Risk Solutions Manual for Travel Industry in Hong Kong

Transcription

1 Risk Solutions Manual for Travel Industry in Hong Kong 1 February 2008 Aon Hong Kong Limited 21/F, Aon China Building 29 Queen s Road Central Hong Kong

2 Important Notes Aon Hong Kong Limited has compiled this report for the benefit of the Travel Industry Council of Hong Kong [TIC] and its members. The applicability of this report is strictly limited to the matters stated herein and is not to be read as an extension by implication to any other matter in connection with any of the documents reviewed for the purposes of this report. Further, this report is not to be relied upon by, nor to be quoted or referred to any other person in any public document or submitted to any governmental body or agency without our prior written consent. The preparation of this report has been undertaken on the basis of information provided by TIC and its members and other Aon s clients outside of Hong Kong and documents available from public sources and we have not verified the accuracy or completeness thereof. This report is only for the purpose of risk consultancy to TIC and its members (including Outbound and Inbound Travel Agents) and for no other purpose. It is not a legal opinion and does not contain or purport to contain any specific legal advice on the matters covered therein. All templates, specimens, sample clauses, agreements, documents and the like are provided strictly for reference and information only, and do not constitute legal advice on the matters covered therein, and further on the express understanding that the recipient shall obtain its own legal and other relevant advice, in accordance with its specific interests, needs and circumstances. Notes: In case of any inconsistencies between the English and Chinese versions, the English version shall prevail. Acknowledgement of support and disclaimer The Research Project on Risk Management is organised by Travel Industry Council of Hong Kong and funded by the SME Development Fund of the Trade and Industry Department, HKSAR Government. Any opinions, findings, conclusions or recommendations expressed in this material/event (or by members of the Project team) do not reflect the views of the Government of the Hong Kong Special Administrative Region, Trade and Industry Department or the Vetting Committee for the SME Development Fund. Page 2

3 CONTENTS A. Supplier Management 5 1. Risk Mitigation / Loss Control Land Operator / Supplier Selection Supplier selection criteria checklist Preferred Supplier List Service Agreements with Suppliers File Documentation Communication with suppliers is documented Central record of customer complaints against suppliers 7 B. Marketing & Sales 9 1. Risk Mitigation / Loss Control Proper management of customers expectations File Documentation Tour Booking Employee Checklist Risk Transfer Assumption of Risk and Liability Waiver Assumption of Risk Statement and Liability Release Form Sample wording 12 C. Tour Trip Risk Mitigation / Loss Control Transport Arrangements Tour coach Tour coach driver Charter vessel / sightseeing boat 1.2 Tourist guides Restaurants Hotel / Accommodation Optional activities Theme parks and attractions Safety Checklists Transport Arrangements Tour coach Tour coach driver Charter vessel, sightseeing boat or other means of transport 2.2 Meals Hotel / Accommodation Page 3

4 2.4 Activities Activities within the itinerary Optional activities D. Post-Tour Follow-Up Compliant Resolution and Refund Handling 24 Appendix 1 Sample Supplier Selection Questionnaire 26 Appendix 2 Sample Service Agreement with Land Operators / Suppliers 32 Appendix 3 Sample Contract Terms & Conditions for Managing Customers Expectations 41 Appendix 4 Employee Checklist 43 Appendix 5 Crisis Management 44 Appendix 6 Crisis Response Plan Sample Contact List 59 Appendix 7 Crisis Response Plan Sample Action Consideration List 61 Appendix 8 In-Crisis Event Status Report 62 Appendix 9 In-Crisis Event Tracking Log 63 Page 4

5 Section A Supplier Management A1 Risk Mitigation / Loss Control A1.1 Land Operator / Supplier Selection A1.1.1 Supplier selection criteria checklist It is important for Travel Agents to exercise reasonable care and diligence in the selection of suppliers so that services to be delivered by the suppliers will be provided to customers with reasonable skill and care. The following are some key elements that should better be included in an Outbound Travel Agent s standard procedures for the selection of foreign land operators and suppliers. They should also be included in an Inbound Travel Agent s standard procedures for the selection of local suppliers or travel services, such as hotels, coaches, launch operators, restaurants, travel and entertainment facilities, freelance tourist guides, etc. Although not all of these elements would be applicable in all cases, the majority of them should enable the Travel Agent to select the best possible vendor available. Good reputation and sound financial status The supplier is recommended by other known and trustworthy suppliers, industry colleagues and/or is recognized by an established travel or tour industry association. The supplier is chosen for its expertise with a reputation for being among the most experienced of local travel service providers. The supplier has been operating for a minimum of 5 years. The supplier can provide collateral Letter of Credit or detain deposit, if possible. The supplier can produce favorable credit references and financial statements. Quality service standards The supplier is accessible 24/7 for handling contingencies and emergencies. The supplier has standard procedures in place for addressing customer service complaints. Following legality requirements The supplier is compliant with local insurance, employment and licensing regulations to provide services relating to means of transport, hotels, dining places, tourism and entertainment facilities, etc. If the supplier provides tourist guides to accompany the tour at the destination country, tourist guides employed by the supplier should meet local legal requirements. Evidences of compliances or copies of relating legal documents should be obtained. Sound risk management practices The supplier has a proven track record for safety, either incident-free or with no serious or material claims. The supplier has a well-written Crisis Management Plan. Good partnership between Travel Agent and the supplier Page 5

