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BOP247 · Travel Agent of 22© Cobweb Information Ltd, 2015

Travel AgentBusiness Opportunity Profile

BOP247 · March 2015

Introduction

Travel agents source, arrange and book accommodation, flights and other services such asexcursions for holiday, business and leisure travellers to both UK and overseas destinations. Theyact as agents on behalf of travel suppliers such as airlines and hotels, sell package holidays onbehalf of tour operators and often provide related services such as currency exchange, car rental,travel insurance and advice about visas, passports and vaccinations.

Travel agents who book and sell flights must hold an Air Travel Organisers' Licence (ATOL). Theprovision of package holidays is strictly regulated under the Package Travel, Package Holidaysand Package Tours Regulations 1992 (PTRs), which are expected to be updated when newlegislation comes into force in the UK in 2017 under the revised European Directive on 'PackageHolidays and Assisted Travel Arrangements'.

Travel agents should not be confused with tour operators. While travel agents act as agentsfor suppliers, tour operators provide package holidays and act as the principal in relation tobookings made by customers. For more information about tour operators, see BOP 407, TourOperator.

The UK travel industry is dominated by international providers, such as Thomas Cook andThomsons, which often operate as both travel agents and tour operators. Hays Travel, the UK'slargest independent travel agency, has more than 100 branches and reported an annual turnoverof more than £650 million in 2014.

This profile provides information about starting up and trading as an independent travel agent. Itdescribes the skills required, the training available, the current market trends and the key tradingissues. It also identifies the main legislation that must be complied with and provides sources offurther information.

What qualifications and skills are required?

While there are no mandatory qualifications required to trade as a travel agent, independentagents require considerable experience and knowledge of the travel and tourism industry, anunderstanding of the regulations that apply to their sector, and extensive, up-to-date knowledgeof holiday destinations, resorts, accommodation and activities, as well as any political and healthfactors affecting travel.

The following courses are suitable for start-up travel agents, or those who need to develop theirskills further, and for their less experienced staff:

• Level 3 Certificates and Diplomas in Travel and Tourism, which are accredited by variousawarding bodies, including City & Guilds and Edexcel. The qualifications include optionalunits such as 'Promotions and Sales in Travel and Tourism', 'Customer Service in Traveland Tourism', 'Long-haul Travel Destinations', 'Tourism in the UK' and 'Arranging Business


Travel'. City & Guilds also accredits Level 2 Awards, Certificates, Extended Certificatesand Diplomas in Travel and Tourism. Go to www.cityandguilds.com/qualifications-and-apprenticeships/travel-tourism-and-aviation for more information about the variousqualifications, which are delivered at training centres throughout the UK. Course fees varywith location. Go to www.west-thames.ac.uk/en/courses/subject/travel-and-tourism andwww.sunderlandcollege.ac.uk/courses/btec-level-3-diploma-in-travel-and-tourism-qcf forexamples of training centres and course fees.

• Online Travel Training (OTT) e-learning Global Distribution System (GDS) courses. Theseinclude 'Amadeus Introduction', which costs £199 and takes 50 hours to complete, 'AmadeusExpert', which costs £229 and takes 70 hours to complete, 'Amadeus - Airline Reservations',which costs £160 and takes 40 hours to complete, and 'Amadeus - Hotel Reservations', whichcosts £115 and takes 20 hours to complete. Go to www.onlinetraveltraining.com/uk/gds-skills-training for more information.

• OTT also provides 'Product Training' courses covering topics such as business travel, car hireand airlines. There are separate courses covering the services provided by Aegean Airlines,Air Canada and British Airways. Most Product Training courses are provided free of charge.Go to www.onlinetraveltraining.com/uk/product-training for more information.

• Travel agents arranging overseas holidays, particularly agents specialising in niche activitiesor destinations that are less likely to be covered by English-speaking providers, will benefitfrom speaking several foreign languages. The Rosetta Stone offers online courses inmore than 20 languages covering fundamental vocabulary and language structure. Go towww.rosettastone.co.uk/business/foreign-language-solutions for more information.

Anyone starting up in business as a travel agent will benefit from training in general business andenterprise skills. Suitable courses include:

• Free webinars provided by HM Revenue & Customs (HMRC) covering topics includingbusiness expenses, self assessment online, VAT, self employment and becoming anemployer. Go to www.gov.uk/government/collections/hmrc-webinars-email-alerts-and-videos for more information.

• Introduction to Buying, which is a one-day course provided by PTP that covers topics suchas negotiation skills and understanding value and costs. The course is delivered regularlyat training centres around the UK, and costs £450 (excluding VAT). Go to www.ptp.co.uk/training-courses/introduction-to-buying for more information.

• Contracts of Employment, Recruitment and Selection, which is a distance learning courserun by Stonebridge Associated Colleges that may benefit travel agents new to recruitingstaff. The course costs from £60. Go to www.stonebridge.uk.com/course/contracts-of-employment-recruitment-and-selection-byte-size for information.

• 'Social media marketing', which is an online course costing £349 provided by The DigitalMarketing Institute. The course covers the latest trends in social media marketing and usingFacebook, Twitter and LinkedIn for business. Go to http://digitalmarketinginstitute.com/uk/courses/social-media-marketing for more information.

• The CIM Foundation Certificate in Marketing, which is a distance learning course requiring160 hours of study, provided by the Home Learning College. The course fee includesmembership of the Chartered Institute of Marketing (CIM) and covers writing a marketingplan, understanding customer behaviour and segmenting customers to understand their


needs. More information and details of course fees are available on request from HomeLearning College (www.homelearningcollege.com/courses/marketing/cim/cim-foundation-certificate-in-marketing).

Apprenticeships

Travel agents often take on trainees as apprentices. The travel agent is required to provideappropriate training and mentoring, but funding is available towards the cost of training,depending on the apprentice's age and where in the UK the agent is based.

Go to www.gov.uk/take-on-an-apprentice for more information about Apprenticeships inEngland.

For information about funding for Apprenticeships in Wales go to www.careerswales.com/employers/server.php?show=nav.9829.

Go to www.ourskillsforce.co.uk/modern-apprenticeships/funding-a-modern-apprenticeship formore information about Modern Apprenticeships in Scotland.

Information about Apprenticeships in Northern Ireland can be found atwww.nibusinessinfo.co.uk/node/14880.

Industry awareness

Travel agents can keep up to date with news and developments in their sector by attendingevents and reading trade journals and industry resources, including:

• 'Destination UK' (www.destination.uk.com), which is an online trade journal providing newsand information about tourism and visitor attractions across the UK, as well as in-depthfeatures about market trends and opportunities.

