Law Project (Powerpoint)

封面

Tourism Business, Tourism Business, Ethics and LawEthics and Law

Group 1 Group 1 PresentationPresentation

Liu Nga Yin, Paul (09530445D)Wong Chun On, Johnny (09125956D)Wong Kwai Leung (09034250D)Yip Tsz Wa, Yvonne (09517712D)Sin Fung Sang (09080352D)

http://hk.wrs.yahoo.com/_ylt=A3OyCEe5i.JKcp0AUQ2.ygt./SIG=135sgfk29/EXP=1256447289/**http%3A//www.branson.k12.mo.us/school_links/jr_high/BLACKWELLK/XTRAS/law_image1.jpe

1. Introduction and objectives2. Company background3. Problem analysis4. Conclusion and recommendation5. Reference list

Presentation flowPresentation flow

Topic: Solving disputes with customersTarget: Miramar Travel

Objectives: 1. To identify the legal problems2. To examine the legal strategies and management policies

of Miramar Travel on customers’ complaints 3. To provide legal suggestions to the company to enhance

relationships with customers

Introduction and objectivesIntroduction and objectives

Was founded in 1986Member of Henderson Land Development Company LimitedOne of the largest scale full-service travel agency in Hong KongMember of Travel Industry Council of Hong Kong (TIC)

Company backgroundCompany background

Quality Living Award 2006 (Travel agency group)The Best Europe Tour Award 20082008台灣觀光貢獻旅遊潛力無限獎2009資本傑出旅行社

AwardsAwards

It seems that Miramar Travel has done quite It seems that Miramar Travel has done quite well on its operation andwell on its operation and

can get a number of awards can get a number of awards

However,However,

Do they really provide such a high Do they really provide such a high quality of service?quality of service?

Problems: 1. Bundled sale of travel insurance 2. Cancellation of the tours3. Self-paid activities

Conduct of the tour guide Accidents involving the third parties

4. Failure in matching the schedule

Problem 1: Bundled sale of Problem 1: Bundled sale of travel insurance travel insurance

Combining the tour packages with designated travel insurance

== ++

Tour package

Including Miramar Travel

Four Travel Agencies force their customers to purchase designated travel insurance

Insurance fee is more expensive than others

Miramar Travel stipulate their customers to purchase designated travel insurance in tours to Tokyo and Bangkok

Before the disclosure of this problem

However, in some tours, the company will still require their customers to have travel insurance

After the disclosure of this problem

Does not force their customers if they have travel insurance

Stipulate their customers to purchase

designated travel insurance

Provide different choices of insurance companies for them, but not designate only one

Strongly advise them to have one

Might not force their customers to purchase travel insurance

Company’s policiesCompany’s policies

Updated leaflet (adapted from Miramar Travel)Updated leaflet (adapted from Miramar Travel)

Still require customers to have travel insurance

If accident happen in the tour, will the tour operator be liable?

Their answers:1. Strongly advise customers to purchase a travel insurance2. Ask customers to sign a contract to decide whether they

choose to purchase or not3. Impossible to presume who has to take the responsibility

From their answers:1. Avoid to answering directly2. Only recommend customers to purchase travel insurance3. Transferring responsibility to insurance company4. Try to prevent themselves in carrying any obligations

Phone interviewPhone interview

The Travel Industry Council

1. Does not have any specific guidelines or code of practice on this issue

2. Suggest travelers to take out travel insurance that meets their needs

Legal strategiesLegal strategies

Insurance Companies Ordinance 1. Not mandatory for consumers joining package tours to purchase travel insurance

2. No specific provisions require consumers to purchase designated travel insurance for joining package tours

Legal policiesLegal policies

In terms of offer and acceptance

1. Advertisement of the tour package is ‘an invitation ‘an invitation to treat’to treat’

2. Consumers are free to choose to accept the invitation or not

3. Both parties have to understand clearly about the content of the package

Problem analysisProblem analysis

In terms of ethic 1. The travel agency is seeking to maximize benefitsmaximize benefits

for themselves2. Without concerning the customers' choice and needs3. Try to prevent themselves in carrying any obligations