6 Travel Agent and the supplier have signed a contract with a warranty of compliance with relevant laws and regulations especially in relation to insurance, employment, licensing and safety requirements. Travel Agent and the supplier perform periodic quality review programs. Travel Agent has written minimum service standards with the supplier. A sample Supplier Selection Questionnaire is enclosed in Appendix 1 for reference. A1.1.2 Preferred Supplier List An effective practice which is utilized by a number of overseas travel agents is that of the Preferred Supplier List. Management should furnish their employees with such a list consisting of recognized, quality suppliers from the standpoint of product/service quality, experience and financial stability. Criteria for a supplier to be qualified as Preferred Supplier should include: The supplier has completed, signed and returned the Supplier Selection Questionnaire (Refer to Appendix 1) to the Travel Agent. The Travel Agent has carefully read the information provided by the supplier in the Supplier Selection Questionnaire. A service agreement (as described in Section A1.2 and refer to Appendix 2) has been signed between the Travel Agent and the supplier. Service and quality standards as laid down in the service agreement, and performance of the Preferred Suppliers will be regularly reviewed to ensure quality is up kept consistently. In addition to minimizing risks of engaging poor quality suppliers, the Preferred Supplier List method can also improve the legal protection of the Travel Agent by having the contract between the Travel Agent and the supplier properly in place. A1.2 Service Agreement with Suppliers The Supplier and Travel Agent agreement (Refer to Appendix 2) is a document signed by both parties laying down the details of the following: Terms and conditions of the services provided by the supplier Minimum quality and safety standards to be followed by the supplier Obligations of each party Legal compliance requirement The Supplier Selection Questionnaire (See Section A1.1.1 for details) should also be completed and signed by the supplier and form part of the agreement between the Travel Agent and the supplier. The agreement should be properly signed with all suppliers. Agreement wording and details should be reviewed and updated regularly. Page 6

7 A comprehensive standard Land Operator Service Agreement wording is now being used by a number of travel agents in Hong Kong. Improvements to the wording are recommended and the modified sample Agreement is enclosed in Appendix 2 for reference. A1.3 File Documentation A1.3.1 Communication with suppliers is documented It is important that all communications in relation to tour / travel arrangements between the employees of Travel Agent and the suppliers are documented and filed properly. Should a claim be lodged against a Travel Agent, notes on communication with suppliers can assist in reconstructing a sequence of events. However, documenting communication with suppliers does not eliminate the necessity for actual signed confirmation of travel arrangements. All of the following should be properly documented and filed in the operation file: Contract(s) and waiver(s) signed with the suppliers Advice of itinerary changes and confirmations by the suppliers Telephone conversations s Handling of customers special requests Employees should document telephone and personal conversations with suppliers. These notes should include: Name of the person contacted Time and date of the conversation Brief notes Example of Telephone and Conversation Record: Supplier Name / Person Contacted Date and Time Notes ABC Tours David Lee 06 Aug 2006, 13:30 Confirmed car pick-up for Mr. Chan Tai Man at Hong Kong airport on 10 Aug 2006 A1.3.2 Central record of customer complaints against suppliers As discussed in Section A1.1, it is crucial for the Travel Agent to have regular review of the suppliers performance and reputation to ensure the Travel Agent has exercised the duty of care in choosing the suppliers to provide service to its customers. Suppliers which consistently have complaints from customers are likely to cause problems in the future. Complaints can quickly turn into incidents which can then turn into claims. The defense of the Travel Agent against liabilities for poor supplier performance will be undermined substantially if it is found the Travel Agent has engaged supplier(s) with known poor history or has made no effort in reviewing the supplier s reputation. Page 7

8 The Travel Agent should therefore set up a central record system to capture all customer complaints against suppliers. This information should be shared with all employees and referred to during regular review of service agreements with the suppliers. Performance pledges or service standards should be agreed and incorporated in the service agreements. If the performance of a supplier is unsatisfactory, the Travel Agent should follow up immediately. Page 8

9 Section B Marketing & Sales B1 Risk Mitigation / Loss Control B1.1 Proper management of customers expectations Customer complaints may arise if the Travel Agent fails to meet expectations. An Outbound Travel Agent could avoid a number of complaints if it reminds customers of preventive actions against holiday disruptions before and during the tour trip. An Inbound Travel Agent that accepts tour booking directly should also implement the measure. Company policies of the Travel Agent in handling cancellation of the tour either at the request of the customers or because of force majeure events such as adverse weather conditions, natural disasters, strikes, fire, mechanical failure of aircraft or land conveyances, etc. should also be made clear to the customers to avoid arguments in future. Sample terms and conditions of travel for the above-mentioned purposes are enclosed in Appendix 3 for reference. They should be made clear at the outset, and prior to the customer s booking. Terms and conditions should be printed on brochures. Clear reference should appear on the tour application form and other documents, e.g. YOU HAVE BOOKED THIS TOUR SUBJECT TO THE COMPANY S STANDARD TERMS AND CONDITIONS. PLEASE ENSURE YOU ARE FAMILIAR WITH THESE TERMS AND CONDITIONS BEFORE YOU COMMIT TO YOUR TOUR. The contract incorporating these terms and conditions should be properly signed with all customers. B1.2 File Documentation Similar to the documentation requirement for suppliers, all communications in relation to tour / travel arrangements between the employees of Travel Agent and the customers should be documented and filed properly. Should a claim be lodged against a Travel Agent, notes on communication with customers can assist in reconstructing a sequence of events. However, documenting communication with customers does not eliminate the necessity for actual signed confirmation of travel arrangements. All of the following should be properly documented and filed in the operation file: Contract(s) (tour booking documents) and waiver(s) signed with the customers Advice of itinerary changes and confirmations by the customers. Telephone conversations s Special requests from the customers Page 9

