CHAPTER 6 : TRAVEL AGENTS AND TOUR OPERATOR

1. IMPACT OF AGENCY LAW

1.1. - An agency relationship is created when one person (the principal) authorizes another person (the agent) to represent him or act on his behalf.

1.2. - Post-booking : Once a client purchases a package tour, the travel agent becomes the agent of the tour operator. The travel agent enters into the booking contract with the client on behalf of the tour operator.

1.3. - Pre-booking : A travel agent is probably the agent of the client. He has a duy to act in the best interests of the client when advising him on travel services

2. LIABILITIES OF A TOUR OPERATOR

2.1. 1) Reasonable Care and Skill

2.1.1. - A tour operator would be considered a supplier of services in the contract of CPA. Section 53 of the CPA is also applicable to booking contract made between a tour operator and a consumer

2.1.1.1. - In every package tour sold to a consumer, there is an implied guarantee that the tour operator shall carry out the services with reasonable care and skill

2.2. 2) Tort of Negligence

2.2.1. - Apart from suing a tour operator in contract, a plaintiff may also have an action in tort

2.2.1.1. - A tour operator owes his clients a duty of care

3. INTRODUCTION

3.1. Tour operators and travel agents play different roles in the travel industry.

4. THE MEANING AND TERMINOLOGIES IN TOURISM INDUSTRY ACT 1992

4.1. - The tourism industry Act 1992 (TIA) provides for the licensing and regulation of the tourism sector.

4.2. - Section 5(2) of the TIA states that a travel agent or tour operator must be licensed by the Commussioner of Tourism (the Commissioner) who is the Secretary General of the Ministry of Tourism Culture (MOTAC)

4.3. The Commissioner may revoke a license (s 8) if among other things, a travel company fails to complay with any obligation imposed by the TIA or if it provides the Commissioner with false, misleading or inaccurate information.

4.4. under s 15 the Commissioner may request that a travel company