• 'TTG' (www.ttgdigital.com), which is an online and print-based trade journal for travelprofessionals. It provides industry news and opinion and details of forthcoming networkingevents. Registered users can also access online training and sales and marketing resources.

• 'World Travel Market' (WTM, www.wtmlondon.com), which is an annual four-day trade eventheld each November at Excel, London. It provides opportunities to network with exhibitorsfrom all sectors of the travel and tourism industry, including UK and overseas tour operators,international airlines, car hire services and cruise providers.

• TravelMole (www.travelmole.com), which is an online community for the travel and tourismindustry that provides industry news and comment, networking opportunities and supplierdirectories.

• 'The Local' (www.thelocal.at), which publishes news stories in English covering a range ofEuropean countries, including France, Spain and Germany.

• Networking events and opportunities for members of the Association of IndependentTour Operators (AITO) including the annual Overseas Conference and online forums(www.aito.com/aito-membership/aito-benefits).

• 'Travel Wantapreneur' (www.traveltrust.co.uk/Default.aspx?tabid=56), which is a websitepublished by the Travel Trust Association (TTA) that provides advice and guidance for travelagents to help them set up and run their travel service.


What are the key market issues and trends?

Some of the key current market issues affecting travel agents are as follows:

• The travel industry experienced a "mood of buoyancy" in 2014 compared to "the pits" of2009, according to John Hays, the founder of Hays Travel, who reported that passengernumbers increased by 9% during 2014. In particular the number of long-haul and cruisebookings rose. Hays' profit margins increased by almost 11% between October 2013 andOctober 2014, and total sales and commission within the Hays group overall increasedby 14% and 15% respectively during the same period. Go to www.travelweekly.co.uk/Articles/2014/11/24/51233/hays-hails-mood-of-buoyancy-as-profits-rise.html for details.

• Many consumers now book holidays for themselves online instead of using a travel agent,and bookings are increasingly made on mobile devices. In 2014, 18% of consumers whobooked holidays online used a tablet, up from 10% in 2013, while 17% used a mobile phone,up from 13% in 2013. Laptops and PCs remained the most popular devices for bookingholidays online, with 93% of consumers using them in 2014, a slight decrease from 97% in2013 (http://abta.com/news-and-views/news/booking-via-tablets-surges).

• The number of Britons who had been on holiday within the previous twelve months fell from83% in August 2013 to 80% in August 2014, according to ABTA's Consumer Holiday TrendsReport 2014. Around four in ten (41%) people had taken domestic and overseas holidaysin the same period, 27% had taken UK-only holidays, and around 12% had holidayedexclusively abroad. Around 45% of UK holidays were booked directly with service providers,while 26% were booked with a booking website such as Booking.com or Expedia, 16% werebooked directly with tour operators, 16% with travel agents online and 10% with high-streettravel agents. Go to http://abta.com/resource-zone/publication/the-consumer-holiday-trends-report-2014 for details.

• The same ABTA report revealed that survey respondents aged between 25 and 34 took thegreatest number of holidays (around four holidays each on average) between July 2013 andJuly 2014, in contrast with respondents aged between 45 and 54, who typically took aroundthree holidays during the same period. Half of respondents said they had travelled with theirpartner, 35% with their immediate family, 20% with an adult-only group of friends, 19% withextended family and 13% on their own.

• The most popular overseas destinations for British travellers in 2014 included Spain, France,Italy, the USA, Portugal, Greece, Turkey, the Netherlands, Belgium and Ireland, accordingto the ABTA Travel Trends Report 2015. The report indicates that short haul destinationssuch as Italy, Barcelona and Paris will remain popular for 2015, while common long hauldestinations will include the USA, Australia, New Zealand, Mexico, Canada and Thailand(http://abta.com/resource-zone/publication/abta-travel-trends-report-2015).

• In a survey carried out by VisitEngland in September 2014, 21% of respondents in the UKsaid they had cut back on holiday spending. Of the respondents surveyed, 17% said theywere holidaying more in the UK and less abroad, and 15% said they were increasing thenumber of short breaks they were taking and reducing the number of long trips. Go towww.visitengland.org/bounce.aspx?PG=/Images/Sept%20Debrief%20FINAL%20131014_for%20website_tcm30-43055.pdf for more information.

• There were 47.7 million domestic holiday trips made in the UK from January to October2014, which is a 6% decrease on the number of trips made during the same period of 2013,


according to the Great Britain Tourism Survey (GBTS) October 2014 Update. The amountof money spent by domestic holidaymakers also decreased by around 2% in January toOctober 2014 compared with the same period in 2013 (www.visitengland.org/insight-statistics/major-tourism-surveys/overnightvisitors/GBTS_2014/GBTS2014.aspx).

• According to a survey of 3,000 adults for the Travelodge hotel chain's 2014 StaycationReport, 74% of UK adults took 'staycations' in 2014, which is a record high and more thandouble the figure of 35% recorded in 2011. The report also revealed that 51% of Britons takeshort breaks throughout the year rather than one long holiday. The top ten destinations forstaycations were London, Cornwall, Edinburgh, the Scottish Highlands, the Lake District,Devon, North Wales, York, Blackpool and Brighton (www.travelodge.co.uk/press_releases/press_release.php?id=548).

• Honeymoon couples are a key customer group for travel agents. In 2014 couples spentan average of £3,931 on their honeymoon, according to a reader survey conducted byBrides magazine (www.bridesmagazine.co.uk/planning/general/planning-service/2013/01/average-cost-of-wedding).

• A record 23 million passengers are expected to go on cruise holidays in 2015, accordingto research published by the Cruise Lines International Association (CLIA). Almost twothirds (62%) of cruise passengers surveyed had been on a cruise before, and 69% saidthey thought cruise holidays were better value than land-based holidays. Caribbeancruises make up over a third of the cruise market share, with other popular destinationsincluding the Mediterranean, Asia and Australia (http://cruising.org/regulatory/news/press_releases/2015/02/state-cruise-industry-2015-see-robust-growth).

• In November 2014, Cruise Lines International Association (CLIA) UK and Ireland announcedthat details of river cruises were to be added to industry resource Cruisexperts.co.uk by 2015.The CLIA described the move as a natural progression for the association, particularly as rivercruise bookings by UK passengers rose by more than 22% during 2013, compared to a riseof less than 2% for ocean cruises. Go to www.travelweekly.co.uk/Articles/2014/11/18/51176/clia+to+reflect+river+cruise+surge+with+new+resources+for+agents.html for details.

• From April 2015, the two highest Air Passenger Duty (APD) tax bands will be abolished,which will lower the tax cost of flying long haul. All flights currently taxed in bands C and Dwill be moved to band B, which will save air passengers over £200 million per year, accordingto ABTA (http://abta.com/news-and-views/policy-zone/more/air-passenger-duty).