Problem analysisProblem analysis

Problem2:Cancellation of the Problem2:Cancellation of the tourstours

Problems

1.The decisions of Miramar after certain unforeseen event occurred

2.The decisions of its customers after they are acknowledged of the unforeseen event

3.The number of people to form a package tour

CaseCase

Legal strategy and Legal strategy and management policymanagement policy

Set by TIC Cancel the tour because of reasons beyond

control Reasons beyond control technical problems to transport change to the frequency/timetable

without advance notice

Miramar should: Notify their customers as quickly as

possible

Offer them

1. Refund

2. Another package tour within six months

Makes a material alteration Prior to its commencement for reasons

beyond control Increasing operation costs Inform clients

Two choices 1. Accept with reasonable adjustment in price 2. Receive full refund within 7 working days

Delay of flight Unforeseeable no longer to makes provision

1st option Refund to the affected customers according to the Law Amendment & Reform Ordinance

2nd option seek to vary their original contract

E.g. 1.rearrange accommodations 2.offer a refund of fees

Problem 3: Optional ToursProblem 3: Optional ToursMain problem:

Lack of transparencyLack of transparency of information

Case : MingPao news, 2006

Miramar TravelOptional Tours1. XXX…$ XX2. XXX…$ XX……

Travelling Travelling time time ? ?

No. of peopleNo. of people to form optional tour

to form optional tour ??

Dealing with Dealing with main problemmain problem

Further improvementFurther improvement in the future in the future

Management policiesManagement policies

Legal StrategiesLegal Strategies TIC’s Directives:TIC’s Directives:


Miramar TravelMiramar Travel

Outbound tours serviceOutbound tours service

Do not breakDo not break any directive of TIC any directive of TIC Continuously sellContinuously sell optional tours optional tours without full statementwithout full statement

2 Sub-problems2 Sub-problems

1. Tour escorts’ conduct and tour guided’ conduct

2. Accidents caused by third party

Dealing with Dealing with sub-problem 1sub-problem 1


Actively make evaluationActively make evaluation with the with the involved escorts or local tour guideinvolved escorts or local tour guide

Legal strategyLegal strategy

Terms and Conditions:Terms and Conditions:

No evidenceNo evidence

Miramar TravelMiramar Travel

Assume: Assume: joined at travelers’ willjoined at travelers’ will not be liable to compensation

Legal strategyLegal strategy

Dealing with Dealing with sub-problem 2sub-problem 2


1. To claim medical treatment fees1. To claim medical treatment fees compulsory requirement

2. Follow “Code of Conduct for Outbound Tour Escorts” of TIC :Arranged patients to the local hospitalContact the insurance companiesReport the accidents to the company



3. Contact the third party to further understand the incidentEvidence was foundThird parties’ negligenceStop their customers doing activities


Terms and Conditions:Terms and Conditions:

Not be liable for any damage caused by the third parties

Problem 4: Failure in Problem 4: Failure in matching the scheduled matching the scheduled

programprogramChanged mode of transportation no more domestic flight Missed scenic spot

Case: Apple Daily 2004-10-12

Problem analysisProblem analysis Discharged by breach1. Break conditions 2. Claim for damages

Problem analysisProblem analysis Right to arrange another hotel1. of the same rank

The Peninsula Hong Kong

=

Four Season Hotel

Problem analysisProblem analysis Mistake of Air tickets1. ready2. not discharged by frustration 3. reasonable skill and care (the implied terms ) 4. a proper PRC agent 5. Reasonable standard6. excluded unnecessary mistakes


Terms and conditions

1. brochure

Legal policiesLegal policies

Terms and conditions

2. Evidence about uncontrollable circumstance e.g. transportation delay, the disaster, the war, the

political turbulence, the stress of weather and the like


Ways to solve disputes1. Spokesperson a. admits

2. Compensates customers each person of $1600 dollars

a. $600 for air ticket fees

b. $1000 for missing scenic spot


Ways to solve disputes3. Terminates the cooperation immediately

4. Feel regret

ConclusionConclusion

The company’s actionThe company’s action Complied with the law BUT, inadequate Balance between the profit and the service

RecommendationRecommendation

a). Bundle sales of travel insurance:a). Bundle sales of travel insurance: Create specific provisions to increase the flexibility

of the sale of tour packages If the situation becomes prevalent, government should

legislate and forbid the travel agencies to combine the tour packages with designated travel insurance.


b). Optional tours:b). Optional tours:1. Disclosure of more details about optional

tours Increase transparency One more directive

protecting the outbound travelersSuggested new directive:Suggested new directive:

“Member agents must provide outbound visitors with written information about the contents of the optional activities to be directly sold to them.”


