketed directly by your hotel packages are marketed directly by your hotel and sold through select travel agents to whom and sold through select travel agents to whom you pay a sales commission.you pay a sales commission.

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What Would You Do?What Would You Do?

At 3:00 p.m. on a Saturday afternoon in July, At 3:00 p.m. on a Saturday afternoon in July, lightning from a sever summer thunderstorm lightning from a sever summer thunderstorm strikes a major electrical transformer in the area, strikes a major electrical transformer in the area, causing an area power outage that includes the causing an area power outage that includes the amusement p ark and results in the park’s amusement p ark and results in the park’s immediate closure. Your hotel is sold out. The immediate closure. Your hotel is sold out. The power company is unsure how long it will take to power company is unsure how long it will take to fully restore power, but its estimate is hours, not fully restore power, but its estimate is hours, not minutes. Your own hotel has a backup generator, minutes. Your own hotel has a backup generator, thus essential hotel services such as emergency thus essential hotel services such as emergency lighting and power to the property management lighting and power to the property management system (PMS) are maintained. system (PMS) are maintained.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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What Would You Do?What Would You Do?

Your lobby, however, is filled with families Your lobby, however, is filled with families seeking to check out (it is 4:30 p.m.) so they can seeking to check out (it is 4:30 p.m.) so they can leave the area and drive back to their homes leave the area and drive back to their homes (where most of them will have power). (where most of them will have power). Approximately 60 guests want to check out. Approximately 60 guests want to check out. None of these guests believe they should have None of these guests believe they should have to pay for their Saturday night stay because, due to pay for their Saturday night stay because, due to the power outage, they will not use their to the power outage, they will not use their reserved room. Some want a refund for Friday reserved room. Some want a refund for Friday night as well, claiming the hotel did not provide night as well, claiming the hotel did not provide the complete two-day “package” that was the complete two-day “package” that was promised.promised.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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What Would You Do?What Would You Do?

1.1. Would you bill these 60 guests for Saturday Would you bill these 60 guests for Saturday night’s stay, even if they elect to leave?night’s stay, even if they elect to leave?

2.2. Would you give the guests any other Would you give the guests any other compensation?compensation?

3.3. Would your course of action be affected if you Would your course of action be affected if you learned the theme park had made the decision learned the theme park had made the decision to refund the price of admission to all those who to refund the price of admission to all those who entered the park that day?entered the park that day?

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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4.4. If the theme park had made the refund If the theme park had made the refund mentioned, do you believe the amount of mentioned, do you believe the amount of the refund belongs to the disappointed the refund belongs to the disappointed park attendee or to your hotel?park attendee or to your hotel?

5.5. Describe briefly how the decision you Describe briefly how the decision you make will affect:make will affect:

1.1. Your relationship with the theme park’s Your relationship with the theme park’s management.management.

2.2. The relationship with your franchisor.The relationship with your franchisor.3.3. Your relationship with travel agents Your relationship with travel agents

marketing your package.marketing your package.

What Would You Do?What Would You Do?

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Rapid ReviewRapid Review

1.1. Identify the five major components of Identify the five major components of the travel industry.the travel industry.

2.2. Detail the legal relationship that exists Detail the legal relationship that exists between the three parties when a between the three parties when a travel agent sells to a client a travel travel agent sells to a client a travel package marketed by a tour operator.package marketed by a tour operator.

3.3. Specify at least two legal issues that Specify at least two legal issues that would be considered unique to the would be considered unique to the transportation industry.transportation industry.

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© 2005 Stephen C. Barth P.C. and John Wiley & Sons, Inc.

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Rapid ReviewRapid Review

6.6. Tribal gaming is a controversial issue in many Tribal gaming is a controversial issue in many communities. Prepare a list of five points communities. Prepare a list of five points explaining your support for or opposition to its explaining your support for or opposition to its expansion.expansion.

7.7. Write a paragraph explaining why you might Write a paragraph explaining why you might seek employment in the gaming, resort, or seek employment in the gaming, resort, or amusement park industries. What might be amusement park industries. What might be some disadvantages of such employment?some disadvantages of such employment?

8.8. The Internet is popular among travelers. Discuss The Internet is popular among travelers. Discuss your view of how the Internet will impact the your view of how the Internet will impact the travel agent and tour operator segments of the travel agent and tour operator segments of the travel industry in the coming years.travel industry in the coming years.