• The Consumer Protection (Payment Surcharging) Regulations came into effect in April2013, and prohibit businesses from imposing excessive fees for payments made by creditcard. Alan Bowen, legal advisor to the Association of ATOL Companies, admitted that suchcharges were a source of profit for some travel agencies, following an investigation bythe BBC, which revealed that several agencies were contravening the newly introducedRegulations. Go to www.ttgdigital.com/news/agents-rapped-by-bbc-over-excessive-charges/4687367.article for more information.

• The Package Travel, Package Holidays and Package Tours Regulations 1992 (PTRs) are likelyto be updated by the introduction of new legislation in 2017 under the revised EC Directiveon 'Package Holidays and Assisted Travel Arrangements' (the Package Travel Directive orPTD). The revisions to the Regulations will bring package holidays sold by online travelagents within the scope of the PTRs and are also likely to affect the ATOL licensing scheme.


Go to http://abta.com/news-and-views/policy-zone/more/package-travel-directive-and-regulations for details.

• Travel agency franchises provide both opportunities and competition for anyonestarting up as an independent travel agent. Examples include Cruise Holidays(www.joincruiseholidays.co.uk), which provides a home-based franchise for an initialinvestment fee of around £16,000 and a retail franchise for around £20,000, and ExplorerTravel (www.explorertravel.co.uk), which provides an online travel agency franchise for aninitial investment fee of around £12,000.

• Independent travel agents face competition from the established travel agency groups suchas the Thomas Cook Group, Hays Travel and Thomsons, as well as leading travel websitessuch as Booking.com, Expedia and Travel Supermarket, which enable individuals to makebookings themselves. In December 2014, there were 8,850 travel agents in the UK listed onYell.com, indicating the highly competitive nature of this sector.

What are the main trading issues?

Some of the main trading issues faced by travel agents include:

Air Travel Organiser's Licence (ATOL)

Under the Civil Aviation (Air Travel Organisers' Licensing) Regulations 2012, all UK air travelsuppliers selling flights, whether separately, part of a package holiday or as a 'flight-plus' deal,must hold an ATOL. The scheme is run by the Civil Aviation Authority (CAA) and provides a fundof money based on contributions made by ATOL holders that compensates customers if theirtravel company fails. ATOL holders must pay an ATOL Protection Contribution (APC) of £2.50 perpassenger each time a flight is sold.

However, a travel agent who only sells flights on behalf of tour operators that hold an ATOL doesnot need their own licence. There must be a formal agency agreement in place between the touroperator as principal and the travel agent to authorise the sale of flights by the agent.

Other exemptions cover travel agents who belong to an Accredited Body, which holds an ATOLLicence on behalf of its members. Examples of Accredited Bodies include travel agents suchas Hays Travel Ltd (www.haystravelhomeworking.co.uk) and Travel Counsellors Ltd (http://recruitment.travelcounsellors.com/gb), which enable individuals to set up and work from homeon a self-employed basis as 'Personal Travel Consultants' or 'Travel Counsellors'.

Travel agents selling flight-only tickets and acting as airline ticket agents are also exempt fromthe requirement to hold an ATOL.

Go to www.caa.co.uk/default.aspx?catid=2672 for more information about the ATOL scheme.

Under the Regulations, 'flight-plus' holidays (as well as traditional package holidays) are coveredby ATOL. For a holiday to be a flight-plus holiday, the following criteria must be met:

• The holiday must include a flight and overseas accommodation or car hire.

• The flight must depart from the UK or, where alternative transport is used to leave the UK, itmust return to the UK.

• The flight and accommodation or car hire must be booked using the same travel company,and on the same day, or within one day of each other.


• The travel period must be for at least 24 hours and include an overnight stay.

If an ATOL Licence is required by an independent travel agent, the type of licence that must beheld depends on the scale of their business:

• Travel agents intending to sell no more than 500 flights each year over a minimum ofthree years can apply for a Small Business ATOL, which costs £1,115. A £40,000 bond is alsopayable. Before approving their application, the CAA must be satisfied that the travel agentis fit to hold an ATOL.

• Travel agents intending to sell more than 500 flights each year can apply for a standardATOL, which costs £1,890 plus a charge of around £0.12 per passenger. A £40,000 bond isalso payable. Before approving their application, the CAA must be satisfied that the travelagent is fit to hold an ATOL and is financially solvent.

• Travel agents that start up via a franchise and intend to sell no more than 1,000 flights peryear can apply for a franchised ATOL, which is a licence held by the franchisee on behalfof the franchise members, and which costs £710. A bond is not required. Applicants mustsatisfy the CAA that they are fit to hold an ATOL.

Go to www.caa.co.uk/default.aspx?catid=582&pagetype=90 for an overview of the differenttypes of ATOL and to www.caa.co.uk/default.aspx?catid=1092 for more information about howto apply for an ATOL.

Travel agents that are members of ABTA can apply for ATOLs under the ABTA-ATOL JointAdministration Scheme, which entitles them to discounts on ATOL fees. Go to http://abta.com/join-abta/become-a-member/the-abta-atol-joint-administration-scheme for more informationabout the scheme.

Bonds must be held by a CAA-approved insurance company, broker or bank, and renewedannually. A bond is required for a minimum of four years, but the size of the bond may bereduced each time it is renewed. For a list of CAA-approved insurance companies and brokers, goto www.caa.co.uk/default.aspx?catid=244&pagetype=90&pageid=261.

Travel agents must issue customers with an ATOL Certificate immediately on taking payment,making it clear that their flight or package is ATOL-protected. The CAA has publishedguidance about issuing ATOL Certificates, which is available at www.caa.co.uk/default.aspx?catid=2668&pagetype=90&pageid=12958.

Package travel regulations

The Package Travel, Package Holidays and Package Tours Regulations 1992 (the PTRs) implementthe European Directive 90/314/EEC (the Package Travel Directive or the PTD) into UK law. Theyrequire anyone, including travel agents, providing packages for various types of travel, both forprivate and work-related purposes such as holidays and business trips, conferences, educationalvisits and school trips, to comply with strict rules. These cover issues such as marketing, pre-contractual information and cancellations and define a package holiday as a holiday where atleast two of the following components are sold at an inclusive price; transport, accommodation,and other tourist services accounting for a significant proportion of the package.

The PTRs are enforced by local authority trading standards departments in England, Scotlandand Wales, and the Department of Enterprise, Trade and Investment (DETI) in Northern Ireland.Customers can take civil court action against travel agents who have breached the PTRs.


