The American travel industry originally catered to three categories of travelers Travel Agents and Airlines Rights and Liabilities Chapter 13 Introduction Wealthy Business people Government officials Travel industry has grown to serve more people Has become more complex Problems have also grown Travel agents do not just sell tickets They also dispense travel information Offer advice on all aspects of a trip Generally comprised of four groups Suppliers of travel services Travel wholesalers Travel agents Travelers Travelers are very aware that they may be entitled to compensation when their travel plans go awry Disappointed travelers seek recompense in court via litigation Makeup of the Travel Industry Agency Law Issues arise whether the travel agent is a legal representative of the supplier of travel services or a legal representative of the traveler Sometimes they are representative of the traveler and sometimes the representative of the travel supplies Outcome of a case is often determined by whether the travel agent acted as the agent of the traveler or of the supplies Agency is a relationship in which one person acts for or represents another based on authority voluntarily given by that other person Principal is the person who authorizes someone to act on their behalf Agent is the person so authorized the one who represents or acts for the principal consistent with the principal s direction Classic example is employer principal employee agent Principal is legally bound by the agent s act and agent is not If a travel agent acts as an agent for an airline the airline is required to provide air transportation When an agent acts outside of delegated authority the agent may be liable for fraud When a travel agent acts as an agent for a tour operator when selling a trip the agent must inform the client of the tour operator s identity Agency relationship must be distinguished from that of independent contractor Independent contractors are people who contract to do work for someone else but are engaged in an independent business for themselves Independent contractors Furnish their own supplies and equipment Pay their own expenses Set their own hours of work Paid fees or compensation not a salary Tariffs Cover such items as Rule or condition of air travel that binds the airline and passengers Limitations on the airline s liability for damaged baggage Procedures for filing a claim Rules for reservations and check in times Limits on the airline s liability for schedule changes and flight delays Personal injury liability limitations Applicable agency is the Department of Transportation Some tariffs contain one sided language favoring airlines Copies of tariffs are available upon request at airports Conclusively and exclusively govern rights and liabilities between airline and traveler Remedies for Small Damages Small Claims Court Class Action Suits Rights of the Traveler Forum that encourages people to act as their own advocate All people who have suffered losses from same cause jointly sue a defendant When travel plans do not turn out as represented and purchased the law is quite supportive of the traveler and provides a remedy in many circumstances Baggage Claim Domestic and International When travelers hand their baggage to an airline they are entering into a contract with the airline The contract binds the airline to deliver the baggage to its destination and return it to the traveler upon arrival Baggage Claim Domestic and International continued Failure to deliver baggage breach of contract Because of frequency of lost or delayed baggage tariffs protect the airline from unlimited liability International Flights Until 2003 international flights were covered by the Warsaw Convention International treaty that sets limits of liability for lost stolen damaged or misdelivered baggage Under convention liability for checked luggage is 9 07 pound up to 44 pounds approximately 400 Passenger is informed of limitation on airline ticket In exchange for limited liability the airline is presumed to be responsible when luggage is missing Airline can rebut this presumption if it can show that it took all possible precautions to avoid loss Passengers have the option to purchase insurance to cover loss in excess of the Convention s maximum Rights of Airline Captains Passengers are confined in the aircraft for duration of the trip If someone seeks to jeopardize the safety of the passengers calling the police is not an option Law allows pilots to remove a ticketed passenger prior to takeoff Overbooking Many people make airline reservations and do not appear for the flight Problems arise when there are fewer no shows than expected The airline will bump some passengers The airline is well advised to assist the customer in arranging alternate travel plans Rights of Would Be Passengers Involuntarily bumped travelers may be entitled to damages for breach of contract If the carrier fails to assist a traveler in making alternate plans punitive damages may be awarded Priority Rules for Seating Airlines must first ask for volunteers When overbooking occurs law specifies how to determine who will be denied seating Airline must apply its priority rules which are developed and filed with the Department of Transportation Overbooking on International Flights Governed by Warsaw Convention Permits a maximum recovery of 400 Punitive Damages on International Flights Passengers bumped from international flights are not entitled to punitive damages Although protected from liability the airline is well advised to assist its customers in arranging alternate travel plans Going to another country via airline but lacking proper documentation such as a passport or visa Additional Legal Issues Involving Airlines Lack of documentation for international travel Wrongful rejection of identification documentation Wrong destination Liability for negligence Liabilities of Travel Agents and Charter Tour Companies Travel agents are a Key role in travel industry Their influence has decreased significantly with the advent of home computers Today agents are information specialists on whose expertise much of the traveling public relies Liability for Own Actions A travel agent is not an ensurer that all aspects of a trip are safe The travel agent cannot be reasonably expected to guarantee that a traveler will have a good time or return home without having experienced an adverse adventure or harm Duty to Investigate Third Party Suppliers