10 B1.3 Tour Booking Another identified key risk is negligent booking by Travel Agent, which may be in the format of wrong dates, times or destinations. The following conditions of tour booking and responsibilities should be clearly disseminated and explained to every customer on or before confirmation of the booking or produced to the customers upon request: Extent of responsibilities and liabilities of the tour-booking agents towards customers, subject to disclaimer of liabilities clause as appropriate. Circumstances in which and the conditions on which surcharges may be imposed on customers. General policy of the tour booking agent both in the event of the agent s canceling a package tour or in the event of his altering part of a package tour. The amount of, or the basis for calculating the cancellation fees which customers will be liable to incur as well as the terms and conditions under which the customers will be liable to incur such fees. B1.4 Employee Checklist Consideration should be given to adopting an Employee Checklist for each tour arrangement with a customer. A checklist ensures the employee will have addressed all the issues listed therein, which will reduce the risk exposure of the Travel Agent for liability arising out of the negligence of the employees in handling the booking of tour with customers. A sample Employee Checklist to be used in operation is enclosed in Appendix 4. A practical checklist may include the following items. # Employee Checklist Item Description 1 Non-preferred suppliers Travel agents should use suppliers on the Preferred Supplier List as far as possible. If a customer requests that a non-preferred supplier be used, then the fact that the supplier is on the Travel Agent's non-preferred suppliers' list should be advised to the customer. The customer s name, brief reason for using the nonpreferred supplier, and the date of the discussion should be documented. Page 10

11 # Employee Checklist Item Description 2 Travel insurance offered? Customers who purchase travel insurance are less likely to initiate action against the Travel Agent for damages covered within the travel insurance policy. 3 Hard copy confirmation? Confirmation of travel arrangements by the customer can assist in protecting the Travel Agent from error and omission claims. Signed confirmation should be obtained from the customer even when the customer books the travel arrangement through a sub-agent of the Travel Agent. 4 Cancellation policies explained? 5 Visa, passport and health check requirement explained? 6 Assumption of Risk Statement / Liability Release Form Penalties for cancellation of the travel arrangement should be explained in detail to the customer. Explanation of visa, passport and health check requirements to the customer will reduce customer complaints and assist in protecting the Travel Agent from error and omission claims. Many customers elect to travel to have new and exciting experiences and seek to participate in highrisk activities, such as action adventure tours, or travel to exotic locations. As explained in Section B2.1 below, customers should be asked to sign an Assumption of Risk Statement and Liability Release Form for participation in these high-risk activities or travel arrangements. 7 Travel Advisory Warnings provided? Travel advisory warnings of known hazards and risks should be provided to customers. Page 11

12 B2 Risk Transfer In this section, we provide a discussion on the issue of the relationship between the Travel Agent and its supplier which we believe might have an impact on our overall risk assessment. The discussion and the examples provided are based on our understanding and experience as risk consultants, and only from a Hong Kong perspective and are for your information only and must not be relied upon as legal advice. As reiterated in page 2 containing the Important Notes, we are not providing you with legal advice, nor purporting to do so, in this section, nor in any other section of this report. You must obtain your own legal and other relevant advice to meet and address your specific interests, needs and circumstances. B2.1 Assumption of Risk and Liability Waiver B2.1.1 Assumption of Risk Statement and Liability Release Form Many customers elect to travel to have new and exciting experiences. These experiences generally coincide with increased risk. For customers seeking to participate in high-risk activities such as action adventure tours, or for those customers seeking to travel to high-risk locations, it is recommended that they are asked to sign an Assumption of Risk Statement and a Liability Release Form. This is a common practice being adopted by a number of major Travel Agents both in Hong Kong and overseas. Assumption of Risk Statement is a form that is signed by the tour participant in which the tour participant acknowledges the inherent risks associated with the travel services, activities or destinations included in the trip or tour. Liability Release Form is to be signed by the tour participant agreeing to release the Travel Agent or the Supplier from any liability for damages that might arise from services, arrangements or activities provided by the Travel Agent or the Supplier. Tourist guide should verbally remind the customers of the risk before they participate in any high-risk activities. B2.1.2 Sample wording (for discussion and information only) Example #1 - Assumption of Risk Statement I,, acknowledge that I have voluntarily applied for the trip / tour designated as. I understand that I may travel to remote countries and areas that are inherently risky and that may include and other similar activities associated with foreign travel. I am prepared to assume the risks associated with this trip / tour including: forces of nature; terrorism; civil unrest; war; accidents; and transportation including land vehicles, boats, and aircraft that are not operated or maintained to international standards. I also assume risks associated with altitude, illness, disease, physical exertion, and alcohol consumption, knowing that access to evacuation and/or suitable medical supplies and support may not be available. By signing this document, I agree to take full responsibility for my own actions, safety and welfare, except for unanticipated events including injury, illness, emotional trauma, or death. I also understand that I will be a member of a group and will conduct myself in a way that will not endanger the group or myself. I understand that if I fraudulently represent myself as fit for this trip, I may Page 12