Go to www.gov.uk/government/publications/the-package-travel-regulations-question-and-answer-guidance-for-organisers-and-retailers for guidance on the PTRs.

Protecting client money in relation to package holidays

Under the PTRs, travel agents must ensure that any payments they receive from customers fora package holiday are protected until the holiday has finished, meaning the customer can berefunded if the tour operator or any of their suppliers become insolvent. A travel agent with anATOL is recognised as meeting this requirement to protect client money, while travel agentswithout ATOLs must protect client money by:

• Taking out appropriate insurance.

• Placing payments into a trust account, from which funds can only be withdrawn once therelevant holiday is completed; or

• Purchasing a bond from an Approved Body that is accredited by the Department forBusiness, Innovation and Skills (BIS) under the PTRs (referred to as 'being bonded').

The cost of taking out insurance or becoming bonded can be significant, with bonds typicallyexceeding £10,000, and most travel agents are likely to favour the use of a trust account.However, some professional associations such as ABTA require members to purchase a bond, andmany have their own bonding schemes.

Marketing restrictions and rules for package holidays

Under the Consumer Protection from Unfair Trading Regulations 2008, travel agents must notdescribe a package holiday, the price of a package holiday, or any conditions of the contract for apackage holiday in a way that is misleading.

Additional requirements under the PTRs apply to travel agents marketing package holidays. Forexample, brochures for package holidays must indicate specific information about the holiday,which is listed in Schedule 1 of the PTRs. Information must be legible, comprehensive andaccurate and must include details about the holiday destination and the type of transport, thetype, location and category of accommodation, the meals included in the package, and generalinformation about passport and visa requirements that will apply to the customer.

Subject to exceptions, the information about a holiday package provided in a brochure is treatedas implied terms and conditions (Ts and Cs) of the contract, and therefore binding on the travelagent.

Booking terms and conditions (Ts and Cs) for package holidays

Under the PTRs, travel agents selling package holidays must provide written Terms andConditions of Booking (Ts and Cs) that include:

• The name and trading address of the travel agent.

• Full details of the package, including dates, destinations, the type of transport to be used,itineraries accommodation, and any meals, visits or excursions that are included.

• Whether a minimum number of bookings is required for the package to go ahead, and if so,the deadline for informing customers of a cancellation.


• The price of the package and an indication of any possible changes and any extra charges ortaxes that are not included, the payment schedule and method of payment.

• Any special requirements that have been agreed between the customer and the travelagent.

Additional pre-contractual information, as well as post-contractual information, must also besupplied by travel agents selling package holidays.

Examples of required additional pre-contractual information include:

• General information about passport and visa requirements, including information about thelength of time it is likely to take to obtain the appropriate passports and visas.

• Information about health formalities required for the journey, destination and the length ofstay.

• The agent's procedures and policy for client money protection and, if applicable,arrangements for repatriation in the case of the agent becoming insolvent.

Examples of required additional post-contractual information (that must be provided in goodtime before the start of the trip) include:

• The times and places of intermediate stops and transport connections, and details of thetraveller's accommodation.

• The name, address and telephone number of the travel agent's representative at thecustomer's destination. If there is no such representative, the name, address and telephonenumber of another local agency that the customer can contact if in difficulty must beprovided, and, if there is no such agency, the client must be provided with the touroperator's own contact details.

• Where the traveller is a child aged 15 or under and all or part of the holiday is abroad,information must be provided enabling direct contact to be made (for example bytelephone) with the child or the person responsible at the child's accommodation.

• Unless the customer has been required to take out travel insurance, information about asuitable type of policy that they can take out.

Travel agents selling package holidays on behalf of tour operators will need to be provided witha contract including the tour operator's Ts and Cs to pass on to customers. However, although itis the agent who gives customers the contract, the contract is between the tour operator and thecustomer.

For a working example of Ts and Cs used by a travel agent, go towww.pontelandtravelbureau.co.uk/index.php/terms. It is worthwhile having a solicitor examineTs and Cs to ensure they comply with the law.

Consumer rights and booking requirements for non-package holidays

Travel agents selling travel services and holidays (other than package holidays) directly toconsumers, meaning private individuals booking travel for purposes that are not related to theirtrade, business, craft or profession must comply with the Consumer Contracts (Information,Cancellation and Additional Charges) Regulations 2013 (CCRs), which were introduced in the UKin June 2014.


The CCRs require travel agents to provide consumers with specific pre-contractual informationbefore agreeing to accept a booking and enter into a contract with them. This applies regardlessof how a booking is completed.

The pre-contractual information required includes:

• Details of the travel agent's trading name, address and telephone number.

• Clear details about the specific services the travel agent provides.

• The total price for the booking and any additional charges made, such as charges for using acredit card when paying for or amending a booking.

• Arrangements for payment and details of any deposits required (which are typically non-refundable and charged at between 10% and 25% of the total booking price).

• Details of cancellation rights.

Under the CCRs there is no right to cancel a contract for bus, rail or flight tickets, or to cancelcontracts for hotel bookings, vehicle rental, catering or leisure services if they are to be providedon a specific date or within a specific period, provided this was made clear in the travel agent's Tsand Cs.

The CCRs are enforced by local authority Trading Standards officers who can be contacted foradvice and guidance about complying with these regulations and other consumer protectionlegislation.

Travel agents' right to alter or cancel bookings

The rights of a travel agent to alter and cancel customer bookings depend on what type ofholiday they are selling. In general, an agent selling package holidays has fewer rights to alter orcancel holidays than an agent selling non-package holidays.

Non-package holidays

The rights of a travel agent to alter or cancel a non-package holiday will depend on the Ts and Csof the booking contract between the agent and the customer. Ts and Cs relating to alterationsand cancellations in these circumstances will only be enforceable if they are deemed to be fair bylaw (see the unfair contracts terms section of this profile).

Package holidays

The PTRs restrict the rights of travel agents and tour operators to alter or cancel contracts fora package holiday, even in circumstances where the reason for the alteration or cancellation isbeyond their control, such as civil unrest in the intended destination.

Alterations to the holiday package

Where a package holiday tour operator, such as a travel agent acting as a 'principal' who offersa package that they have put together themselves is required to alter an essential contract termsignificantly before the holiday begins, they must notify the customer of the proposed alterationas quickly as possible. In this situation the customer can cancel the contract without incurringa penalty or accept the alteration to the contract, including any resulting price revision. Thecustomer must inform the tour operator of their decision to cancel as soon as possible.


Where a package holiday tour operator is forced to cancel the contract for a package holidaybefore the holiday has commenced, or a proposed pricing alteration is rejected and the contractcancelled by a customer, the customer has a right to:

• A substitute package of equivalent or superior quality if the tour operator is able to offersuch a substitute.

