FSU HFT 3603 - Chapter 13 Travel Agents and Airlines

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Chapter 13 Travel Agents and AirlinesTravel AgentsIf the travel agent fucks up, you can sue Delta (Delta authorized them to sell their plane tickets; if Delta mistakes the credibility of the agent, it is Delta’s for authorizing them)- The principle (bigger company) is liable/responsibleo Delta has lots of money so you would go after them in a lawsuit versus the faulty travel agent who gets paid jack shit- Exception: If the agent is outside the scope, there is no liabilityo Simple: If Delta didn’t give a travel agent permission to sell their tickets, the agency is liable >> Charged with fraud/deception for falsely posing as a reliable source for Delta- Requirementso The agent must say what company they are working for so customers know if they are trusting the right brand with their travel arrangementso Provide accurate info: MUST do research on the hotels/places before they send customers there >> to make sure they are getting everything they paid for (ex. All inclusive resort, nice area, hotel meets the expected standards)- Suggest travel insurance so travelers are covered in case they have to cancel/miss their flight- Protect against credit card fraudo The way it works when you book through a travel agent is you tell them the arrangements you want to make >> the travel agency has their own credit card specifically used for these business transactions; the agency pays the principal company so they get a portion of the profits (BTW never use Orbitz/Expedia/any other agency…it is more expensive because they charge a fee for facilitating the transaction AKA they get commission) o Customer gives stolen credit card info to agent >> Agent gives customer plane ticket >> Agent pays Delta the amount the ticket is worth and keeps their commission >> Delta claims that the credit card has been denied >> Agent notifies customer that fraud has occurred >> Customer gets away with a free plane ticket >> Agent is liable for plane ticket, must pay Delta out of pocketo HOW TO PREVENT: “The way to protect against liability when the true cardholder refuses payment is to have an imprint of the actual credit card and the cardholder’s signature.”Independent Contractors (Different from travel agents)o They are their own boss (think entrepreneur) and have their own separate set of rules (reduces their amount of liability)o Example: Royal Caribbean sells excursions on their ship. At each destination, guests can choose to participate, therefore assuming responsibility for their own safety/judgment. If something turns sour on the excursion, you cannot win a lawsuit against Royal Caribbean because they are not directly affiliated with the company. They have merely made a suggestion. They could possibly sue for misrepresentation and a multitude of other things, but it differs with each case. (“Well, I would have to look at the facts first. I can argue both sides,” as Sten would say.)TariffsA fancy way to say contract; specifically between passengers and airlines TARIFF >> TARMAC >> AIRPLANES/AIRPORTSo Protects airlines from liability = baggage, reservations, schedule changes/delays, etc.o Must file a claim within 2 weeks of incidento Scenario: Customer says, “I never agreed to those terms. (Insert bitching, moaning, excessive profanity)”o Actually, they did when they checked the “I agree to the terms” box when they purchased their ticket online. Obviously, this person didn’t read the fine print. (Then again who does that anyway? Ain’t got time fo dat.)o Sten made this mistake once. He was told his flight would be delayed for a coupleof hours so he took the pleasure in people watching in the ATL airport. Without notice, his flight ended up being rescheduled to fly out earlier than expected. He didn’t realize this and got left behind. However, the airline was not liable because they put him on the next available flight. More about cancelled flights discussed later on.2 Ways to settle cases1. Small Claims Courta. Plaintiff granted $3000-5000b. No lawyers involved >> you represent yourselfc. Lax, quick procedure2. Class Action Suitsa. Lots of people get fucked over, pissed off, and sue a company as a groupb. Lower court fees since it is spread out over lots of peopleRights of the Travelero Passengers are responsible for the correct travel documents (passport, birth certificate)o 0.7% of baggage is lost each year, about 600,000 bagso 30,000 of these are lost and never returnedo Baggage Claim (International)o Warsaw Convention treaty; was valid until 2003o Under this treaty, if you lose your luggage, you will only get about $9.07 per pound up to 44 pounds, about $400 Doesn’t matter if it’s a luggage full of clothes or your grandparent’s cremated ashes. The more it weighs, the more value it holds. There is no other compensation.o Montreal Convention Awards larger damages for recovery Airlines need adequate insurance to cover their asses*Regarding the conventions, he is only going to ask which one came first…Answer = Warsaw*o Baggage Claim for domestic flights is covered by tariffs NOT conventionso Max damages awarded = $2,800Test Question!Q: How much loose change was recovered at TSA checkpoint?A: $531,000Q: Which airport had the most amount recovered?A: #1 airport was Miami; recovered $39,000Airplane Securityo Security trumps unreasonable search and seizureo If you are suspected of sketchy behavior/terrorism, you will be searched immediately >> This is allowedo You impliedly consent to search when you fly >> TSA just wants to make sure you aren’t carrying explosives/weapons on the plane If TSA suspects something fishy, they have reasonable cause to searchTraveling with Animalso Damages for emotional distress are REJECTEDo Damages for pain and suffering of the animal are REJECTEDo Airline is limited to compensation for personal property, usually $500 awarded (written in each airline’s tariffs)o Animals are considered personal property/luggageRights of Disabled Travelerso Americans with Disabilities Act (ADA)o Have to meet mobility requirements for the safety of themselves/passengerso Some airlines require disabled passengers to be assisted by employees if they need extra assistanceo Disclosing Need for Assistanceo If a passenger needs a wheelchair when they get off the plane, they need to alert the flight staff before departure; the airline can’t be responsible if they do not even know of the problem in the first placeo Remedies for discriminationo


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