13 be removed prior to or during the trip at my own expense. I agree to these statements by placing my signature here: on (day / month / year). Example #2 - Liability Release Form I,, hereby release and discharge (Name of Travel Agent), and its agents and employees from and against any and all liability arising from my participation in the trip / tour of. I agree that this release will be legally binding upon myself, my heirs, successors, assigns and legal representatives; it bring my intention to fully assume all risk of travel and to release (Name of Travel Agent) from any and all liabilities to the maximum permitted by law. Page 13

14 Section C Tour Trip C1 Risk Mitigation / Loss Control Most of the risk exposures of the Travel Agents exist within the tour trip. A number of loss control measures can be taken by the Outbound Travel Agents, their local suppliers and the Inbound Travel Agents to mitigate the risk exposure. The following are suggestions on the safety precautions for various parties involved in a tour trip. They should be incorporated into the service agreement with the relating suppliers as far as possible for proper enforcement. Examples of the Safety Standards laid down in the agreement are shown in Appendix 2. C1.1 Transport Arrangements C1.1.1 Tour coach Select only licensed tour coach companies, reputable ones should be selected as far as practicable. Tour coaches must possess proper and valid permits for carrying tourists. Tour coaches must be covered by third party liability insurance. The age of the tour coaches should not exceed the limit of local regulations. Tour coaches should be inspected and serviced on a regular basis. Land operators should check such maintenance record annually. The tour coach must be installed with enough seats to accommodate all passengers. Tour coaches should be equipped with emergency exits according to regulations. Efforts should be made to ensure its functionality in case of emergency. Tour coaches should be equipped with first-aid kits with sufficient and appropriate medical supplies. Windows of the tour coach should be damage-free. Anti-freezing and frost-preventing devices should be installed for the windshield in winter. Tour coaches should be leak-proof. If the route involves going through rugged mountain roads, appropriate type of tour coach with adequate capacity and horsepower should be used. Tires should be changed on a regular basis. Tour coaches should not use tires with worn treads. Appropriate tires should be used for driving on snowy roads. Priority should be given to tour coaches equipped with seat belts. Tour coaches with more than 40 seats should be equipped with luggage holds. Page 14

15 C1.1.2 Tour coach driver Drivers must possess valid driving licenses. Drivers should have more than x years of experience in driving tour coaches. Drivers should have good driving record. Drivers should check their tour coaches before the tour starts, in the course of and at the end of the tour to ensure their coaches are functioning properly at all times. In the event of mechanical breakdown or malfunction, the driver should discontinue from driving the coach concerned. A replacement tour coach should be requested. Drivers should be familiar with and take safe routes for the tours. If a new route will be taken, the driver should get acquainted with relevant traffic information before receiving the tour group. Drivers should pay attention to the situation on the road at all times. Drivers should not speed, overtake, or change lanes abruptly. Drivers should stay alert whilst driving. No alcoholic drinks or drugs that may affect their state of mind are allowed. Drivers should neither talk on a mobile phone without a hands-free device nor chat with staff whilst driving. A driver should have a minimum of x hours of rest time daily, and should observe the stipulated driving hours in local regulations. Unless otherwise stipulated by the local regulations, stops and breaks should be made every 3 driving hours. In the event of a traffic accident, the driver should assist the tour escort and the tourist guide in handling the injured and the aftermath thereof according to traffic regulations and safety control requirements. C1.1.3 Charter vessel / sightseeing boat Charter vessels / sightseeing boats must possess valid navigation and tourist-carrying licenses. Charter vessels / sightseeing boats should be inspected and serviced on a regular basis according to the requirements of local regulations. Charter vessels / sightseeing boats must be covered by third party liability insurance. Charter vessels / sightseeing boats should be sufficiently equipped with lighting, fire fighting tools, first-aid kits, life jackets and lifeboats, etc. Life buoys and safety belts should be provided if appropriate. Prior to the boat s departure, passengers and staff should put on life jackets, if there are stipulated requirements. Page 15