• A substitute package of lower quality, plus recovery of the difference in price between thesubstitute package and the original package.

• Recovery of all money paid for the original package.

• If appropriate, compensation for non-performance of the contract, unless:

• The cancellation of the original package is due to the number of purchasers fallingbelow the minimum number required, and the customer is informed of the cancellationin writing within a period specified in the package description and Ts and Cs; or

• The cancellation is due to unusual and unforeseeable circumstances beyond the travelagent or tour operator's control, and cancellation could not have been avoided in thesecircumstances even if all due care had been exercised.

Price alterations

Most travel agents and tour operators provide for notification of price alterations when draftingtheir Ts and Cs, which will, provided they are not deemed unfair under the law, be binding on thecustomer. For example, in relation to post-contract price alterations that result from increases intransport costs, supplier costs, or relevant currency or exchange rates, Jet2 Holidays' Ts and Csstate that they:

• Will absorb any price alterations up to 2%.

• Will be entitled to alter the price of a holiday package by up to 10% until 30 days beforedeparture, and stipulate that an administration charge of £1 per person and an amount tocover agents' commission will also be payable.

If a price alteration of more than 10% is required Jet2 states that:

• Provided they do so within 14 days of receiving notice of the proposed amendment, thecustomer will be entitled to change to another holiday or cancel the holiday and receive afull refund.

• If the customer fails to change to another holiday or cancel within 14 days, the customer willbe liable to pay the new altered price.

Go to www.jet2holidays.com/terms-and-conditions to see these Ts and Cs in full.

Unfair contract terms

The Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) protect UK consumers fromcontract terms that are unfairly balanced in favour of traders. (These Regulations are expectedto be amended or replaced by the Consumer Rights Act 2014, which is due to be introduced in2015).

The UTCCRs list terms that are automatically deemed unfair, such as those excluding liabilityfor death or serious injury, and provide that any contract term is deemed unfair if it causes a


significant imbalance in the parties' rights and obligations to the detriment of the consumer.When deciding if a term is unfair, a court will take into account whether it is difficult tounderstand or has been drafted in a way that means it could be used to harm, mislead or confusethe consumer.

The Office of Fair Trading (OFT), which, prior to April 2014, was the body responsible for enforcingthe UTCCRs, has published examples of unfair terms that have been included in package holidayagreements.

Since April 2014, the UTCCRs have been enforced by the Competition and Markets Authority(CMA) in England, Wales and Scotland, and the Department for Enterprise, Trade and Investmentin Northern Ireland (the DETINI). However, the CMA has approved the OFT guidance andpublished it, together with general information about unfair terms, at www.gov.uk/government/publications/unfair-terms-in-package-holiday-contracts and www.gov.uk/government/publications/unfair-standard-terms-in-consumer-contracts.

Guidance to the UTCCRs for traders in Northern Ireland (also originally published by the OFT) canbe downloaded from www.detini.gov.uk/index/access-to-information/deti-guidance/consumer-affairs-guidance.htm.

Sourcing package holidays and holiday components

Details of tour operators can be found via specialist online directories and trade associations suchas:

• Wanderlust, which lists tour operators providing both international and domestic tours(www.wanderlust.co.uk/tripfinder/operator/directory).

• Britain Express, which lists operators providing tours in England, Wales and Scotland(www.britainexpress.com/great_british_sites/tour-ops.htm).

• The Association of Independent Tour Operators (AITO), which represents independenttour operators trading in the UK and publishes a searchable members' directory atwww.aito.com/aito-members and details of currently available tours at www.aito.com/travelagents.

• The European Tour Operators Association (ETOA), which represents the European touroperator industry and publishes a list of members at www.etoa.org/member-search.

Travel agents usually use a Global Distribution System (GDS) such as Amadeus to source holidaycomponents directly from travel and tourism providers. A GDS provides travel agents andother travel professionals with access to services from a range of industry suppliers from the UKand overseas, and allows the agent to manage the reservation and purchase of airline tickets,accommodation and other tourist services.

GDS software suppliers include:

• Amadeus, which provides a GDS that features automated invoicing facilities, tools tocalculate fees, margins, currency exchange rates and online reservation managementfunctions. Go to www.amadeus.com for more information about software options andprices.


• Dolphin Dynamics, which provides a GDS that features automated booking and facilitiesenabling online booking, blogs and newsletters. Go to www.dolphind.com/sectors/leisure-travel/in-brief for more information about the software and prices.

Online training for most GDS systems is delivered by Online Travel Training (http://ott.travel/gds-training.aspx).

Independent travel agents sourcing services from small, independent travel and tourismproviders will have to contact these providers directly in order to negotiate a bulk reservation orpurchase of services, and will benefit from a basic level of fluency in the appropriate language.

Travel agents usually purchase accommodation and other tourist services in two ways: under anallocation (sale or return) contract, where they reserve accommodation but do not pay for anyservices they have booked but have not actually sold; or a fixed or guaranteed contract wherethey must pay for all of the services they have booked. Accommodation providers in destinationswhere there is very high demand often require travel agents to book accommodation on a fixedcontract basis and the travel agent must bear the risk of rooms they have booked remainingunsold.

Dealing with overseas suppliers

Travel agents dealing directly with overseas suppliers should, as best practice, include 'governinglaw and jurisdiction' clauses in any agreements reached with them, for example when reservingaccommodation.

Governing law clauses and jurisdiction clauses in contracts with international suppliers stipulatethe contract law that will apply to the contract (for example, English law) and in which courtsdisputes will be heard. Contract law varies considerably between countries; for example, termslegally enforceable under the law of one country may not be legally enforceable under the law ofanother. Go to www.ashurst.com/doc.aspx?id_Resource=4642 and www.ashurst.com/doc.aspx?id_Resource=4640 for more information about governing law and jurisdiction clauses.

Overseas suppliers usually require payment in their local currency. The majority of banks andother payment providers charge a transaction cost for processing international payments, whichis typically paid by the money sender - i.e. the travel agent. Alternatively, a travel agent can opena foreign currency account, which enables them to hold money in a specific foreign currency.

Income and cash flow

Travel agents selling package holidays on behalf of tour operators usually take commissionof around 10%-12% of the booking fee charged to the customer. It is typically only when thecustomer has paid for the package that the travel agent passes the full amount to the operator.Commission rates may be dependent on the agent selling a minimum amount of tours.

Some travel agents choose to sell a tour operator's package at a lower price than the operatorrecommends, or pass on a share of their commission to the customer in the form of a discount.Under the Restriction on Agreements and Conduct (Tour Operators) Order 1987, it is unlawfulfor a tour operator to refuse to deal with a travel agent for this reason, or to give preferentialtreatment to another agent because they agree not to offer discounts.