2. Sub-contract about optional tours

Normal contract

Sub-contract about optional tours

legal formal contract a full list of the optional tours prices number of people to form the optional tours, etc.

++

RecommendationRecommendation2. Sub-contract about optional toursBenefits:Benefits:1. More information before signing the contract2. Select at travelers’ will on a list of optional tours in the sub-

contract3. legally binding on both tour escorts and travelers

not coerce the travelers to join follow the sub-contract to provide the travelers’ preference

of optional tours Otherwise, sued by breach of contract


3. To be more respectful to the customers’ 3. To be more respectful to the customers’ interestinterest

Follow “General Code of Conduct for TIC Members” of TIC :

When complaints are of such a nature that reference to the principal is necessary, a member shall endeavor to act as an intermediary to bring about a satisfactory conclusion.

Assist customers in obtaining compensation from third party


c). Failure in matching the scheduled Failure in matching the scheduled programprogram

More careful selection of third party1. TIC directive2. follow 3. liable to the services provided by cooperation partners 4. travelers can get better services and protection 5. a limit for Miramar travel’s liabilities 6. limited compensation

Cooperation partners

Reference list1. Apple Daily. (2008). “導遊施壓參加遊艇河出意外團友斷指旅行社卸責” , Retrieved October 14,

2009 from, Web site: http://hk.apple.nextmedia.com/template/apple/art_main.php?iss_id=20080528&sec_id=4104&art_id=11160732

2. Carver, A., 2004, Hong Kong Business Law, 6th ed., Hong Kong: Longman Hong Kong Education.,17,372-373

3. Consumer Council. (2009). Council critical of bundled sale practice of some travel agents - CHOICE # 393 (July 15, 2009). Retrieved October 22, 2009 from http://www.consumer.org.hk/website/ws_en/news/press_releases/p39304.html

4. Desjardins, J. (2009). An introduction to business ethics. Singapore: McGraw Hill

5. Miramar Travel. (2009. Terms and Conditions. Retrieved October 24, 2009 from http://www.miramartravel.hk/AboutUs/TermAndCondition.aspxwww.miramartravel.hk

6. Stott, V. (2001). An Introduction to Hong Kong Business Law. Longman Hong Kong Education

7. TaKungPao.com. (2009) 四家旅行社迫客購指定保險 . Retrieved October 21, 2009 from http://www.takungpao.com/news/09/07/16/images_0708-1112667.htm

8. Travel Industry Council of Hong Kong. (2009). Code of Business Practice on Outbound Package Tours. Retrieved October 15, 2009 from, Web site: http://www.tichk.org/public/website/en/codes/codes_of_conduct/part_two_2/html

Reference list9. Travel Industry Council of Hong Kong (2009). FAQs for Travelers. Retrieved October 15, 2009

from, Web site: http://www.tichk.org/public/website/en/codes/codes_of_conduct/part_two_2/html

10. Travel Industry Council of Hong Kong. (2009). Code of Conduct for Outbound Tour Escorts. Retrieved October 17, 2009 from, Web site: http://www.tichk.org/public/website/en/escorts/guideline/html

11. Travellife (2006). “ 旅團單張欠透明度領隊臨場訴諸群眾壓力自費活動團友難說不” Retrieved October 12, 2009 from, Web site: http://travellife.org/forum/viewthread.php?tid=13000&extra=page%3D1&page=1

12. 旅遊九寨溝團友飽受煎熬內地接待單位連番失誤 . (2004, October 12). Apple Daily, p.C20

13. 昔日東方 . (2008). “美麗華遊泰團 9人屙嘔” , Retrieved October 12, 2009 from, Web site:

14. http://mail.live.com/default.aspx?lc=1033&id=64855