16 The safety of passengers in embarking or disembarking the charter vessel / sightseeing boat should be ensured. Charter vessels / sightseeing boats should not be overloaded. The maximum carrying capacity of the boat should be displayed at a conspicuous place on the boat. Tourist guides should check whether there is overloading of the boat. The captains of the Charter vessels / sightseeing boats must possess a valid license. The qualifications of the crew must also conform to the local regulations. The captain should keep himself in a fit and proper condition for cruising. Cruising after consuming alcoholic drinks or speeding should not be allowed. The captain and the tourist guide should be alert to the situation on the sea and pay constant attention to the weather condition; if certain dangerous situation is foreseen, they should stop related activities and take appropriate actions promptly. C1.2 Tourist guide Tourist guides must possess valid licenses. Tourist guides should supervise tour coach drivers to drive safely. If a coach is speeding, a tourist guide should alert and stop the driver. Anyone other than tour group members or tour staff should not be allowed to board onto a tour coach because of general safety reasons and that such person is not covered under the insurance for the tour coach. If a tour coach is equipped with seat belts, tourist guides should remind passengers to fasten their seat belts and stay alert. Tourist guides or accompanying staff should request coach drivers to stop at the entrance to sightseeing spots or restaurants, or at a place where pedestrian safety measures are available as far as practicable when the tour group alights. Tour group members who need to cross the road should observe traffic regulations. When tour group members are alighting from the tour coach, tourist guides or accompanying staff should stand by the door side of the coach to assist all customers to safely land on the ground before moving on with other activities. Tourist guides should remind tour group members to assess their personal health and physical conditions from time to time before deciding if it is appropriate to participate in certain activities, such as hot spring, skiing, rapids, mechanical rides or other adventurous activities. In the event of a sudden change of weather that may endanger the safety of a tour group on the way to a sightseeing spot or when members are taking part in water activities, the tourist guide should make appropriate changes to the itinerary and inform their office accordingly. Tourist guides should be familiar with the location of the emergency exits in order to assist tour group members to leave the hotel in case of emergency. Page 16

17 Tourist guides should alert tour group members attention to personal safety. Members should also be reminded to bring clothing items appropriate to the different places and sightseeing spots. C1.3 Restaurants a) Safety standard of the restaurants All restaurants selected must possess valid catering licenses. The hygiene conditions should be in compliance with relevant standards of the local authority. Select only restaurants with fire-fighting equipments and emergency exits. Gas or heating stoves and their accessories to be used by customers should be checked on a regular basis. Floor surface within restaurants should be kept dry. Warning signs for wet and slippery surface should be displayed where applicable. Attention should be paid to the quality of food. Raw and cooked food should be handled as per established hygiene procedures. Restaurants that have been warned or prosecuted recently by local authority for violating safety or hygiene stipulations should not be chosen. b) Tourist guides should monitor the safety condition of the restaurants. Tourist guides should remind the tour group members to pay attention to their safety if the following situations are found: The dining tables of the tour group are too near to the kitchen. The floor surface is wet. Hot pot or barbecued food is served. C1.4 Hotel / Accommodation Hotels selected must be fully licensed by local authority or the local tourism board. Relevant information about the hotel s grading should be provided. Hotels selected should have installed fire-fighting equipments, fire alarm, automatic water sprinkler system and emergency exits; maps showing fire escape routes, emergency exits and emergency procedures should be displayed at conspicuous places in the hotel premises. Doors of guest rooms should be able to be opened and locked properly. Hotels should have security personnel on duty; and lifeguards should be on duty during the opening hours of the pool. Priority should be given to hotels that are equipped with CCTV monitoring system. Page 17

18 Hotels that have been warned or prosecuted recently by authority for violating safety or hygiene stipulations should not be chosen. C1.5 Optional activities All optional activity suppliers chosen must hold valid business licenses. The land operator should make appropriate arrangement for tour members not going along with the optional activities. Optional activities should not be arranged at the expense of the rest time of the coach driver, and should be carried out within the legally permitted driving hours. C1.6 Theme parks and attractions Only legitimately operating theme parks and attractions that conform to safety regulations should be visited. Theme parks and attractions should possess relevant certificates, proving that they have passed the inspection and verification tests of local authority or tourism board. When selecting venues for hot spring and skiing activities, efforts should be made to ensure the facilities installed therein are compatible with the fitness condition and game skill-levels of the tourists. Facilities at theme parks or attractions should be equipped with adequate and effective safety devices. Mechanical rides and facilities should be regularly inspected with sound maintenance systems in place. Mechanical rides and facilities should be used only when they are operated under the supervision of a specialist. If the mechanical rides and facilities are not suitable for a certain health category, appropriate warning signs should be placed at the entrances of the theme parks / attractions. Safety or warning signs should be conspicuously displayed at appropriate positions and venues. Entrances, exits and emergency exits should be clearly indicated at indoor venues. C.2 Safety Checklist During the tour trip, the tour escorts and tourist guides play an important role in accidents prevention and risk mitigation. Their roles and responsibilities include carrying out safety inspections at various facilities or venues. We have complied the following checklists for transport arrangements, meals, accommodations and other related activities. Page 18

19 Tour Code: Destination: Land Operator: Name of Tourist guide: Name of Tour Escort: Date of Inspection: C2.1 Transport Arrangements C2.1.1 Tour coach The following items should be checked by the tourist guide before the tour group shows up. After the group has reached its destination, the tour escort should check again. If another tour coach is used during the trip, all the items should be checked again. Items for Checking 1 Statutory compliance 2 With valid vehicle license 3 Physical appearance 4 No. of seats (should be consistent with the descriptions in relevant documents such as the vehicle license) Checking result and appropriate action to be taken Yes No; must request another tour coach Yes (valid until ) No; must request another tour coach Acceptable Unacceptable (too shabby); another tour coach should be requested Number of seats consistent with vehicle license Number of seats inconsistent with vehicle license; should request another tour coach 5 No. of people on board 6 Windows of the tour coach people Exceeding maximum capacity stated in the vehicle license; another tour coach should be requested Undamaged Has cracks; adhesive tape should be used Damaged; another tour coach should be requested 7 Emergency exit 8 Ask the driver if safety checks on the condition of the coach, e.g., the tread and air pressure of tires, have been made in advance every day 9 Safety belts at passenger seats With emergency exit, and (Can be opened / closed properly) (blocked) Without emergency exit Yes No; the driver should be reminded to do safety checks Yes; remind the tour group to wear safety belts for personal safety No; if local regulations require tour coaches to equip with safety belts, another tour coach should be requested Page 19