Under the Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001, touroperators are prohibited from requiring agents to offer the same incentives on their packages as


those offered on other operators' packages, or from discriminating against agents for refusing todo this.

Commission on cruises, flights, hotel bookings, car hire and other associated travel services istypically around 10%-15%, although some airlines pay commission at rates as low as 1%.

Travel agents selling or arranging travel insurance on behalf of an insurance provider receivecommission of around 25% of the value of the policy. Some providers will provide commission ata variable rate that depends on the travel agent's sales reaching a minimum amount.

Mark ups charged by travel agents on holiday components vary greatly depending on factorssuch as the type of component, time of year and the provider.

If the travel agent books accommodation, flights and other holiday components and pays in aforeign currency several months later, any changes to the exchange rate between booking andpayment can have a significant effect on their profits. In order to reduce this risk, some banksoffer 'hedging' schemes, under which currencies can be purchased by travel agents at a rateagreed in advance, subject to a fee.

Travel agents normally advertise holidays more than a year in advance but later they are able tocharge customers a different price for non-package holidays from the one originally advertised,if this has been stipulated in the booking terms agreed with the customer. However, alterationsto the price of a package holiday once a contract has been signed are restricted by the PTRs,regardless of whether the cost of the holiday or individual components has risen more thaninitially expected.

Many travel agents enable customers to pay for their packages in instalments. Planning,forecasting demand, and negotiating with suppliers are therefore extremely important insafeguarding profit margins and maintaining a healthy cash flow.

Some travel agents generate extra income by joining an affiliate marketing scheme run byinternational travel and tourism providers such as Thomas Cook (www.thomascook.com/affiliates), Thomson (www.thomson.co.uk/affiliates.html), Jet2 (www.jet2.com/affiliates) andebookers (http://affiliates.ebookers.com). Affiliates are usually paid on a 'cost per sale' (CPS) basis,where the provider pays commission up to around £30 for each booking made by customersreferred to their site via the travel agent's own website.

Taking payment

Travel agents taking payment from customers in person will require a chip and PINmachine to process credit and debit card payments. Examples of providers include https://lloydsbankcardnet.com, www.streamline.com and www.chipandpinsolutions.com. Alternatively,they can be leased from banks. Equipment rental costs between £15 and £35 a month, plus per-transaction charges of around 2%.

It will be necessary to apply for an online merchant account to process online payments.Examples include PayPal (www.paypal.co.uk), WorldPay (www.worldpay.com), PayPoint(www.paypoint.net) and Nochex (www.nochex.com).

Increasing numbers of traders are joining online payment security schemes such as MasterCard SecureCode (www.mastercard.com/uk/merchant/en/security/what_can_do/SecureCode/index.html). Retailers usually join these schemes through their online payment processor.


Travel agents taking bookings online must ensure their ordering process meets the requirementsof the Electronic Commerce (EC Directive) Regulations 2002. This includes providing clearinformation about the technical steps to follow to conclude the contract, and how the consumercan identify any input errors before confirming their booking.

The Consumer Rights (Payment Surcharges) Regulations 2012 prohibit travel agents fromcharging consumers more than it costs them to process a type of payment. For example,travel agents are prohibited from charging clients for using a credit card by an amountthat exceeds the cost to the operator of processing the credit card payment. Guidance onthe 2012 Regulations is available at www.gov.uk/government/uploads/system/uploads/attachment_data/file/175298/13-719-guidance-on-the-consumer-protection-payment-surcharges-regulations-2012.pdf.

VAT registration and liability

Once their turnover reaches the mandatory threshold, travel agents must register for VAT.

HM Revenue & Customs (HMRC) sets out three ways in which a travel agent can operate, whichwill affect their VAT liability:

• As an agent/intermediary. The travel agent sells holiday services on behalf of travel andtourism providers, including tour operators, and receives commission on sales.

• In their own name. The travel agent sells holiday services on behalf of travel and tourismproviders using their own name, with customers remaining unaware of the actual serviceprovider's identity.

• As a principal. The travel agent purchases services from travel and tourism providers then re-sells the services to the customer at a higher price, with the difference in price representingthe agent's main source of income.

Go to www.gov.uk/government/publications/vat-notice-7096-travel-agents-and-tour-operators/vat-notice-7096-travel-agents-and-tour-operators and select 'Introduction' for more information.

Where an agent acts as an intermediary, the value of the supply upon which any VAT may bedue is the amount of commission due from the principal (the provider of the travel and tourismservices) or the fee that the travel agent charges the customer.

Agents acting in their own name or as a principal must account for VAT under the Tour Operators'Margin Scheme (TOMS), although exceptions apply for travel agents that hold a franchise.

Under the TOMS, a VAT-registered travel agent must account for VAT on the difference betweenthe price they paid to the supplier of the services, and the price at which they sell them on tothe customer - the margin. Go to www.gov.uk/government/publications/vat-notice-7095-tour-operators-margin-scheme for more information about the TOMS.

VAT rates on package holiday components vary depending on the type of component. Forexample, admission to some cultural venues including art galleries and museums is exempt fromVAT, passenger transport in a vehicle, aircraft or boat that carries at least ten passengers is zero-rated for VAT, and hotel accommodation is standard-rated for VAT.


Privacy and data protection

To comply with the Data Protection Act 1998 (DPA), any personal details or information aboutcustomers that the travel agent holds should be stored securely, either manually or electronically,fairly and lawfully processed, and used only for their clearly intended purpose.

Travel agents should also check with the Information Commissioner's Office (ICO) to see whetherthey should themselves register as a data controller under the Act. Registration fees are currently£35 per year. Go to https://ico.org.uk/for-organisations/register for details.

The ICO provides a guide to complying with the DPA, which can be viewed at https://ico.org.uk/for-organisations/guide-to-data-protection.

Providing travel insurance

The provision of insurance, including travel insurance, is strictly regulated in the UK. Travel agentsinvolved in selling travel insurance that is connected to their business (known as ConnectedTravel Insurance, or CTI) may need to be authorised by the Financial Conduct Authority (FCA),depending on their involvement:

• Travel agents who pass customer contact details to a broker/insurer must be authorised asan Introducer Appointed Representative (IAR).

• Travel agents who act as a channel for the transmission of information between customersand brokers/insurers or assist customers to complete applications for insurance are likelyto be deemed as arranging insurance and will need to be authorised as an AppointedRepresentative (AR).

• Travel agents recommending whether or not a customer should take out a specific CTIproduct must be authorised by the FCA.

Authorisation is not required for travel agents who advise customers that they should take outtravel insurance, provided that no specific CTI product is recommended, as the agent is exemptfrom the authorisation requirement because they are simply providing 'incidental information'.This exemption applies regardless of whether the agent receives commission on subsequentsales.

Go to www.fca.org.uk/firms/firm-types/insurers/travel for more information about authorisationrequirements.

IARs can only introduce customers to brokers/insurers, while ARs can arrange insurancethemselves, acting as an agent of a principal insurer/broker. In order to become an AR,there must be a written contract between the travel agent and the insurer/broker. Go towww.fca.org.uk/firms/about-authorisation/getting-authorised/Becoming-an-appointed-representative for more information about becoming an AR.

Go to www.travel-general.com/travelinsurance_sell.asp for an example of a broker offering ARand IAR status to travel agents and other travel organisers. The Association of British Insurers(ABI) has a list of members, some of which provide AR and IAR status, which can be viewed atwww.abi.org.uk/About/ABI-members.


Currency exchange

Under the Money Laundering Regulations 2007, a travel agent who provides foreign currencyexchange services must usually be registered with HMRC as a Money Services Business (MSB).

However, travel agents who exchange currency only on a limited basis do not need to register,provided:

• Their turnover from money service activities is less than £64,000 a year or less than 5% oftheir annual turnover.

• Currency exchanges worth more than €1,000 are limited to one per customer.

• The money service activities are secondary to the main business and only available to itscustomers and not to the general public.

• The business is not operating as a Trust or Company Provider or an Accountancy ServiceProvider.

Go to www.gov.uk/money-laundering-regulations-money-service-business-registration for moreinformation about registering as a MSB.

Trade associations

Membership of a trade association can provide a wide range of business benefits. Relevantassociations include:

• ABTA (http://abta.com), which represents the UK's travel industry. Travel agents can join as'principal' members, and benefit from access to training, industry statistics, and up-to-dateinformation about worldwide holiday destinations. Annual membership fees depend onturnover, and start at £817 for agents with a turnover of up to £500,000. An application feeof £330 and a joining fee of £1,200 are also payable, and members without an ATOL mustpay a minimum of £300 towards protecting client money.

• The Travel Trust Association (TTA, www.traveltrust.co.uk), which represents the UK'sindependent travel industry, including independent travel agents. The TTA is also the onlybody authorised to provide franchise ATOLs, which are available to TTA members only, at aconsiderably lower cost than small business or standard ATOLs, and provide protection forup to 20,000 flights per year. Details of the annual membership fee are available on requestfrom the TTA.

• The Association of Independent Tour Operators Agents (AITO Agents, www.aitoagents.com),which is a sub-group of the Association of Independent Tour Operators that onlyaccepts specialist independent travel agents as members. Further details about the strictmembership entry requirements are available on request from AITO Agents.

The ABTA Code of Conduct

Members of ABTA must adhere to its Code of Conduct, Standards on Brochures and BookingConditions and Standards on Websites and Online Trading. Both sets of standards are set out inguidance to the Code and require travel agents to ensure:

• Brochures include the month and year of publication, and the edition number on the frontcover.


• Brochures indicate whether services advertised in brochures are provided by firms that aremembers of ABTA or not.

• Travel websites provide details of their trading name, address, e-mail address and telephonenumber, their usual hours of business and their ABTA membership number, as well asgeneral information about the passport and visa requirements for each destinationadvertised.

The full Code and guidance can be downloaded from http://abta.com/about-abta/code-of-conduct.

Accreditation schemes

Membership of an accreditation or quality assurance scheme can demonstrate to potentialcustomers that the travel agent meets minimum professional standards. Relevant schemesinclude:

• The Green Tourism Business Scheme (GTBS, www.green-business.co.uk), which is asustainable tourism certification scheme for tourism providers across the UK, and is validatedby VisitBritain. A travel agent must have undergone a quality assessment by one of thenational tourist authorities before it can become a member of the GTBS.

• The International Air Transport Association (IATA) accreditation scheme, which enablestravel agents to become agents of IATA members. IATA is the leading trade body for theworld's airlines and represents 250 airlines worldwide.

Full IATA accreditation provides travel agents with authorisation to sell both international anddomestic air tickets on behalf of IATA-member airlines and provides access to a dedicated billingand payment 'interface' that enables efficient invoicing between agents and airlines.

As an alternative to full accreditation, travel agents can join IATA's Travel Industry DesignatorService (TIDS), which is a unique code that enables industry suppliers to recognise bookingsmade by travel agents and speeds up reservations while protecting payments.

Registration with the scheme costs around 1,500 Swiss francs (around £1,000) and the annualscheme membership fee starts from around 140 Swiss francs (around £100). Go to www.iata.org/services/accreditation-travel/accreditation-travel/Pages/index.aspx for more information.

Health and safety

Under the Management of Health and Safety at Work Regulations 1999, all employers, includingthose who are self employed, are required to undertake a risk assessment of their workplace andprovide employees with adequate health and safety training.

The Health and Safety Executive (HSE) publishes guidance for the retail sector atwww.hse.gov.uk/retail, which may be useful for travel agents. According to the HSE, the mostcommon types of accident in a retail environment are slips and trips, manual handling (forexample lifting injuries) and falls from height.

The Workplace (Health, Safety and Welfare) Regulations 1992 stipulate that workplaces mustmeet the health, safety and welfare needs of all employees, including those with disabilities. TheRegulations stipulate requirements for the provision and maintenance of the workplace andequipment, ventilation, temperature, lighting, cleanliness, space, seating, toilets and washingfacilities, and provision of drinking water.


General advertising standards

The UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing (CAP) Coderelates to the rules in the UK governing standards of 'non-broadcast' advertisements.

The CAP Code is administered by the Advertising Standards Authority (ASA, www.asa.org.uk) toprotect the public from misleading marketing communications. For more information about theCAP Code, go to www.cap.org.uk/Advertising-Codes/Non-broadcast-HTML.aspx.

The general principles that apply under the Code are that adverts should be legal, decent, honestand truthful. The Code includes specific guidance relating to holiday promotions, for examplethat advertising must not include exaggerations such as '24-hour service' (used to describe ahotel with 24-hour reception).

Complaints upheld have included those claiming that a brochure included misleadinginformation by describing a hotel as 'family friendly', which led the complainants to assumethat it was located in a quiet area, when it was actually sited among bars and restaurants.The guidance can be viewed at www.cap.org.uk/News-reports/Media-Centre/2013/Holiday-Promotions.aspx.

Promotion

Opportunities for promoting a travel agency include:

• Advertising in specialist online directories such as:

• letmetravel.co.uk (www.letmetravel.co.uk), which provides a free basic listing.