20 10 Door side assistance (When customers are alighting from the coach, the tourist guide, tour escort or accompany staff should stand by the door side of the coach to assist all customers to land on the ground properly before moving on to other activities) Yes No; the tourist guide, tour escort or accompany staff should be reminded to do so 11 Other matters that affect safety C2.1.2 Tour coach driver The tourist guide and tour escort should carefully monitor the following items. Items for Checking 1 The driver has valid driving license 2 The driver is sick, fatigued, drunk or seems to be under the influence of alcohol or medicines 3 The driver drives safely and obeys traffic rules (e.g. not exceeding speed limit, following traffic lights) 4 The driver smokes whilst driving 5 When using a communication equipment, the driver should park the coach in a safe place first, or use a hand-free apparatus Checking result and appropriate action to be taken Yes No; another driver must be requested Yes; should stop the driver from drinking and request another driver No Yes No; the driver should be asked to make improvement, and if there is no improvement, another driver should be requested Yes; the driver should be asked to stop doing it immediately No Yes No; the driver should be asked to make improvement, and if there is no improvement, another driver should be requested 6 Other matters that affect safety C2.1.3 Charter vessel, sightseeing boat or other means of transport The tourist guide and tour escort should carefully check the following items. They should pay constant attention to the weather condition. In case of bad weather, they should carefully consider whether the trip should continue or the itinerary should be changed for the safety of the tour group. Items for Checking Checking result and appropriate action to be taken 1 With navigation & tourist-carrying license Yes No; if local regulations require license display, must request another vessel 2 Capacity (no. of people) Without overloading Overload; the tour group should not board the vessel Page 20

21 3 Life jackets and buoys in positions easy to take 4 Clear instruction in using life jackets 5 Speed of vessel 6 Pier facilities (for embarking the vessel) 7 Pier facilities (for disembarking the vessel) 8 Life guards on duty on beaches / aquatic activities venue Yes No; warn the tour group Yes No; provide guidance to the tour group on how to use life jackets before the vessel trip begins Appropriate Too fast; the captain should be asked to make improvement, if there is no improvement, another vessel operator should be requested Good / Safe Poor / Unsafe; warn the tour group; report to Travel Agent Good / Safe Poor / Unsafe; warn the tour group; report to Travel Agent Yes No; warn the tour group 9 Other matters that affect safety C2.2 Meals The following items should be carefully checked by the tourist guide and tour escort every day and before every meal. Items for Checking 1 Hygiene of the dining place 2 Hygiene of food 3 Hygiene of eating utensils Checking result and appropriate action to be taken Good Bad; another dining place should be arranged; report to Travel Agent Good Bad; another dining place should be arranged; report to Travel Agent Good Bad; report to restaurant and the utensils should be replaced with clean ones 4 Floor surface of the dining place Dry Wet; tour group should be warned of danger of slip and fall 5 Distance of the dining table(s) of the tour Appropriate group from the kitchen Too near; warn the tour group 6 Dining place has emergency signs, fire Yes Page 21

22 7 Fire fighting equipments Not prominent; warn the tour group No; tourist guide and tour escort find ways for exit in case of fire, warn the tour group and report to Travel Agent Yes No; report to Travel Agent 8 Other matters that affect hygiene and safety C2.3 Hotel / Accommodation The tourist guide and tour escort should carefully check the following items and remind the tour group to take note of instructions on emergency procedures. Whenever the tour group stays at another hotel, all the items should be checked again. Items for Checking 1 Maps showing fire escape routes / emergency exits, and emergency procedures posted 2 Positions of such maps or procedures Checking result and appropriate action to be taken Yes No; the hotel should be asked to provide such information for the tour group Prominent Not Prominent; advise the tour group where they are 3 Fire fighting equipments, e.g. Automatic sprinkler Smoke detector Fire extinguishers Fire hose Emergency lighting system 4 Windows to hotel rooms 5 Life guards on duty by pool side Yes; advise the tour group of the presence of these equipments No; warn the tour group; report to Travel Agent Can be opened Cannot be opened; warn the tour group Yes No; warn the tour group; advise tour members to have companions when using the pool 6 Other matters that affect safety C2.4 Activities C2.4.1 Activities within the Itinerary The tourist guide and tour escort should carefully check the following items. Items for Checking Checking result and appropriate action to be taken 1 Tour member(s) feel sick Yes; advise and/or arrange the tour member(s) to consult doctor Page 22

23 2 Tour member(s) feel sick at high altitudes 3 Tour member(s) are injured in accident No Yes; arrange tour member(s) to consult doctor No Yes; arrange tour member(s) to seek medical assistance; report to Travel Agent immediately No C2.4.2 Optional activities The tourist guide and tour escort should carefully check the following items. Items for Checking 1 Activity provider approved and arranged by Travel Agent 2 Safety warnings 3 Assumption of Risk Statement and Liability Waiver Form signed by tour members Checking result and appropriate action to be taken Yes No; the activities should not be arranged Yes; bring to the attention of the tour members No; remind the tour members to beware of personal safety Yes; tour escort or tourist guide has explained the details of the forms No; the activities should not be arranged Tour escort Signature Tourist guide Signature Date Date Page 23

24 Section D Post-Tour Follow-Up D1 Complaints Resolution and Refund Handling Careful handling of client bookings will reduce the possibilities of complaints. However, from time to time, disappointment from accidents or other incidents may eventually end as complaints. Poorly handled complaints will adversely affect the reputation of the Travel Agent, wasting the time of its Management and staff and incur negative impacts. A wellplanned and effective complaint handling mechanism will enhance the relationship between the Travel Agent (including the Outbound Travel Agent and the Inbound Travel Agent that directly takes customer bookings) with customers, and create future businesses. The following are Guidelines for Complaint Resolution and Refund Handling. 1. All customer complaints or claims should be dealt with sympathetically. 2. Where a claim involves injury or loss of property or where legal action may be threatened, DO NOT ADMIT OR USE WORDS THAT COULD BE CONSIDERED AS AN ADMISSION OF LIABILITY. 3. Travel Agent should request the lodgment of the claim in writing. Again DO NOT ADMIT RESPONSIBILITY ON BEHALF OF THE AGENCY OR A SUPPLIER. Travel Agent should obtain the full facts of the cause of the complaint. Where refunds are to be provided, Travel Agent should inform their customers whether the refunds are (i) monies for unused services returned by suppliers or (ii) goodwill payments from the Company. Where refunds are then available and given, Travel Agent should write a covering letter attaching the cheque and confirming that the refund is in FULL and FINAL SETTLEMENT of the matter. 4. As a general guide to behavior and settlement:- Remain courteous to a customer, even if they become agitated or offensive. Stick to the facts, do not speculate or blame others unless the facts are clear. Seek to take the customer to a part of the premises (e.g. a meeting room) that is comfortable and discreet and offer tea or other refreshments. Seek the assistance from more senior or experienced colleagues if you are unable to pacify the customer or if it is otherwise warranted by the nature or seriousness of the complaint or it is a major and highly valued customer. Demonstrate every effort where you are seeking recovery on the customer s behalf of refunds from suppliers. In any discussion or correspondence with suppliers, remain polite, firm and focus on the facts. Ensure there is a process to escalate complaints to management of the Company where they are substantial, concern any occurrence that could damage the reputation of the Company or involve any threat of litigation or any breach of law. Page 24

25 See a complaint as an opportunity to delight a customer, by being responsive and proactive. 5. Travel Agent should be reminded of the fact that a compromise or settlement is a contract of its own right which will supercede rights and liabilities under the original contract and therefore care should be taken to have the terms of the compromise properly drafted, signed and kept. Page 25

26 Appendix 1 Sample Supplier Selection Questionnaire A. Company Information Name: Address: (Please specify Trade Name as well, if any) License No: (Please enclose copies of all relating licenses, e.g. company license, operation license, etc) Licensed Areas of Operation: (Please provide written information) Legal Entity of the Company: Sole Proprietor Partnership Limited Company Public Limited Company Listed Company (Please specify Stock Code & the Stock Exchange with which the Company is listed ) Others (If your Company is a subsidiary company of a listed company, please name the listed company ) Asset Value of the Company: (Please enclose latest audited financial statement) (Please specify currency) Person-in-Charge: Name: Title: Tel: Fax: Emergency Contact Person: Name: Title: Tel: Fax: Page 26

27 Date of Commencement of Operation: (Please provide written information.) No. of Employees: Full Time (A+B) Temporary (C+D) (including freelancers) Licensed Tourist guides (A) Other Staff (B) Licensed Tourist guides (C) Other Staff (D) Operation Scope: Inbound tours Tour Group Meetings, Incentives, Conventions & Exhibitions (MICE) Leisure Hotel Reservation Outbound tours Tour Group Meetings, Incentives, Conventions & Exhibitions (MICE) Leisure Hotel Reservation Corporate Travel Ticketing Average Sales per year in the last 3 years: (Please specify currency) Membership: International Air Transport Association (IATA) Pacific Asia Travel Association (PATA) American Society Travel Agents (ASTA) SITE Others (Please specify) Page 27

28 B. Legal Compliance Do your tourist guides meet local legal requirements? Yes No Have you purchased insurance policies to cover travelers in compliance with the local regulatory requirements? Yes (1) Type of Insurance Amount Insured Period of Insurance (2) Type of Insurance Amount Insured Period of Insurance No If you engage a tour coach or charter vessel company to provide transport services, please specify: (Please provide copies of operation licenses.) Tour coach company Name Operation License No. Average length of service of tour coaches Charter vessel company Name Operation License No. Average length of service of charter vessels Has the tour coach and/or charter vessel company purchased insurance policies in compliance with the local regulatory requirements? Yes (1) Type of Insurance Amount Insured Period of Insurance (2) Type of Insurance Amount Insured Period of Insurance No Page 28