• Travel Agents Finder (www.travelagentsfinder.co.uk), which provides a free basic listingand charges £10 per year for premium listings.

• My Travel Directory (www.mytraveldirectory.co.uk), which charges around £10 for abasic listing.

• Joining See Your Travel Agent (SYTA), which provides a platform for travel agents to talk topotential customers via Skype. Registration is free of charge and a broadband connectionspeed of at least 1 megabyte per second is recommended (http://seeyourtravelagent.com/join_us.php).

• Joining professional bodies such as ABTA that enable potential customers to search formembers online. Go to http://abta.com/go-travel/before-you-travel/find-a-member for anexample.

• Advertising niche holidays in special interest magazines and websites.

• Building links with local independent tour operators, tour guides, accommodation providersand tourism transport providers.

• Creating a Facebook business page to encourage customer referrals. Facebook pages canbe customised with the travel agent's name, logo and other information, and regularlyupdated with customers' holiday reviews, photos of new destinations, holiday advice andspecial offers. Go to www.facebook.com/travelstop and www.facebook.com/oasistravelni forexamples of travel agents with a Facebook business page.

• Creating a five-minute video sample of a holiday, uploading it onto online video sharingwebsites such as YouTube and including a link back to the agent's website. Go to


www.youtube.co.uk and enter 'travel agent UK family holidays' in the search box forexamples of other travel agents doing this.

• Uploading photographs of destinations to photo-sharing websites such as Flickr(www.flickr.com), Tumblr (www.tumblr.com) and Pinterest (www.pinterest.com). Go towww.flickr.com and enter 'UK travel agent family holidays' in the search box for examples ofother travel agents doing this.

• Participating in professional networks such as LinkedIn (www.linkedin.com) to gainintroductions and referrals. There are several groups for travel agents and other travelprofessionals on LinkedIn that may provide networking opportunities.

Insurance

Travel agents require a number of insurance policies including:

• Public liability insurance, which covers an agent against claims from customers, suppliersand members of the public injured or adversely affected as a result of its activities.

• Professional indemnity insurance, which covers an agent against claims of negligence, lossof documents or data and breach of confidentiality.

• Client money protection insurance or Travel Bonds (if the agent is selling package holidaysand does not hold an ATOL).

• Employers' liability insurance, which is mandatory as soon as an agent employs staff.

• Legal expenses insurance, which provides cover for the defence or pursuance of claimsarising from contractual disputes with suppliers and third parties such as tour operators andairlines or landlords, or to defend employment tribunal cases.

• Building and contents cover for the premises, office and IT systems and equipment againstaccidental damage, fire, flood, theft and any business interruption arising as a result.

• Cover for the theft of cash by staff as well as cover for the loss of cash and cheques from thepremises.

• Cover for use of any vehicles for business purposes, which must include a minimum of thirdparty cover.

Specialist insurance for travel agents, which includes cover for injuries to customers whilethey are travelling abroad or on holiday that result from the travel agent's negligence,and Travel Bonds are available from insurers and brokers such as BJP Insurance Brokers(www.bjpinsure.com/travel-agents-tour-operators-insurance-bjp-insurance-brokers.html),Towergate Chapman Stevens (www.towergatechapmanstevens.co.uk/travel-agents-insurance.aspx) and Vantage (www.vantageua.co.uk).

Legislation

This section is intended as a starting point only. It provides an introduction to some of the keylegislation that regulates the activities of travel agents. Professional advice about the impact oflegislation should always be obtained before making any business decisions. Relevant legislationincludes:


• The Civil Aviation (Air Travel Organisers' Licensing) Regulations 2012 govern the provision offlights in the UK, requiring most providers to hold an Air Travel Organiser's Licence.

• The Package Travel, Package Holidays and Package Tours Regulations 1992 (PTRs) governthe provision of package holidays in the UK.

• The Restriction on Agreements and Conduct (Tour Operators) Order 1987 stipulate that it isunlawful for a tour operator to refuse to deal with a travel agent because they chose to sellthe operator's package at a lower price than the operator recommends.

• The Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001 prohibits touroperators from requiring travel agents to offer the same incentives on their packages as areoffered on other operators' packages.

• The Consumer Protection from Unfair Trading Regulations 2008 (as amended by theConsumer Protection from Unfair Trading (Amendment) Regulations 2013) protectconsumers by prohibiting unfair commercial practices including misleading advertising.If a travel agent publishes misleading advertising that deceives a consumer (for exampleas to the quality of hotel accommodation or their professional experience) they will havecommitted a criminal offence. Similar provisions apply under the UK CAP Code.

• The Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) protect consumers fromcontract terms that are unfairly biased in favour of traders.

• The Consumer Rights (Payment Surcharges) Regulations 2012 prohibit travel agents fromcharging consumers more than it costs them to process a credit card payment.

• The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations2013 govern all types of contract between traders and consumers and place particularobligations on providing consumers with pre-contractual information.

• The Supply of Goods and Services Act 1982 stipulates that it is an implied term of anycontract for services that they must be carried out with reasonable skill and care, withina reasonable time and at a reasonable charge. Some provisions of the Act have beenintroduced in Scotland through the Sale and Supply of Goods Act 1994. However, commonlaw in Scotland has a similar effect to the Act.

• The Data Protection Act 1998 stipulates that any personal details that travel agents holdabout customers should be stored securely, either manually or electronically, fairly andlawfully processed and used only for their clearly intended purpose.

• The Management of Health and Safety at Work Regulations 1999 require employers and self-employed people to carry out a risk assessment of their workplace and provide adequatehealth and safety training for employees. In Northern Ireland, the Management of Healthand Safety at Work Regulations (Northern Ireland) 2000 apply.

Further information

To access hundreds of practical factsheets, market reports and small business guides, go to:Website: www.scavenger.net

UK Market Synopsis 66 UK Holidays and Tourism

BOP 40 Tour Guide


BOP 407 Tour Operator

Useful contacts

Association of British Travel Agents (ABTA)Website: http://abta.com

Travel Trust Association (TTA)Tel: (01483) 545780Website: www.traveltrust.co.uk

Association of Independent Tour Operators Agents (AITO Agents)Website: www.aitoagents.com

International Air Transport Association (IATA)Website: www.iata.org

DISCLAIMER While all reasonable efforts have been made, the publisher makes no warranties that thisinformation is accurate and up-to-date and will not be responsible for any errors or omissions in the informationnor any consequences of any errors or omissions. Professional advice should be sought where appropriate.

Cobweb Information Ltd, Unit 9 Bankside, The Watermark, Gateshead, NE11 9SY.Tel: 0191 461 8000 Website: www.cobwebinfo.com

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