29 Please confirm whether the following conform to local legal requirements: Specifications of tour coaches / charter vessels to be used Yes No Credentials of drivers / vessel operators Yes No Schedule of work and rest of the drivers / vessel operators Yes No (If yes, please provide written information.) If you engage other sub-agents for providing services such as transport (other than coaches and charter vessels), meals, accommodation, tourism and entertainment facilities, do they meet local legal requirements and have they purchased insurance policies in compliance with local regulatory requirements? Yes (1) Name of Service Provider Service Operation License # Type of Insurance Amount Insured Period of Insurance (2) Name of Service Provider Service Operation License # Type of Insurance Amount Insured Period of Insurance (Please provide copies of all relating licenses, e.g. company license, operation license, etc.) No Page 29

30 C. Safety and Quality Standards What are the precautionary measures taken to ensure the safety of the customers? Service Catering Accommodation Transport Safety Measures Activities (e.g. scuba diving, skiing, visit to tourist spots, etc) Do you have a written Crisis Management Plan? If yes, please provide copy of the plan. In the past 5 years, have you got any claims against your Company in respect of safety issues relating to the services you or your sub-agent(s) provided? If yes, please provide details. Do you have Service Quality Standard / Guideline? document. If yes, please provide copy of the Page 30

31 Do you have standard Customer Complaint Handling Procedures? If yes, please provide copy of the procedures. In the past 2 years, have you got any complaints from customers? If yes, please provide details. What are the selection criteria you use for choosing your sub-agents to provide the following services? Service Catering Accommodation Transport Selection Criteria Activities (e.g. scuba diving, skiing, visit to tourist spots, etc) Authorized Signature Company Chop Date Page 31

32 Appendix 2 Sample Service Agreement with Land Operators / Suppliers Note: The content of this Appendix is for your information only and must not be relied upon as legal advice. You must obtain your own legal and other relevant advice to meet and address your specific interests, needs and circumstances. Land Operator Service Agreement This Agreement is made on the between TRAVEL AGENT whose registered address is at (hereinafter called Travel Agent ) and SUPPLIER whose registered address is at (hereinafter called Land Operator ) WHEREBY IT IS AGREED that the company is designated to be our local land operator and the company will execute the regulations therein set out which the company acknowledges it has been read and accepted. I. Principles and Policies 1. To support the brand profile and development objective of Travel Agent, Land Operator must have certain financial capability. 2. Land Operator must be innovative in the design and arrangement of tour itineraries and should provide constructive proposals for product development to Travel Agent. 3. Land Operator must actively explore new tourist attractions and develop new routes, review existing products and routes on a regular basis, and bring in new ideas and new elements in light of the market needs. 4. Land Operator must adopt a proactive and progressive approach in business development, and respect its cooperative relationship with Travel Agent and follow the agreed terms and conditions of cooperation. 5. Tour groups should be arranged with quality standard and at the same time, the tour costs must be competitive in the market. 6. Land Operator must strictly observe all the requirements and standards set out by Travel Agent for the tour group arrangement, and should not add or delete any terms and conditions thereof or make any alterations thereto unilaterally. 7. Land Operator must maintain good relationships with its local partners, such as tour coach companies, hotels and restaurants etc. in order to ensure service quality provided to the tour groups of Travel Agent. II. Safety and Regulations A. Tour Coach Page 32

33 Select only licensed tour coach companies, reputable ones should be selected as far as practicable. Tour coaches must possess proper and valid permits for carrying tourists. Tour coaches must be covered by third party liability insurance. The age of the tour coaches should not exceed the limit of local regulations. Tour coaches should be inspected and serviced on a regular basis. Land operators should check such maintenance record annually. The tour coach must be installed with enough seats to accommodate all passengers. Tour coaches should be equipped with emergency exits according to regulations. Efforts should be made to ensure its functionality in case of emergency. Tour coaches should be equipped with first-aid kits with sufficient and appropriate medical supplies. Windows of the tour coach should be damage-free. Anti-freezing and frost-preventing devices should be installed for the windshield in winter. Tour coaches should be leak-proof. If the route involves going through rugged mountain roads, appropriate type of tour coach with adequate capacity and horsepower should be used. Tires should be changed on a regular basis. Tour coaches should not use tires with worn treads. Appropriate tires should be used for driving on snowy roads. Priority should be given to tour coaches equipped with seat belts. Tour coaches with more than 40 seats should be equipped with luggage holds. B. Tour Coach Driver Drivers must possess valid driving licenses. Drivers should have more than x years of experience in driving tour coaches. Drivers should have good driving record. Drivers should check their tour coaches before the tour starts, in the course of and at the end of the tour to ensure their coaches are functioning properly at all times. In the event of mechanical breakdown or malfunction, the driver should discontinue from driving the coach concerned. A replacement tour coach should be requested. Drivers should be familiar with and take safe routes for the tours. If a new route will be taken, the driver should get acquainted with relevant traffic information before receiving the tour group. Drivers should pay attention to the situation on the road at all times. Drivers should not speed, overtake, or change lanes abruptly. Drivers should stay alert whilst driving. No alcoholic drinks or drugs that may affect their state of mind are allowed. Page 33